Chipflation (2): Winners — component makers; losers — consumers Editor’s Note: This is the second installment in AJP’s Chipflation series, examining how explosive AI demand and South Korea’s dominance in memory chips are reshaping the global technology supply chain — from Silicon Valley data centers to everyday consumer electronics. SEOUL, February 27 (AJP) - Chipflation is, at its core, a story about economic rents. When demand concentrates on a scarce, indispensable input, the suppliers of that input capture returns well above competitive norms. In the current AI cycle, high-bandwidth memory has become precisely such a bottleneck. The result is a redistribution of profits along the semiconductor value chain — and South Korea sits at the point of rent capture. The latest financial disclosures from Dell Technologies illustrate the scale. The company reported a $43 billion AI server backlog, more than double the previous quarter. Nvidia, meanwhile, generated $62.3 billion in quarterly data center revenue. The architecture is increasingly clear: Nvidia designs the AI processors, Dell assembles the servers, and Korean firms supply the high-density memory modules without which those systems cannot function. In such an ecosystem, pricing power migrates upstream. Rent extraction as export engine The macroeconomic implications are visible in South Korea’s trade data. Customs figures for the first 20 days of February show semiconductor exports surging 134.2 percent year-on-year to $15.1 billion. This surge is not simply a volume expansion. It reflects rent extraction driven by scarcity. HBM3E and HBM4 modules now command prices six to ten times higher than standard DDR5 memory. Enterprise SSD prices have risen nearly 40 percent over the past six months. These are not incremental adjustments; they are structural repricings of critical components. Unlike past memory cycles — dominated by volatile consumer PC demand — today’s AI infrastructure buildout provides longer-term visibility. Massive pre-orders from hyperscalers and enterprise server vendors create forward revenue certainty. In some AI memory segments, industry estimates suggest operating margins exceeding 40 percent. For Samsung Electronics and SK hynix, this marks a transformation from commodity suppliers subject to cyclical oversupply to rent-earning bottleneck providers. At the national level, the impact is profound. With automobiles and steel facing softer global demand, semiconductors have become the principal engine of export growth. The sector now accounts for a record share of South Korea’s trade surplus. Yet rent concentration carries risk. When one sector disproportionately underwrites national growth, exposure to investment cycles intensifies. Should AI capital expenditure moderate, the same rent dynamics currently lifting the economy could reverse. The downstream squeeze Economic rents do not vanish. They are financed somewhere. In this case, downstream device manufacturers — and eventually consumers — bear the cost. A new report from Gartner projects that combined DRAM and SSD prices will surge 130 percent by the end of 2026. As memory becomes a larger share of bill-of-materials costs, PC and smartphone makers must either absorb margin compression or raise retail prices. Most are choosing the latter. Gartner forecasts that average selling prices will rise 17 percent for PCs and 13 percent for smartphones this year. Shipments are projected to decline 10.4 percent and 8.4 percent, respectively. "The shipments of PCs and smartphones this year are projected to hit their lowest levels in over a decade," said Ranjit Atwal, Senior Director Analyst at Gartner. "Price increases are narrowing the range of products available to consumers and forcing them to extend the life of existing devices, fundamentally shifting upgrade cycles." In effect, AI servers — backed by corporate capital budgets — are crowding out consumer devices in the competition for scarce high-performance memory. The pressure is most acute at the lower end of the market. Memory accounted for roughly 16 percent of a PC’s production cost in 2025. Gartner expects that share to rise to 23 percent by 2026. For manufacturers operating on thin margins, absorbing such increases is unsustainable. The sub-$500 laptop segment, Gartner warns, could largely disappear by 2028 as vendors prioritize profitability over shipment volume. "PC manufacturers must prioritize maintaining profitability over shipment volume, instead of sacrificing margins to capture price-sensitive demand," said Atwal. He added that companies "need to take proactive measures before the full impact of component price hikes hits in the second quarter." The likely outcome is a prolonged “device freeze.” Consumers extend replacement cycles. Entry-level offerings narrow. Technology diffusion slows among price-sensitive buyers. Latest cycle differs from prior semiconductor booms not merely in scale but in structure. AI infrastructure represents capital expenditure by hyperscalers and corporations capable of paying premium prices for performance gains. Consumer electronics represent discretionary spending constrained by household budgets. When supply tightens, the higher-value application captures the rent. For Korea, the immediate effect is positive. The country supplies one of the most critical inputs in the global AI expansion. Memory has become the strategic choke point — and choke points generate rents. But history chart in semiconductors shows, scarcity is self-correcting. Today’s rent concentration finances tomorrow’s capacity — and with it, eventual oversupply. 2026-02-27 15:42:39

BTS Comeback D-22: The line between private and public - Jungkook Editor’s Note — As BTS prepares to return as a full seven-member act with a new album set for March 20 and an open-stage performance at Gwanghwamun on March 21, following a near four-year hiatus for rotational military service, AJP revisits the group’s 13-year trajectory. This series reexamines BTS’s history, music, performance identity and enduring appeal. The eight installment traces the roots and growth of Jungkook. SEOUL, February 27 (AJP) - They sing about love, self-worth and empathy. At the same time, BTS members are adults with private lives that occasionally surface in public view. A late-night livestream by BTS member Jungkook on Feb. 26 prompted debate across fan communities, highlighting the tension between authenticity and expectation in global pop culture. Jungkook went live at approximately 3:40 a.m. KST (0640 GMT) on fan platform Weverse and streamed for about 90 minutes. The broadcast began informally, with Jungkook drinking alongside his older brother and acquaintances. He spoke about recent activities and preparations for BTS’ upcoming “ARIRANG” comeback, later shifting to a more candid tone about feeling busy and under pressure. Some segments of the livestream drew criticism. Viewers cited instances in which he used profanity, made an obscene hand gesture toward friends and responded firmly to fans who urged him to end the broadcast due to his intoxicated state. Jungkook told viewers not to dictate what he could or could not do. Shortly after the livestream ended, Jungkook posted a selfie on Weverse with the message: “The album is coming up soon. Please wait a little bit more. I’ll do my best when we make a comeback. I love you,” followed by seven purple hearts. A recording of the livestream was later removed from the platform. A divided response Reaction was immediate and varied. A full recording reposted on YouTube accumulated roughly 340,000 views, 14,000 likes and more than 2,500 comments. On X (formerly Twitter), discussion posts circulated widely. Korean-language reactions tended to express concern. Some users questioned Jungkook’s judgment, arguing that public figures representing a global group carry added responsibility. One longtime BTS-focused YouTube account with more than 44,000 followers announced it would stop uploading new content, citing disappointment, while leaving existing videos online. English-language responses often emphasized personal autonomy and stress. Several users described Jungkook as appearing tired or frustrated, while others stated that as an adult he has the right to live privately as he chooses. The contrast reflected differing expectations across segments of the fandom. Established livestream identities Some fans framed the incident within BTS’ long-standing livestream culture. One widely shared X thread analyzed each member’s communication style during broadcasts, describing Jungkook’s persona as more informal and friend-like compared to other members’ more structured or measured approaches. Such interpretations suggest that fan expectations are shaped by perceived consistency. When tone or behavior diverges from that established image, reactions intensify. Career context Born Jeon Jungkook on Sept. 1, 1997, in Busan, Jungkook entered the entertainment industry as a teenager. After auditioning for the television program “Superstar K,” he received offers from multiple agencies and chose Big Hit Entertainment. He debuted in 2013 as the youngest member of BTS at age 16 internationally (17 in Korean age). Known as the group’s “Golden Maknae,” he serves as main vocalist and a central performer. As a solo artist, Jungkook achieved measurable commercial milestones. In 2023, “Seven (feat. Latto)” debuted at No. 1 on the Billboard Hot 100. Subsequent singles “3D (feat. Jack Harlow)” and “Standing Next to You” both reached the top five. His album “GOLDEN” peaked at No. 2 on the Billboard 200 and charted for 25 weeks. “Seven” also topped the Billboard Global 200 and remained on global charts for an extended period. Brand partnerships have included global campaigns for Calvin Klein and associations with luxury brands such as Chanel and Hublot. That level of visibility amplifies scrutiny. Informal interactions, including livestreams, are often interpreted within the broader context of global brand representation. Public access and expectation BTS’ global rise has been closely linked to direct digital communication with fans. Livestreams have served as a primary channel for real-time engagement. However, increased accessibility can heighten expectations of conduct. For artists who have grown up under sustained public attention, the boundary between personal expression and public responsibility remains narrow. Whether the Feb. 26 livestream is remembered as a minor controversy or a transitional moment may depend less on the broadcast itself and more on subsequent public and professional developments. In global pop culture, authenticity and accountability frequently coexist. How audiences interpret that balance continues to evolve. 2026-02-27 15:35:29

UK Ambassador Colin Crooks Visits Hanwha Ocean Shipyard in Geoje 콜린 크룩스(Colin Crooks) 주한 영국 대사가 27일 오전 한화오션 거제사업장을 방문해 장보고-III 배치-II 잠수함 건조 현장을 둘러보고 한·영 협력 현황을 점검했다. 한화오션은 이번 방문이 자사와 영국 밥콕이 전략적 파트너십을 바탕으로 캐나다 초계 잠수함 프로젝트(CPSP)에 함께 참여하는 가운데, 협력 진행 상황을 점검하기 위해 마련됐다고 밝혔다. 크룩스 대사는 잠수함 블록 제작 현장과 자동화 설비, 스마트 야드 기반 생산 시스템을 살펴봤다. 특히 건조 중인 장보고-III 배치-II 잠수함 현장을 둘러보며 관심을 보였다고 회사는 전했다. 한화오션이 캐나다 잠수함 사업에 제안한 장보고-III 배치-II에는 영국산 어뢰발사관과 무장 제어 체계, 잠수함 내 CO2 제거기 등을 탑재할 계획이다. 회사는 이번 방문에서 관련 진행 상황과 협조 사항을 공유하는 자리도 마련됐다고 했다. 한화오션은 양사 협력 모델이 캐나다의 요구 조건을 이해하고 반영하는 데 긍정적으로 작용할 것으로 기대하고 있다. 밥콕 캐나다는 2023년 한화오션과 기술협력협약(TCA)을 체결했으며, 현재 캐나다 해군의 유지·보수·운영(MRO)과 해군 지원 서비스를 맡고 있다. 한화오션은 한·영 협력 체계가 캐나다 정부가 중시하는 현지화를 통한 산업 기반 강화와 잠수함 장기 운용의 신뢰성 확보 측면에서도 경쟁력을 갖출 수 있을 것으로 보고 있다고 밝혔다. 크룩스 대사는 "한화오션과 밥콕 간 공동 수행 협약은 한국과 영국 양국 정부가 추진하고 있는 국방공동수출 업무협약을 구체화한 대표적인 사례"라며 "양국 기업 간 전략적 파트너십이 향후 다양한 방산 분야에서의 협력 확대를 이끄는 중요한 기반이 될 것"이라고 말했다. 정승균 한화오션 특수선해외사업단 부사장은 "한화오션과 밥콕사 양국 기업의 기술력과 해군 사업 수행 경험이 결합된 협력 구조는 캐나다 잠수함 사업에 있어 실질적이고 지속 가능한 해법이 될 것"이라며 "CPSP 사업을 통해 캐나다 해군 전력 강화는 물론 현지 산업 생태계 발전에도 기여할 수 있도록 최선을 다하겠다"고 전했다. 2026-02-27 15:21:21

The birth of humanoid robots (4): A Christmas Carol for steel and silicon Editor's Note: This is the fourth and final installment in AJP's series on humanoid robotics, examining the anatomy, technologies and economic logic behind one of the most hyped industries of the decade. SEOUL, February 27 (AJP) - A line of humanoid robots flips in unison. They lunge, pivot, brandish swords beside children in a synchronized kung fu routine. In the next sequence, they stagger theatrically, swaying through a stylized "drunken boxing" set — collapsing backward only to rebound with uncanny balance. The spectacle, staged by China's Unitree Robotics at the Spring Festival Gala, ricocheted across the globe. For many viewers it was entertainment. For roboticists elsewhere, it was a reckoning. In South Korea, some scientists watched with admiration; others, with a familiar pang. Decades of painstaking work still sit largely confined to laboratories — brilliant machines, but rarely public performers. In a lab at Hanyang University, a different drama unfolds. A humanoid named Alice 4 stands tethered to a rear frame — a metal Pinocchio awaiting animation. With a light tap on a keyboard, the machine jolts to life. It runs in place, almost straining against its restraints, optical sensors fixed straight ahead — on its creator. Han Jae-kwon, professor of robotics at Hanyang University and chief technology officer of Aei Robot, watches without theatrical flourish. "It's not about the kung fu or the backflips," he said. "The essence of a humanoid robot is what it does for work. Replace dangerous, undesirable labor. Help address the population cliff." That, he insists, is the measure that matters. The long arc of Korean humanoids South Korea's humanoid lineage stretches back more than two decades, to an era when bipedal machines were symbols of national ambition. At the Korea Institute of Science and Technology (KIST), a towering metallic figure still hangs in the institute's history hall. Known as "Centaur," it never truly walked upright. Its lower half resembled a mechanical horse — four legs instead of two. Korea's first humanoid was, in effect, a compromise between aspiration and stability. "Centaur was a small project we undertook to understand intelligent machines. Not long after Japan's Honda showcased ASIMO, we were asked to build ubiquitous robot companions capable of performing multiple tasks," recalled You Bum-jae, principal research scientist and former head of humanoid development at KIST. Japan's unveiling of ASIMO had electrified the region. In response, two Korean institutions embarked on parallel paths. At the Korea Advanced Institute of Science and Technology (KAIST), Professor Oh Jun-ho and his team introduced HUBO in late 2004 — a full-scale biped capable of walking, grasping and limited speech. "HUBO is the beginning of that history, we believe," Han said. "There was a sense of national pride — we could do what only Japan had done." In early 2005, KIST followed with MAHRU, billed as the world's first network-based humanoid. Standing 150 centimeters tall, MAHRU was designed for domestic assistance — a precursor to what today might be called "physical AI." "MAHRU was a network-based humanoid, capable of understanding vocal commands. It could walk to a microwave, open it, pick up a piece of toast, place it in the toaster, take it out and deliver it to its master," said Yoo, gently patting the robot's original plastic head. "We didn't have advanced AI back then — only recognition skills and programs to support it. But that's essentially how all humanoids aim to function even today: a body running light, a powerful computer supporting it through a network, now equipped with AI." Yet progress proved incompatible with political cycles. As Yoo noted, humanoid development was "not capable of significant results within two-year government projects." By the 2010s, funding for large-scale bipedal programs was pared back. Then disaster intervened. The Fukushima nuclear accident in 2011 prompted the U.S. Defense Advanced Research Projects Agency to launch the DARPA Robotics Challenge in 2012. The competition was designed to push robots into hazardous environments no human should enter. By the finals in June 2015, 24 teams had qualified. Three were Korean — each fielding its own platform rather than relying on Boston Dynamics' Atlas. Team KAIST, led by Professor Oh, won in 44 minutes and 28 seconds. Han's team from Robotis and a team from Seoul National University also competed — both using robots Han had helped design. For a brief moment, Korea stood at the apex of disaster-response robotics. But the aftermath told a more complicated story. In the United States, many participants flowed into emerging ventures such as Figure AI or Tesla's Optimus program. In Korea, talent dispersed. Rainbow Robotics, spun off from Team KAIST, pivoted to collaborative industrial arms and was later acquired by Samsung Electronics. Robotis listed publicly and diversified. "The people who competed back then — it's such a waste," Han said. "Many went to the U.S., others became professors but stopped working on humanoids. If all of them had stayed, the situation would be very different today." Research continued, though largely out of public view. A five-year project funded by the Ministry of Trade, Industry and Energy sustained further development at KAIST, including hydraulically actuated humanoids capable of dynamic motion. "But if the media doesn't cover much of it, the public simply doesn't notice," said Park Hae-won, who now leads KAIST's humanoid lab. The motor that changed the race Ironically, the decisive shift did not originate in humanoids at all. At the Massachusetts Institute of Technology, Professor Kim Sang-bae's MIT Cheetah project advanced quasi-direct drive (QDD) motor technology — compact, high-torque electric actuators that allowed quadruped robots to run with unprecedented speed and efficiency. Crucially, the designs were open-sourced. Hydraulics, long dominant in high-performance robots, were heavy and maintenance-intensive. Electric QDD systems offered lighter frames and lower costs — prerequisites for commercialization. Korean researchers argue that China moved quickly to absorb this architecture and adapt it to bipedal platforms. "China absorbed the QDD technology very quickly, establishing firm baseline requirements for humanoid development. That includes critical reinforcement learning for robots as well — we now believe the government distributes it to Chinese robotics firms," said Yoo. "That's how so many Chinese humanoids can run from the start, while ours begin with baby steps. We can't share reinforcement learning in Korea — institutions and private firms alike refuse to give up hard-earned data." The divergence, in this telling, is less about talent than about scale and coordination. AI as accelerant The recent resurgence of humanoid ambition in Korea owes much to artificial intelligence. When OpenAI signaled investment interest in Figure AI, the message was clear: large language models might finally supply the cognitive layer humanoids had long lacked. "Bipedal robots could perform tasks, but they required heavy engineering and years of coding. Imagine AI guiding them — robots understanding whatever their operators say and handling tasks without tedious step-by-step instructions. It was sensational," Yoo said. At KAIST, Park's team is assembling a fully domestically developed humanoid under MOTIE funding, targeting full integration by April 2026. At KIST, a joint effort with LG Electronics is producing KAPEX, described as Korea's first AI humanoid platform, with more than 70 degrees of freedom and predominantly domestic actuators. Yet laboratory elegance is not factory reliability. "What you see at trade shows is the most refined version," Park said. "If a robot falls over at the exhibition, imagine how many times it crashed in the lab." The initial commercial target, Park suggests, is not spectacle but small and medium-sized factories — cramped, uneven spaces where wheeled automation struggles. "If you visit Korean SME factories, the floors are uneven, spaces are narrow — wheels can't even get through," he said. "Humanoids could help there, if they can handle tasks without disrupting existing workflows." Han is candid about Korea's relative position. "This year's Chinese Spring Festival Gala — robots were doing gymnastics, flipping like athletes," he said. "Our spirits sink. But the essence of a humanoid is not dancing or kung fu. The real question is: what are you going to do with it?" He argues that Korea's strength lies in manufacturing depth — batteries, semiconductors, precision motors and bearings — the physical half of "physical AI." Equally important is data. "Which country has industrial complexes in every neighborhood?" Han said. "That's all data. If we digitize it quickly and feed it to our robots, ours will outperform the competition." China's scale and cost advantages loom large. The United States is reviewing robotics imports under a Section 232 national security investigation. Korea is unlikely to erect similar barriers. "The only option is to make them cheaper than China," Han said. More pressing than tariffs, however, is demonstration. Korea spends substantially on humanoid research, Han noted, but allocates only a fraction of that to large-scale deployment trials. "What's needed now is getting existing robots into factories, gathering data and proving they work," he said. "That's demonstration projects — not more lab R&D." Yoo tempers expectations. "It's going to take at least five years for robots to be genuinely useful. They can only perform simple tasks like moving items, and even that carries a 10 percent margin of error. Humanoid-tailored AI has yet to arrive — the global race is now on," he said. "We should stop comparing robots against one another and instead draw on each one's unique characteristics to work as a team, talents putting heads together. Of course, that would require a new breed of engineers — ones who understand both software AI and hardware robotics. Attention, money, time — we need all of it." Korea's humanoid story — from HUBO and MAHRU to Alice and KAPEX — is neither triumphalist nor moribund. It is incremental, intermittently brilliant, frequently underfunded. Whether it can contend with American venture capital and Chinese industrial scale will define the next chapter. Han's closing line carries neither romance nor despair. "Try running in a factory," he said. "They'll tell you to stop." Robots, he implies, must earn their keep the same way humans do — not by acrobatics, but by utility. For steel and silicon, the future will not be written on a gala stage. It will be decided on the factory floor. 2026-02-27 14:57:15

Nearly 80% of online shoppers fear exposure of personal information, survey finds SEOUL, February 27 (AJP) - Nearly 80 percent of online shoppers expressed concern about the potential exposure of their sensitive personal information, a survey reveals. The findings were based on the survey of 1,000 consumers released by the Seoul Metropolitan Government on Friday. About 78 percent of respondents worried about a personal data leak while shopping on online malls and other platforms, and 28.1 percent said they had experienced at least one. The survey also revealed that three out of 10 having encountered issues such as defective products or late deliveries. The most common complaints were defective or faulty products (65.6 percent), delays in deliveries (42.7 percent), and false or exaggerated advertising (30.1 percent). Nearly half of respondents also reported frustrations with customer service, citing automated systems that left them unable to reach a representative or a person in charge. When it comes to artificial intelligence (AI)-assisted chatbots, the most cited inconveniences were generic, unhelpful responses (39.4 percent) and poor handling of more complex issues (23.4 percent). But many users found value in AI-driven recommendations, particularly for discovering new products (39.5 percent) and finding items that suited their preferences (28.6 percent), though nearly a third admitted they often ended up buying things they did not need. Some 69.7 percent said feedback from other shoppers often influenced their purchasing decisions, but many questioned its authenticity, suspecting that some reviews were written by staff or paid reviewers, as negative feedback was rarely seen. Fast delivery also mattered to some 86.2 percent of respondents when deciding on a purchase, but many also agreed that improving working conditions for delivery workers, such as ensuring adequate rest, sufficient workspace, and increased staffing, was necessary. About half of respondents worried about false or exaggerated claims by influencers and TV personalities who leaned on their fame rather than the quality of the products they promoted. "Online shopping has become part of our daily lives, and while it brings great convenience, it also exposes consumers to new risks," said city official Kim Myeong-seon, pledging to work toward consumer safety. 2026-02-27 14:56:59

NPS enjoys record returns on two-year KOSPI rally SEOUL, February 27 (AJP) -South Korea’s National Pension Service (NPS) posted a record annual investment return of 18.82 percent in 2025 — the highest since its establishment in 1988 and outperforming major global pension peers — driven by an exceptionally strong domestic equity rally. The double-digit return generated 231.6 trillion won in earnings, nearly five times its annual pension payout of 49.7 trillion won, and lifted total assets under management to 1,458 trillion won, the fund said Thursday. The cumulative average annual return since inception reached 8.04 percent. The NPS outperformed major overseas pension funds on a calendar-year basis. Japan’s Government Pension Investment Fund returned 12.3 percent, Norway’s Government Pension Fund Global gained 15.1 percent, Canada Pension Plan Investment Board posted 7.7 percent, while the Netherlands’ ABP recorded a negative 1.6 percent return. By asset class, domestic equities delivered an exceptional 82.44 percent return, leading overall performance. Overseas equities gained 19.74 percent, domestic bonds returned 0.84 percent, overseas bonds rose 3.77 percent and alternative investments yielded 8.03 percent. The NPS attributed the sharp rise in domestic stocks to a rally in artificial intelligence- and semiconductor-related shares, along with expectations for government capital market reforms. The benchmark KOSPI index soared 75.63 percent in 2025, far outpacing the global average gain of 22 percent. Overseas equities remained resilient despite uncertainties surrounding U.S. tariff policy, supported by solid earnings from global technology companies. Domestic bonds posted modest gains following two benchmark rate cuts and signs of economic recovery. Overseas bonds also generated positive returns, benefiting from three U.S. rate cuts and declining yields amid growth concerns. Returns from alternative investments reflected valuation gains and realized profits, the fund said. NPS Chairman Kim Sung-joo said the record performance stemmed from disciplined risk management, diversified asset allocation and continued improvements in operational infrastructure, including the performance-based compensation system. “In particular, the strong rise in domestic equities contributed significantly,” Kim said, adding that the fund would further strengthen investment capabilities and pursue flexible asset allocation and regional diversification to secure stable long-term returns. The final evaluation of the 2025 fund management performance will be confirmed by the Fund Management Committee around the end of June following a review by its risk management and compensation advisory panel. Early indicators suggest momentum has carried into 2026. Market observers estimate the NPS could already be seeing returns of around 9 percent for the year to date, supported by a sharp rally in Korean equities during the first two months. Samsung Electronics on Thursday joined the $1 trillion market capitalization club, while the KOSPI has surged close to 50 percent so far this year, extending a powerful two-year rally. 2026-02-27 14:52:40

Hyundai Motor pledges $6.3 billion to build data center, robot factory in Saemangeum SEOUL, February 27 (AJP) - Hyundai Motor Group on Friday pledged around 9 trillion won ($6.28 billion) in the Saemangeum reclaimed coastal zone in North Jeolla Province, pledging to erect an AI data center, a robotics manufacturing cluster and hydrogen energy facilities on the country's western seaboard. The sprawling project under central and local government backing is set to break ground from 2027 across a 1.12 million-square-meter site in Gunsan, about 180 kilometers southwest of Seoul. The project is one of the largest private-sector commitments to the Saemangeum zone — a decades-long national land reclamation endeavor spanning 409 square kilometers. The bulk of the outlay — about 5.8 trillion won — will flow into an AI data center equipped with 50,000 graphics processing units, designed to crunch vast volumes of data for autonomous driving, software-defined vehicles and robotics development. A separate 400 billion won robotics manufacturing and parts cluster will house a factory capable of turning out 30,000 robot units per year, including wearable industrial robots and mobile platforms. Hyundai will also pour 1 trillion won into a 200-megawatt water electrolysis plant to produce green hydrogen, and channel 1.3 trillion won into gigawatt-scale solar power generation to feed the data center and hydrogen facilities. An additional 400 billion won is earmarked for a so-called "AI Hydrogen City" within the Saemangeum smart waterfront district. President Lee Jae Myung, who attended the signing ceremony alongside Hyundai Motor Group Chairman Chung Eui-sun, vowed sweeping government backing for the project. "The government will respond to the bold decisions made by businesses with even bolder support," Lee said. "We will dramatically lower regulatory and administrative barriers so that companies can fully unleash their capabilities and grow." Lee said Saemangeum would be reborn as a "city of the future" where robots become part of everyday life, predicting the hub would draw top talent from home and abroad and allow young people in the region to pursue their ambitions without migrating to the capital. Under the deal, South Korea's transport, industry, science and climate ministries will streamline permitting, furnish policy backing for robotics, AI and hydrogen industries, and bolster transportation infrastructure in the region. The AI data center and solar facilities are slated for completion by 2029, while the water electrolysis plant will begin phased operations from 2029 with capacity to expand. The robotics cluster is expected to wrap up construction in 2029 after breaking ground in 2028. The investment forms a centerpiece of Hyundai Motor Group's 125.2 trillion won domestic spending plan for 2026 through 2030, unveiled in November after Seoul finalized a trade agreement that trimmed U.S. tariffs on South Korean automobiles to 15 percent from 25 percent. 2026-02-27 14:32:11

Hyundai Motor Group Launches 13th Hyundai Jump School Volunteer Program Hyundai Motor Group said it held a launch ceremony for the 13th class of its social contribution program, Hyundai Jump School, over two days starting Feb. 26 at the Mayfield Hotel in Seoul. Started in 2013, Hyundai Jump School pairs university student teachers with youths from underserved communities for tutoring and emotional support. Employee mentors help the student teachers with career planning, the group said. The event included lectures on teaching methods for working with adolescents and sessions where experienced participants shared practical tips. The group said 25 newly selected dedicated employee mentors also took part in team-building activities with the student teachers. The dedicated mentors will be assigned by operating region and plan to provide longer-term, in-depth guidance through in-person exchanges, including visits to child centers where volunteering takes place, tours of Hyundai Motor Group offices and career advice, it said. After the ceremony, 300 university student teachers will volunteer through December for 10 months at child centers and other sites in nine regions nationwide, providing educational support to about 1,200 youths. Hyundai Motor Group said it extended the program from eight months to 10 to better align with school schedules, expecting improved continuity and effectiveness. All student teachers will receive scholarships, and those selected as outstanding teachers will be offered overseas study trips, the group said. Hyundai Jump School has also operated in Vietnam since 2020 and in Indonesia since 2024. Over 13 years, about 3,600 university student teachers have been selected, and about 14,000 youths with limited access to education have received learning opportunities, the group said. “Hyundai Jump School is a talent development program where everyone involved — youths, university students and employee mentors — learns and grows,” a Hyundai Motor Group official said. “We plan to continue efforts to foster healthy future talent.”* This article has been translated by AI. 2026-02-27 13:42:19

Coupang keeps up sales, but Q4 data shock exposes cash and trust risks SEOUL, February 27 (AJP) - Coupang Inc.’s fourth-quarter numbers told a stark story: revenue rose 11 percent year-on-year to $8.84 billion, yet operating income collapsed 97 percent to just $8 million, and net income swung from a $156 million profit a year earlier to a $26 million loss. The sharp deterioration, driven largely by a massive data breach disclosed in November, undercut profitability, disrupted cash conversion and triggered regulatory scrutiny on both sides of the Pacific — even as the company posted record annual revenue for 2025. According to its filing with the U.S. Securities and Exchange Commission, the South Korean e-commerce giant, headquartered in the United States, generated $34.53 billion in net revenue in 2025, up 14 percent year-on-year and 18 percent on a constant-currency basis. Net income attributable to shareholders reached $208 million, while adjusted EBITDA increased to $1.49 billion from $1.38 billion a year earlier. Gross profit climbed 15 percent to $10.14 billion, with margin improving modestly to 29.4 percent. On the surface, scale and operating leverage appear intact. But free cash flow tells a different story. Free cash flow fell to $527 million in 2025 from $1.02 billion in 2024 — a 48 percent decline, representing $489 million less in cash generation. Management explicitly attributed the drop primarily to “the impact the data incident had on working capital in Q4 2025,” alongside elevated capital expenditures. Operating cash flow slipped to $1.773 billion from $1.886 billion a year earlier. Meanwhile, equipment-related capital expenditures surged to $1.015 billion from $634 million. The working capital shock is particularly revealing. Coupang’s business model depends on rapid cash cycles — collecting from customers quickly while managing payables efficiently. In the fourth quarter, however, cash lingered in refunds, credits, remediation costs and legal provisions rather than converting cleanly into free cash flow. Demand did not collapse. Cash efficiency did. Fourth-quarter profitability cratered The October–December quarter marked a sharp inflection. Revenue rose 11 percent year-on-year to $8.84 billion. However, operating income plunged to $8 million — a 97 percent decline — while net income swung to a $26 million loss. Adjusted EBITDA fell to $267 million from $421 million, with margin compressing from 5.3 percent to 3.0 percent. Sequentially, revenue declined from $9.27 billion in the third quarter to $8.84 billion in the fourth, marking a rare quarter-on-quarter contraction since Coupang’s 2021 New York listing. Gross margin deteriorated by 248 basis points in Q4, underscoring the cost of remediation, security upgrades and customer-related expenses following the breach. The episode illustrates a classic platform dynamic: transaction volumes can remain resilient, but profitability can deteriorate quickly when trust is impaired. Bom Kim: Trust remains central On the earnings conference call, founder and board chairman Bom Kim acknowledged the setback. “Everything Coupang has achieved has been driven by our single goal of delivering a Wow experience to our customers,” he said. “We are doing our utmost to earn customers' trust, as nothing is more serious for us than failing to meet their expectations.” He added, “While we faced challenges this quarter, particularly with the data incident, we remain committed to strengthening our operations and expanding our offerings. Our strong cash position allows us to invest in long-term growth opportunities.” The remarks reflect management’s effort to frame the incident as a temporary disruption rather than a structural impairment. The key question for investors, however, is whether the working capital shock was truly one-off — or whether heightened cybersecurity spending, compliance costs and customer incentives will structurally weigh on margins. Core resilient, expansions magnify volatility Coupang’s Product Commerce segment — including Rocket Delivery and Fresh — generated $29.59 billion in annual revenue, up 11 percent. Adjusted EBITDA improved to $2.5 billion, with margin expanding to 8.4 percent. Active customers rose 8 percent year-on-year to 24.6 million in Q4, suggesting the core ecosystem remains broadly intact despite the breach. By contrast, Developing Offerings — including Coupang Eats, Taiwan operations and newer initiatives — posted revenue growth of 38 percent to $4.94 billion, but adjusted EBITDA losses widened to $995 million. This imbalance amplifies consolidated volatility: while the core produces steady cash flow, expansion businesses increase sensitivity to shocks. The fourth-quarter incident exposed how quickly margin compression in emerging segments can compound pressure from unexpected events. "While its convenience once defined its brand, the recent data breach has shifted consumer perception from a local champion to a detached U.S. corporation, a sentiment now mirrored by similar challenges in Taiwan. Rebuilding this fractured consumer trust will be the defining hurdle for Coupang’s long-term sustainability in 2026," said Lee Hong-joo, professor of Business Administration at Catholic University. Regulatory scrutiny intensifies The breach involved unauthorized access to roughly 34 million customer accounts, exposing names, phone numbers and shipping addresses, though not payment details or login credentials. South Korea’s Personal Information Protection Commission has launched an investigation into whether Coupang’s internal access controls met legal standards. In the United States, members of Congress have sought briefings on the scope of the breach, reflecting the company’s status as a New York–listed firm subject to global governance scrutiny. While management says no secondary misuse has been detected, the scale of the breach presents a significant reputational risk in a subscription-driven model built on loyalty and trust. Coupang shares closed Thursday at $18.71 on the Nasdaq, up 1.91 percent in regular trading. Following the earnings release, the stock fell roughly 3.6–3.7 percent in after-hours trading. 2026-02-27 11:59:46

Hyundai Motor Group to Invest 9 Trillion Won in Saemangeum Robotics, AI and Hydrogen Hub Hyundai Motor Group is moving ahead with plans to build a domestic innovation hub as it seeks to become a future-technology company centered on robotics, artificial intelligence and energy solutions. The group said it signed an investment memorandum of understanding on the 27th with the government and North Jeolla Province at the Saemangeum Convention Center in Gunsan for fostering advanced robotics and hydrogen industries and developing an AI hydrogen city in the Saemangeum area. Hyundai plans to invest 9 trillion won starting in 2026 on a 1,124,000-square-meter (about 340,000-pyeong) site in Saemangeum, focusing on robotics, AI, hydrogen energy, solar power generation and an AI hydrogen city. The group said the project is aimed at securing future growth engines while contributing to regional balance, job creation and broader economic vitality through innovation in robotics and AI and a major shift in the hydrogen ecosystem. Saemangeum is expanding regional transportation links, including rail, port and airport infrastructure, and can accommodate large-scale development demand with 409 square kilometers (about 120 million pyeong) of land, about two-thirds the size of Seoul, the group said. Hyundai signed a separate MOU in May last year with the Saemangeum Development and Investment Agency on introducing future mobility technologies and building an AI-based smart city. In October that year, the agency joined a hydrogen session at the APEC CEO Summit 2025 hosted by Hyundai to explore ways to deepen cooperation. Attendees at the ceremony included President Lee Jae-myung; Deputy Prime Minister and Minister of Science and ICT Bae Kyung-hoon; Industry Minister Kim Jung-kwan; Climate, Energy and Environment Minister Kim Sung-hwan; Land, Infrastructure and Transport Minister Kim Yoon-deok; Saemangeum Development and Investment Agency chief Kim Eui-kyeom; and North Jeolla Gov. Kim Kwan-young, along with lawmakers Han Byung-do, Chung Dong-young, Cho Bae-sook, Lee Choon-seok, Ahn Ho-young, Yoon Jun-byeong, Lee Won-taek and Park Hee-seung. Hyundai participants included Executive Chair Chung Euisun, Vice Chair Jang Jae-hoon, and senior executives Seo Kang-hyun, Sung Kim, Jung Jun-cheol and Jin Eun-sook, the group said. Kim Eui-kyeom, head of the Saemangeum Development and Investment Agency, said Saemangeum has abundant energy resources and differentiated investment incentives. He said the agency would use a large, regulation-free site to develop Saemangeum into an innovation growth base where people, robots and AI coexist. Jang said the next-generation industrial paradigm beginning in Saemangeum would become a central pillar of a major transformation shaping South Korea’s future beyond North Jeolla. He said Hyundai is ready to help build an advanced industrial ecosystem, citing its manufacturing expertise and capabilities in robotics, AI and hydrogen energy. Under the MOU, the government and North Jeolla Province will support administrative procedures such as permits, as well as policies and infrastructure to develop robotics, AI and hydrogen energy industries. The parties will also build a cooperation network to ensure smooth project implementation, Hyundai said. Hyundai said the Saemangeum investment will focus on building an advanced value chain centered on an AI data center (5.8 trillion won), a robot manufacturing and parts cluster (400 billion won), a water electrolysis plant (1 trillion won), solar power generation (1.3 trillion won) and an AI hydrogen city (400 billion won). The AI data center and solar facilities are scheduled to break ground in 2027 and be completed in 2029, Hyundai said. The water electrolysis plant, also set to start construction in 2027, is to complete its first phase in 2029 and then expand capacity in stages. The robot manufacturing and parts cluster is to begin construction in 2028 and finish in 2029. Hyundai said it will also pursue discussions involving the Korea Development Bank and the National Growth Fund. Hyundai said the Saemangeum project is a core initiative within its previously announced 125.2 trillion won mid- to long-term domestic investment plan. The group said the investment is expected to drive innovation in robotics and AI and accelerate a shift in the hydrogen energy ecosystem, while producing immediate and tangible economic results through new jobs and stronger regional development. Based on input-output tables from the Bank of Korea and other sources, the project’s economic impact is estimated at 16 trillion won, with an analysis projecting about 71,000 jobs created directly and indirectly, Hyundai said. A Hyundai official said the group will draw on its world-class manufacturing and innovation capabilities to help South Korea secure leadership in future industries.* This article has been translated by AI. 2026-02-27 11:42:19