Korean Inc. gloom deepens under war-driven scourges SEOUL, March 27 (AJP) - Pessimism deepened across the Korean Inc. in March as businesses grappled with worsening trade conditions, a sharply weaker won and rising energy costs stemming from the monthlong conflict in the Middle East. According to the Bank of Korea on Friday, the all-industry composite business sentiment index (CBSI) stood at 94.1 in March, down 0.1 point from the previous month. A reading below 100 means pessimists outnumber optimists. The reading also fell far short of the BOK's February projection of 97.6, missing the forecast by 3.6 points. Manufacturing sentiment was unchanged at 97.1, but still below the expected 98.9. More worrying was the outlook for April, which fell 3 points to 95.9, the steepest monthly drop in 14 months since January 2025. The deterioration was more pronounced among small and medium-sized enterprises. While the outlook for large firms edged down 0.9 point to 98.7, sentiment among SMEs plunged 2.7 points, underscoring their greater vulnerability to rising costs and supply-chain disruptions. The BOK said gains of 0.6 point each in production and new orders were offset by a 0.6-point drop in inventory conditions and a 0.4-point decline in funding conditions. The data also showed a widening gap between exporters and domestic-oriented firms. Sentiment among exporters rose 1.2 points to 103.1, staying above 100 for a third straight month. By contrast, sentiment among import-reliant domestic businesses stood at just 94.5. "Exports of semiconductors, automobiles and steel products remained solid in the first 20 days of March, partially offsetting the initial impact of the Iran war," Lee Heung-hoo, head of the BOK's economic sentiment survey team, said. He warned, however, that the impact of the Middle East conflict is likely to become more visible in April, further darkening the manufacturing outlook. Non-manufacturing sentiment stood at 92.0, well below the February projection of 96.8, while the April outlook came in even lower at 91.2. Services were hit particularly hard, with the transportation and warehousing sector posting a CBSI of 93.4, far below the earlier projection of 99. "The blockade of the Strait of Hormuz has caused major disruptions in global logistics, dealing a severe blow to the transportation and warehousing sectors," Lee said. Among manufacturers, the most frequently cited business difficulty was "uncertain economic conditions," at 22.1 percent, up 2.8 percentage points from the previous month. Concern over rising raw material prices more than doubled to 21.0 percent, reflecting higher energy and commodity costs linked to the conflict. While weak domestic demand remained a major complaint at 19.0 percent, it lost its position as the top concern from February's 24.6 percent as geopolitical risks moved to the forefront. The broader economic sentiment index (ESI), which combines business and consumer confidence, fell 4.8 points to 94.0, wiping out all gains made in February and marking the sharpest drop since September 2023. Still, the ESI cyclical indicator — which strips out seasonal and irregular external shocks — edged up 0.4 point to 96.6, suggesting the underlying trend may have improved absent the sudden geopolitical escalation. The survey was conducted from March 12 to 19 among 3,524 companies nationwide, with responses from 3,223 firms, including 1,799 manufacturers and 1,433 non-manufacturers. 2026-03-27 10:05:45

ADC Drug Development Shifts to Platforms as Linker Technology Becomes Key Edge Antibody-drug conjugate (ADC) development is increasingly shifting from individual drug candidates to platform-based approaches, as companies seek technologies that can be scaled across multiple programs in cancer drug development, where costs and timelines are heavy. According to global market research firm Grand View Research, the ADC market is projected to grow from about $12 billion in 2024 to about $32 billion in 2033. As the market expands, companies that control core technology platforms are gaining value. With tumor-killing efficacy reaching a certain level, precise design to reduce toxicity and improve stability in the body has emerged as a key differentiator. Pfizer moved to secure an ADC platform by acquiring Seagen, an ADC leader, for about $43 billion in 2023. The goal was to obtain an integrated technology system that includes linkers, payloads and manufacturing know-how, rather than a single candidate. Pfizer expects more than $10 billion in revenue from the business by 2030. A platform strategy can also reduce development risk. An industry official said that even if clinical results for a specific candidate fall short, a platform makes it possible to switch to other targets, creating a structural advantage. South Korean drugmakers are also pursuing platform access. Chong Kun Dang Pharmaceutical followed joint ADC discovery research with Netherlands-based Synaffix by securing nonexclusive rights to related platform technology in 2023 for about $132 million. While other companies can also use the platform under a nonexclusive deal, the move is seen as a way to speed development by adopting a validated technology. Synaffix is known for linker technology that precisely attaches payloads at specific sites, and it has signed multiple technology-transfer agreements with global drugmakers including Janssen and Amgen. Chong Kun Dang's candidate CKD-703 targets the hepatocyte growth factor receptor (c-Met) and has received U.S. Food and Drug Administration approval to begin a Phase 1 clinical trial. Dong-A ST acquired ADC specialist Aptis to secure its third-generation linker platform, AbClick. The company aims to accelerate ADC development by combining its antibody research capabilities with Aptis' linker technology. Previously, attaching drugs effectively often required genetically modifying antibodies. AbClick is designed to selectively connect drugs at specific sites without antibody modification. DA-3501, an ADC candidate targeting gastric and pancreatic cancers that applies the platform, is scheduled to enter Phase 1 trials in the first half of this year. Samjin Pharm has also built in-house platforms for ADC development, including OncoStab and OncoFlame, and plans to improve research efficiency through open innovation with Novelty Nobility and APT Bio, companies specializing in antibody drug development. Its gastric and breast cancer treatment candidate SJA21 and immuno-oncology ADC candidate SJA71 are in preclinical stages. As technology advances, competition is also shifting. Han Yong-hee, a researcher at Growth Research, wrote in an ADC industry report that biotech companies with platforms can secure stable cash flow through technology transfers and royalties, while global drugmakers can speed development and diversify portfolios by licensing platforms. He said the ADC market is evolving from competition over new drugs to competition over platforms.* This article has been translated by AI. 2026-03-27 09:57:03

Nobel laureate Han Kang wins prestigious American literary award SEOUL, March 27 (AJP) - Han Kang, South Korea's first Nobel laureate in literature, has won another prestigious award for her novel "We Do Not Part." Han took home an award at the annual awards ceremony of the National Book Critics Circle (NBCC) in New York on Thursday, which "presents awards for the finest books published in English in six categories" - fiction, nonfiction, biography, autobiography, poetry, and criticism. The fiction honor adds to her growing collection of accolades, which includes the 2024 Nobel Prize in Literature and the 2016 International Booker Prize for "The Vegetarian." "We Do Not Part," first published in 2021 and translated into English by e. yaewon and Paige Aniyah Morris in 2024, tells the story of a woman confronting the emotional scars left by a bloody anti-communist crackdown on Jeju Island in 1948. About 10 percent of islanders were killed during the uprising, many of them civilians with little or no connection to insurgents. Shortly after its release in September 2021, Han described the novel as both a historical account of what occurred on April 3, 1948, and an "intense tale of love." In 2023, the novel already won the Prix Médicis, one of France's most prestigious literary awards, making Han the first novelist to receive the prize, which has recognized foreign works published in translation since 1970. 2026-03-27 09:55:16

Dongkook Pharm Moves to Develop Generic of Chong Kun Dang Diabetes Drug Duvie Dongkook Pharmaceutical has begun developing a generic version of Chong Kun Dang Pharmaceutical’s diabetes drug Duvie (lobeglitazone). According to the Ministry of Food and Drug Safety on the 27th, Dongkook Pharmaceutical on March 13 received approval to conduct a bioequivalence study for “DKF-457.” Duvie, developed by Chong Kun Dang, is described as South Korea’s first thiazolidinedione (TZD) class diabetes treatment, with annual prescriptions totaling about 20 billion won. TZD drugs once led the diabetes market in the 2000s, but their use declined after cardiovascular side-effect concerns emerged over GlaxoSmithKline’s Avandia (rosiglitazone). Dipeptidyl peptidase-4 (DPP-4) inhibitors later took the lead, and the market is now dominated by DPP-4 inhibitors and sodium-glucose cotransporter-2 (SGLT-2) inhibitors. While TZDs represent a smaller segment today, they continue to be prescribed for certain patients, including those with high insulin resistance or fatty liver disease. Interest has recently returned to combining TZDs with SGLT-2 inhibitors, and the move into TZD generics is being viewed as part of a strategy to broaden options for combination prescribing. Dongkook Pharmaceutical has been seeking to expand its share of the diabetes market in prescription drugs since 2023. It said it has 15 diabetes-related products, including Tenelican, Daplejin, Sitakan and the insulin injection Glazia, along with treatments for chronic conditions that often accompany diabetes, such as hypertension and high cholesterol. A company official said, “At the research stage, the flagship pipeline is DKF-447, a diabetes treatment that has completed product approval, and we plan to continue expanding the diabetes pipeline.” Competition in the Duvie generic market has already begun. Shin Poong Pharmaceutical started development first last year, setting up a race for generics. The substance patent is set to expire March 21 next year. A pharmaceutical industry official said competition is already overheated in markets centered on blockbuster products, adding that companies are expected to keep focusing strategies on areas where they can secure clear market share.* This article has been translated by AI. 2026-03-27 09:45:21

Ahn So-hee Says She Misses the Stage but Will Focus on Acting Wonder Girls member Ahn So-hee has shared her plans for future work. A video titled “Actor Ahn So-hee” was posted on March 26 to the YouTube channel “Insaeng84.” Ahn said she recently appeared in the play “Geuttaedo Oneul 2,” which ended last month. She said the two-person production was physically demanding, and that she played four roles, calling it a work that required significant energy both physically and emotionally. When Kian84 asked whether she would sing again, Ahn said she has shifted her focus to acting only. She said she does not regret the decision or feel disappointed, but added that she misses it. She said she used to enjoy being onstage for concerts. Ahn said the energy she receives as a singer is different from what she gets in theater, describing theater as quieter and more intensely focused. She said she misses the stage, but that theater has filled much of that, adding that she started doing plays the year before last and has continued without a break.* This article has been translated by AI. 2026-03-27 09:36:15

South Korea to Cut Generic Drug Pricing to 45% of Brand-Name Level, Industry Warns of R&D Hit The government will lower the benchmark used to set prices for generic drugs to about 45% of the price of original medicines, down from 53.55%. The pharmaceutical industry says the cut, combined with supply uncertainty tied to the Middle East conflict, could curb research and development spending and worsen job insecurity. According to the industry on the 27th, the Health Insurance Policy Deliberation Committee approved the drug-pricing overhaul at a meeting the previous day. It is the first broad revamp since a across-the-board cut in 2012, and the new pricing system is set to take effect in the second half of this year. The Health Ministry said it will phase in the adjustments over 10 years through 2036 to limit the impact on the industry. For drugs already listed, the rollout will be staged based on the listing year, with the first phase covering medicines listed in 2012 and the second phase covering those listed from 2013 onward. The so-called stepwise price cut, previously applied starting with the 20th generic, will be tightened to begin with the 13th generic. The industry has pushed back since the government announced a plan in November to lower generic prices into the 40% range of original drugs. Drugmakers said they could accept a reduction to 48.2%, about 10% lower, but the government proposed lowering the level to “43% or 45%,” leaving the sides at odds. A pharmaceutical company official said concerns have grown because the decision did not settle at 48.2%, adding that the change would begin to weigh on operating profit in earnest starting next year. The official said companies could move beyond cutting costs and selling and administrative expenses to reducing labor costs, raising job insecurity. A small and midsize drugmaker official said an immediate drop in operating profit is unavoidable and that smaller firms, which have limited ability to develop new drugs in the near term, would be hit harder. With raw-material supply instability linked to the Middle East war spreading to the domestic industry, some warned that investment decisions for new-drug development could be halted. A major drugmaker official said operating profit already fell last year and that, considering the coming price cuts, decisions on investment in new-drug development would be “all stop.” The official added that companies’ moves to cut labor costs would also become reality. 2026-03-27 09:09:00

Foreign investors dumped nearly 20 trillion in South Korean stocks last month SEOUL, March 27 (AJP) - Foreign investors offloaded nearly 20 trillion Korean won (US$12.98 billion) worth of South Korean shares last month, extending their selling streak to a second consecutive month, according to data released by the Financial Supervisory Service on Friday. Foreign investors net sold 19.56 trillion won worth of shares - including 19.31 trillion won on the benchmark KOSPI and 239 billion won on the junior KOSDAQ - resulting in a net outflow of 12.13 trillion won in February. They instead shifted toward bonds, snapping up 7.43 trillion won worth for a fourth consecutive month. As of the end of February, foreign investors held 2,026 trillion won worth of listed stocks here, accounting for about 32.6 percent of the market. By country, the U.S. led with 838.19 trillion or 41.4 percent of total foreign holdings, followed by Europe at 31.8 percent, Asia at 13.8 percent and the Middle East at 1.8 percent. Foreign holdings of local bonds, meanwhile, continued to grow, rising 6.8 trillion won from the previous month to 337.3 trillion won, accounting for 12 percent of the total. 2026-03-27 09:01:51

Singer Lee Ji-hye Says Daughter Moved to Public Kindergarten After English Preschool Closed Singer and TV personality Lee Ji-hye said her younger daughter transferred from an English-language preschool to a public kindergarten after the preschool announced it was shutting down. A video titled “Why Lee Ji-hye’s daughter transferred to a public kindergarten after giving up English preschool? (Early English education)” was posted on March 26 to her YouTube channel, “밉지않은 관종언니.” Lee said she received a notice from the English preschool attended by her second daughter, Ellie, saying the school would close. “Tae-ri (my first daughter) graduated from there, and Ellie naturally went there too, so when I heard it was going away, I panicked,” she said. Lee said the English preschool assigned homework such as reading vocabulary words. She said Tae-ri followed instructions without much difficulty, but Ellie “absolutely didn’t want to do it.” Lee added that she decided it was not the right age to force her to do things she disliked, and began looking into public kindergartens. After Ellie moved to a public kindergarten, Lee said she was pleased with the change. “After switching kindergartens, Ellie started washing her hands on her own, eating on her own, and even learned to greet people,” she said.* This article has been translated by AI. 2026-03-27 08:57:22

INTERVIEW: AI may turn Korea's inward finance into strategic edge: Carstens SEOUL, March 27 (AJP) - Unlike globally recognized industrial giants such as Samsung, LG and Hyundai, South Korea’s financial sector remains relatively underexposed overseas — yet its domestic orientation could become a strategic advantage in the era of artificial intelligence, a former top central banker said. Artificial intelligence is set to fundamentally reshape financial intermediation, from payments to supervision, according to Agustín Carstens, former general manager of the Bank for International Settlements. “AI will facilitate what we call ‘agentic payments,’ but, more importantly, it will significantly enhance the efficiency of transaction settlement,” Carstens said in an interview with AJP. He added that AI-enabled transparency could materially lower compliance costs by allowing regulators to monitor financial institutions in real time. “If regulators have continuous access to banks’ balance sheets and can assess them rapidly using AI, the need for heavy and costly reporting frameworks diminishes considerably,” he said. Carstens also pointed to growing momentum behind South Korea’s digital currency initiatives, particularly the Bank of Korea’s won-based stablecoin project, under incoming governor Shin Hyun-song — a former BIS colleague. Shin’s appointment comes at a critical juncture for financial innovation. Carstens underscored his expertise in tokenization, central bank digital currencies and AI-driven financial systems. “Through the BIS, we have undertaken extensive work on tokenization, central bank digital currencies and the broader impact of AI on the economy,” he said. “He is a leading expert in these areas and is well positioned to sustain the Bank of Korea’s momentum in advancing the digitalization of the financial system.” Carstens was in Seoul to speak at the 19th Asia-Pacific Financial Forum (APFF) 2026, hosted by Aju Business Daily, which this year examined why Korea’s financial sector has lagged its industrial base in global reach. However, longer-term digital ambitions remain contingent on near-term macro risks. South Korea’s energy-dependent economy is highly exposed to disruptions in the Middle East, particularly via the Strait of Hormuz, a critical artery for global oil and gas flows. “Korea depends significantly on energy supplies that transit the Strait of Hormuz,” Carstens cautioned. “Any disruption there could have immediate and material consequences for key sectors of the economy.” Such geopolitical shocks, he added, could weigh on the manufacturing and digital backbone of the economy — even as AI opens a pathway for structural upgrading in finance. 2026-03-27 08:53:57

Samsung SDI to acquire stake in precursor maker Fino to secure battery supply chain SEOUL, March 27 (AJP) - Samsung SDI is set to invest about 30 billion won ($19.8 million) in Fino, a South Korea-listed subsidiary of China's CNGR Advanced Material, as part of efforts to strengthen its battery materials supply chain. Fino released regulatory filing Thursday it had approved a rights issue of about 14.29 million new shares through a board resolution. Samsung SDI will subscribe to about 6.13 million shares, or about 40 percent of the offering, at an issue price of 4,897 won per share to secure an estimated 7.5 percent stake in the company. The investment is aimed at securing supply chain stability from the precursor stage of battery production, a critical upstream material used in manufacturing cathodes. Precursors account for 70 to 80 percent of cathode production costs. Fino is building domestic production facilities through CNP New Material Technology, a joint venture with POSCO Future M, with production lines for both nickel-cobalt-manganese and lithium iron phosphate cathode materials. Samsung SDI is ramping up its energy storage system business in the United States through StarPlus Energy, a joint venture with Stellantis in Indiana. The company has secured more than 3.5 trillion won in ESS battery supply contracts with U.S. energy firms since late last year. The move comes as Washington tightens restrictions on Chinese-origin materials in ESS batteries, pushing Korean battery makers to reduce their reliance on Chinese suppliers to meet subsidy requirements under U.S. energy legislation. 2026-03-27 08:48:03