[[South Korea-Japan Ties]] Korea, Japan explore power link as AI drives electricity demand Editor’s Note: Aju Business Daily is publishing a special series to mark the 60th anniversary of the normalization of diplomatic ties between South Korea and Japan. The series reflects on the renewed relationship between the two neighbors. SEOUL, September 30 (AJP) - As artificial intelligence drives a surge in global electricity demand, South Korea and Japan are positioning themselves as unlikely but pragmatic partners in rethinking the future of power infrastructure. Park Tae-geun, chief executive of LS Electric Japan, said the two countries’ complementary strengths could help overcome some of the most pressing challenges in energy efficiency. Japan brings more than a century of expertise in alternating current (AC) technology, while South Korea has emerged as a leader in high-voltage direct current (HVDC) systems. “AC technology is still dominated by the United States, Europe and Japan,” Park said in an interview in Tokyo. “But South Korea’s HVDC is highly competitive. Together, we can chart a path forward.” The stakes are rising quickly. The International Energy Agency projects that electricity consumption by data centers will double by 2030, a surge driven by the computing power needed for artificial intelligence. Direct current (DC) distribution systems — more than 10 percent more efficient than conventional AC — are increasingly seen as essential for powering next-generation data centers. South Korea has already notched key milestones, including the creation of international standards for medium-voltage DC and the localization of HVDC transformer technology. Japan, with its longstanding grid know-how, offers a foundation for scaling the systems across Asia. The collaboration is already taking shape. LS Electric is working with Kyudenko, a subsidiary of Kyushu Electric Power, to supply HVDC transformers for a 470-megawatt solar project on Ukujima Island. The companies also see opportunities in Japan’s growing market for battery energy storage systems. Perhaps the most ambitious idea is what some executives call a “Korea-Japan Energy Highway” — an undersea grid connection linking Busan to Kyushu via Tsushima Island. Such a project, if realized, could stabilize power prices, accelerate renewable energy adoption and serve as a regional model for cross-border cooperation. CEO Park acknowledged that the plan will require more than corporate initiative. “For this to succeed, political and diplomatic support is indispensable,” he said. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-09-30 10:02:51

[[South Korea-Japan Ties]] Food makers set sights on Japan to conquer global palates Editor's Note: Aju Business Daily is publishing a special series to mark the 60th anniversary of the normalization of diplomatic ties between South Korea and Japan. The series reflects on the renewed relationship between the two neighbors. SEOUL, September 30 (AJP) - With South Korean cuisine's growing global appeal, Japan is emerging as the next key market for its further growth. According to a report released by the Ministry of Agriculture, Food and Rural Affairs on Monday, exports of agricultural products and other food items to Japan reached a record $9.98 billion last year, boosted by shipments of instant noodles surging 31.1 percent to US$1.2 billion. If this upward trend continues, total annual exports to the neighboring island country are expected to surpass $10 billion this year, prompting many market researchers to raise rosy prospects that Japan's processed food technology and distribution networks would accelerate South Korean food's expansion. If this upward trend continues, total annual exports to the neighboring island country are expected to surpass $10 billion this year, with many market analysts predicting that Japan's advanced processed food technology and streamlined distribution networks could further accelerate the growth of South Korean food products. Japan's demand for high-end processed foods, combined with its extensive supermarket and convenience store chains, fits well with South Korean products, which offer diverse variations including small-quantity items that cater to customers' fast-changing tastes, making Japan an ideal market for localization and joint development. Companies are gaining ground in the market. Instant noodle maker Samyang Foods has expanded its customers in Japan through its local subsidiary, having sold over 100 million units of its signature spicy "Buldak" noodle series from January 2020 to June 2025. Another South Korean noodle giant Nongshim has opened a pop-up store in Tokyo's popular Harajuku district and collaborated with Japanese restaurant chain Yakiniku King to offer its "Shin Ramyun" series. Its latest "Shin Ramyun Toowoomba" cup noodles sold one million units in just two weeks after release across all 7-Eleven stores there. Meanwhile, CJ CheilJedang has invested around $100 million in a factory in Kisarazu, Chiba Prefecture, to produce its 'Bibigo' products locally, with dumpling sales rising about 28 percent in the first half of this year. This marks the first instance of a South Korean food company opening a factory in Japan, signaling a major step in local production. The retailer has also set up pop-up stands in around 200 Don Quijote stores, with plans to expand to more than 600 by the end of this year. Japanese convenience stores are adding South Korean products to their shelves, with Lawson offering lunch boxes made with Bibigo hot pepper paste and 7-Eleven hosting events featuring low-sodium, small-packaged South Korean foods. Government-level efforts to promote South Korean food overseas continue, with the Ministry of Agriculture, Food and Rural Affairs hosting the 2025 APEC Food Security Ministerial Meeting in Incheon in August to discuss explore export opportunities with Japan and China. In May, South Korea held promotional events at the Osaka Expo to showcase Korean food to participants, including consumers and retailers. Industry experts believe that partnerships with local Japanese companies will accelerate market entry and help tackle highly regulated markets such as North America and Europe in the future. "Japan is a strategically important market that will help us expand into other regions," one exporter said. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-09-30 09:59:25

Korea unsure about a currency swap tied to trade deal with US-security adviser SEOUL, September 30 (AJP) - South Korea is not "optimistic" about securing a currency swap agreement as a safeguard for the pledged $350 billion investment to the United States, according to Seoul's top security official, who nevertheless expected a trade deal to lower tariffs for Korean exports to eventually come through. "Our government has suggested a currency swap line, but it will not be easy, given precedent in how the U.S. has handled such arrangements," National Security Adviser Wi Sung-lac told local reporters Monday. Wi emphasized that a currency swap alone cannot not resolve all issues as "sufficient conditions" must be met for a deal to be finalized. He was referring to the stalemated negotiations between Seoul and Washington over the Korean proposed $350 billion investment in return for the lowering of tariffs on Korean goods from 25 percent to 15 percent. U.S. President Donald Trump demanded Seoul to provide the funds "up front", which Seoul resists in fear of stoking a financial crisis as such bulky outlay amounts to 80 percent of the country's foreign exchange reserve. The U.S. dollar has been hovering above 1,400 won amid the concerns. South Korea last drew a temporary currency swap lines with the U.S. during the 2008 global financial crisis and 2020 pandemic. The former career diplomat however said he was "not that pessimistic" about an eventual deal, expressing hope for a momentum during the upcoming Asia-Pacific Economic Cooperation (APEC) summit to be held in South Korea. On defense matters, Wi said Seoul and Washington have "reached equilibrium" on security package that includes Korea's increase in defense spending and revisions to a nuclear pact. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-09-30 09:14:53

OPINION: Robo-taxis promise change. But do they deliver progress? Innovation has become one of the most abused words in our collective vocabulary. Every new app, gadget or piece of software is branded as revolutionary, as if the mere act of introducing technology were synonymous with progress. Robo-taxis, for instance, are being touted as the future of urban mobility. But let’s be clear: simply rolling out driverless cars is not innovation. Real innovation does not mean discarding the old for the shiny and new. It means expanding access, making products and services available to people who previously lacked them. If robo-taxis do nothing more than replace existing cabs — while displacing drivers who depend on that livelihood — we haven’t advanced at all. We’ve shifted costs onto workers and society without adding benefits. History offers cautionary examples. In India, well-meaning efforts to install public toilets fell flat when cultural norms and incentives to use them were ignored. The infrastructure existed, but the intended impact never materialized. Technology without adoption is not progress; it is waste. What works instead is a pull strategy — meeting genuine needs that bring people in, rather than pushing change onto a reluctant market. Successful innovations often start imperfectly, but they evolve in response to demand. Think of the early days of mobile banking in Africa, which grew not because someone declared it the future, but because it solved an urgent problem: providing financial access where traditional banks had failed. The lesson for robo-taxis — and for any new technology — is simple. Ask not whether it can be built, but whether it can solve real transportation challenges. Can it lower costs for underserved riders? Can it connect communities where traditional taxis don’t go? Can it reduce congestion or expand access for the elderly and disabled? Only then will it deserve the mantle of innovation. Progress is not about replacing the familiar with the novel. It is about expanding opportunity. If we forget that, our so-called innovations will amount to little more than expensive experiments — while the real work of solving society’s problems remains undone. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-09-30 08:39:57

Lee travels to Busan for talks with outgoing Japanese PM SEOUL, September 30 (AJP) - President Lee Jae Myung is holding talks with outgoing Japanese Prime Minister Shigeru Ishiba in Busan on Tuesday. The two leaders will discuss expanding cooperation in areas such as declining population and regional development as well as advanced technologies like artificial intelligence (AI) and hydrogen energy. Although not on the official agenda, South Korea's stalled tariff negotiations with the U.S. are also likely to be discussed, given that Japan has already concluded its own talks with Washington. Tuesday's meeting marks their third, after they first met at the G7 summit in Canada in mid-June, followed by another meeting in Tokyo late last month. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-09-30 08:34:36

Major battery pack fires pose setback to Korean battery makers' ESS bet SEOUL, September 29 (AJP) - A fire from an aging lithium battery storage system that triggered a nationwide disruption of South Korea’s electronic public services has cast a shadow over its maker, LG Energy Solution (LGES), and the government’s renewable transition drive centered on energy storage systems (ESS). LGES, the country’s top battery producer, has been betting heavily on ESS to offset a slowdown in electric vehicle demand. According to Mirae Asset Securities, its ESS revenue is expected to reach 2.7 trillion won ($2.0 billion) in fiscal 2025, accounting for 11.3 percent of total sales, up from 7.15 percent last year. The shift underscores how reliant the company has become on storage projects, making the latest fire especially sensitive for both investors and policymakers. The company has already been struggling. Consolidated revenue slid 24 percent year-on-year to 25.6 trillion won in 2024, with operating profit plunging 74 percent. While LGES does not disclose detailed ESS revenue, it cited “substantial growth from grid-scale projects” in its Q3 2024 earnings and has pinned high hopes on storage to shore up profits amid weakening EV demand. The business, however, remains fraught with safety concerns. In January 2025, a blaze ripped through the 300-megawatt Moss Landing facility in California—once the world’s largest storage site—equipped with LG’s nickel manganese cobalt cells. Operator Vistra Corp wrote down $400 million in losses. In Europe, two German residential fires raised alarms. A November 2024 basement fire in Werne involving an LGES module led to precautionary replacements in 77 homes. In February 2025, an explosion in Schönberg destroyed part of a newly built home. In Australia, regulators have tracked multiple home-battery fires and recalls since 2020, affecting around 18,000 units, with 15 incidents causing property damage. While not all incidents were conclusively tied to LG cells, the repeated accidents have intensified scrutiny of the company’s technology and manufacturing standards. "In automotive battery packs, we design systems to prevent domino-effect failures by containing thermal runaway to one or two cells," said Kim Jin-yong, a mechanical engineering professor at Hanyang University ERICA. "ESS manufacturers need to develop similar safety-focused designs, including thermal insulation between batteries, to prevent these recurring accidents." Global ESS installations, however, are still set to accelerate. BloombergNEF forecasts annual additions will reach 94 gigawatts and 247 gigawatt-hours in 2025, growing at a 14.7 percent compound rate through 2035. “Such high-profile accidents are unlikely to derail ESS growth, but what matters is how operators manage the risk,” said Han Byung-hwa, senior analyst at Eugene Investment & Securities. “There is no alternative to ESS today. The challenge is rapid detection, containment, and revenue protection through tools like AI-based monitoring.” Competition is also intensifying. Chinese producers, which dominate in lithium iron phosphate (LFP) cells—cheaper and considered safer than nickel-based chemistries—are quickly capturing share in stationary storage. Samsung SDI and SK On, also pivoting toward ESS to offset sluggish EV sales, face similar headwinds. LGES stressed that maintenance and replacement of the government’s UPS battery were the operator’s responsibility, adding that it continues to strengthen safety protocols. “We have no further comment as we only supplied the battery pack to CNS, the contractor responsible for the installation,” an LGES official said. The latest fire—three years after the 2022 “Kakao blackout” spurred calls for stronger safeguards—has reignited debate over whether Korea’s ESS ambitions can advance without renewed focus on safety and redundant backup systems. 2025-09-29 17:36:30

PHOTOS: In memory of Japan's forced mobilization victims SEOUL, September 29 (AJP) - South Korea held simultaneous memorial services in Seoul and Busan to honor Koreans who were conscripted into forced labor under Japanese colonial rule. At the ceremonies, religious leaders from Buddhism, Catholicism and Protestant Christianity offered rites of comfort to the victims and their families. Officials, civic leaders and ordinary citizens laid flowers and burned incense, while a student choir and traditional musician Oh Jung-hae performed commemorative pieces. Historians estimate that some 7.8 million Koreans were mobilized — many sent to mines, factories and battlefields in Japan and across the empire from 1938 to 1945. Others were forced into military service or compelled to serve as “comfort women” in wartime brothels. Conditions were harsh, and countless workers never returned home. It was not until 2005 that the South Korean government began a formal investigation into the scale of forced mobilization. Since then, Seoul has launched support programs for surviving victims and their families, along with annual commemorations. This year’s memorials carried particular weight, taking place on the 80th anniversary of Korea’s liberation in 1945. 2025-09-29 17:34:31

'Sarang' festival returns for 11th year, celebrating India–Korea friendship SEOUL, September 29 (AJP) - The word "sarang" carries two meanings: in Korean, it means "love," and in Hindi it conveys "colorful and diversity." Organizers of the annual Festival of India in Korea said Monday that the dual meaning reflects the event's role as a bridge of friendship and cultural understanding between India and South Korea. Speaking at a press conference in Seoul on September 29, Nishi Kant Singh, Deputy Chief of Mission and Chargé d'affaires at the Indian Embassy, said the festival had become a symbol of enduring ties between the two countries. "This occasion not only marks a significant milestone celebrating a decade of vibrant cultural exchange under the Sarang framework, but it also reaffirms the enduring friendship and deep-rooted cultural ties between India and the Republic of Korea," Singh said. Singh noted that both countries maintain a "special strategic partnership" that was elevated during meetings earlier this year. He cited discussions between President Lee Jae Myung and Prime Minister Narendra Modi on the sidelines of the G7 summit in June, as well as visits by senior envoys, as proof of the expanding agenda. "Our two countries are working closely on a wide range of bilateral, regional, and global issues," Singh said. The chargé d'affaires stressed that people-to-people ties remain central to the festival. "At the heart of the Sarang Festival lies the objective of keeping people-to-people connections. We believe that such bonds serve as a foundation for a more vibrant and enduring partnership between the two countries," he said. This year's edition will highlight Kathakali, a classical dance from the southern state of Kerala known for elaborate costumes, vibrant makeup and expressive gestures. A troupe led by renowned artist Shyamjith Kiran will perform at Ewha Womans University's Samsung Hall on October 14, with additional stops in Seoul, Gunsan, Busan, Nami Island and Buyeo. Workshops for Korean dance enthusiasts will also be offered. The program will include the 13th Indian Film Festival, screening seven films with Korean subtitles across multiple cities in November. The embassy will also showcase contemporary art collaborations and culinary events as part of the wider Sarang calendar. Launched in 2015, the Sarang Festival has grown into the embassy's flagship cultural program, introducing Indian music, dance, cinema, food, and art to audiences across South Korea. Singh reminded reporters that all events are free and open to the public. "The purpose of having a culture center here is to connect Koreans with Indian culture. Sarang is open for our Korean friends. We would be more than happy to see them there," he said. 2025-09-29 17:14:22

KOSPI bull run, recent IPO wins may spark 4Q rush led by K Bank SEOUL, September 29 (AJP) - K Bank is poised to file for its third initial public offering (IPO) prospectus early next month, potentially triggering a flurry of delayed listings in the fourth quarter as Korea's equity market is expected to sustain a bullish rally through year-end. The eight-year-old online-only bank — Korea's first of its kind — had pledged its investors of a 1.15 trillion won rights offering in 2021 to complete its KOSPI debut by July 2026. Failure to do so would allow new shareholders, including MBK Partners and Bain Capital, to sell their shares back to BC Card, the current majority owner with 34 percent. Earlier this year, the lender shelved its IPO attempt amid weak sentiment. But with markets surging and earnings strong, it is preparing to proceed, backed by NH Investment & Securities and Samsung Securities as joint bookrunners. The IPO market slumped in August under tighter investor lock-up rules. According to the Korea Development Institute, IPO fundraising plunged 52.9 percent from July to 296.8 billion won, with activity largely confined to smaller KOSDAQ listings at historic lows. That gloom has lifted in September. The benchmark KOSPI has gained 6.3 percent this month, climbing from 3,186 at end-August to above 3,386 — making it the world's top-performing main index. The rebound has revived IPO demand, with new offerings drawing strong institutional and retail interest. Myungin Pharmaceutical, the first to list under the revised regulations, drew frenzied orders with an institutional bid-to-cover ratio of 488.95 to 1, pricing at the top of its 58,000-won band. Despite tougher lock-ups, nearly 70 percent of institutional buyers agreed to hold shares. On the KOSDAQ, cybersecurity firm S2W soared 81.4 percent on its Sept. 19 debut, closing at 23,950 won versus an IPO price of 13,200 won. "Up to the third quarter, the number of IPOs remained subdued due to a wait-and-see stance under the revised regulations," said Park Jong-sun, a researcher of Eugene Investment & Securities. "However, with more companies expected to file for listings in the fourth quarter, the market is likely to gradually recover and shift back toward growth." Lee Hong-joo, professor of consumer economics at Sookmyung Women's University, forecast that expectations of rate cuts, ample global liquidity, and chip-sector recovery could provide the "rising tide" to lift new listings, while advising investors to remain selective. 2025-09-29 16:59:52

Seoul Mayor apologizes after ferry service halted amid technical glitches SEOUL, September 29 (AJP) - Seoul Mayor Oh Se-hoon apologized on Monday for halting a water ferry service along the Han River, just 10 days after its bombastic launch. During a press conference, he expressed "regret for causing inconvenience" to users due to the halt, just ahead of Chuseok, the country's biggest holiday, ruining many holidaymakers' plans to ride the ferry dubbed the "Hangang Bus." Citing minor defects that disrupted the eco-friendly ferry service several times despite a six-month trial, the Seoul Metropolitan Government said it will conduct a thorough month-long inspection without passengers, with full operations expected to resume in October. Launched on Sept. 18 as a new commuting option for Seoulites, the ferry proved popular, attracting over 4,000 passengers on its first day. But it soon encountered technical glitches including steering and electrical failures, which led to multiple cancellations and raised safety concerns. 2025-09-29 16:37:57