Another turbulent year looms for Korea's petrochemical industry in 2026 Editor's Note: AJP is running a series on the 2026 outlook for South Korea's key industries, based on forecasts compiled by the Korea Chamber of Commerce and Industry (KCCI). The first installment examines petrochemicals. SEOUL, December 16 (AJP) - South Korea's battered petrochemical industry, already deep into streamlining and restructuring, is bracing for another difficult year in 2026, with conditions expected to remain cloudy and rain-soaked, according to an industrial "weather forecast" released by the Korea Chamber of Commerce and Industry (KCCI). Exports are projected to fall a further 6.1 percent next year, following an estimated 11.2 percent drop in 2025, as global oversupply continues to weigh heavily on prices and margins. Domestic output is expected to edge up just 0.9 percent to 20.67 million tons, reflecting capacity rationalization after an estimated 3.7 percent contraction this year. The global glut shows little sign of easing. China's share of global ethylene capacity has surged from 21 percent in 2022 to an estimated 25.2 percent this year, while worldwide oversupply is projected to widen to 49 million tons in 2025, up from 44.9 million tons last year. Restructuring has been most acute at the Yeosu petrochemical complex in South Jeolla Province, which accounts for roughly half of South Korea's total petrochemical capacity and produces 6.41 million tons of ethylene annually. During a visit last month, Trade, Industry and Energy Minister Kim Jung-kwan warned that companies failing to meet a December deadline for output cuts would be excluded from government relief measures. Under a government-mediated "voluntary pact" reached in August, three major petrochemical hubs agreed to roll back naphtha cracking output by up to 25 percent of total capacity. At the Daesan complex in South Chungcheong Province, Lotte Chemical and HD Hyundai Chemical have already submitted plans to scale down their naphtha cracking centers, while Ulsan-based producers SK Geo Centric and Korea Petrochemical are exploring partnership options. Progress elsewhere has intensified pressure on Yeosu-based producers to follow suit. Yeocheon NCC, the country's third-largest ethylene producer, reached a breakthrough this month after its joint owners Hanwha Solutions and DL Chemical reportedly agreed to finalize feedstock supply contracts that had been stalled for nearly a year over pricing disputes. The agreement clears the way for Yeocheon NCC to permanently shut down its No. 3 plant, which has been idle since August, eliminating 470,000 tons of annual capacity. The two shareholders have also agreed to convert a combined 300 billion won ($220 million) in loans into equity. Tensions, however, remain unresolved. DL Chemical said Monday that it had proposed shutting down Yeocheon NCC's larger No. 1 plant, which has capacity of 900,000 tons, a move Hanwha Solutions said had not been agreed upon. Industry sources interpret the proposal as DL's attempt to minimize its losses, noting that Hanwha consumes roughly 1.4 million tons of ethylene annually—nearly twice DL's usage of 735,000 tons. DL Chemical argued in a statement that closing either the No. 1 or No. 2 plant was the only viable option to stem ongoing losses. China's relentless capacity expansion has continued to erode margins across the naphtha-based value chain. Ethylene prices have fallen to about $740 per ton this month, down 17 percent from the start of the year, while propylene prices have dropped 15 percent to around $880 per ton. Analysts expect the oversupply to persist at least through 2027. Domestic demand has offered little relief. Output of vehicles for the domestic market fell 2.7 percent in 2024 to 4.13 million units, while construction activity has contracted by double digits for most of 2025. Rising imports of plastic and textile products have further squeezed demand for locally produced petrochemicals. "Under a conservative scenario involving SK Geo Centric in Ulsan, Yeocheon NCC's No. 1 plant in Yeosu and Lotte Chemical in Daesan, the industry could shed around 2.7 million tons, or 21 percent of domestic capacity," said Jeon Yu-jin, an analyst at iM Securities. "A more aggressive scenario that includes LG Chem's No. 1 plant would push cuts to about 3.9 million tons, or 30 percent." In its report, KCCI urged the government to elevate eco-friendly petrochemical technologies from a "new growth engine" to a "national strategic technology," a move that would lift tax credits by more than 10 percentage points. The group said stronger incentives could accelerate the industry's shift toward bioplastics, chemical recycling and electric-heated naphtha cracking. "China's manufacturing competitiveness is rising by the day, putting every producer on edge," said Lee Jong-myung, head of KCCI's industrial innovation division. "Companies must continue experimenting aggressively, including with AI, while the government needs to deliver bold regulatory reforms and incentive frameworks to support the transition." 2025-12-16 15:46:16

South Korea's Wemade to launch 'Mir M' role-playing game in China SEOUL, December 16 (AJP) - South Korean game developer Wemade said Tuesday it will officially launch its multiplayer online role-playing game Mir M in China next month, aiming to regain traction in the world’s largest gaming market. In China, the title will be released as Mir M: Twilight Double Dragons, a modern adaptation of Wemade’s long-running hit Legend of Mir 2. Legend of Mir 2 once dominated China’s online gaming market, capturing a 65 percent market share in 2004. The game was also listed in the Guinness Book of Records in 2005 after reaching 800,000 concurrent users. Wemade said it plans to capitalize on the franchise’s strong brand recognition to accelerate its re-entry into the Chinese market, where competition has intensified and regulatory scrutiny remains high. To improve its chances of success, the company has implemented an extensive localization strategy, incorporating feedback from multiple pre-launch tests and reflecting current player preferences in China. While retaining signature elements such as eight-directional grid-based combat and a quarter-view perspective, the game’s combat system, equipment progression and user interface have been redesigned for local audiences. Wemade has also added China-exclusive cinematic content and unique design features to enhance player immersion. An early access server launched on Dec. 4 has been operating smoothly, the company said, with user data set to carry over to the official release. Wemade said it is focusing on service stability and optimization ahead of the full launch. * This article, published by Economic Daily, was translated by AI and edited by AJP. 2025-12-16 15:35:51

South Korea, US hold consultative talks to coordinate North Korea policy SEOUL, December 16 (AJP) - Officials from South Korea and the U.S. on Tuesday held talks to coordinate policies toward North Korea. According to the Ministry of Foreign Affairs, the consultative meeting among relevant ministries and agencies, led by Jeong Yeon-doo, head of the ministry's office of diplomatic strategy, was held in Seoul, with acting U.S. Ambassador to South Korea Kevin Kim in attendance. Defense and security officials from both countries also attended, discussing relevant issues and exchanging opinions. The ministry explained that the meeting was held to bolster close cooperation for the complete denuclearization of North Korea and other issues for the peace of the Korean Peninsula, proposing regular meetings for consistent policies toward the North. But amid discords between ministries, officials from the Ministry of Unification, which handles inter-Korean affairs, did not attend. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-12-16 15:33:45

Top security adviser heads to Washington to discuss implementation of bilateral agreements SEOUL, December 16 (AJP) - National Security Adviser Wi Sung-lak on Tuesday left for Washington for working-level talks with U.S. officials this week. His trip comes after South Korea and the U.S. released a comprehensive joint fact sheet last month detailing agreements on bilateral trade and security. Wi is also expected to discuss measures for peace and security on the Korean Peninsula. Just before his departure from Incheon International Airport, Wi said, "I will discuss two main issues in the U.S. – follow-up on the joint fact sheet and peace on the Korean Peninsula." Wi emphasized the need for in-depth discussions and coordination with multiple U.S. agencies to implement the agreements outlined in the joint fact sheet, which include a U.S. commitment to support the reprocessing of spent nuclear fuel, uranium enrichment, and the construction of nuclear submarines using U.S.-supplied fuel. Wi will meet with U.S. Secretary of State Marco Rubio and other officials to expedite the bilateral deal and share updates on progress. He also highlighted South Korea's diplomatic efforts to improve relations with its neighboring countries of China and Japan, which could help facilitate engagement with North Korea. Referring to President Lee Jae Myung's proposal to U.S. President Donald Trump to act as a "peacemaker" during their first summit in Washington, D.C. last summer, Wi said he plans to discuss strategies for bringing North Korea to the dialogue table. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-12-16 14:53:21

Korea's M2 growth quickens to 8.7% in Oct; BOK rejects FX link SEOUL, December 16 (AJP) -South Korea’s broad money supply (M2) has remained in the 8-percent growth range since August and accelerated further to 8.7 percent in October, the Bank of Korea said Tuesday, while pushing back against claims that the liquidity increase is driving the won’s weakness. According to the central bank’s monetary aggregates report, the average M2 balance stood at 4,471.6 trillion won in October, up 0.9 percent from the previous month and 8.7 percent from a year earlier, marking the third consecutive month of annual growth above 8 percent. M2 includes cash, demand deposits and short-term financial instruments such as money market funds and certificates of deposit. The October increase was driven mainly by a 31.5 trillion won rise in securities-related balances, reflecting heavy stock market investment amid a rally in domestic equities. Regular deposits increased by 9.4 trillion won, partly due to banks’ regulatory funding needs. By sector, households and nonprofit organizations recorded a 24.1 trillion won increase in M2 balances, while other financial institutions and corporations also contributed to the expansion. Narrow money supply (M1), which includes only cash and demand deposits, rose 0.2 percent month on month and 8.1 percent year on year. Amid growing debate over whether rapid M2 growth is fueling asset inflation and foreign-exchange volatility, the Bank of Korea said it would revise its monetary statistics in line with updated International Monetary Fund (IMF) guidelines, with revised figures scheduled for release on Dec. 30. From November data onward, the central bank will publish two versions of M2—the current series and a measure excluding securities-related balances—for at least a year, in an effort to clarify underlying liquidity conditions. Kim Min-soo, head of the BOK’s financial statistics team, said securities accounted for 3.3 percentage points of October’s 8.7 percent M2 growth, or about 40 percent of the total increase. “Without securities, the growth rate would have been below 6 percent in September,” he said. The central bank stressed that liquidity alone is not driving housing prices or the exchange rate. Park Sung-jin, head of the BOK’s market operations team, noted that South Korea’s M2 definition differs from that of the United States, where securities are excluded, cautioning against direct comparisons of liquidity conditions across countries. He added that recent housing price increases in the Seoul metropolitan area cannot be attributed solely to money supply growth, pointing to macroprudential measures that have slowed household lending. As for the won, Park said exchange-rate movements are being shaped more by overseas securities investment, exporters’ foreign-currency holdings, and broader capital flows than by domestic liquidity expansion. As of 2:40 p.m. Tuesday, the dollar reversed direction after falling to 1,468 won earlier to 1,475.60 won, up 4.80 won last close on heavy foreign stock selling. 2025-12-16 14:48:02

Sookmyung Women's University team develops light-activated technology to break down fat SEOUL, December 16 (AJP) - A research team at Sookmyung Women’s University, led by Professor Byun Jun-ho in the College of Pharmacy, has developed a new nanotechnology that uses light to selectively break down fat inside fat cells, a potential advance toward safer and more precise obesity treatments. The researchers said in the study, announced on December 16, that the approach targets fat without damaging surrounding tissue, addressing safety concerns linked to existing obesity treatments. Obesity is one of the most common chronic health conditions worldwide and is closely associated with diabetes, cardiovascular disease, and fatty liver disease. Current treatments rely largely on medication or surgery, which can cause systemic side effects or require invasive procedures, increasing demand for more targeted alternatives. The team focused on a natural cellular recycling process known as chaperone-mediated autophagy, or CMA. CMA helps maintain balance inside cells by breaking down specific proteins, and recent studies have shown it plays a key role in fat metabolism. To activate this process selectively, the researchers developed a nanoparticle system embedded in a hydrogel. The nanoparticles are coated with membranes derived from fat cells, allowing them to be absorbed primarily by fat cells rather than immune cells or nearby tissue. Each particle also carries a drug that promotes fat breakdown. When near-infrared light is applied, the nanoparticles generate mild heat that activates a key CMA-related protein, HSC70. This triggers the breakdown of a protective protein surrounding fat droplets, allowing fat-digesting enzymes to access and dismantle stored fat. The effect occurs only inside fat cells. In animal tests using mice fed a high-fat diet, the treatment led to significant weight loss and clear reductions in fat tissue size and triglyceride accumulation after light exposure. The researchers reported no abnormal findings in major toxicity indicators, including liver and kidney function, supporting the potential of the approach as a localized treatment. Byun said the study differs from existing light-based fat treatments that destroy fat cells directly. “This strategy selectively breaks down fat by precisely controlling the cell’s natural degradation system,” he said, adding that the approach could eventually be expanded to metabolic and aging-related diseases linked to impaired autophagy. The findings were published in Advanced Materials, an international journal in materials science and nanobiotechnology. The study was conducted in collaboration with researchers from Seoul National University, Korea University, and the Korea Institute of Materials Science. ◆Journal: Advanced Materials (impact factor 26.8, JCR top 2.2 percent) ◆Title: Selective Lipolysis by Photoactivation of Chaperone-Mediated Autophagy Using Adipocyte Membrane-Coated Nanoparticle in Hydrogel ◆DOI: https://doi.org/10.1002/adma.202418445 2025-12-16 14:30:49

Ferrari selects Samsung Display OLED panels for next-generation vehicles SEOUL, December 16 (AJP) - Ferrari will adopt automotive organic light-emitting diode (OLED) panels from Samsung Display for its next-generation vehicles, as the luxury sports carmaker seeks to enhance in-car digital experiences through advanced display technology. The Italian automaker said Tuesday Samsung Display’s panels were selected for their ability to support the innovative designs and form factors required for Ferrari’s future models. “Samsung Display’s expertise in designing and manufacturing thin and lightweight OLED panels is a clear advantage in enhancing the digital environment of Ferrari’s next-generation models,” Ernesto Lasalandra, Ferrari’s chief research and development officer, said in a statement. “In the luxury segment, improving the customer experience is key, and Samsung’s support was essential in introducing unprecedented custom advanced display solutions in the automotive industry,” he added. Lasalandra said the partnership reflects broader industry trends, including digitalization, user experience and premium branding, and highlights the growing role of cross-industry technology collaboration in driving automotive innovation. Park Jin-woo, executive vice president of Samsung Display, said the agreement underscores the South Korean company’s technological leadership in advanced displays. “When thinking of the world’s most iconic high-performance sports cars, Ferrari is the brand that comes to mind,” Park said, adding that both companies share values of passion, continuous innovation and a commitment to excellence. “Through this partnership, we aim to deliver exceptional value to consumers and further strengthen Samsung Display’s position as a leader in next-generation display innovation,” he said. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-12-16 14:27:57

Generative AI lowers barriers to cyberattacks as hacking cases jump in South Korea SEOUL, December 16 (AJP) - Hacking crimes in South Korea have surged alongside advances in artificial intelligence, as generative AI tools lower the barriers to launching cyberattacks, according to a report released by the Korean National Police University. The university’s Crime Policy Research Institute said 2,617 hacking cases were recorded between January and September this year, up 30.6 percent from the same period a year earlier. Of those cases, 551 were solved, lifting the arrest rate to 21 percent, an increase of 3 percentage points from last year. Despite the improvement, the institute said investigative outcomes remain constrained by the growing sophistication of hacking techniques. “While investigative capabilities have improved to some extent, the rapid evolution of hacking methods is making crime tracking and prevention increasingly difficult,” the institute said in the report. The expansion of online and cloud-based systems across the corporate and public sectors has widened the pool of potential targets, while hackers are increasingly using AI to accelerate and scale their attacks. Generative AI can automatically design attack scenarios based on learned hacking patterns, posing a qualitatively new threat. By reducing the need for advanced coding skills, the technology allows even relatively inexperienced users to carry out cyberattacks. Overall cybercrime also continued to rise, increasing 22.6 percent through September from a year earlier. Cases of cyber sexual violence climbed 22.4 percent over the same period, the institute said. * This article, published by Economic Daily, was translated by AI and edited by AJP. 2025-12-16 14:13:13

TRAVEL: Pohang, perfect place to catch New Year's first sunrise along with winter delicacy SEOUL, December 16 (AJP) - South Korea's southeastern port city of Pohang is known as an industrial hub, but it also boasts scenic spots that attracts attract hordes of visitors at this time of year to witness the country's earliest and most stunning sunrises. About a 40-minute journey from the industrial city's KTX bullet train station takes visitors to Homigot at the easternmost tip of the Korean Peninsula. Famous for its iconic hand-shaped sculpture, the site draws large crowds on New Year's Day, eager to catch the year's first sunrise. The port city is also known for "gwamegi," a winter delicacy made from saury or herring that is semi-dried in the area's cold sea breeze, giving it a chewy texture and rich flavor. Every winter open-air markets near the small town of Guryongpo bustle with vendors selling stacks of this seasonal specialty, a culinary tradition handed down through generations. Some are neatly packaged for sale, while others hang in bundles tied with straw, catching the eyes of visitors. For locals, this signals the changing of seasons, while for food lovers, it marks the arrival of a winter delicacy, making gwamegi more than just food, but living cultural heritage. Gwamegi dates back to the Joseon Dynasty, when fishermen in Guryongpo began preserving the fish by hanging them to dry on wooden racks called "deokjang." As time passed, saury gradually replaced herring as the preferred fish. The area's frigid coastal winds during the winter help remove fishy odors while intensifying the flavor. this traditional process has become a vital winter industry that supports the local economy. With local catches dwindling, most gwamegi now comes from offshore sources. The frozen saury or herring is thawed, cleaned, split lengthwise, and hung on outdoor racks, where the sun and sea breeze dry it over several days to create the perfect gwamegi. Dried saury turns a deep black, while herring develops a golden hue. Gwamegi is often enjoyed wrapped in fresh vegetables and paired with other seafood, offering a savory flavor. With over 150 manufacturers producing more than 2,000 tons annually, Guryongpo now accounts for over 80 percent of the country's gwamegi supply. Another local favorite is "moriguksu," a hearty noodle soup made with seasonal fish and vegetables like bean sprouts, traditionally eaten by fishermen returning from the sea. Seasonal seafood such as snow crab or pufferfish adds freshness and depth to this comforting dish. A visit to Pohang in the final month of the year, enjoying local delicacies and watching the sunrise at Homigot, would leave a lasting memory, making it the perfect blend of natural beauty and culinary heritage. 2025-12-16 14:10:08

KAIST develops stretchable liquid-metal ink for invisible cloaking technology SEOUL, December 16 (AJP) - Researchers at the Korea Advanced Institute of Science and Technology have developed a stretchable liquid-metal ink that allows electromagnetic cloaking properties to change as the material is stretched, a breakthrough that could expand the practical use of invisible cloaking technology in robotics, wearables, and defense applications. The research was announced on December 16 by the Korea Advanced Institute of Science and Technology (KAIST). The study was led by Professor Kim Hyung-soo of the Department of Mechanical Engineering and Professor Park Sang-hoo of the Department of Nuclear and Quantum Engineering. The concept behind cloaking technology is to make an object undetectable to radar or sensors by controlling how electromagnetic waves, such as radio waves, interact with its surface. While cloaking has long been studied in theory and in rigid materials, applying it to moving or flexible objects has remained difficult because conventional metals conduct electricity well but break easily when stretched. The KAIST team addressed this limitation by developing a liquid metal composite ink, known as LMCP, that maintains electrical conductivity even when stretched up to 12 times its original length. The ink also showed high durability, remaining stable in open air for nearly a year without significant corrosion or performance loss. Unlike solid metals, the ink behaves like rubber while retaining metallic conductivity. This is possible because liquid metal particles inside the ink naturally form a network-like structure as the material dries, creating a self-connected conductive pathway. When printed in repeating microscopic patterns, the structure functions as a type of metamaterial, an engineered material designed to manipulate electromagnetic waves in specific ways. Using this ink, the researchers demonstrated the world's first stretchable electromagnetic metamaterial absorber whose radar absorption properties change depending on how much it is stretched. Simply pulling the material like a rubber band altered the frequency range of electromagnetic waves it could absorb, showing that cloaking performance could be actively tuned through physical deformation. The fabrication process is also relatively simple. The ink can be printed or brushed onto a surface and dried without the need for high-temperature processing, lasers, or complex manufacturing equipment. It also avoids common problems seen in liquid-based materials, such as cracking or uneven drying, allowing for smooth and uniform metal patterns. According to the researchers, the technology could be applied to robot skins that move and deform, body-worn electronic devices, and next-generation stealth systems that require adaptability rather than fixed shapes. By allowing cloaking performance to respond dynamically to movement, the material opens possibilities that were previously difficult to achieve with rigid designs. Professor Kim said the research shows that advanced electromagnetic functions can be realized through simple printing processes without complex machinery. He added that the technology could serve as a foundation for future applications ranging from wearable electronics to radar stealth systems. The findings were published in the October 2025 issue of the international journal Small, published by Wiley, and were selected as a cover article. The study was supported by a mid-career research grant from the National Research Foundation of Korea and the KAIST UP Program. The research team included first author Dr. Pyeon Jeong-su, co-author Lee Hyunseung, and Professor Choi Won-ho, with Professors Kim Hyungsoo and Park Sang-hoo serving as corresponding authors. 2025-12-16 14:06:05