Korean Auto Eyes Diversification, Localization Amid Tariff Stalemate SEOUL, September 30 (AJP) - South Korea’s government and automaking conglomerate are tapping alternative markets and local sourcing as tariff talks with the United States drag on without conclusion. Hyundai Motor Group has rolled out contingency measures while negotiations remain in limbo. The automaker is leaning more on domestic suppliers, adjusting dealer incentives to avoid immediate consumer price hikes, and accelerating model launches in Europe. Hyundai Mobis, the group’s parts arm, last week hosted the inaugural Auto Semicon Korea forum with 23 companies and research institutes—a move widely seen as part of a broader push to localize auto semiconductor production. “In the short term we are adjusting dealer incentives to avoid raising consumer prices, while in the longer term we are focusing on local sourcing and expanding production in the United States,” a Hyundai official said. Seoul and Washington reached a provisional deal to cut U.S. tariffs on Korean cars from 25 percent to 15 percent, but a final agreement has yet to be signed. Korean brands remain disadvantaged, facing a 25 percent levy compared with the 15 percent rate applied to Japanese and European cars. The industry ministry has rolled out low-key support, including a “Trade Law Caravan” program to help small and medium-sized suppliers navigate U.S. regulations and prepare contingency plans. Cars are a pillar of Korea’s exports. Last year, Korea shipped $43 billion worth of cars to the U.S., dwarfing $2.5 billion in imports. Exports to Europe totaled $2.7 billion against $7.85 billion in imports, while shipments to Japan hit nearly $3 billion—triple its imports from Japan. “The tariff burden will likely cut Hyundai Motor Group’s operating margin by about 1 percentage point this year and up to 2 percentage points if fully applied,” said Lee Jae-il of Eugene Investment & Securities. “But basic product competitiveness remains intact, so there will be no sudden shift in demand toward Japanese or European cars.” The global auto chip market is projected to expand 9 percent annually to reach $138 billion by 2030, underscoring why Hyundai Mobis is aiming to boost the share of locally developed semiconductors to 10 percent by that year. “We are expanding joint development with fabless firms and design houses while strengthening ties with major foundries,” said Lee Kyu-seok, president of Hyundai Mobis. “We will also encourage IT and mobile companies to enter the auto sector, helping build a domestic ecosystem.” Executive vice president Park Chul-hong added that optimizing chips with controllers and conducting real-car testing will “speed up development and enhance competitiveness.” 2025-09-30 17:46:50

Business groups welcome end of criminal penalties for corporate missteps SEOUL, September 30 (AJP) - The South Korean government's plan to abolish a criminal law clause that has long exposed corporate executives to prosecution for breach of trust drew strong support from business groups on Tuesday, who argued the change would reduce legal uncertainty and encourage investment. The government and ruling party said the clause — which allowed prosecutors to pursue executives for management decisions that resulted in losses, even absent personal gain — would be eliminated as part of a broader economic penalty reform package. The shift places greater emphasis on administrative and financial penalties rather than criminal charges. The Korea Chamber of Commerce and Industry welcomed the move as a “first step” toward more predictable corporate governance, noting that aggravated penalties for breach of trust had created a chilling effect on decision-making. Critics of the breach of trust provision have long said its vague standards turned legitimate but risky business decisions into potential criminal cases, discouraging executives from pursuing bold investments. Democratic Party floor leader Rep. Kim Byung-ki said in a recent task force meeting that the clause had “become a burden on normal business operations,” while President Lee Jae Myung remarked on Sept. 15 that excessive punishment risked deterring investment. Other business lobbies, including the Korea Enterprises Federation and the Korea Employers Federation, issued statements calling the reform timely and potentially a foundation for further regulatory improvements. The Korea International Trade Association said in a statement that it hoped the changes would help achieve the government’s goal of reducing overall economic penalties by 30 percent and ensure industry voices are reflected in subsequent legislation. * This article, published by Economic Daily, was translated by AI and edited by AJP. 2025-09-30 17:43:55

Korea shrugs off Trump's tariff threat on foreign-made films SEOUL, September 30 (AJP) - South Korea's film industry officials and legal experts largely brush off U.S. President Donald Trump's latest threat about slapping tariffs on movies filmed outside the American soil. Speaking on Monday, Trump said his administration would levy "100 percent tariffs" on films that were not fully produced within the United States, repeating a proposal he first raised in May. South Korea's national film agency, the Korean Film Council (KOFIC), told AJP, the measure, even if enforced, would likely have little impact on Korea's film industry. "In 2024, Korea's film industry revenue from theaters, TV video-on-demand, and overseas sales totaled about 1.4 trillion won ($997.3 million). Exports accounted for only 4 percent, or about 57.1 billion won, and U.S. exports were just 0.4 percent, around 5.7 billion won," KOFIC said. It added that because the U.S. share is so small, "the overall effect on Korea's film industry is expected to be limited." KOFIC also noted that Hollywood itself might feel the brunt of such a policy. "Large studio projects often rely on overseas filming to benefit from foreign location incentives and reduce costs," it said. With studios now transferring raw footage through high-speed cloud systems instead of physical reels or hard drives, the agency questioned whether tariffs could even be applied in today's digital environment. Korea's film and drama industry has built a strong presence on the global stage. International hits such as the Netflix series "Squid Game," the historical zombie thriller "Kingdom," and the romantic period drama "Bon Appétit, Your Majesty" have shown Korea's strength in television, while films like "Parasite," which won the Academy Award for Best Picture in 2020, and blockbusters such as "Train to Busan" have cemented Korean cinema's international reputation. Even so, KOFIC warned that a drawn-out tariff dispute could still have side effects. Less access to the U.S. market might make joint productions harder and reduce opportunities for distribution. Importers could also hesitate to bring Korean titles into the U.S. "This could slightly slow down Korea's global expansion in film, even if the direct financial impact remains small," KOFIC said. Legal experts in Seoul are also skeptical about the plan. Attorney Kim Ji-hee, a lawyer at the Seoul-based firm ELPS, told AJP the measure lacks clear legal grounds and workable criteria. "There is no solid legal basis for such a tariff, and the criteria for determining what counts as a foreign-made film remain ambiguous," she said. Kim explained that U.S. courts have long treated film as part of the cultural sector, tied closely to freedom of expression and usually excluded from emergency trade measures. "Even if Washington tries to push ahead, the ambiguity of the target and the standards would open the door to serious legal challenges," she added. Kim also pointed to the practical problems of valuing and taxing digital content. "In the past, customs authorities could impose tariffs on physical media like reels or tapes. But now, when raw footage is transmitted digitally and screenings rely on encrypted files, it is unclear how a tariff could be calculated or enforced," she said. 2025-09-30 17:36:37

Korea bets on visa-free entry for Chinese group tourists to boost inbound spending SEOUL, September 30 (AJP) - Korea, grappling with yawning travel deficit, pins high hopes on the temporary visa waiver for Chinese group tourists to aid the balance sheets of the government as well as domestic retailers. The travel balance of payments in the national current account has been in the red since 2000 as more go out and spend than those coming in. The deficit totaled $7.2 billion as of July this year, slightly eased from $7.9 billion a year earlier on the rise of foreign arrivals. The red however is expected to deepen in the fourth quarter as this year's Chuseok Thanksgiving holiday extends up to 12 days. During the nine-day Lunar New Year holiday in January, the deficit ballooned to $1.68 billion. As many as 1.1 million are expected to leave the country for overseas during the upcoming holiday break. The number of Koreans traveling abroad during the extended Chuseok break has surged by around 80 percent compared with last year. Demand for short-haul destinations stood out, with 62 percent of flight bookings concentrated on routes to Japan and key Southeast Asian countries. The government has introduced a visa waiver program for Chinese group tourists on Monday, timed with China's Golden Week merging the Mid-Autumn Festival and National Day. The program, available until June 30, 2026, allows groups of three traveling through authorized agencies enter Korea without a visa. "It feels like reuniting with an old friend," said 24-year-old Chinese readying a trip to Korea. She had studied in Korea and wished to return because of the "feeling of emptiness." The government estimates the new visa-free policy could bring in an additional 1 million Chinese tourists in the first half of next year. If the trend continues, total foreign arrivals in Korea could surpass 20 million for the first time by the end of 2025. Chinese group tourists used to be the bedrock to Korea's tourism industry. Chinese arrivals peaked at 8.07 million in 2016 before shriveling to 170,000 in 2021 amid diplomatic spat over Korea's installation of a U.S. antimissile system and pandemic. The number recovered to 4.6 million last year and 3.13 million in the January–July period. The numbers however did not translate into past boon for retailers. Individual travelers opted to explore the country than go on a shopping spree here. The government hopes the full return of Chinese group tourists may do the magic. Korea came first as the top travel destination for the Chinese in their Golden Week, according to Trip.com booking data release. "The industry expects the government's visa waiver program for Chinese group tourists to support a rebound in duty-free sales," an official from Hyundai Department Store Duty Free said. "We are expanding services to enhance convenience for Chinese visitors, including matching our membership tiers with Alipay and WeChat Pay to provide immediate discounts year-round." Contribution by Hoang Phuong Ly 2025-09-30 17:16:40

N. Korea returns to UN podium, building up diplomatic portfolio SEOUL, September 30 (AJP) - North Korea has returned to the United Nations for the first time in seven years, suggesting renewed confidence after the powerful display of its leader standing alongside the heads of China and Russia earlier this month. Taking the podium at the UN General Assembly on Monday, North Korea's Vice Foreign Minister Kim Son-gyong openly defied UN resolutions, reiterating that Pyongyang would "never give up nuclear weapons under any circumstances." He argued the arsenal ensures a balance of power on the Korean Peninsula against what he described as U.S.-led "war rehearsals." Still, he left the door open to cooperation with countries that respect and treat the North "in a friendly way." The UN return follows a flurry of recent diplomatic activity, starting with a symbolic photo-op at China's "Victory Day" parade in Beijing, where North Korean leader Kim Jong-un mingled with Chinese President Xi Jinping and Russian President Vladimir Putin. Three weeks later, North's Foreign Minister Choe Son-hui returned to Beijing for separate meetings with her Chinese counterpart Wang Yi last Sunday and Premier Li Qiang the following day. Choe stressed Pyongyang's "consistent position to strengthen and develop the two countries' friendship and cooperation to meet the needs of the present era," while praising China's growing global stature. Pyongyang's newfound confidence partly owes to friendly overtures from U.S. President Donald Trump. During his summit with South Korean President Lee Jae-myung last month, Trump said he hoped to meet North Korean leader Kim Jong-un before the year ends. Analysts speculate Pyongyang is seeking to elevate its international profile to strengthen its position should negotiations with Washington resume. "North Korea's message is clear. It wants to be recognized as a nuclear state," said Oh Gyeong-seob, a senior research fellow at the Korea Institute for National Unification. He added that Trump's remarks about Kim appear to have encouraged Pyongyang to take a "more active stance." Oh also expressed concern over remarks from Seoul. South Korean Unification Minister Chung Dong-young said Monday that North Korea has become one of only three countries capable of striking the U.S. mainland—an unusually blunt acknowledgement. "The claim itself is problematic, and it risks signaling that Seoul is effectively recognizing North Korea as a nuclear-armed state. The statement cannot be appropriate for a unification minister," Oh warned. 2025-09-30 17:06:17

Cabinet approves plans to abolish prosecutors' office SEOUL, September 30 (AJP) - President Lee Jae Myung approved major government restructuring plans including the abolition of the Prosecutors' Office during a Cabinet meeting in Seoul on Tuesday. It comes after a series of related bills pushed by the ruling Democratic Party, which holds a parliamentary majority, were passed by the National Assembly last week amid a boycott by the main opposition People Power Party. Under the plans, the Prosecutors' Office will be shut down in October next year, nearly 80 years after its establishment in 1947, and its investigative and prosecutorial powers will be transferred over a year-long transition period to two new agencies, one under the Ministry of the Interior and Safety and the other under the Ministry of Justice. The change aims to address longstanding criticism that the prosecution has abused its extensive powers to carry out politically motivated investigations. As another part of the government restructuring plans, the Ministry of Economy and Finance will be split into two, with its budget-related functions to be supervised by the Prime Minister's Office, effective from the first day of next year. The move has already raised suspicions among critics that Lee may seek to tap into state coffers to implement his populist policies. Additionally, the Ministry of Environment will be renamed the Ministry of Climate, Energy, and Environment, taking on energy-related responsibilities except for nuclear power, which will remain under the Ministry of Trade, Industry, and Energy, now renamed the Ministry of Industry and Trade. Relevant acts were amended to reflect these changes accordingly, and the National Assembly's committees were streamlined to align with the new ministries. 2025-09-30 16:43:00

Unequal match between Dunamu and Naver hinges on shareholder blessing SEOUL, September 30 (AJP) - South Korea’s internet giant Naver and Dunamu, operator of Upbit—the world’s fourth-largest crypto exchange—are waging a war of nerves ahead of their $14 billion strategic tie-up through a stock swap, as they seek the blessing of their respective shareholders. Naver Financial, the fintech arm of the country’s dominant internet platform, has agreed on a share-for-share merger with Dunamu, which would bring the crypto powerhouse firmly under the Naver family The challenge lies in valuation. Dunamu, which trades at over 400,000 won apiece in the over-the-counter market, commands a market value of about 15 trillion won ($11 billion)—roughly three times that of Naver Financial, valued at 5 trillion won. Under the proposed terms, one Dunamu share would be swapped for about three newly issued Naver Financial shares. While that may look attractive on paper, many Dunamu shareholders remain unconvinced that multiple lower-valued shares fairly compensate for a single high-priced one. Adding to the intrigue, Dunamu shares have been hitting fresh highs amid speculation of a Nasdaq listing—momentum that could give investors second thoughts about locking themselves into the deal. Dunamu’s largest shareholder, Chairman Song Chi-hyung, who holds around 26%, is expected to emerge as the biggest shareholder of Naver Financial under the new structure. That would effectively give him control over both Dunamu and its broader digital asset business within the Naver ecosystem. On the flip side, existing stakes held by Naver Corp. and financial investor Mirae Asset Financial Group could face dilution. Mirae Asset has reportedly ruled out further capital injections, while other investors, including Kakao Investment and Hanwha Investment & Securities, are still weighing their options. Hanwha said Tuesday it was reviewing the potential impact but had not reached a decision. For Dunamu, the merger amounts to choosing Naver as its gateway to the mainstream financial system. Through Naver’s big-tech platform, Dunamu could strengthen its position in future financial arenas such as virtual assets, payments, and stablecoins, while securing ties with traditional banking infrastructure. If completed, the share swap would establish a chain of ownership running from Naver to Chairman Song, then to Naver Financial, Dunamu, and finally Upbit. The arrangement would allow Dunamu to access financial operations and payment infrastructure without the need to acquire a bank outright. The tie-up is also seen as a stepping stone for Dunamu’s long-anticipated Nasdaq IPO, with analysts expecting it to follow Naver’s example of listing Webtoon in the U.S. “The collaboration secures long-term growth drivers,” said Lee Jee-eun, an analyst at Daishin Securities, who kept a “Buy” rating on Naver with a target price of 330,000 won ($236). She noted that consolidating Dunamu’s financials could boost Naver’s net profit and enterprise value. Longer term, she added, capturing the won-denominated stablecoin market early could allow the merged entity to generate steady income from stablecoin deposits and collateralized lending services. 2025-09-30 16:27:03

PHOTOS: Hometown bonds revitalize local market SANGJU, September 30 (AJP) - The platform at Sangju Station is usually quiet, with a sparse handful of travelers passing through. But on a recent Saturday morning on Sept. 27, the scene was one of jubilant chaos. At 11 a.m., a dedicated train rolled in, and 600 passengers — Sangju natives now living in the bustling Seoul metropolitan area — poured out, instantly filling the normally tranquil space. Their mission was simple, yet profound: a collective shopping trip to the local market, timed to coincide with a traditional Sangju market day, all in an effort to breathe economic life into the fading agricultural city they still call home. Sangju City, located in the heartland of North Gyeongsang Province, is a quintessential Korean farming hub, famous for specialties like rice, gotgam (dried persimmons), cucumbers, grapes, and hanwoo (Korean beef). Like many of the country's regional centers, however, Sangju has been hit hard by population decline, leading to a noticeable contraction in local business and community vigor. To combat this trend, the Seoul-based Sangju Natives' Association (hyangwoohoe) chartered a special Saemaul-ho train ahead of the major Chuseok holiday. As the hundreds of former residents descended on the Sangju Jungang Market, the atmosphere was instantly revitalized. Merchants who brought out their locally grown produce were quickly selling out, their faces bright with satisfaction. “I have never seen so many customers at once,” marveled Kim, 67, a local merchant. “It was more than just shopping; you could feel the sincere love for their hometown. It was genuinely moving.” For the participants, the sentiment was equally powerful. Park Soon-yi, 59, proudly showed off her haul of dried persimmons and various fruits. "I feel so proud that I can help my hometown in this way," she said. "We got our Chuseok shopping done and supported the local community at the same time." A field trip down memory lane This train journey was the second such event organized by the Sangju Natives' Association in Seoul in the last two years. It was an exercise in civic duty mixed with nostalgia, with the experience likened to a school field trip from their youth. Inside the train cars, passengers were grouped by their original neighborhood and elementary school, turning the journey into an impromptu reunion. Many were seated alongside former classmates and village friends, sharing food they had packed and swapping old stories — a tradition of association that remains strong in Korean culture. While large hometown and alumni groups often struggle to attract participation from busy professionals in their 30s and 40s, these movements typically gain momentum among the 50-plus demographic, who have the stability and time to reconnect with their roots. Such enduring bonds are often rooted in shared regional or educational background — relationships built on common ground rather than professional necessity. The trip also offered members a chance to participate in a timely local event, the World Hat Festival, which was concurrently being held in Sangju. Kim Young-geun, president of the Sangju Natives' Association in Seoul, stressed that the mission extends beyond a single event. “Love for one’s hometown is not just about words; it requires action,” he stated. “We will work to ensure this visit is not a one-off event but leads to a sustainable, win-win model that benefits both the community here and the former residents.” 2025-09-30 16:00:33

Former Prime Minister faces trial over martial law involvement SEOUL, September 30 (AJP) - Former Prime Minister Han Duck-soo attended the first hearing of his trial on charges related to former President Yoon Suk Yeol's botched martial law debacle late last year. Upon his arrival at the Seoul Central District Court around 9:30 a.m., Han did not respond to a barrage of questions from reporters. He faces charges of aiding Yoon in his Dec. 3 declaration of martial law, making perjury, and falsifying documents. The court allowed filming and broadcasting of the trial, citing the case's public interest. The full footage will be released online later. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-09-30 15:27:40

K pop to drum up APEC celebration on Oct. 10 SEOUL, September 30 (AJP) - South Korea, home to K-pop, is hosting APEC Music Festival on Oct. 10 to drum up celebratory mood toward the 2025 Asia Pacific Economic Cooperation (APEC) held in Gyeongju. The event to stage on Gyeongju Civic Stadium is co-hosted by North Gyeongsang Province and Gyeongju governments with support from the APEC Summit Organizing Committee. KBSN, the main broadcaster. Performers include Billie, NCT Wish, Choi Yena, ONF, ONEUS, WEi, Youth Fear, Izna, Jung Daehyun, Kickflip, Ha Sungwoon, H1-KEY, and HATSUHATSU, showcasing a wide range of K-pop genres. The concert will be livestreamed on the KBS K-pop YouTube channel, which has 9.91 million subscribers, and broadcast globally starting Oct. 21 on KBS2, KBSN, and KBS World channels. Fans worldwide can also watch via KBS World YouTube, which has 20.3 million subscribers. A special program, 'Woman On Music' (WOM), will take place on Oct. 24 at Bomun Lake, featuring female artists from South Korea, China, Japan, Russia, and Vietnam. The 90-minute show will deliver messages of hope for future generations. An event official stated, "The 2025 APEC Music Festival is more than a concert; it's a platform to showcase Korean culture's strength globally. It will express the APEC Summit's core themes of 'connectivity, innovation, and prosperity' through cultural language." Tickets will be available for free via NOL Interpark starting at 5 p.m. on Sept. 30. Meanwhile, the Silla Cultural Festival will also take place in Gyeongju from Oct. 10 to 12, featuring traditional and modern performances, street art, and the Silk Road Festival. Together, these events will transform Gyeongju into a celebration of history and popular culture. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-09-30 14:58:00