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

S. Korea launches alliance to lead in 'Physical AI' with backing from BlackRock SEOUL, September 29 (AJP) - South Korea unveiled a new initiative on Monday aimed at securing a lead in what it calls “physical artificial intelligence,” a field that integrates advanced computing with the physical world, from robotics to autonomous vehicles. The Physical AI Global Alliance, as the project is known, is supported by a multibillion-dollar investment commitment from BlackRock, the American asset management firm, and forms part of the government’s ambition to brand the country the “AI capital of Asia.” The alliance brings together three ministries — Science and ICT, Trade and Industry, and SMEs and Startups — along with universities and more than 250 companies. Among them are some of South Korea’s best-known names in technology and manufacturing, including Hyundai Motor, LG’s AI research institute, Doosan Robotics and Naver Cloud. Bae Kyung-hoon, the science and ICT minister, described physical AI as “the connection between AI and the real world,” calling it a focal point of global technology competition. He said South Korea would step up efforts to nurture the sector, including a significant increase in research and development funding in next year’s budget. The alliance is structured around 10 divisions — five focused on technology development, solutions and talent, and five devoted to application areas such as robotics and autonomous vehicles. Officials said the goal was to encourage closer public-private collaboration and to better align supply and demand across industries. Im Moon-young, vice chairman of the National AI Strategy Committee, pledged comprehensive policy support to help the country become a global hub in the sector. The initiative will also be linked to the recently announced Manufacturing AX Alliance, which aims to drive tangible industrial adoption of AI. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-09-29 16:25:20

Xi's appearance at N. Korea's military parade quietly speculated after foreign ministers' meeting SEOUL, September 29 (AJP) - Speculation is cautiously building up over the possibility of Chinese President Xi Jinping making a ceremonial appearance at a military parade in Pyongyang next month, timed with the 80th anniversary of North Korea's Workers' Party. Such a trip would be seen as a reciprocal gesture after Kim Jong-un's train journey to Beijing earlier this month to attend China's "Victory Day" military extravaganza, as foreign ministers from the two countries held talks in Beijing. North Korean Foreign Minister Choe Son Hui met Chinese Foreign Minister Wang Yi in Beijing on Sunday, shortly after their encounter during Kim’s visit. The two sides reached "complete agreement" on regional and international issues, the Korean Central News Agency (KCNA) reported Monday, without elaboration. Choe praised China’s growing global stature, citing Beijing's "Victory Day" celebrations as proof of its "historic achievements and comprehensive strength." She reiterated Kim’s view that the two countries' friendship "will never change regardless of international circumstances." Wang hailed Choe's visit as the first senior-level delegation to arrive in Beijing after the September summit, noting that "The Xi-Kim summit set out the direction and a blueprint for taking China–North Korea relations to a new, higher stage." It was also Choe's first solo trip to China since becoming foreign minister in June 2022. Given the renewed warmth, Beijing is expected to send a high-profile delegation to the Oct. 10 anniversary. If Xi attends, it would be his first visit to North Korea since 2019. Still, many analysts say the timing makes a Xi appearance unlikely. "With major domestic political meetings and the APEC summit ahead, October is not the right time for Xi to make a trip to Pyongyang," said Lee Dong-gyu, a research fellow at the Asan Institute for Policy Studies. Jung Byoung-kon, a senior research fellow at the Korea Institute for National Unification, agreed: "While such a trip would be welcomed by Pyongyang, it risks reinforcing a new Cold War alignment, which is not in China's long-term national interest." Xi is expected to visit Gyeongju, South Korea, for the Asia-Pacific Economic Cooperation (APEC) summit on Oct. 31-Nov. 1, with Beijing and Washington signaling plans for the first in-person Xi-Trump meeting of U.S. President Donald Trump's second term. With or without Xi, Pyongyang is preparing a spectacular Oct. 10 celebration. North Korea typically marks major milestones—especially every five or ten years—with large-scale events, including military parades and mass performances. Satellite imagery analyzed by Seoul-based SI Analytics shows North Korea has been preparing for one of its largest-ever military parades at Mirim Airfield in Pyongyang, involving at least 14,000 personnel and some 700 trucks. Preparations have lasted more than five months—far longer than the usual two to three—suggesting a scale surpassing the 2023 parade. The report said new weapons, possibly including the Hwasong-20 intercontinental ballistic missile and AI-enabled drones, could be unveiled, alongside mass gymnastics performances. 2025-09-29 16:02:33

Taekwang Industry bets on K-beauty with Aekyung acquisition SEOUL, September 29 (AJP) - Taekwang Industry has been selected as the preferred bidder to acquire a controlling stake in Aekyung Industry, a move its leadership is casting as a strategic entry into South Korea’s booming K-beauty market. The company said Monday that its consortium would purchase about 63 percent of Aekyung’s shares in a deal valued at roughly 400 billion won, or $293 million. If completed, the transaction would mark a significant shift for Taekwang, which has long been rooted in the textiles and chemicals businesses. Yoo Tae-ho, Taekwang’s chief executive, told shareholders in a letter that the acquisition was “not merely financial but a strategic move,” intended to give the company a foundation in cosmetics and personal care, one of South Korea’s most visible global exports. He described the beauty sector as a platform for broader expansion and pledged continued investment. The acquisition comes as Taekwang seeks to stem losses from its traditional businesses. The company has posted three straight years of operating losses, including a 16 billion won deficit in the first half of this year, pressured by volatile raw material prices, China’s capacity expansions and a global slowdown. In response, it has shuttered its cotton spinning unit, restructured its low-melting fiber business and suspended spandex production in China. While paring back weaker divisions, Taekwang has pushed into specialty fibers and chemicals — including modacrylic fibers used in wigs, aramid fibers for industrial applications, and sodium cyanide for gold mining. CEO Yoo said the company would “optimize low-profit businesses and maximize competitiveness” by expanding in areas with proven returns. For now, however, the Aekyung deal underscores Taekwang’s ambition to diversify into a consumer-facing industry with global reach, Yoo said. The K-beauty market, propelled by South Korea’s cultural influence abroad, is widely viewed as one of the country’s fastest-growing export sectors. * This article, published by Economic Daily, was translated by AI and edited by AJP. 2025-09-29 15:55:17

Digital front-runner Korea chagrined by lack of backup for e-government SEOUL, September 29 (AJP) - South Korea tops the OECD scale in digitalization and proudly teaches and exports e-government strategy and systems, which may explain the chagrin and furor over the mass-scale crippling of the public-sector electronic system. Much of the work at public-service windows had to be handled in person after an outage caused by a battery fire at the National Information Resources Service (NIRS) data center in Daejeon, which brought down 647 civil service systems. The blaze started during the relocation of aging lithium-ion batteries within an uninterruptible power supply (UPS) system. A UPS provides short-term backup power to protect facilities such as data centers and hospitals, while larger-scale energy storage systems (ESS) deliver utility-scale and long-duration storage to stabilize the grid. Unlike ESS, UPS systems lack multiple layers of safety features and require closer maintenance and monitoring of battery units to prevent overheating or overload. The same kind of UPS-related fire caused the collapse of Kakao’s data center in 2022. Three years ago, a battery fire in the electrical room of SK C&C’s data center in Pangyo, Gyeonggi Province, cut power to the entire facility, resulting in a simultaneous outage of KakaoTalk and other services of the chat platform used by virtually every Korean. The government mandated disaster recovery and redundancy requirements for private companies, and created a regulatory framework requiring data centers and internet service providers to undergo regular oversight and supervision. Yet an administrative network used by local government officials nationwide also came to a stop for three days two years ago. Since then, the government has been operating more than 1,600 national information systems across three locations: the main facility in Daejeon, where the fire occurred, plus branch offices in Daegu and Gwangju. Currently, 647 national information systems belonging to the Daejeon headquarters remain offline. The government vowed to build a comprehensive data redundancy system to ensure smooth operation of government systems in the event of disasters such as fires, floods, or cyberattacks. But the NIRS budget for disaster recovery in 2023 amounted to just 2.6 billion won, or about $1.86 million, hardly enough to launch even a pilot program. Experts warn of permanent damage if restoration does not take place within the first week. This poses an embarrassment for the government, which takes great pride in its digital infrastructure and global ranking. Korea topped the OECD Digital Government Index for the second straight year in 2023, scoring 0.935, near the perfect 1. It ranked fourth in the United Nations e-government evaluation among 193 U.N. members. The high ranking has translated into over $500 million in exports of government e-solutions from 2021 to 2023. These exports include providing overseas governments with the human resources, technology, and intellectual property needed to build e-government systems. Korea’s digital government capabilities also help domestic ICT infrastructure companies and software SMEs expand abroad. South Koreans no longer carry physical ID cards thanks to mobile and biometrics-based identification across public and private services, from airport clearance to liquor purchases at convenience stores. As of the end of 2024, more than 4 million of the country’s 50 million citizens were using digital IDs. The digital connection, however, highlights the danger of large-scale breakdowns such as the latest incident. Unlike the government, domestic cloud companies like Naver and Kakao already run AI-based anomaly detection systems. These analyze temperature and power data in real time to detect early signs of overheating or anomalies, and proactively address cooling system issues. Internationally, Google, Amazon, and Microsoft have implemented artificial intelligence for IT operations (AIOps) to optimize power and cooling efficiency while predicting anomalies in real time. The latest mishap is a wake-up call, experts say, to hasten investment in backup infrastructure and consider adopting proven private-sector solutions like AIOps. 2025-09-29 15:27:55

HD Hyundai Mipo wins $167 million order for 3 container ships SEOUL, September 29 (AJP) - HD Hyundai Mipo, a subsidiary of South Korea’s HD Hyundai, said Monday that it had won a contract to build three container ships worth 222 billion won, or about $167 million, from an Oceania-based shipping company. The order calls for two 2,800-TEU container vessels and one 1,800-TEU container vessel, all to be constructed at the company’s Ulsan shipyard and delivered by October 2027. The so-called feeder ships, which typically carry fewer than 3,000 containers, serve as links between smaller regional ports and major international hubs. Demand for such vessels has climbed in recent years as shipping companies look to capitalize on short-haul routes in Asia and Europe, where higher turnover and lower fuel costs make them profitable. Clarkson Research, a London-based shipping data provider, estimates the feeder ship market will total $2.74 billion this year and nearly triple by 2035, expanding at an annual rate of 8.7 percent. The contract adds to a growing order book for HD Hyundai Mipo, which has secured 21 feeder ship deals so far this year, up from six in 2024. The company has promoted new hull designs that it says can improve fuel efficiency by as much as 20 percent while cutting carbon emissions. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-09-29 15:11:01