IMF cuts Korea's 2025 growth outlook to 0.8 percent SEOUL, July 30 (AJP) - The International Monetary Fund (IMF) has downgraded South Korea's 2025 economic growth forecast to below 1 percent, amid rising global trade uncertainty driven in part by the United States-related tariff tensions. According to the Ministry of Economy and Finance on Tuesday, the IMF, in its July World Economic Outlook (WEO), lowered South Korea's growth projection by 0.2 percentage points from its previous estimate to 0.8 percent. This revision stands in contrast to the upward adjustments made for the global and advanced economies. The IMF expects the global economy to grow by 3.0 percent this year, up 0.2 percentage points from its earlier forecast. For advanced economies, which include 41 countries such as South Korea, the U.S., and Britain, the projection was raised by 0.1 percentage point to 1.5 percent. The IMF had initially forecast 2.0 percent growth for South Korea in its annual consultation report released in February, but sharply cut it to 1.0 percent in April and has now revised it downward again. The new estimate aligns with projections by the Bank of Korea, Korea Development Institute (KDI), and Asian Development Bank (ADB), but falls short of the OECD’s 1.0 percent forecast. The IMF did not include additional commentary on South Korea in the July report. However, Rahul Anand, head of the IMF Korea mission, stated that the latest downgrade was due to weaker-than-expected performance in the first half of the year, saying, "The subdued outcome was driven by domestic political and global trade uncertainty." For 2026, the IMF revised South Korea’s growth forecast upward by 0.4 percentage points to 1.8 percent, reflecting improving consumer and investment sentiment following two rounds of supplementary budgets and easing political tensions. Anand added, "We expect a gradual economic recovery to begin in the second half of this year and continue into next year." Regarding the broader global economy, the IMF warned of persistent downside risks stemming from uncertain trade policies, particularly those centered on the U.S. It stated, "The direction of trade policy developments will be a key determinant of global risk," and warned that "rising effective tariffs or failed trade negotiations could suppress corporate and trade-related investment, undermining growth momentum." 2025-07-30 13:53:34

[[K-Biotech]] Celltrion to acquire US factory to counter potential drug tariffs SEOUL, July 30 (AJP) - South Korean biopharmaceutical company Celltrion said Tuesday it will invest up to 1.4 trillion won to acquire and expand a US manufacturing facility as a preemptive response to potential drug tariffs threatened by the Trump administration. The company plans to complete the factory acquisition this year and begin local production of drugs sold in the US from the fourth quarter of 2026. Celltrion announced it was selected as the preferred bidder for a US drug substance production facility owned by a global pharmaceutical company. The factory, located in a major pharmaceutical industry cluster, has been producing cancer and autoimmune disease treatments for several years. Contract details will be disclosed in October when the final agreement is signed. Chairman Seo Jung-jin said the acquisition and operation of the production facility will require about 700 billion won, with additional expansion costing between 300 billion and 700 billion won. The expanded facility could reach up to 1.5 times the production capacity of Celltrion's Songdo plant in Incheon, which has a 90,000-liter capacity. The acquisition includes a multi-billion won contract manufacturing agreement that will allow Celltrion to generate immediate revenue. Under the five-year deal, Celltrion will exclusively produce biopharmaceuticals for the selling company using half of the facility, while the other half will manufacture Celltrion's own products starting in the fourth quarter of 2026. Celltrion currently sells 11 biosimilar products in the US market, with plans to expand to 41 products by 2033. Seo said the company had stockpiled two years' worth of inventory in the US to provide time for setting up local production, while non-US sales will continue to be manufactured in South Korea. 2025-07-30 13:48:57

[[K-Tech]] Krafton's Q2 net profit tumbles 95 percent despite record sales for first half of the year SEOUL, July 30 (AJP) - South Korean gaming giant Krafton, well-known for its flagship game “PUBG: Battlegrounds”, reported on Tuesday its second-quarter net income tumbled 95.4 percent due to increased operational costs. The company reported 15.5 billion won, around US$11.1 million, in net profit for the April to July period, down 95.4 percent compared to year-on-year, in a regulatory filing on Tuesday. Krafton attributed its sharp fall in net income to increased marketing expenses and labor fees. Despite its moody second quarter results, the company posted its highest sales for the January to June period, with sales nearing 1.53 trillion won, up 11.9 percent from the same period of last year. Operating profits for the first half of 2025 also rose 9.5 percent to 703.3 billion won. The firm analyzed its sales that mobile gaming contributed 960 billion won, followed by PC gaming with 543.2 billion won, console gaming and others with 33 billion won. Looking ahead, Krafton is to broaden its portfolio by digging new franchise intellectual properties under its five-year long-term strategy for new games. 2025-07-30 13:45:42

[[K-Tech]] LG key wings' 2Q performance fall short of expectations SEOUL, July 30 (AJP) - LG Electronics, LG Display, and LG Innotek, the core electronics wings of South Korea’s LG Group, posted underwhelming second-quarter results, falling short of market expectations amid headwinds including U.S. tariffs, high logistics costs, and exchange rate fluctuations. However, industry analysts anticipate a rebound in the second half, aided by seasonal demand in the IT sector and a product cycle led by Apple. According to industry data released Tuesday, LG Electronics, the largest of the three, reported 20.7352 trillion won (approximately $14.93 billion) in revenue and 639.4 billion won (approximately $460 million) in operating profit for the second quarter. Revenue declined 4.4 percent year-on-year, while operating profit plunged 46.6 percent. The company cited weakening demand in key markets, heightened tariff burdens from shifting U.S. trade policy, and intensified global competition as overlapping challenges weighing on earnings. LG Display widened its operating loss to 116 billion won ($83.5 million) from 93.7 billion won ($67.5 million) a year earlier, with revenue falling nearly 20 percent over the same period. The company attributed the decline to lower mobile shipments and its strategic exit from the LCD TV business as it pivots toward OLED-centered operations. The depreciation of the U.S. dollar against the Korean won also negatively affected earnings. LG Innotek also underperformed significantly. Its second-quarter operating profit dropped 92.5 percent year-on-year to just 11.4 billion won ($8.2 million), well below market forecasts. Looking ahead, LG Electronics is expected to continue facing pressure in the second half, as tariffs on home appliances take full effect and macro uncertainties persist. In contrast, LG Display and LG Innotek may benefit from a rebound in IT demand as smartphone and other device launches pick up pace. An analyst at Shinhan Investment Corp. projected that LG Display’s mobile segment will grow 69.9 percent quarter-over-quarter in Q3, driven by ramped-up production capacity and improved technological competitiveness that is expected to translate into greater customer share. With Apple ramping up production of the iPhone 17 and new iPad Pro models from July, LG Display’s OLED market share is forecast to exceed 30 percent. Market research firm UBI Research stated, "The increase in OLED panel shipments for iPhones and iPads will drive a performance rebound," projecting Q3 shipments of 18.5 million iPhone panels, up nearly 70 percent from the previous quarter, and 1.6 million iPad panels, double the previous volume. LG Display is expected to see robust gains across its OLED business in the second half. "Achieving our full-year profitability goal is within reach," said Kim Sung-hyun, Chief Financial Officer at LG Display. LG Innotek, meanwhile, is eyeing a recovery in camera module demand fueled by Apple’s upcoming product launches. Growth is also expected from previously secured orders for high-value vehicle components such as telecom and lighting systems as well as steady demand for RF-SiP (Radio Frequency-System in Package) semiconductor substrates used in communications. 2025-07-30 13:44:34

Samsung chief heads to Washington as tariff talks deadline with US looms SEOUL, July 29 (AJP) - Samsung Electronics Chairman Lee Jae-yong left for the U.S. on Tuesday to lend a hand in ongoing tariff negotiations between Seoul and Washington, according to industry sources. Lee's trip comes just a couple of days before the tariff deadline set by U.S. President Donald Trump looms later this week. Industry watchers expect Lee may offer Samsung's commitment to expanding investment in the semiconductor sector, as well as deepening cooperation in artificial intelligence-related technologies with the U.S. It also coincided with Samsung's signing of a record 23 trillion won contract for foundry supply with American electric vehicle giant Tesla the previous day. Under the deal, Samsung will produce Tesla's next-generation AI6 autonomous driving chips using 2-nanometer manufacturing processes at its facility in Taylor, Texas starting next year. Calling it a "key milestone for Samsung’s foundry business amid fierce market competition," Tesla CEO Elon Musk expressed his expectations on X, praising the partnership as a way to help Tesla maximize manufacturing efficiency. He added he would personally inspect production lines to accelerate progress in the partnership between the two companies. Market analysts believe the deal will create a favorable atmosphere for the tariff negotiations. Samsung is currently expanding its American operations with a mega factory under construction in Taylor, in addition to its existing foundry facility in Austin, also in Texas. 2025-07-29 18:10:15

Elderly population surpasses 10 million SEOUL, July 29 (AJP) - The elderly population in South Korea surpassed 10 million for the first time, Statistics Korea said Tuesday. Those aged 65 and older stood at 10.12 million as of November last year, accounting for 19.5 percent of the total population of 51.81 million, roughly one in five. That also brought the average age of the population to 46.2. Amid an aging society with a super-low birthrate, the elderly population has steadily increased in recent years from 8.71 million in 2021 to 9.61 million in 2023, while the working-age population continues to dwindle. Those aged 15 to 64 stood at 36.26 million last year, down 283,000 from a year ago, with the number of children also dropping by 199,000 to 5.42 million during the same period, further worsening the demographic imbalance. Despite this trend, the total population rose slightly to 51.81 million, up 31,000 from the previous year, mainly due to the influx of foreigners who came here for work or study. The number of South Koreans declined by 77,000 to 49.76 million, but the number of foreign residents increased by 108,000 to 2.04 million, surpassing 2 million for the first time. Among them, ethnic Chinese Koreans accounted for the largest number at 538,000, followed by Vietnamese at 285,000 and Chinese at 223,000. 2025-07-29 16:41:57

Korean shipbuilders gain market share as US sanctions target China SEOUL, July 29 (AJP) - South Korean shipbuilders saw their global market share recover to over 20 percent in the first half of 2025, benefiting from the United States sanctions on Chinese maritime industries, according to data released Tuesday by the Korea Development Bank's overseas economic research institute. South Korea's order share reached 25.1 percent in the January-June period based on compensated gross tonnage, up 8 percentage points from 17.2 percent a year earlier. The gap with top-ranked China narrowed from 51.0 percentage points to 26.7 percentage points as Korean yards capitalized on container ship orders shifting away from Chinese competitors. The rebound was driven by the US Trade Representative's decision to impose port fees on Chinese shipping companies and operators of Chinese-built vessels entering US ports. Container ships accounted for 53.3 percent of Korea's 4.87 million CGT in orders during the first half, compared to just two medium and large container ships ordered in the same period last year. However, the overall global shipbuilding market contracted sharply amid economic uncertainties. Global orders fell 54.5 percent to 19.39 million CGT in the first six months, with liquefied natural gas vessel orders - a Korean specialty - plunging 82.9 percent to 1.05 million CGT. The research institute warned that South Korean shipbuilders should use this temporary advantage to strengthen fundamental competitiveness rather than becoming complacent. The report noted that the market share recovery represents "fisherman's profit" from US-China tensions and urged companies to focus on widening quality gaps with Chinese rivals while the government provides active support given the industry's national security importance. 2025-07-29 16:06:43

[[K- Tech]] S. Korea's new geo-spatial AI system to undergo commercialization next month SEOUL, July 29 (AJP) - South Korea’s Ministry of Land, Infrastructure and Transport (MOLIT) on Tuesday announced the completion of its spatial intelligence system known as Geo-AI, a next-generation artificial intelligence technology designed to analyze and respond to queries using spatial information such as maps, locations, environments, and moving objects. The ministry will begin full-scale research and development (R&D) in August to prepare the technology for commercialization. Unlike traditional chatbot-style AI, Geo-AI incorporates spatial and temporal elements to deliver optimized responses. The technology enables users to interact through natural language queries such as, "Show me apartments under 300 million won near a subway station and within 100 meters of an elementary school." and receive results visualized on 3D maps. This is made possible through the system’s ability to interpret complex datasets including real-time traffic, infrastructure, and public records. Geo-AI is characterized by three major features: 3D map-based visual response, inference capabilities that understand spatial context and relationships, and integration of heterogeneous spatial datasets ranging from urban planning and transportation to climate and CCTV footage. The system is already being piloted by real estate startups, which are using mid-stage versions of the technology to automatically recommend property listings and connect users to AI-based brokerage services. In the safety domain, smart glasses embedded with Geo-AI allow construction workers to locate underground infrastructure via voice command in real-time. Additionally, autonomous mobile robots (AMRs) utilizing Geo-AI can calculate and follow optimal paths based on real-time obstacles and traffic data. Geo-AI will be accessible via internet-connected devices such as smartphones and navigation systems, without requiring additional software installation. A demonstration version is expected to be deployed through MOLIT’s V-World spatial data platform. Originally initiated in April 2022, the Geo-AI development project is scheduled to run through December 2027 with a total budget of 10.82 billion won (about $7.8 million). The initiative involves collaboration among four universities (Seoul National University, Yonsei University, Kunsan National University, and Korea National University of Transportation) and three private companies. According to MOLIT, the project aims to lay the foundation for an advanced public spatial information platform and foster innovation among spatial data startups. The ministry plans to enhance service features over the coming years, gradually shifting toward full-scale deployment and service integration by 2027. 2025-07-29 15:59:59

UN adopts Tajikistan-led resolution on AI for sustainable development in Central Asia SEOUL, July 29 (AJP) - A resolution calling for stronger regional cooperation on artificial intelligence (AI) to support sustainable development in Central Asia was adopted at the United Nations General Assembly last week. The resolution, led by Tajikistan, came as a rare move of unified support for a regional approach to AI governance, laying the groundwork for the ethical, inclusive, and practical use of AI technologies while highlighting Central Asia's growing role in global tech policy. Initiated by Tajik President Emomali Rahmon in September last year, the resolution's adoption reflects broad support for Tajikistan's efforts to align emerging technologies with regional development goals. As part of its objectives, the resolution includes building a regional AI center in Dushanbe, the capital of Tajikistan, to serve as a hub for education, research, and cross-border collaboration, with aims to support startups, connect institutions, and expand access to shared digital infrastructure. Tajikistan's Ambassador to Seoul Salohiddin Kirom welcomed the adoption of the resolution, saying it reflects his country's active participation in global AI dialogue. "The resolution shows Tajikistan's growing role in global discussions on AI and reflects the importance of President Rahmon's constructive leadership," he said. With detailed action plans for implementation yet to be seen, the resolution is drawing attention as a potential model for other regions seeking to balance innovation and governance, especially amid evolving technological landscapes. 2025-07-29 15:45:20

Washington remains 'open' to talks with North Korea despite snub SEOUL, July 29 (AJP) - U.S. President Donald Trump remains 'open' to reengaging in talks with North Korea, Reuters reported on Monday. Citing a White House official, it said, Trump "remains open to engaging with as a nuclear weapons state." Trump, who had a couple of photo ops with Kim during his first term, has claimed on several occasions that he still has a "good relationship" with Kim. The previous day, she also ruled out any chance of resuming talks with the South, saying that South Korean President Lee Jae-myung is "no different from his predecessor in blindly adhering to the South Korea–U.S. alliance and pursuing confrontation" with the North. "I make it clear once again that we are not interested in any policy or proposal put forward by Seoul, and there will be no chance of us sitting down with South Korea for any discussions," she fumed. 2025-07-29 15:06:56