Korean petrochemical players mull exit from ever-crowding money-losing market SEOUL, October 14 (AJP) - South Korean petrochemical producers are opting to bow out of the China-dominant game as they struggle to stay afloat despite government-mandated streamlining and output controls. SKC and Kuwait's Petrochemical Industries Company (PIC) are reportedly seeking a buyer for their combined stake in joint venture SK picglobal, as market woes from Chinese oversupply and Middle Eastern competition have spilled over from basic petrochemicals to downstream products, threatening the viability of even high-value chemical makers. SK picglobal, established in 2020 when SKC spun off its chemical operations, produces propylene oxide and other specialty chemicals used in automotive interiors, cosmetics, and pharmaceuticals. SKC holds a 51 percent stake, while PIC owns the remaining 49 percent, which it acquired for about 536 billion won shortly after the spinoff. The joint venture was once considered a model of advanced materials innovation, pioneering domestic commercial production of propylene oxide, a key ingredient in polyurethane. After reporting a record operating profit of 332 billion won in 2021, SK picglobal fell into the red as an influx of cheap Chinese products eroded margins. The company posted a loss of 33 billion won in the first half of this year. The downturn mirrors the broader struggles across South Korea’s petrochemical industry, where companies expanded aggressively even as profit margins deteriorated. The country currently operates 10 naphtha crackers — four each in Yeosu and Daesan and two in Ulsan — with annual ethylene capacity of about 13 million tons, ranking fourth globally after China, the United States, and Saudi Arabia. Ethylene, a colorless and flammable gas with a faint sweet odor, is a fundamental building block for plastics and other petrochemical products. SK picglobal's flagship product, propylene oxide, is also a co-product of ethylene production. Domestic ethylene capacity is expected to rise further to nearly 14.7 million tons once S-Oil completes its Shaheen project in late 2026, adding pressure to an industry already squeezed by Chinese overproduction and new Middle Eastern entrants. In response, the government has brokered a "voluntary agreement" among producers to reduce naphtha cracking output by 2.7 to 3.7 million tons, or up to 25 percent of total capacity, as part of an industry restructuring effort. "Chinese competition, Middle Eastern entry, and ethylene overproduction are all battering Korean producers. Ethylene is constantly losing profitability," said a spokesperson for the Korea Chemical Industry Association. Alongside capacity cuts, companies are pursuing vertical integration to survive. By merging with naphtha producers, chemical manufacturers aim to lower costs and phase out excess capacity through facility closures. Lotte Chemical and HD Hyundai Oilbank are leading the effort at the Daesan complex in South Chungcheong Province, where they are in talks to consolidate operations. The two companies already collaborate through their joint oil venture, HD Hyundai Chemical. In Ulsan, SK Geo Centric and Korea Petrochemical are exploring a potential partnership. The Ulsan complex has an annual ethylene capacity of 1.76 million tons, smaller than Yeosu's 6.27 million tons and Daesan's 4.78 million tons. The Yeosu complex poses the biggest challenge, industry officials say, as it faces the largest required capacity cuts and involves multiple stakeholders, including Yeochun NCC, LG Chem, and Lotte Chemical. Negotiations have been slow and difficult. "Now with the Middle East also rushing into the competition, we need advanced technology to gain the upper hand," said Koo Su-jin, professor of petrochemical process engineering at Korea Polytechnics. "Korean petrochemical firms and the government should invest more in cutting-edge refining and catalyst technology to reduce nitrogen oxide and sulfur oxide emissions, which can strengthen global competitiveness." 2025-10-14 16:01:39

Samsung Electronics to gift stock-tied compensation for employees SEOUL, October 14 (AJP) - Samsung Electronics will grant company shares to employees tied to its stock performance over the next three years, the Korean tech giant announced Tuesday in an internal notice following record quarterly sales in the third quarter. The program, called Performance Stock Units (PSU), is designed to motivate employees by linking long-term compensation to the company’s future performance and share price growth. Unlike the company’s existing annual bonus system based on short-term results, the new scheme rewards employees with stock whose final value depends on multi-year outcomes. Under the plan, Samsung will grant 200 shares to Career Level 1–2 employees and 300 shares to Career Level 3–4 employees this month. The final number of shares to be distributed will be determined after three years based on the degree of stock price appreciation, with payments made in three equal installments starting in 2028. The higher the stock price rise over the three-year period, the greater the compensation employees will receive. The announcement follows Samsung’s best-ever quarterly sales and three-year high operating profit for the July–September period, with shares nearing the symbolic 100,000 won threshold. Shares closed 1.8 percent lower at 91,600 won on Tuesday on profit-taking. 2025-10-14 15:56:01

Samsung Elec's record-setting Q3 results signal strongest-yet chip boom SEOUL, October 14 (AJP) - Despite lingering doubts over the durability and scope of the so-called AI-fueled chip supercycle, Samsung Electronics’ record-setting earnings guidance for the third quarter has set a new benchmark for the ongoing semiconductor boom. The South Korean tech giant on Tuesday projected an operating profit of 12.1 trillion won ($9.1 billion) for the July–September period, more than doubling from the previous quarter and marking the strongest quarterly performance since the second quarter of 2022. Revenue also hit a new quarterly high of 86 trillion won, up 15.3 percent on quarter and 8.7 percent on year. The stellar rebound comes after Samsung, for the first time in memory chip history, temporarily ceded its No. 1 position to local rival SK hynix earlier this year amid delays in its transition to high-bandwidth memory (HBM), critical to powering AI chips. Although the company’s contract with AI leader Nvidia has stalled, Samsung has secured new orders from Advanced Micro Devices (AMD) and Tesla, signaling progress in its next-generation AI chip portfolio. While the firm does not release divisional breakdowns in preliminary guidance, industry watchers estimate that the Device Solutions (DS) division — responsible for semiconductors — earned between 5 trillion and 6 trillion won, up sharply from 400 billion won in the second quarter. Investor sentiment remains upbeat that the strong run will extend well into next year. Kim Dong-won, analyst at KB Securities, forecast Samsung’s 2025 operating profit at 53.5 trillion won, the highest since 2018, driven by rising DRAM profitability and higher foundry utilization rates. The optimism is underpinned by firming memory prices. According to DRAMeXchange, the average fixed transaction price for PC DRAM (DDR4 8Gb 1Gx8) in September was $6.30, up 10.5 percent from August and surpassing the $6 mark for the first time since January 2019. The rebound reflects supply cuts in generic DRAM as chipmakers focus on high-performance server memory. The strength extends across the industry. Micron Technology, the U.S.-based DRAM producer, posted an operating profit of $2.2 billion on $9.3 billion in revenue for its latest fiscal quarter. Analysts say memory makers such as Samsung, SK hynix, and Micron are next in line to benefit from the AI-driven surge that has already lifted TSMC and Nvidia. SK hynix, a frontrunner in HBM and AI memory, is expected to post a record 11.6 trillion won in third-quarter operating profit, according to Son In-jun of Heungkuk Securities, citing sustained DRAM and NAND shipments. TrendForce and other research firms forecast that average DRAM contract prices will continue to strengthen into the fourth quarter and next year, supported by resilient AI server demand and tight supply conditions. Samsung shares closed 1.8 percent lower at 91,600 won on Tuesday after hitting an intraday high of 96,000 won, as investors took profits following the earnings announcement. 2025-10-14 15:55:40

KT, Palantir CEOs meet in Seoul to deepen AI partnership SEOUL, October 14 (AJP) - South Korean telecom company KT said Tuesday its chief executive, Kim Young-seop, met with Alex Karp, the CEO of U.S. data analytics firm Palantir Technologies, in Seoul to discuss ways to expand the use of Palantir’s artificial intelligence platforms across South Korean industries. The meeting, held at KT’s headquarters in Gwanghwamun, centered on how to implement Palantir’s technology for local businesses in sectors ranging from finance to manufacturing and public services. Karp’s visit coincided with KT’s AX Leader Summit, an AI-focused forum that brought together senior executives from major Korean companies, including Woo Ki-hong of Korean Air, Kim Yong-beom of Meritz Financial Group, Koo Ja-kyun of LS Electric, and Lee Joo-tae of POSCO Holdings. KT is currently piloting Palantir’s AI platform in its cloud-based systems to evaluate their effectiveness in analyzing complex corporate data and supporting management decisions. The company said it has gained consulting and technical know-how through these trials and plans to package them into integrated AI services for Korean clients, particularly in sectors where data security is critical. “Our collaboration with Palantir will become a model for AI-driven innovation across South Korea’s key industries,” Kim said. “We aim to enhance decision-making and operational efficiency through responsible AI use.” Karp described the partnership as “a significant step forward in secure cloud-based data utilization and industry-specific innovation,” according to KT. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-10-14 15:50:32

PHOTOS: A fruit paradise born from Bangkok's dawn market SEOUL, October 14 (AJP) - The Thai Market was already alive with energy. The first impression upon entering was the sheer scale. The space stretched across what felt like several football fields, with a ceiling as high as a five-story building. Yet even that vastness was filled with the scent of fruit. The air was thick with the sweet, heavy fragrance of mangoes, durians, bananas, dragon fruit, and pineapples. Located about an hour’s drive from Suvarnabhumi Airport, this market—whose name, “Talaad Thai” literally means “Thai Market”—is the largest wholesale market in the country. Fruits were piled high like mountains. Pomelos and pineapples formed pyramids, and vendors stood atop trucks unloading crates with astonishing speed. Each section dedicated to a single fruit seemed to hold several tons. Trucks from across Thailand began arriving around 3 a.m., joined by motorbikes fitted with cargo platforms. Headlights flickered on one by one, engines rumbled, and the market woke to life. Once the fruit arrived, the real work began—unloading, trimming, sorting, and boxing. Teams of workers handled knives and boxes with the precision of professionals. Every piece was inspected for quality, graded by size, and packed for delivery. The entire process took place before dawn so the fruit could reach markets and restaurants across Bangkok by morning. The workers moved with the rhythm of a well-trained dance troupe. No one gave orders, yet everyone knew their role—one person tossing boxes from the truck, another catching and stacking them, others sorting and repacking. Their coordinated movements were seamless. The biggest attraction of Talaad Thai is its price. Even in Thailand, where food is known to be affordable, this market stands apart. Fruits here cost about 30 percent less than at regular stores or supermarkets. The reason is simple: there is no middleman. Farmers sell directly to restaurant owners and retailers. By morning, the fruit that arrived in the dark spreads across the city—from luxury hotel buffets to street stalls. Although it is a wholesale market, individuals can also buy here. Locals often come with friends or neighbors to share their purchases. The variety of fruit is astonishing. The durian section, unique to Southeast Asia, is especially memorable. Known as the “king of fruits,” durians are stacked by size, their rich aroma noticeable even meters away. At first the smell can be overwhelming, but it soon becomes familiar—earthy, nutty, and sweet. The banana section is equally striking, with green bunches stretching like a sea. Hundreds, even thousands of clusters are arranged neatly in rows. Mangoes, in contrast, display a palette of colors—yellow, green, and red-tinted varieties. Each type serves a different purpose: some are eaten fresh, others are used in cooking or juicing. Talaad Thai is not a tourist attraction. There are no flashy signs or English explanations, and the wet floors glisten with fruit juice. But that rawness is its charm. It offers a glimpse of everyday Bangkok—unfiltered and alive. The heat of the market before sunrise, the heaps of fruit tumbling from trucks, the scent rising to the high ceilings, and the swift hands of the vendors all reveal another face of the city. This is a side of Bangkok that guidebooks rarely show. Instead of golden temples or shopping malls, it shows how the city truly functions. Here, you can watch where the fruit eaten by millions of Bangkok residents each morning begins its journey. 2025-10-14 15:17:50

Korea's top delivery operator Woowa takes in No. 1 industrial accident claim infamy with pride SEOUL, October 14 (AJP) - Woowa Youths, the logistics arm of Woowa Brothers, operator of South Korea's largest food delivery platform Baemin, remains atop the corporate rank on industrial accident insurance claims, but admits the infamy with grace rather than excuse. According to Workers' Compensation and Welfare Service data provided to Democratic Party lawmaker Park Hae-cheol, Woowa Youths filed 1,135 industrial accident claims as of August this year, with 1,071 approved—a 94 percent approval rate. While the numbers suggest the company has achieved top accident statistics for the fourth consecutive year, Woowa officials say the data tell a different story. "There are around 480,000 to 500,000 active riders nationwide, which is far larger than the workforce of any single industry," a Woowa Youths official told AJP on Tuesday. "Our rate of accidents per 1,000 riders has actually been dropping every year. What you’re seeing is a reflection of our scale and the fact that we don’t reject claims. We accept nearly every rider’s application." In industries like construction or manufacturing, industrial accident claims are often met with resistance from employers who fear the financial or reputational fallout. Delivery riders, on the other hand, work as independent contractors and are free to file claims themselves, resulting in a naturally higher volume of applications. Company figures show that the overall accident rate among riders has dropped by more than half, from 2.93 percent in 2022 to 1.38 percent in 2024. Woowa Youths attributes this steady decline to the Baemin Rider School, a safety education program the company has operated since 2018. Originally located in Namyangju, a satellite city of Seoul, the school moved this year to a larger, purpose-built facility in Hanam City, east of the capital. Construction was completed in September, and the new site will begin full-scale operations in November. The training center offers real-world riding simulations and defensive driving courses for delivery workers. More than 20,000 riders have completed the program so far. Woowa Brothers, which dominates South Korea's food delivery market with a 58.7 percent share as of May 2025, according to pollster IGAWorks' Mobile Index, was the first in the industry to voluntarily provide industrial accident insurance to riders starting in 2015, years before it became mandatory by law. The company says its priority remains the safety and well-being of delivery workers, even as competition in the market intensifies. "We believe rider protection is not just a legal duty but a responsibility," the official said. "Education, safety investment, and fair compensation are what will make the delivery industry sustainable." 2025-10-14 15:08:50

China sanctions five Hanwha Ocean subsidiaries in US SEOUL, October 14 (AJP) - The Chinese government said on Tuesday it had imposed sanctions on five U.S.-based subsidiaries of Hanwha Ocean, a South Korean shipbuilding company, in retaliation for a U.S. investigation into China’s maritime and shipbuilding industries. The Chinese Ministry of Commerce said the move was a direct response to Washington’s Section 301 investigation, which Beijing described as “a violation of international economic and trade rules” that undermines the rights of Chinese companies. The sanctions target Hanwha Shipping LLC, Hanwha Philly Shipyard Inc., Hanwha Ocean USA International LLC, Hanwha Shipping Holdings LLC, and HS USA Holdings. The companies are now barred from conducting business or entering into joint ventures with Chinese firms, according to the ministry. Beijing accused the subsidiaries of “supporting and facilitating” U.S. policies that it said threaten China’s sovereignty and national security. Shares of Hanwha Ocean fell 5.76 percent at 103,100 won, Tuesday. Earlier in the session, it dropped as much as 9,600 won to 99,600 won after China announced sanctions against the firm. The announcement adds to escalating maritime trade tensions between the world’s two largest economies. In April, the U.S. Trade Representative imposed new port service fees on Chinese vessels, a move China has since mirrored by applying similar charges on U.S.-flagged ships. Hanwha Ocean, one of South Korea’s leading defense contractors, did not immediately comment on the impact of the sanctions on its operations. The company, formerly known as Daewoo Shipbuilding & Marine Engineering, has expanded its U.S. footprint in recent years through investments in shipyards and logistics subsidiaries. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-10-14 14:40:04

Top touring car drivers to compete in Inje of South Korea Oct. 18-19 SEOUL, October 14 (AJP) - Hyundai Motor will co-host the Inje World Touring Car Festival with Inje County in Gangwon Province this weekend, marking the first time South Korea will host the FIA TCR World Tour, one of the world’s premier touring car championships. The two-day event, set for Oct. 18–19 at the Inje Speedium, will combine three major races — the Hyundai N Festival, the FIA TCR World Tour, and TCR Asia — turning the circuit into a global stage for high-performance motorsports. The Hyundai N Festival, South Korea’s largest one-make racing series, features identical car models competing across three divisions: Gran Turismo eN1, Kumho N1, and Nexen N2. This year’s fourth round will showcase race cars based on the Ioniq 5 N and Avante N, underscoring Hyundai’s push to highlight both electric and combustion performance models. The FIA TCR World Tour’s South Korean debut will coincide with the sixth round of the global series and the fifth round of TCR Asia, bringing together elite drivers from across continents. Among the headline competitors are Hyundai BRC Team World Champion Norbert Michelisz, Mikel Azcona, and Nestor Girolami, alongside top Asian racers including South Korea’s Park Jun-ui, Park Jun-seong, and Choi Jung-won. Hyundai has been a key player in the TCR series since 2018, fielding the i30 N and Avante N TCR race cars, and claiming two team championships and five driver titles. The Avante N TCR most recently won the fifth round in Australia last September. Beyond the races, the festival will feature interactive programs for fans. Family-oriented attractions will also be available. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-10-14 14:30:13

Man sentenced to 12 years in prison for setting fire to Seoul subway train SEOUL, October 14 (AJP) - The Seoul Southern District Court on Tuesday sentenced a 67-year-old man to 12 years in prison for attempting to murder passengers by setting fire to a Seoul subway train earlier this year. Prosecutors had sought a 20-year sentence for the man, identified only by his surname Won, who was charged with attempted murder, arson, and violating railway safety laws. "The defendant poured gasoline and set fire to a train carrying hundreds of passengers out of dissatisfaction with his divorce proceedings, causing injuries and widespread panic," the court said in its ruling. The ruling came months after Won set fire to a train between Yeouinaru and Mapo stations in May, aiming to kill about 160 passengers, including himself. The fire left six people injured and hospitalized 23 others for smoke inhalation. Won reportedly planned the arson to draw public attention, preparing by purchasing gasoline and selling off his assets. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-10-14 14:26:14

South Korea's ThinkFree enters Europe's secure software market through partnership with French firm SEOUL, October 14 (AJP) - ThinkFree, a software subsidiary of South Korea’s Hancom Group, said Tuesday that it has signed a supply agreement with Ercom, a cybersecurity subsidiary of France’s Thales Group, marking its entry into Europe’s data protection markets. Ercom specializes in secure communication and data protection technologies. Its flagship platform, Cryptobox, employs end-to-end encryption and is certified by the French National Cybersecurity Agency, allowing government and defense clients to exchange and store sensitive information under strict compliance standards. Under the agreement, ThinkFree’s office software suite will be integrated into the Cryptobox system, enabling users to view and edit documents within a fully encrypted and isolated environment. The partnership is designed to provide a secure yet user-friendly document management solution for sectors where confidentiality is critical, including defense, finance and public administration. The agreement follows a memorandum of understanding signed in August last year between ThinkFree and Ercom to jointly develop office software equipped with end-to-end encryption. Kim Doo-young, chief executive of ThinkFree, said the collaboration underscores the company’s strategy to strengthen its presence in the global security software market. “Our collaboration with Ercom is a significant step in enhancing our competitiveness in the global security market,” Kim said. “It will help us build a next-generation office environment that combines security and functionality.” The partnership also reflects Hancom’s broader effort to position itself as a provider of secure digital solutions amid growing global demand for trusted communication platforms in government and defense industries, Kim said. * This article, published by Economic Daily, was translated by AI and edited by AJP. 2025-10-14 13:58:37