Trump-era tax law threatens Hyundai's US EV sales, $2 billion at risk: analysis SEOUL, July 21 (AJP) - Hyundai Motor Group could lose up to $1.95 billion in U.S. electric vehicle sales following the enactment of Trump’s sweeping tax legislation, the One Big Beautiful Bill Act (OBBBA), according to the Federation of Korean Industries. The OBBBA, which took effect on July 4, abruptly ends key clean energy incentives introduced under former U.S. President Biden, including the $7,500 federal EV tax credit. The phase-out — now set to conclude by September, more than seven years ahead of schedule — threatens to upend Hyundai’s electric vehicle strategy in the world’s second-largest auto market. According to the FKI analysis, Hyundai’s U.S. EV sales could drop by as many as 45,828 units, a 37 percent decline from its 2024 sales of 123,861 units. The projected sales slump would translate to revenue losses of nearly $2 billion. The five affected models — the Hyundai Ioniq 5 and Ioniq 9, Kia EV6 and EV9, and Genesis Electrified GV70 — had only recently become eligible for the federal tax credit in January, raising hopes for a surge in demand. But the rollback of incentives under the OBBBA has heightened investment risk and clouded Hyundai’s longer-term outlook in the United States. “The legislation reflects Trump’s broader policy pivot,” the FKI said in its report, “which includes aggressive fiscal retrenchment, a hard line on border security, and a clear reversal of Biden-era clean energy policies.” The new law compounds mounting pricing pressures for Hyundai, which has already signaled it will postpone any near-term price hikes in the U.S. market. A report from DB Financial Investment suggested the company plans to sustain its pricing strategy and continue expanding market share through year’s end by drawing on its more than 30 trillion won ($21.6 billion) in accumulated cash reserves. Hanwha Investment & Securities analyst Kim Sung-rae estimates that tariffs imposed on 28 percent of Hyundai’s U.S. sales — roughly 1 million units in total — could add more than 2.6 trillion won ($1.87 billion) in costs this year alone. “Profitability is set to deteriorate further in the second half,” Kim warned, citing both the expiration of tax credits and elevated tariff burdens as key threats to margins. That pressure is already becoming evident in the company’s second-quarter performance. Hyundai’s sales for the quarter are expected to reach 46.52 trillion won, a modest 3.3 percent year-on-year increase, while operating profit is forecast to decline by 17.4 percent to 3.53 trillion won. Kia, its sister brand, is also expected to post a 17.6 percent drop in operating profit for the same period. In response to the shifting policy landscape, Hyundai and Kia are preparing to hold a global regional headquarters meeting later this month. 2025-07-21 11:02:52

[[K-Tech]] South Korea nears decision on landmark energy storage tender SEOUL, July 21 (AJP) - South Korea is poised to award its first large-scale energy storage system (ESS) tender this week, a 1 trillion won (approximately $720 million) project that has drawn fierce competition among the country’s top battery makers. The outcome could reshape the strategic priorities of an industry grappling with faltering global demand for electric vehicles. The Korea Power Exchange, under the Ministry of Trade, Industry and Energy, is expected to announce the winning bidder for the 540-megawatt ESS development project within days. The initiative forms a central pillar of the government’s plan to modernize the national power grid and bolster capacity for renewable energy integration. Consortiums led by LG Energy Solution, Samsung SDI, and SK On are expected to submit proposals featuring similar technical specifications but differentiated by cost structures, supply chain localization, and safety features. The tender arrives at a critical moment for South Korea’s battery manufacturers, many of which are contending with slowing EV sales globally. With growth plateauing as the sector moves from early adopters to more cost-sensitive mainstream buyers — a phenomenon some analysts call the “EV market chasm” — companies are increasingly eyeing ESS as a vital alternative growth engine. In response, the government has adopted a weighted evaluation framework that assigns 60 percent of scoring to pricing and 40 percent to non-price criteria. The latter includes domestic industrial contribution, fire and facility safety, and community acceptance, reflecting policymakers’ emphasis on supply chain security and public trust in grid infrastructure. LG Energy Solution and SK On are seen as competitive on both pricing and safety, thanks in part to their adoption of lithium iron phosphate (LFP) battery technology, known for its affordability and thermal stability. SK On, a relative newcomer to the ESS space, faces skepticism over its limited market experience and lack of a track record in high-volume grid deployments. Nevertheless, its LFP-based technology could offer advantages in safety and cost. Samsung SDI, in contrast, uses nickel-cobalt-aluminum (NCA) battery chemistry, which provides higher energy density but carries higher material costs and fire risk. Yet the company has emphasized its domestic manufacturing footprint — most ESS cells are produced at its Ulsan facility — and proprietary safety enhancements, potentially gaining ground in non-price categories, including community acceptance and domestic contribution. The project is the first of many under South Korea’s 11th Basic Plan for Electricity Supply and Demand, which calls for adding 23 gigawatts of ESS capacity by 2038. The stakes are high: the inaugural tender is expected to set benchmarks for future procurements, intensifying long-term competition among domestic battery firms. 2025-07-21 10:55:55

US tariffs on Chinese graphite open door for Korean supplier POSCO Future M SEOUL, July 21 (AJP) - The U.S. Department of Commerce has made a preliminary decision to impose a 93.5 percent anti-dumping tariff on anode-grade graphite imported from China, a move that could position South Korea’s POSCO Future M as a key beneficiary. The decision, announced on July 17, marks a notable shift from earlier actions that targeted specific companies — such as the more than 700 percent countervailing duties slapped on China’s Kaijin in May. This latest measure applies uniformly across all Chinese producers and is being described by U.S. battery industry officials as a “carpet-bombing” tactic that effectively blocks Chinese graphite from entering the U.S. market. The sweeping tariff aligns with the Trump administration’s broader strategy of reducing reliance on Chinese supply chains, particularly in critical sectors like clean energy. Under the Inflation Reduction Act (IRA), U.S. subsidies for electric vehicle battery components sourced from China are set to expire in 2027. Analysts view the new graphite tariff as a de facto acceleration of that timeline. Chinese companies currently dominate the global anode market, with BTR, Shanshan, Shinzoom, and Kaijin together accounting for more than 80 percent of global shipments. Anodes — typically made from natural or synthetic graphite — are a critical component in lithium-ion batteries used in electric vehicles, smartphones, and grid storage systems. Until now, major battery makers including Tesla, LG Energy Solution, SK On, Samsung SDI, and Panasonic have relied heavily on Chinese graphite. Now, the disruption of that supply stream could offer a rare market opening for POSCO Future M, the only non-Chinese company ranked among the global top 11 anode producers. The South Korean firm has long struggled to compete on price. Chinese natural graphite anodes are typically priced at around $2 per kilogram — some 40 to 50 percent lower than POSCO’s offerings. That cost disadvantage has weighed on production; the utilization rate at the company’s Sejong plant dropped from 67 percent in 2022 to below 40 percent in the first half of 2025. But with China’s price advantage erased by the tariff, POSCO Future M is now in a stronger position. Last year, the U.S. imported roughly $347 million worth of Chinese anodes. POSCO’s total anode revenue in 2024 amounted to around 150 billion won (approximately $115 million), suggesting even modest penetration of the U.S. market could yield a significant boost in earnings. Beyond anodes, POSCO Future M is also making inroads in cathode materials, another core component of lithium-ion batteries. On May 27, the company announced it had completed development of lithium manganese-rich (LMR) cathode materials and is preparing for mass production by the end of the year. LMR technology, which reduces reliance on expensive materials like nickel and cobalt by increasing manganese content, is viewed as a promising next-generation solution for cost-effective, high-energy-density battery storage. POSCO began developing the materials in 2023, and its accelerated progress suggests a broader ambition to establish itself as a full-spectrum battery materials supplier in a rapidly evolving market. 2025-07-21 10:49:08

Police find homemade bomb at suspect's home after fatal gun attack SEOUL, July 21 (AJP) - Police on Monday raided the home of a man in his 60s who had fatally shot his son the night before, retrieving a homemade explosive device. The suspect is now being questioned in connection with the rare firearm-related homicide, an unusual occurrence in South Korea, where private gun ownership is strictly regulated. According to the Seoul Metropolitan Police Agency, on July 21, a special operations team was dispatched to the suspect's apartment in northeastern Seoul, where they found and safely dismantled improvised explosive devices (IEDs). The materials included gasoline and paint thinner, rigged to a timer. The operation followed a confession from the suspect during police questioning that he had planted explosives in his residence. Authorities evacuated all 106 residents from the building and the nearby area before entering the apartment. Police said the explosives were neutralized at approximately 4:24 a.m. The suspect had been on the run after allegedly shooting his son, a man in his 30s, at an apartment in the western port city of Incheon around 9:30 p.m. Sunday. The victim was rushed to a nearby hospital but was pronounced dead shortly afterward. Gun-related crimes are extremely rare in South Korea, where civilian ownership of firearms is tightly controlled. Handguns and rifles are generally prohibited without special authorization, and most legal firearms, such as hunting rifles, are kept at police stations. The use of both a homemade firearm and explosives in this case has drawn widespread public concern and prompted a swift response from authorities. 2025-07-21 10:11:47

Prosecutors seek arrest warrant for drone operations chief in martial law probe SEOUL, July 20 (AJP) - Independent prosecutors are seeking an arrest warrant for the head of a key military unit responsible for drone operations, surveillance, and reconnaissance. They said the warrant was filed on Sunday to secure the custody of Kim Yong-dae, commander of the Drone Operations Command, as part of their investigation into disgraced former President Yoon Suk Yeol's botched martial law debacle late last year. They suspect Yoon allegedly ordered Kim, in collusion with former Defense Minister Kim Yong-hyun, to deploy drones to provoke Pyongyang in October last year as part of a broader attempt to build up excuses in advance for his Dec. 3 declaration of martial law or to justify it. After being questioned last Thursday, Kim denied the allegations, saying, "Deploying drones had nothing to do with the debacle but was a response to North Korea's bizarre campaign of trash-filled balloons floating along the border." But prosecutors believe Kim poses a risk of fleeing or destroying evidence. 2025-07-20 16:23:04

Hyundai, Kia ranked among UK's top five in monthly sales for first time SEOUL, July 20 (AJP) - Hyundai Motor and its affiliate Kia Corp. ranked among the top five in monthly auto sales in the U.K. for the first time last month, according to data released by the Society of Motor Manufacturers and Traders (SMMT) on Sunday. Hyundai sold 10,109 vehicles in June, up 9.9 percent from a year ago to rank fourth, while Kia trailed closely with 10,043 units, placing fifth. This marks the first time both Hyundai and Kia have simultaneously made it into the U.K.'s top five. Hyundai's small sport utility vehicle Tucson and Kia's Sportage SUV led strong sales, with cumulative sales of 15,496 and 23,012 units, respectively, for the first half of this year. Hyundai, in particular, has shown steady growth in sales, with 87,151 vehicles sold in 2023 and 91,808 in 2024. During the first six months of this year, its cumulative sales rose 5.1 percent on-year to 48,778 units. If this sales trend continues, Hyundai is expected to reach a milestone of over 100,000 units in annual sales in the U.K. for the first time, with the upcoming launch of its all-electric, seven-seater Ioniq 9. The automaker is also gaining sales momentum with other eco-friendly models like the Inster, known as the Casper here, which sold 1,127 units in its first month on the market since its launch there in May. 2025-07-20 15:04:22

KAIST and Yoshua Bengio develop breakthrough to make AI diffusion models 100 times faster SEOUL, July 20 (AJP) - A research team at South Korea’s prestigious research institution KAIST, in collaboration with renowned artificial intelligence scholar Yoshua Bengio from the University of Montreal, has developed a technique that significantly accelerates the performance of AI diffusion models while maintaining high output quality. The new method addresses one of the biggest barriers to deploying diffusion models in real-time applications such as robotics and decision-making systems. KAIST said on Sunday that the project was led by Professor Ahn Sung-jin from KAIST’s School of Computing was carried out through the KAIST-MILA Prefrontal AI Joint Research Center collaboration project. Diffusion models, widely used in AI for tasks like image and text generation, are known for their slow inference speed, which has limited their real-world utility in time-sensitive systems. The research team tackled this issue by introducing an inference approach based on Monte Carlo Tree Search, a strategy often used in game AI to explore decision paths. By modeling the generation process as a tree and strategically narrowing down the most promising paths, the method was able to produce high-quality outputs using limited computational resources. It also achieved a 100 percent success rate in a large-scale maze-solving task, a benchmark that previous models consistently failed to complete. The study was presented as a Spotlight paper at the 2025 International Conference on Machine Learning (ICML), held in Vancouver from July. 13 to 19. Spotlight papers are selected from the top 2.6 percent of all submissions, reflecting the technical significance and novelty of the work. While the initial version of the model demonstrated impressive accuracy, its speed remained a challenge. To address this, the team conducted follow-up research to parallelize the tree search algorithm, dramatically boosting its efficiency. The revised model achieved inference speeds up to 100 times faster than previous versions, with no loss in performance. "This study fundamentally breaks through the high computational cost barrier of conventional diffusion models," said Ahn Sung-jin. "We expect the technique to serve as a core technology across various domains, from intelligent robotics and simulation-based planning to real-time generative AI." The research was led by Ph.D. candidate Yoon Jae-sik, with contributions from Cho Hyeon-seo, Baek Doo-jin, Bengio, and Ahn. The results were published in two papers. The first, titled Monte Carlo Tree Diffusion for System 2 Planning, was authored by Yoon Jae-sik, Cho Hyeon-seo, Baek Doo-jin, Yoshua Bengio, and Ahn Sung-jin. The second paper, Fast Monte Carlo Tree Diffusion: 100x Speedup via Parallel Sparse Planning, was co-authored by Yoon Jae-sik, Cho Hyeon-seo, Yoshua Bengio, and Ahn Sung-jin. Both were posted on the preprint server arXiv. The study was supported by the National Research Foundation of South Korea. 2025-07-20 14:58:57

Torrential rains leave dozens dead or missing, thousands displaced SEOUL, July 20 (AJP) - Torrential downpours across the country have left at least 14 people dead and 12 others missing, while forcing thousands to flee their homes, the Ministry of the Interior and Safety said on Sunday. As relentless heavy rain battered mostly southern part of the country for about a week since last Wednesday, flooding and landslides caused casualties in Osan, Gyeonggi Province; Seosan and Dangjin, South Chungcheong Province; and Sancheong, South Gyeongsang Province, while several others remain missing. Around 13,000 residents from 9,694 households have evacuated across 14 cities and provincial areas. As many small towns and villages were submerged, some 9,504 homes were damaged and about 4,000 facilities and rice paddies were destroyed. South Gyeongsang Province was hit hardest, with Sancheong seeing 793.5 mm of rainfall in cumulative precipitation, followed by 699 mm in Hapcheon, 621.5 mm in Hadong, 600 mm in Changnyeong, 584.5 mm in Haman, and 578.3 mm in Seosan. According to the Korea Meteorological Administration (KMA), a sweltering heat wave accompanied by tropical nights, when temperatures do not drop below 25 degrees Celsius, is expected to return with a vengeance in the coming week as the monsoon season ends, despite some sporadic downpours in some mountainous areas. Meanwhile, President Lee Jae-myung instructed officials to swiftly designate areas affected by heavy rains as special disaster zones, according to his spokesperson Kang Yu-jung. Special disaster zones are entitled to disaster relief for damage recovery, as well as tax benefits and other forms of support. 2025-07-20 10:39:52

South Korea's special prosecutor indicts impeached president on martial law charges SEOUL, July 19 (AJP) - South Korea's special prosecutor team on Saturday indicted former President Yoon Suk Yeol on charges related to his failed attempt to impose martial law last December, marking the third time the embattled leader faces prosecution. The special investigation team, led by Special Prosecutor Cho Eun-suk, said it filed formal charges against Yoon while he remains in detention, including abuse of power and obstruction of rights. The charges stem from his brief declaration of emergency martial law on December 3, which sparked nationwide protests and ultimately led to his impeachment. The indictment alleges Yoon violated cabinet members' deliberation rights, ordered the retroactive drafting of martial law documents, and issued false public statements about the emergency decree. Prosecutors also accuse him of instructing the deletion of encrypted phone records and obstructing the execution of arrest warrants. Notably absent from Saturday's charges were allegations of foreign exchange law violations, which remain under active investigation. The special prosecutor's office indicated it would pursue those charges separately as the probe continues. This marks Yoon's third indictment since the martial law crisis began, following earlier charges by the prosecution's special investigation headquarters for leading an insurrection in January and abuse of power in May after his removal from office. Yoon began boycotting all criminal justice procedures after an arrest warrant was issued early on July 10 on charges including obstruction of official duties and abuse of power. He skipped a scheduled insurrection trial that morning citing deteriorating health and ignored the prosecution's summons for questioning on July 11. When Yoon refused to leave his solitary cell at Seoul Detention Center on Monday, the special prosecution team ordered forced extraction. However, detention center officials declined to use physical force against the former president, citing his previous presidential status. The team's next forced extraction attempt on Tuesday also failed due to the detention center's passive response. Prosecutors subsequently summoned detention center officials to investigate the circumstances of the failed attempts. On Wednesday, prosecutors visited Seoul Detention Center again to forcibly question Yoon directly, but postponed the attempt when Yoon filed an appeal against his detention. The court rejected Yoon's detention appeal on Friday, dismissing his legal team's claims about double jeopardy and health conditions, paving way for prosecutors to proceed with forced questioning. While some observers speculated that the special prosecution team would attempt forced extraction again for direct questioning of Yoon, prosecutors determined that further investigation attempts would be meaningless and opted for early indictment without extending the detention period. The decision also appears to be based on the judgment that prosecutors secured some statements related to the charges during Yoon's direct remarks at the detention appeal hearing. Park Ji-young, a deputy to Special Prosecutor Cho Eun-suk, said the team decided to file charges following internal discussions after the detention appeal rejection. "We determined that sufficient additional investigation and evidence collection from witnesses and others had been conducted since the arrest warrant was issued, and that extending the detention period would not guarantee effective questioning of former President Yoon," Park said. He added that the prosecution regrets that related investigation of Yoon could not be conducted after the arrest warrant was issued. "Former President Yoon's behavior during the investigation process will be presented at trial and reflected in sentencing," Park said. 2025-07-19 15:54:39

Lee administration's first cabinet hearings draw criticism over lack of scrutiny SEOUL, July 19 (AJP) - South Korea's first cabinet confirmation hearings under President Lee Jae Myung concluded Friday amid widespread criticism that the process lacked proper verification of ministerial nominees. The five-day ‘super week’ hearings examined 16 cabinet nominees from July 14 to 18, but opposition lawmakers and critics described the proceedings as ineffective and superficial. The ruling party focused on defending candidates while the opposition struggled with internal conflicts and special prosecutor investigations. The main opposition People Power Party labeled five nominees as "unqualified" and demanded their withdrawal, including Kang Sun-woo for gender equality, Chung Dong-young for unification, Lee Jin-sook for education, Kwon Oh-eul for veterans affairs and Kim Young-hoon for labor ministries. However, all nominees appear likely to be confirmed without withdrawals. Both parties reached consensus on five nominees, adopting hearing reports for Bae Kyung-hoon for science and technology, Koo Yun-cheol for economy and finance, Cho Hyun for foreign affairs, Kim Jung-kwan for trade and industry, and Yoon Ho-jung for interior ministries. The unanimous decisions came after the opposition agreed to cooperate on trade negotiations with the United States. Yoon Ho-jung's report was adopted on the hearing day itself due to concerns about disaster response gaps following recent flooding. Justice Minister nominee Jung Sung-ho's report was adopted through a party-line vote after partisan clashes, including only the ruling party's assessment of qualification. At Friday's floor leaders' meeting, ruling Democratic Party leader Kim Byung-kee said all nominees should proceed without withdrawals, stating there were "no disqualifying issues." The ruling party treated confirmations as foregone conclusions throughout the hearings, while the opposition showed resistance against the legislative majority. Some nominees adopted a strategy of avoiding direct answers during questioning. Education Minister nominee Lee Jin-sook was later found to have notes suggesting she avoid direct answers and give evasive responses to difficult questions. Gender equality Minister nominee Kang Sun-woo repeatedly apologized for staff abuse allegations, becoming emotional during testimony. However, additional controversies emerged regarding false explanations and property disclosure omissions. Health Minister nominee Jeong Eun-kyeong's hearing received less attention despite opposition attacks, with the ruling party defending her while dismissing alleged criticism of profiting from trading stocks related to the COVID-19 as "fake news." Three more confirmation hearings remain scheduled, including the Constitutional Court Chief Justice nominee Kim Sang-hwan on July 21 and Land Minister nominee Kim Yun-duk and Culture Minister nominee Chae Hwi-young on July 29, with real estate and wealth controversies expected to dominate discussions. 2025-07-19 13:41:08