South Korea becomes anchor in US plan to revive shipbuilding industry SEOUL, August 28 (AJP) - What began as a series of bruising trade talks between Washington and Seoul ended in an unexpected sector: shipbuilding. The negotiations, initially centered on tariffs, culminated in a $150 billion partnership aimed at reviving America’s depleted maritime industry with South Korean know-how. On Aug. 25, President Donald Trump hosted President Lee Jae Myung of South Korea at the White House, just a month after the latest round of negotiations. At their first summit, Trump threw his support behind what Seoul has branded the “Make American Shipbuilding Great Again” initiative, or MASGA — a plan that South Korea advanced as part of the deal. The initiative promises sweeping investments: new U.S. shipyards, training programs to rebuild a skilled workforce and joint maintenance contracts that would pair South Korean companies with American personnel to service Navy vessels. “We’re going to be buying ships from South Korea. We’re also going to have them make ships here with our people, using our people,” Trump said in the Oval Office. “We love their ships.” He tempered the enthusiasm with a note of caution: “Shipbuilding is a tough one to start. You know, it takes a while.” A day later, Lee toured Hanwha Philly Shipyard in Philadelphia, a Korean-owned facility once emblematic of America’s industrial might but long since hollowed out. Hanwha acquired the site last year for $100 million, securing its first liquefied natural gas (LNG) carrier order in half a century. Now, it serves as the partnership’s first tangible proof of concept. “Just as Korean entrepreneurs and workers created the miracle of Korean shipbuilding on barren land, let Korea and the United States join forces to make the MASGA miracle a reality,” President Lee said at the shipyard, echoing the rhetoric of industrial rebirth. For the United States, the partnership marks a rare attempt to confront decades of decline. The Merchant Marine Act of 1920, better known as the Jones Act, shielded domestic shipbuilders from foreign competition but also stifled innovation and global competitiveness. Later restrictions, including the Byrnes-Tollefson Amendment of the 1960s, further isolated American yards by mandating domestic construction of military vessels. The consequences have been stark. Submarine repairs now take an average of 20 months before even entering multiyear overhauls and refueling cycles. Meanwhile, China has seized dominance, capturing about 60 percent of global shipbuilding orders last year and surpassing the U.S. in fleet size, according to defense data. Washington’s response has mixed sticks with carrots: tariffs and fees on Chinese-built ships alongside expanded cooperation with allies. South Korea, the world’s second-largest shipbuilder after China, emerged as the partner of choice. In the first half of this year, Korean shipyards claimed more than a quarter of global orders, buoyed by their dominance in advanced vessels such as LNG carriers. That dominance comes with scars of its own. After the 2008 financial crisis, South Korea’s major shipbuilders — Hyundai Heavy Industries, Samsung Heavy Industries and Daewoo Shipbuilding & Marine Engineering — collapsed under debts and losses. Daewoo’s downfall, marred by accounting fraud, ended in a takeover by Hanwha and the birth of Hanwha Ocean. Now resurgent, Korean shipbuilders are moving quickly in the United States. Hanwha Ocean has signed contracts with the U.S. Navy for repair work on several ships, including the Wally Schirra, the Yukon and the Charles Drew. On the same day as Lee’s shipyard visit, the company announced $5 billion in new investment in Philadelphia and orders for 11 vessels. Hyundai has secured its own foothold, signing a memorandum of understanding on U.S. maritime investment and winning its first Navy maintenance deal earlier this month. Samsung followed suit on Aug. 26, entering a partnership with Vigor Marine Group for naval support ship work. For Trump, the deal represented both an economic and symbolic victory. “We really gave up the shipbuilding industry foolishly many years ago,” he said. “We’re going to be making our own ships again, soon.” Whether the promise can outpace the challenges remains uncertain. But in an era of intensifying competition at sea, Washington and Seoul are betting that a cross-Pacific alliance can breathe new life into an industry long left for dead. 2025-08-29 09:40:29

Impeached ex-president to be tried in absentia as he continues to stall SEOUL, August 28 (AJP) - Disgraced former President Yoon Suk Yeol failed to show up for his trial once again on Thursday, prompting a court to proceed with it in absentia. The Seoul Central District Court said it made the decision because it could no longer afford to delay the trial, saying, "It is difficult to force Yoon to appear in court." Citing health-related reasons, Yoon has been stalling questioning by independent prosecutors as well as a trial over his botched Dec. 3 declaration of martial law and other allegations. After vigorously showing up for earlier hearings to defend himself, he has not appeared since being detained again at a remand prison in early July. Earlier this month, the court had already warned that Yoon would bear any consequences caused by his absence. Separately, earlier in the day, his wife and former first lady Kim Keon Hee appeared for questioning in Seoul, but she reportedly repeated her denial of all allegations. With her detention period set to expire later this week, prosecutors are expected to indict, instead of seeking an extension, as Kim has been uncooperative, citing poor health, despite her occasional appearances for questioning. Kim, accused of receiving luxury bribes, colluding in a stock manipulation scheme, and meddling in candidate nominations during the 2022 by-elections, has been held at a remand prison in southern Seoul since last month. 2025-08-28 17:03:16

Skin clinics top choice for foreign medical tourists in South Korea SEOUL, August 28 (AJP) - More than half of foreign patients who visited South Korea last year visited skin clinics, medical statistics reveal. According to a report by the Korea Health Industry Development Institute (KHIDI) released on Thursday, of the 1.17 million foreigners who received medical treatments here last year, some 705,044 visited skin-related clinics, accounting for 56.6 percent, a whopping 117-fold increase from a mere 6,015 in 2009. The next most frequent treatment was cosmetic surgery at 11.4 percent, followed by internal medicine (10 percent) and health check-ups (4.5 percent). By nationality, the majority of foreign patients were Japanese (37.7 percent) and Chinese (22.3 percent), together accounting for about 60 percent. They were followed by Americans (8.7 percent), Taiwanese (7.1 percent), and Thais (3.3 percent). Meanwhile, medical tourism continues to grow, with foreign patient numbers surpassing 1 million for the first time last year. Out of some 7 million foreign visitors here during the first five months of this year, nearly 6 million or about 80 percent shopped at cosmetics retailer Olive Young, according to a straw poll last month amid the soaring popularity of South Korean beauty products overseas. 2025-08-28 16:10:41

Korean businesses cite finance, taxes, labor rules as major growth hurdles SEOUL, August 28 (AJP) - Despite government efforts to streamline regulations, South Korean companies continue to struggle with financing, tax burdens and labor rules, according to a new report. The Korea Chamber of Commerce and Industry (KCCI) said Thursday that nearly 71 percent of firms surveyed in the World Bank Enterprise Survey identified those three areas as their biggest obstacles. Limited access to finance was cited by 34 percent of companies, followed by taxation at 21 percent and labor regulations at 16 percent. The report found that businesses facing financing difficulties or heavy tax obligations invested as much as 21 percentage points less in facilities and intangible assets. By contrast, firms constrained by labor rules tended to increase investment in technology and automation, suggesting a shift away from expanding headcount. On the regulatory front, Korea has made some progress. The country scored below the OECD average on the 2023–24 Product Market Regulation index in assessing regulatory impacts. But it still lags in cutting red tape: licensing procedures in Korea take an average of 193 days, more than 10 times the OECD average of 18. Access to capital remains a pressing challenge. Korean companies are heavily dependent on bank loans, and the survey gave the country a score of 76.7 out of 100 for financial access difficulties — higher than the OECD average of 68.1. Tax incentives have also proved insufficient. Programs such as investment credits and R&D deductions are limited in scope and undermined by frequent short-term extensions, leaving companies with little predictability. Korea’s R&D tax support rose only 11 percent over the past five years, the report noted, compared with a 26 percent increase in China. To address these issues, the chamber proposed a series of reforms: easing rules that separate banking from commerce to bolster strategic industries, offering direct tax rebates modeled on the U.S. Inflation Reduction Act and allowing greater flexibility in the 52-hour workweek, particularly in fast-moving sectors like technology. “In a regressive system where regulations increase and support decreases as companies grow, it’s impossible to strengthen the incentives for growth,” said Park Yang-soo from the KCCI. “We need to restructure the incentive system to reward and encourage companies that are scaling up.” 2025-08-28 15:49:55

SK Telecom slapped record fine over data breach affecting 23 million users SEOUL, August 28 (AJP) - South Korea’s privacy watchdog has imposed a record fine on SK Telecom after a massive data breach that exposed the personal information of more than 23 million mobile subscribers. The Personal Information Protection Commission said on Thursday that it decided to levy a fine of 134.8 billion won, or about $97 million, on the country’s largest wireless carrier. The breach compromised sensitive information from all 23.2 million users of SK Telecom’s LTE and 5G networks, including customers of its budget mobile affiliates. Data leaked included phone numbers, International Mobile Subscriber Identity codes and authentication keys used in SIM cards, according to the commission. Investigators said the intrusion began in August 2021, when a hacker infiltrated SK Telecom’s internal network and planted malware on multiple servers. Nearly a year later, in June 2022, the attacker installed additional malicious software in the company’s Integrated Customer Authentication System, securing deeper access. On April 18 of this year, the hacker extracted 9.8 gigabytes of user data from the company’s subscriber database and leaked it online. The commission concluded that the breach stemmed from SK Telecom’s failure to enforce basic security practices and negligence in data management. It also faulted the company for delaying notification to affected users. Under South Korean law, companies must alert customers to leaks within 72 hours of discovery, a requirement SK Telecom did not meet. 2025-08-28 14:43:08

Kim Jong-un to attend miliary parade in Beijing next week SEOUL, August 28 (AJP) - North Korean leader Kim Jong-un will visit Beijing next week to attend a military parade as part of China's "Victory Day" celebrations marking the 80th anniversary of the end of World War II, state media reported on Thursday. China's Foreign Ministry also unveiled on the same day the list of the event's attendees, which includes a score of heads of state and other leaders. Also among the invitees for the event scheduled for Sept. 3 at Tiananmen Square was Russian President Vladimir Putin, along with other leaders and senior officials from Belarus, Indonesia, Iran, Laos, Malaysia, Mongolia, Nepal, Pakistan, and Viet Nam. National Assembly Speaker Woo Won-shik is also expected to attend on behalf of President Lee Jae-myung. During the visit, Kim is expected to hold talks with Chinese President Xi Jinping for the first time in several years, amid a rift with his country's traditional ally, since Xi traveled to Pyongyang in June 2019. With the leaders of China, North Korea, and Russia set to be in Beijing at the same time, speculation is already mounting over the possibility of a trilateral meeting. 2025-08-28 13:47:01

Bank of Korea holds key rate steady as housing market concerns continue SEOUL, August 28 (AJP) - The Bank of Korea left its benchmark interest rate unchanged at 2.5 percent on Thursday, pausing its easing cycle for a second month as policymakers weighed mounting risks from rising household debt. The central bank’s monetary policy committee said it would maintain the current rate while monitoring domestic and global conditions, citing persistent volatility in Seoul’s housing market and elevated borrowing levels. The decision follows four rate cuts since October, which lowered the key rate from 3.25 percent in a bid to revive the sluggish economy. But housing prices in the capital region have continued to climb, despite government measures introduced in June that capped mortgage loans at 600 million won, or about $432,000. Apartment prices in Seoul rose 0.09 percent in the third week of August. Household lending also remained high, though the pace of borrowing has eased. Officials said many of the loans currently being processed were approved before the June restrictions, keeping upward pressure on debt. The widening rate gap with the United States added another layer of caution. South Korea’s benchmark rate trails U.S. rates by a record two percentage points. Still, the central bank raised its 2025 growth forecast to 0.9 percent, from 0.8 percent, pointing to stronger consumer sentiment following a supplementary budget and progress in trade talks with Washington. “We project next year’s economic growth at 1.6 percent,” BOK Governor Rhee Chang-yong said at a news conference. “Looking at quarterly growth rates, we expect low growth to persist through the first half before rising close to potential growth in the second half. Given the likelihood of continued low growth through the first half of next year, there is a high possibility that the rate-cutting stance will be maintained.” 2025-08-28 13:36:42

[[K-Pop]] Rapper PSY under police investigation over alleged proxy receipt of prescription drugs SEOUL, August 28 (AJP) - South Korean rapper PSY, well known for his global hit song "Gangnam Style," is under police investigation on suspicion of violating medical laws by allegedly receiving prescription-only psychotropic drugs through a proxy, authorities confirmed Thursday. According to the Seodaemun Police Station in Seoul, the 47-year-old K-pop star and a university hospital professor are being investigated following a complaint that accused them of breaching medical regulations. Police are also looking into whether PSY's manager collected the medication on his behalf. Investigators suspect that since 2022, PSY has obtained prescriptions for Xanax and Stilnox, both classified as psychotropic drugs for treating anxiety and sleep disorders, from a Seoul university hospital without in-person consultations and had them picked up by his manager. The police recently raided the hospital to secure related medical records. Under South Korean law, such drugs must be prescribed after face-to-face consultations, and patients are required to collect them in person. Proxy receipt is only permitted in limited cases, such as by a family member or caregiver. Temporary rules during the COVID-19 pandemic allowed phone prescriptions and proxy collection beginning in February 2020, but those measures were rolled back in November 2021. In a statement released through his agency, Pnation, PSY admitted fault in allowing a third party to collect prescription sleeping pills on his behalf. "The proxy collection of prescription sleeping pills was clearly a mistake and negligence. We are sorry," the statement said. The gaency added that PSY has long suffered from chronic sleep disorders and has taken sleeping pills only under medical supervision at prescribed dosages. "There was no proxy prescription," the agency stressed. "However, there were cases where sleeping pills were collected by a third party, and the police are currently investigating. We sincerely apologize once again for causing concern." 2025-08-28 13:36:24

Probe into martial law debacle likely to hit snag as ex-PM avoids arrest SEOUL, August 28 (AJP) - Independent investigators probing disgraced former President Yoon Suk Yeol's martial law debacle are likely to face a setback in their inquiry after former Prime Minister Han Duck-soo avoided arrest on Wednesday. The Seoul Central District Court rejected a request for an arrest warrant for Han, citing that there is "room for legal dispute" over his alleged role in the debacle late last year, which eventually led to Yoon's ouster from office in April of this year. The court also dismissed prosecutors' concerns that he might destroy evidence. Prosecutors had sought Han's arrest on charges of dereliction of duty, perjury, and document falsification, believing that he conspired with Yoon and former Defense Minister Kim Yong-hyun to prepare documents related to Yoon's Dec. 3 declaration of martial law. Han, who initially denied all allegations, claiming he only learned of Yoon's plan to declare martial law during a late-night cabinet meeting that day, recently admitted he was aware of it after CCTV footage and other evidence emerged. Han reportedly insisted through his lawyers that he did not collude with Yoon, arguing that the urgently convened cabinet meeting lasted only a few minutes, leaving him no time to object to Yoon's plan. Among the former cabinet members, Kim and ex-Interior Minister Lee Sang-min have been arrested on related charges and are currently detained at separate remand prisons. Prosecutors are now weighing whether to file another request for an arrest warrant against Han. 2025-08-28 11:25:14

LG H&H weighs sale of beverage unit amid broader restructuring push SEOUL, August 28 (AJP) - LG Household & Health Care, South Korea’s leading consumer goods company, is weighing the sale of its beverage subsidiary Haitai HTB. The company has tapped Samjong KPMG as lead adviser to evaluate options for Haitai HTB, formerly Haitai Beverage, as part of a broader review of its drinks division. Haitai HTB, best known for its Sunkist and Cocopalm juices, generated 414 billion won ($301 million) in revenue and 3.6 billion won in operating profit last year. LG, which acquired Haitai in full in 2010 and rebranded it six years later, reported overall beverage revenue of 1.82 trillion won in 2023, with operating profit of 168.1 billion won. The review does not extend to its Coca-Cola bottling operations, which remain a core part of its drinks portfolio. The possible divestment comes as LG H&H faces mounting pressure from investors after posting disappointing second-quarter results. Revenue fell 8.8 percent from a year earlier to 1.6 trillion won, while operating profit plunged 65.4 percent to 54.8 billion won, sharply missing market forecasts. The company has also struggled in its flagship cosmetics business, where pandemic disruptions in China — once its largest overseas market — eroded growth. While global demand for so-called K-beauty products has surged, LG H&H has failed to keep pace and has been restructuring its overseas operations. An LG spokesperson said the company was exploring “various options,” emphasizing that no final decision had been made. “This review is not only about divestment,” the spokesperson said, “but about structural reorganization and distribution optimization across multiple fronts.” 2025-08-28 10:00:05