Labor shortage, not low wages, drives foreign hiring by SMEs in South Korea, survey shows SEOUL, September 16 (AJP) - A recent survey by the Korea Federation of SMEs (KBIZ) reveals that more than nine out of ten small and medium-sized enterprises (SMEs) that employ foreign nationals do so primarily due to difficulties in hiring domestic workers. The survey, conducted in July on 503 businesses with 50 or more employees, found that 93.8 percent of respondents cited "difficulty in hiring domestic workers" as their primary reason for employing foreign workers. This starkly contrasts with other factors, such as "labor cost reduction" at 2.6 percent, "productivity improvement" at 1.2 percent, and "securing skilled or experienced personnel" at 0.2 percent. The demand for foreign workers is expected to remain high, with an overwhelming 98.2 percent of companies surveyed planning to either "maintain or expand" their foreign workforce. Only 1.8 percent indicated a plan to reduce it. South Korea's Employment Permit System, or E-9 visa, allows businesses to legally employ foreign workers in sectors facing labor shortages, such as manufacturing, construction, agriculture, and fisheries. While foreign workers are legally entitled to the same minimum wage as their domestic counterparts, their actual earnings can vary. Data from a late 2024 survey showed that nearly half of foreign wage earners in South Korea (48.9 percent) earned between 2 million and 3 million Korean won per month. 2025-09-16 15:25:39

Annual Busan film fest to kick off with Park Chan-wook's latest thriller SEOUL, September 16 (AJP) - This year's Busan International Film Festival (BIFF) will begin its 10-day run, with an outdoor red carpet event in the southern port city on Wednesday. Award-winning director Park Chan-wook's latest film, "No Other Choice," starring Lee Byung-hun and Son Ye-jin, has been selected as the curtain-raiser for BIFF, with Lee Byung-hun hosting the opening ceremony. The thriller, based on American writer Donald E. Westlake's novel "The Ax," revolves around a man who believes he has achieved everything in life until he is suddenly laid off and struggles to find a new job to support his family. Celebrating its 30th anniversary this year, the Asia's largest film festival will offer screenings of some 360 films from 64 countries including 241 official selections and 90 world premieres. For the first time, the festival will introduce a competition section where about 14 major Asian films will vie for the top honor. The best film winner will close the festival on Sept. 26. Five additional inaugural awards will also be presented to directors, actors, and other individuals in recognition of their achievements. Various events, talk shows with stars and directors, networking sessions with industry professionals, and other activities are planned for participants and movie buffs. They are also invited to explore interactive booths and various fun programs. 2025-09-16 14:46:17

Lee Chang-yong to become Korea's first central bank governor to deliver lecture at IMF Bank of Korea Governor Lee Chang-yong is set to become the first South Korean central bank governor to deliver the prestigious Michel Camdessus Central Banking Lecture at the International Monetary Fund (IMF) in Washington, D.C. The lecture series, named after the IMF's longest-serving managing director, is a high-profile forum designed to foster collaboration with central banks and address key issues in monetary policy and the global economy. Past speakers have included prominent figures like European Central Bank President Christine Lagarde, former Federal Reserve Chair Janet Yellen, and former Bank of England Governor Mark Carney, underscoring the event's significance. Lee's speech will be followed by a dialogue with IMF Managing Director Kristalina Georgieva. The event will be live-streamed on the IMF's official YouTube channel on Sept. 18 at 11:50 p.m, (KST). This marks another notable international appearance for Lee, who previously spoke at the U.S. Federal Reserve's Jackson Hole Economic Policy Symposium in 2022 and the European Central Bank's annual forum in Sintra this past June. His participation highlights South Korea's growing influence in international economic and monetary discussions, the BOK said. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-09-16 13:46:16

Rookie boy band to hold three-day Tokyo Dome concert early next year SEOUL, September 16 (AJP) - Rookie boy band RIIZE will hold a concert in Japan early next year, their management agency SM Entertainment said on Tuesday. According to the agency, their three-day concert is scheduled for Feb. 21 to 23 in Tokyo. "They will meet fans at Tokyo Dome for three days, just two years and five months after their debut in September 2023, becoming the fastest K-pop boy band to perform on such a large-scale stage, a testament to their immense popularity both at home and abroad." Meanwhile, the six-member boy band, currently on their world tour making stops in some 22 cities across Asia and North America until early next year, will hold a concert in Bangkok, Thailand, this weekend. 2025-09-16 13:44:11

South Korean auto exports hit record high despite global tariffs South Korea's automobile industry is demonstrating remarkable resilience in the face of global economic pressures, reporting record-breaking exports and strong domestic performance for the second consecutive month. According to a report released by the Ministry of Trade, Industry and Energy, Tuesday, the sector's growth was driven by robust demand for eco-friendly vehicles and a successful pivot to new markets. Auto exports reached a record $5.5 billion in August, marking an 8.6 percent increase from the same period last year and representing the highest value ever recorded for the month. The cumulative export value from January to August also hit a new high of $47.7 billion, underscoring the sustained strength of the industry. While exports to North America saw a decline, the overall surge was led by strong demand from Europe, driven primarily by the sale of eco-friendly vehicles. The report highlights the critical role of the eco-friendly vehicle segment in the export boom. Overseas shipments of these vehicles grew by 26.6 percent to 69,000 units, extending an eight-month streak of growth. Electric vehicle (EV) exports were a key driver, soaring by 78.4 percent to 23,000 units. The EV3 model, in particular, was a top performer, leading sales across European markets. The domestic market mirrored the export success, with sales increasing by 8.3 percent year-on-year to 139,000 units. Eco-friendly cars captured a significant share of the domestic market, accounting for more than half of all sales with a 36.1 percent increase to 70,000 units. EV sales alone jumped by 55.7 percent to 24,000 units, while hybrid, plug-in hybrid, and hydrogen fuel cell vehicles also experienced considerable growth. The robust demand at home and abroad spurred an increase in production. Domestic auto production rose by 7.1 percent to 321,000 units, marking the highest August output since 2013. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-09-16 13:37:40

Seoul holds off US trade deal despite Japan's tariff edge SEOUL, September 16 (AJP) - South Korea is holding out in protracted trade negotiations with the United States and resisting pressure to sign a deal quickly even as Washington grants Japan a softer tariff regime that could erode Korean competitiveness. According to the Federal Register, the U.S. Commerce Department confirmed a preferential 15 percent tariff rate on Japanese automobiles and auto parts starting Tuesday, a significant discount from the 27.5 percent rate applied to most foreign-made cars under President Donald Trump’s protectionist trade agenda. The lower duty was part of a July agreement under which Tokyo pledged $550 billion in U.S. investments. Seoul reached a similar framework accord with Washington in July that included a $350 billion Korean investment pledge, but its signing has been delayed as negotiators wrangle over execution details. Trade Minister Yeo Han-koo, arriving in Washington this week for talks with U.S. Trade Representative Jamieson Greer, stressed the complexity of the negotiations, saying, “The devil is in the details. We are having intense discussions on the specifics,” while adding that Seoul would not be swayed by “every twist and turn” in the talks. At stake is how Korea will deliver its $350 billion commitment. Seoul prefers to minimize direct equity stakes, offering guarantees instead, while U.S. officials are pressing for a deal closer to Japan’s structure—one that allows Washington to select and oversee investment projects, with profits shared between the two countries. The debate has been further complicated by a high-profile immigration raid at the construction site of a Korean joint-venture battery plant in Georgia, which raised tensions over labor and regulatory issues. Kim Yong-beom, chief presidential secretary for policy, underscored the risks of a rushed deal, warning that implementing the $350 billion package “has implications for our entire economy. We cannot compromise our long-term stability just to narrow a short-term tariff gap in autos.” Industry Minister Kim Jung-kwan returned from Washington last week without a breakthrough after talks with Commerce Secretary Howard Lutnick, highlighting the deadlock. Whether Yeo’s visit will provide a turning point remains uncertain, as Korean automakers uneasily watch their Japanese rivals gain an immediate edge in the U.S. market. 2025-09-16 13:26:43

KOSPI rises to new all-time high for 5th straight day SEOUL, September 16 (AJP) - South Korea's benchmark KOSPI index surged at the open on Tuesday, hitting a new all-time high for the fifth consecutive trading day and extending a historic rally. As of 9:23 a.m., the KOSPI was trading at 3,428.88, up 21.57 points (0.63 percent) from its previous close. The index opened strong at 3,421.13, immediately surpassing the record of 3,407.31 set just Monday. The new record marks the 11th consecutive session of gains for the index, driven by a positive overnight close on Wall Street. All three major U.S. indices finished higher on Monday (local time). The Dow Jones Industrial Average gained 49.23 points (0.11 percent) to close at 45,883.45. Both the S&P 500 and the Nasdaq Composite closed at new record highs, rising 0.47 percent and 0.94 percent, respectively. In the KOSPI market, major tech stocks are leading the advance. SK hynix is trading up 2.04 percent at 337,750 won, while market leader Samsung Electronics rose 0.52 percent to 76,900 won. 2025-09-16 10:19:16

Soundtrack of K-pop anime continues historic run on Billboard charts SEOUL, September 16 (AJP) - One of the main theme songs from Netflix's hit South Korean anime "KPop Demon Hunters" stayed atop the U.S. Billboard Hot 100 singles chart this week, extending its streak on No. 1 for five weeks. "Golden" from the anime's soundtrack, claimed the No. 1 spot on the chart for a fifth week, becoming the "sole longest-leading hit by an animated act in the chart's 67-year history," Billboard said Monday. The song debuted at No. 81 following its release in late June and spent about 12 weeks on the chart before reaching No. 1 several weeks ago. The catchy song, by South Korean-American singer-songwriter Ejae along with American singers Audrey Nuna and Rei Ami, went viral thanks to the popularity of the anime, which tells the story of fictional K-pop superstars with "secret powers to protect their fans from supernatural threats." Along with "Golden," three other songs from the 12-track album like "How It's Done," "Soda Pop," and "Your Idol" also made the top 10. The soundtrack for the 100-minute film directed by Korean Canadian Maggie Kang also topped the Billboard 200 albums chart this week, achieving the milestone of reaching No. 1 on both of Billboard's main singles and albums charts. It is the first time in nearly five years that a K-pop album and one of its tracks have simultaneously topped both charts, since K-pop juggernaut BTS achieved the feat in December 2020 with their album "BE" and its title track "Life Goes On." 2025-09-16 09:54:59

Hyundai Motor averts strike with union deal SEOUL, September 16 (AJP) - Hyundai Motor's labor union has reached a new wage and collective agreement with management, averting a full-scale strike after months of tense negotiations. The agreement was finalized after a vote by union members. According to the company, Tuesday, 52.9 percent of its union members who participated approved the deal. The new agreement includes a 100,000 won monthly increase in the base salary, a performance bonus package of 450 percent plus 15.8 million won, 30 shares of company stock, and a 200,000 won gift certificate. Notably, the union’s primary demand to extend the retirement age was not granted. However, both parties have agreed to continue discussions and collaborate on the issue in preparation for any future government legislation that might alter the retirement age. The resolution comes after 21 rounds of negotiations since June. The union had staged partial, 2-to-4-hour strikes from Sept. 3 to 5 due to a breakdown in talks, and had also threatened a general strike. This ended a six-year streak of strike-free collective bargaining for Hyundai Motor. 2025-09-16 09:51:02

Korean firms explore stakes in $45 billion Alaska LNG project SEOUL, September 15 (AJP) - South Korean companies are emerging as early partners in a multibillion-dollar plan to export natural gas from Alaska, signaling growing alignment between Seoul’s energy ambitions and Washington’s push to expand liquefied natural gas (LNG) exports. Posco International last week became the first Korean firm to formally engage with Glenfarne Alaska LNG, the project’s developer, signing a preliminary agreement that covers potential LNG imports and steel pipe supply. If finalized, the nonbinding deal could lead to a 20-year contract for one million tons of LNG annually, while positioning Korea’s steelmakers to help construct the 807-mile pipeline linking Prudhoe Bay to the Nikiski port near Anchorage. Other Korean steel producers — including SeAH Steel, HUSTEEL and Nexsteel — are closely monitoring opportunities to provide the 42-inch-diameter pipes required for the line. Conglomerates such as SK, Hanwha and GS are also examining possible participation in energy-related aspects of the development. The $45 billion project, which aims to begin operations around 2030, is approaching a final investment decision by year’s end, according to Glenfarne and industry officials. Korea Gas Corporation, the state-run importer, is considering redirecting some of its LNG contracts from Middle Eastern suppliers to U.S. producers, part of a strategy to diversify energy sources and narrow the trade imbalance with America. 2025-09-15 17:43:41