Indonesia's High-Speed Rail: A Debt Trap? The murder of a South Korean student in Cambodia has sparked concerns over online scams. Chinese crime syndicates lured South Koreans with promises of high salaries, only to detain and force them into scams such as romance fraud and phishing. While these activities occurred in Phnom Penh, the main hub was Sihanoukville, influenced by China's Belt and Road Initiative (BRI). The city, home to Cambodia's largest port, saw a surge in Chinese investment, transforming it into a hotspot for casinos and hotels. However, online casinos became a base for criminal activities, leading to a 2019 ban by the Cambodian government. The pandemic left empty buildings, which scam operations took over. Sihanoukville exemplifies the dark legacy of BRI, leaving Cambodia with unfinished projects and rampant crime. Similar issues have surfaced in Indonesia, another BRI participant. In Indonesia, BRI investments have poured into infrastructure like high-speed rail and ports. The Sulawesi industrial park, a joint venture for nickel processing, faced backlash over false claims of 40,000 Chinese workers, fueling distrust and anti-Chinese sentiment. This led to violent clashes in 2023 and 2025, with the government criticized for perceived bias. Despite tensions, Indonesia avoided forming Chinese enclaves, unlike Cambodia. However, the Jakarta-Bandung high-speed rail project highlights BRI's challenges. Initiated in the early 2010s and accelerated under President Joko Widodo, the project saw China outbid Japan with a $5.5 billion offer, despite higher interest rates. Construction faced delays due to land acquisition and the pandemic, exhausting Chinese loans. President Widodo intervened, shifting from a business-to-business model to government-backed guarantees, injecting billions more to complete the project by 2023. Recently, the rail project has drawn scrutiny over its financial viability. Reports indicate significant losses, with 2024 deficits at 4.19 trillion rupiah ($360 million) and 2025's first half at 1.62 trillion rupiah ($140 million). Interest payments alone are estimated at 2 trillion rupiah ($170 million) annually, while revenue falls short. Critics question the decision to choose China over Japan, pointing to potential corruption. Widodo defended the rail as a social investment, emphasizing environmental and regional benefits. The government, under President Prabowo, seeks solutions, considering debt restructuring with China. The outcome could lead to political upheaval and corruption investigations. The high-speed rail controversy underscores the debt trap risk associated with BRI. While Indonesia's debt situation is manageable, prolonged deficits could trap its railway company in debt, making the Jakarta-Bandung rail a cautionary tale of foreign-funded infrastructure projects. Author's Background ▷Bachelor's and Master's from Seoul National University ▷Ph.D. from Australian National University ▷Professor at Kangwon National University ▷Former Director of the Institute of Social Sciences at Kangwon National University ▷Former President of the Korean Association of Southeast Asian Studies ▷Visiting Professor at Padjadjaran University, Indonesia * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-11-17 09:37:59

OPINION: In Trump's tariff world, South Korea learns cost of compromise When South Korea and the United States released a joint fact sheet on Nov. 14, it marked the end of 10 months of bruising trade negotiations set in motion by U.S. President Donald Trump. The agreement is sweeping: Seoul will commit $200 billion to U.S.-designated projects and another $150 billion to the American shipbuilding industry, on top of a $150 billion investment pledge made in August. In exchange, Washington will cap tariffs on South Korean automobiles and pharmaceuticals at 15 percent, and semiconductor duties will be aligned with those applied to other trading partners. Reactions to the deal have split sharply. Supporters hail it as a pragmatic compromise that stabilizes a volatile trade relationship. Critics see capitulation. Evaluating the agreement requires separating what happened at the bargaining table from what its outcomes may ultimately mean. On the facts alone, the picture is stark. The United States raised tariffs on South Korean goods from zero to 15 percent and secured enormous investment commitments. For many in Seoul, this looks unambiguously like a loss — the result of negotiating under duress with a far stronger counterpart. The analogy to David and Goliath is almost unavoidable, though this time the slingshot missed. Placed in a broader regional context, Washington’s strategy offers a clearer explanation. The administration treated Asia less as a collection of individual partners than as a competitive bloc anchored by Japan. By imposing blanket tariffs, it pitted U.S. allies against one another while extracting concessions from both. South Korea and Japan were hit with identical 15 percent tariffs on autos — up from zero for Korea and 2.5 percent for Japan — while steep steel duties of 50 percent remain in place. Whether the agreement ultimately benefits either country will hinge on implementation, particularly concerning investment commitments. If the U.S. Supreme Court eventually rules that Trump’s tariffs exceeded presidential authority, Washington could be compelled to refund the duties collected. But the pledged investments, by all indications, will move ahead regardless of what the courts decide. That raises deeper questions for South Korea. The United States hopes to direct these projects; Seoul, understandably, wants influence over where and how its capital is used. Domestic political resistance is likely, especially from labor unions wary of shifting resources abroad at a moment of economic unease at home. The deal underscores a broader challenge for South Korea: unless it strengthens its own economic foundations, it will remain vulnerable to high-pressure diplomacy. About the author -B.A. in Economics, Seoul National University -Ph.D. in Economics, University of Texas at Austin -Chairman, Trade Negotiation Advisory Committee * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-11-17 09:01:54

Korea's top conglomerates vow near $700 bn domestic investment, doubling US commitment SEOUL, November 16 (AJP) - South Korea’s four largest conglomerates — Samsung, SK, Hyundai and LG — pledged more than 1,000 trillion won ($687 billion) in domestic investment over the next five years, vowing to build new AI, semiconductor and hydrogen hubs outside the capital region to counter concerns that Seoul’s $350 billion U.S. investment commitment could drain high-tech capacity and jobs from home. The massive investment plans were laid out during a two-hour meeting with President Lee Jae Myung on Sunday, just days after Seoul and Washington electronically signed a memorandum of understanding for a sweeping industrial trade package. The deal lowers U.S. tariffs on Korean exports and includes $200 billion in Korean capital injections in the United States and $150 billion in bilateral shipbuilding cooperation. Under the agreement, tariffs on key Korean automobile and pharmaceutical exports will be cut to 15 percent, while semiconductor tariffs will be kept “no less favorable” than the rates applied to Taiwan. The meeting was attended by Samsung Electronics Chairman Lee Jae-yong, SK Group Chairman Chey Tae-won, Hyundai Motor Group Executive Chair Chung Euisun, LG Group Chairman Koo Kwang-mo, as well as senior leaders from HD Hyundai and Hanwha. President Lee urged the chiefs to ensure domestic investment does not lag behind U.S. commitments. “Some worry that U.S.-centered investment may weaken domestic activity,” he said. “I trust you will make sure those concerns do not become reality. Given Korea’s serious regional imbalance, I ask for even greater commitment to revitalizing local industries.” Samsung: Expanding domestic manufacturing, 60,000 new hires and national AI infrastructure Samsung Electronics Chairman Lee Jae-yong ensured no reduction in domestic investment, highlighting hiring commitments and new industrial sites outside the capital region. Samsung confirmed plans to invest 450 trillion won over five years, hire 60,000 workers, and expand advanced manufacturing capacity across memory semiconductors, displays and next-generation batteries. Samsung will begin construction of the fifth production line at its Pyeongtaek mega-campus, aiming for operation by 2028. The company is also building two major AI data centers in South Jeolla hosting 15,000 GPUs, and an AI service center in Gumi for Samsung affiliates. Samsung SDS, Samsung Display, Samsung SDI and Samsung Electro-Mechanics are each expanding facilities in Asan, Gwangju, Ulsan and Busan. SK Group: Yongin mega-fabrication site may reach 600 trillion won SK Group Chairman Chey Tae-won said domestic investment requirements have grown significantly due to demand for high-performance memory and advanced manufacturing technologies. SK had initially projected 128 trillion won in domestic investment by 2028. But Chey said that the Yongin semiconductor cluster alone may require up to 600 trillion won over the coming years. “As each fab begins partial operations, we are adding more than 2,000 jobs per facility,” Chey said. “If construction accelerates, SK could create 14,000 to 20,000 jobs per year through 2029.” Hyundai Motor Group: 125 trillion won through 2030 — AI, robotics and green energy at the core Hyundai Motor Group Chairman Chung Eui-sun unveiled a 125 trillion won domestic investment program for 2026–2030, the largest in the company’s history. The amount would sharply exceed its investment of 89 trillion won over the last five years. It will allocate 50.5 trillion won to new businesses including AI autonomous driving, robotics and hydrogen energy, 38.5 trillion won to R&D, and 36.2 trillion won to manufacturing upgrades and facility investments. Hyundai will build a high-power AI data center with Nvidia, expand robotics testing through a new Physical AI Application Center, and invest in a 1GW PEM hydrogen electrolysis plant in the southwest region. New EV and hydrogen fuel cell factories are underway in Ulsan and scheduled to open between 2026 and 2027. The company will also cover U.S. tariff burdens for key auto-parts suppliers this year and extend support to secondary and tertiary vendors. LG Group: Strengthening the supply chain with 100 trillion won LG Group Chairman Koo Kwang-mo said LG will invest 100 trillion won domestically over five years, assigning 60% to materials, components and equipment — the backbone of long-term competitiveness. LG is also expanding AI-powered factory automation for both LG plants and partner SMEs, citing successful productivity gains from earlier pilots. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-11-16 18:58:47

PM orders safety measures for Han River ferry service after another accident SEOUL, November 16 (AJP) - Prime Minister Kim Min-seok on Sunday instructed city officials to conduct a thorough investigation into the cause of an accident involving a water ferry service along the Han River. His instruction came a day after one of the boats stalled near a dock in Jamsil, southern Seoul, while passing through shallow waters. Although there were no casualties or injuries, all 82 passengers aboard were frightened before being safely rescued. Stressed the need to reassess the ferry service, he advised the city government to promptly conduct safety checks and consider extending temporary suspensions if necessary to ensure passengers' safety. Kim also called for improvement to response systems to ensure passenger safety in any emergency or accident. Dubbed the "Hangang Bus," the ferry service, a pet project of Seoul Mayor Oh Se-hoon, suffered disruptions due to technical glitches shortly after its bombastic launch in mid-September. It recently resumed operations after a month-long inspection, but was hit by another accident, reigniting criticism. 2025-11-16 16:40:15

US Navy chief tours South Korean shipyards as MASGA project gears up SEOUL, November 16 (AJP) - South Korea's leading shipbuilders, HD Hyundai Heavy Industries and Hanwha Ocean, said Sunday that U.S. Navy Chief Adm. Daryl Caudle visited their shipyards in the southern port cities of Ulsan and Geoje the previous day. His visit, accompanied by Kevin Kim, Chargé d'Affaires ad interim, and other officials, came just a day after South Korea and the U.S. released a joint fact sheet detailing their trade and security agreements, which include Seoul's pledge, dubbed "MASGA (Make America Shipbuilding Great Again)," to invest US$150 billion to revitalize the American shipbuilding industry in the coming years as part of the bilateral deal. At the industrial hub of Ulsan, HD Hyundai's Chairman Chung Ki-sun greeted Caudle as he toured Aegis destroyers and other ships under construction. Caudle boarded the recently launched Aegis destroyer Dasan Jeong Yak-yong, named after one of the greatest thinkers of the Joseon Dynasty (1392–1897), and received a briefing on its advanced combat readiness and operational capabilities. "We will help enhance the U.S. shipbuilding industry while making every effort to ensure the success of the MASGA project," Chung was quoted as saying. Caudle then traveled to Hanwha Ocean's facilities in Geoje, where CEO Kim Hee-chul and other executives demonstrated their shipbuilding capabilities. Hanwha Ocean has been involved in maintenance, repair, and overhaul (MRO) projects for the U.S. Navy, including dry cargo ship Charles Drew, which is scheduled for completion by January next year. Praising the shipbuilder's world-class infrastructure, the admiral stressed that collaboration in shipbuilding would further solidify the alliance between the two countries. Caudle's tour of the two shipyards is expected to speed up talks for the MASGA projects and other relevant cooperation in naval construction with U.S. counterparts. 2025-11-16 15:40:56

Registrations of electric vehicles surpass 200,000 in South Korea this year SEOUL, November 16 (AJP) - The number of registered electric vehicles in South Korea have exceeded over 200,000 units this year, the Ministry of Climate, Energy, and Environment said on Sunday. According to the ministry, 200,650 electric vehicles have been registered so far this year, surpassing the previous record of 164,486 set in 2022. The government's efforts to promote electric vehicles have driven sales from 100,000 units in 2021 to over 200,000 units in just four years. Passenger cars account for 172,309 units, followed by 25,723 trucks, 2,483 uses, and 23 special-purpose vehicles. Domestic brands make up 54.7 percent of passenger cars, 63.7 percent of buses, and 92.7 percent of trucks, partly boosted by the release of Hyundai's new Nexo model. The cumulative number of electric and hydrogen vehicles is around 950,000, with projections to reach 1 million early next year. The ministry attributed the growth to subsidies for buyers of eco-friendly cars, along with the release of new models and the expansion of charging facilities. Encouraged by this, the government plans to further promote electric vehicles to help achieve its greenhouse gas reduction target by 2035. "Our goal is for electric and hydrogen vehicles to make up more than 40 percent of new vehicles by 2030 and 70 percent by 2035," said Minister Kim Sung-hwan. "We will support the automotive industry to remain competitive while helping create more job opportunities." * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-11-16 14:18:22

Consumers turn to used cars as new compacts remain scarce SEOUL, November 16 (AJP) - As the economic downturn deepens, consumers are turning to used cars, while new small and compact models stay off the market. According to sales figures released on Sunday by the country's five major automakers Hyundai, Kia, GM Korea, Renault Korea, and KG Mobility, the combined sales of small vehicles in the first ten months of this year stood at around 60,000 units, down 27.3 percent from the same period last year. If this trend continues, annual sales are likely to hit a record low of about 70,000 units, falling below 100,000 units for the second consecutive year. No new small or compact models have been launched since 2023. The only models currently available are Hyundai's entry-level sport utility vehicle (SUV) Casper and Kia's compact models, the Ray and the Morning. Following the discontinuation of Chevrolet's Spark, one of the key models that had led the compact car market until a few years ago, sales of the Casper, which had been popular with over 30,000 units sold annually, have dropped sharply, with only 6,725 units sold from January to October this year. The decline is attributed to the lack of new compact models and the growing popularity of SUVs, fueled by rising interest in leisure activities such as camping. But compact cars remain in demand on the used car market. According to Market tracker Carisyou, he Morning and Spark were the top two models in used car transactions during the third quarter of this year. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-11-16 11:28:01

Despite drone boom, South Korea lags behind amid heavy reliance on Chinese components SEOUL, November 14 (AJP) - South Korea's exports of drones have grown nearly tenfold over the past two years, yet the country still holds less than 0.5 percent of the global market. According to a report released on Friday by the Korea International Trade Association (KITA), the country's exports of drones surged from $2.81 million in 2022 to $27.54 million in 2024. "Despite the rise in export volumes, the country's market competitiveness still lags far behind that of major overseas players," said Kim Mu-hyun, a senior researcher at the KITA. Although the number of drone manufacturers has increased in response to surging demand in this nascent high-tech industry, many lack sufficient infrastructure and R&D facilities, hindering further growth. Among some 265 drone manufacturers surveyed by the Korea Institute of Aviation Safety Technology in 2023, only 71 had such facilities, forcing many of them to conduct limited experiments that constrain consistent research and development." Profitability is another concern for the industry. Last year's survey by the Ministry of Land, Infrastructure and Transport found that the country's drone market grew 12.1 percent to 1.1 trillion Korean won ($754 million) in 2023 from the previous year. However, of nearly 7,000 firms in the industry, average revenue stood at a mere 200 million won. According to market researcher Hana Institute of Finance, even firms with more than seven years in the industry posted average annual sales of just 350 million won. Among the major global players, China dominates the market, accounting for nearly 90 percent, followed by the U.S. and Israel. South Korea ranked 20th as of 2024, although it had jumped significantly over the previous three years. Most domestic firms have heavily relied on Chinese imports for essential parts and components, which account for nearly 70 percent of all drones made here. "In the long term, localization of core components is essential," Kim said. "But The country's heavy reliance on Chinese imports is not simply due to a lack of technical capability, but stems from structural issues such as low profit margins, often linked to a focus on low-cost models for civilian use," he explained. He added that developing commercial models is crucial for nurturing the industry, as this would stimulate demand among businesses, creating a virtuous cycle that increases the use of locally produced components. For example, in the U.S., retail giant Walmart has partnered with startups such as DroneUp, Zipline, and Flytrex to roll out drone-based commercial delivery services, leveraging its nationwide store network and IT infrastructure to provide these startups with stable demand. Swedish DIY retailer IKEA has deployed autonomous indoor drones developed by local startup Verity since 2021 to track and manage inventory across more than a dozen stores in Belgium, Germany, and other countries. 2025-11-14 17:15:47

HOT STOCK: ABL Bio extends rally as Eli Lilly deal spurs biotech optimism SEOUL, November 14 (AJP) - Shares of South Korean biotech company ABL Bio rose 6.5 percent Friday to 174,200 won ($119), extending a three-day rally that has propelled the stock into the top tier of the local market. At one point during trading, the stock jumped more than 17 percent. The surge follows ABL Bio’s announcement Wednesday of a major licensing agreement with U.S. pharmaceutical giant Eli Lilly. The deal, which could ultimately be worth up to 3.8 trillion won ($2.6 billion), is the third-largest technology transfer agreement in South Korea’s history. Under the terms, ABL Bio will receive a $40 million upfront payment and up to $2.56 billion in milestone payments, along with tiered royalties on future product sales. The stock gained 30 percent Wednesday and added 29 percent Thursday, reflecting investor enthusiasm over the high-profile partnership. Eli Lilly, based in Indianapolis, is one of the world’s most valuable pharmaceutical companies and ranks 100th on the Fortune 500 and 138th on the Forbes Global 2000. Kyobo Securities analyst Jung Hee-ryeong raised her target price for the company to 190,000 won and assigned a “buy” rating, noting that ABL Bio is “on track to reach 10 trillion won ($6.85 billion)” in market capitalization. As of Friday’s close, the company’s market cap stood at 9.6 trillion won ($6.56 billion), just shy of that milestone. Jung highlighted several upcoming catalysts for the stock. The company’s Grabody-B platform has already generated 9.2 trillion won in cumulative deals, and positive interim results from a Phase 2 clinical trial expected in 2026 could further boost its valuation. A joint study with Ionis Pharmaceuticals assessing the platform’s muscle-delivery potential is scheduled for publication in December, potentially expanding the platform’s perceived versatility. Additional drivers include new licensing agreements, data from ABL001’s bile duct cancer treatment, and accelerated approval filings expected in the first half of next year. Korea’s broader biotech sector has also gained momentum. The KRX Healthcare Index, which tracks 66 pharmaceutical and biotech companies, has risen 9 percent so far this month, outperforming the KRX Semiconductor Index, which gained 1.6 percent. Analysts expect the biotech rally to extend into early 2026, supported by deal activity, clinical trial updates, and the potential for U.S. interest rate cuts. Korea Investment & Securities recommended a range of firms with licensing potential — including LigandChem Bio, D&D Pharmatech, Hanmi Pharmaceutical, AprilBio, and Kolon TissueGene — alongside ABL Bio. “The ABL Bio–Eli Lilly deal revived investor confidence in Korean biotech firms’ global competitiveness,” said Wi Hae-joo, an analyst at Korea Investment & Securities. 2025-11-14 17:09:10

Samsung showcases AI-powered 6G communication in Silicon Valley SEOUL, November 14 (AJP) - Samsung Electronics on Friday hosted the Silicon Valley Future Wireless Summit 2025, showcasing its latest strides in artificial intelligence-driven communication systems and reaffirming its position at the forefront of next-generation 6G technology. The event drew more than 100 leaders from global telecom carriers, equipment manufacturers, government agencies, and academia. Samsung used the summit to present its advances in AI-native communication systems — technologies that integrate artificial intelligence directly into network infrastructure — and to demonstrate its AI-RAN (AI-based Radio Access Network) platform, which autonomously optimizes network performance using self-learning algorithms. The conference covered topics such as extended reality, sensing-communication convergence, AI-enabled wireless optimization, and predictive network maintenance, the company said. Jeong Jin-guk, executive vice president and head of Samsung's Advanced Communications Research Center, said the company aims to “maximize user experience and network efficiency by integrating AI into communication systems” and pledged to continue strengthening global partnerships to advance next-generation network technologies. 2025-11-14 16:53:40