Hanwha's stealth KAI stake signals opening salvo in battle for Korea's fighter SEOUL, March 25 (AJP) - The widening Gulf conflicts have caused disruption across markets but are simultaneously delivering a windfall for South Korea’s defense sector, galvanizing acquisition appetite around Korea Aerospace Industries (KAI), the country’s sole aircraft platform maker. Adding to its renewed strategic appeal, KAI rolled out its first mass-produced KF-21 Boramae fighter jet on Wednesday. Hanwha Aerospace disclosed in its latest business report that it holds a 4.41 percent stake in KAI, or 4.86 million shares. Including an additional 0.58 percent held by affiliate Hanwha Systems, the group’s total stake stands at 4.99 percent — just shy of the 5 percent threshold that would trigger stricter disclosure requirements. The precision of that stake has fueled market speculation. By stopping short of the reporting threshold, Hanwha appears to be pursuing a calculated strategy to secure influence while avoiding early scrutiny. Industry officials describe the move as a classic case of “stealth accumulation,” often seen as a prelude to a larger acquisition attempt. The market widely interprets the stake as an opening move toward a potential takeover. If realized, such a deal would allow Hanwha to build an integrated defense structure spanning platforms and core systems — a long-standing gap in its portfolio. Hanwha has steadily expanded its defense footprint in recent years. It has built strength in land systems through Hanwha Aerospace, precision-guided munitions and radar through Hanwha Systems, and naval capabilities through its 2023 acquisition of Hanwha Ocean. Yet aircraft platforms remain the missing piece — an area dominated by KAI. As the country’s only aircraft platform manufacturer, KAI produces the KF-21 fighter, FA-50 light combat aircraft and Surion helicopters. Hanwha, by contrast, has largely remained a component supplier, providing engines and radar systems while relying on KAI for system integration and export negotiations. “Securing a stake in KAI could transform this dependence into a partnership and, over time, allow Hanwha to internalize platform technologies,” said Jeong Kyung-woon of the Korea Association of Military Studies. However, Hanwha is unlikely to move unchallenged. LIG Nex1 is also reviewing participation in a potential KAI acquisition and has reportedly formed a task force, including options for a consortium with LS Group, both of which tracing their origin to LG Group family tree. The combination would bring together missile systems, radar and communications with LS’s strengths in armored vehicle components. Still, financial capacity remains a key differentiator. LIG Nex1, despite record sales exceeding 4 trillion won ($2,667 billion) in 2025, holds roughly 1 trillion won in cash, compared with more than 10 trillion won held by Hanwha Aerospace — underscoring a clear gap in acquisition firepower. KAI itself remains effectively state-controlled despite being publicly listed. The Export-Import Bank of Korea holds a 26.41 percent stake, while the National Pension Service owns 8.20 percent. Privatization has been discussed for decades but repeatedly delayed due to political sensitivities and valuation concerns. Hanwha’s current position could make it a leading contender should the government decide to divest. Although the policy bank has said it has no immediate plans to sell, it has left open the possibility of consultation with the government — keeping the door ajar. Recent moves suggest Hanwha may already be preparing. Hanwha Systems’ sale of its stake in Hanwha Ocean, reportedly worth about 1.7 trillion won, is seen as a step to secure funding for a larger strategic acquisition. The intensifying competition reflects broader shifts in the defense industry, where demand for advanced aircraft, missiles and space-based capabilities is rising alongside geopolitical tensions. As warfare expands beyond traditional domains, control over aerospace platforms is increasingly emerging as the decisive factor shaping the next generation of defense power. Hanwha Aerospace rose 4.9 percent to close at 1,400,000 won, while LIG Nex1 jumped 14.5 percent to 734,000 won. 2026-03-25 17:01:22

South Korea ranks fourth in global gaming market SEOUL, March 25 (AJP) - South Korea's gaming industry ranks fourth in the global market, remaining one of the fastest-growing tech sectors, with developers vying to attract users through increasingly engaging online and mobile games. With the global gaming market estimated at $220.07 billion, South Korea accounted for 7.2 percent, ranking fourth behind China, the U.S, and Japan, according to a joint report released by the Ministry of Culture, Sports and Tourism and the Korea Creative Content Agency (KOCCA) on Wednesday. The cumulative revenue of the domestic game industry stood at 23.85 trillion won in 2024, up 3.9 percent from a year earlier. Exports also rose by 1.3 percent to US$8.50 billion, with China taking the largest share at 29.7 percent, followed by Southeast Asia at 20.6 percent, North America at 19.5 percent, and Japan at 8.3 percent. Mobile games accounted for more than half of total revenue at 59 percent, followed by PC games at 25.2 percent, console games at 5 percent, and arcade games at 1.2 percent. "The report offers insight to closely assess the industry and develop future strategies," said KOCCA's acting President Yu Hyeons-seok, adding that the agency will continue to provide "systematic, data-based support" so that the country's gaming industry can continue to prosper while staying competitive globally." 2026-03-25 16:55:39

SK hynix's AI windfall tests investor trust as ADR plan sparks backlash ICHEON, March 25 (AJP) - SK hynix’s meteoric rise on the back of the AI boom is now colliding with a growing backlash from retail investors, as its aggressive capital strategy exposes a widening gap between global ambition and shareholder returns. At its annual general meeting in Icheon on Wednesday, the chipmaker — now a critical supplier of High Bandwidth Memory (HBM) chips to Nvidia — faced unusually sharp criticism despite its record-breaking market performance. Shares have surged roughly fivefold in recent years, recently breaching the symbolic 1 million won ($740) level and lifting the company’s market capitalization beyond 700 trillion won. Yet the mood inside the meeting hall was far from celebratory. Instead, tensions flared over SK hynix’s plan to pursue a U.S. listing through American Depositary Receipts (ADRs), a move seen by management as essential to securing the financial firepower needed to compete in the capital-intensive AI race. The company confirmed it had confidentially filed a Form F-1 with the U.S. Securities and Exchange Commission on March 24, targeting a listing in the second half of the year. The controversy, however, lies less in the listing itself than in how it will be funded. Just weeks after canceling roughly 14 trillion won worth of treasury shares — a move typically aimed at boosting shareholder value — SK hynix now plans to issue new shares to raise an estimated 10 trillion to 15 trillion won. Investors argue the sequence effectively dilutes existing shareholders after temporarily inflating share value. “What you call a 100 trillion won war chest — where is the return for shareholders?” one investor protested during the meeting. “It feels like minority shareholders are being asked to fund the company’s expansion without any reward.” Another shareholder pointed to the mismatch between soaring share prices and stagnant dividends, calling for a stock split to improve accessibility as the stock hovers near the 1 million won mark — nearly six times its level at the start of 2025. Investor frustration has also spilled beyond the meeting floor. “If the goal is proper valuation in the U.S., why raise only 2 percent of market cap?” one investor told AJP. “It raises the question of whether this is truly about global positioning — or simply raising cash at shareholders’ expense.” Chief Executive Kwak Noh-jung pushed back, framing the capital raise as a strategic necessity rather than a choice. “To ensure stable execution of future investments, we aim to secure more than 100 trillion won in net cash,” Kwak said, noting that SK hynix still trails global peers in financial capacity despite improving fundamentals. The cash buffer, he added, is essential in an industry defined by extreme cyclicality and surging capital demands, particularly as companies race to build advanced cleanrooms and infrastructure for next-generation AI memory. On operations, management remained firmly confident. Kwak said HBM3E remains the company’s core product for now, with HBM4 set to gain share in the second half of the year. He also confirmed that samples of next-generation HBM4E chips will be delivered on schedule within the year. Still, the dispute underscores a deeper dilemma facing SK hynix. The company has rapidly ascended to the top tier of global semiconductor players, propelled by the AI boom and its near-monopoly position in advanced memory. But sustaining that trajectory now requires massive upfront investment — increasingly financed in ways that test investor patience. Wednesday’s meeting made clear that while SK hynix has secured its place at the center of the AI supply chain, keeping shareholders aligned with that vision may prove just as critical as maintaining its technological edge. 2026-03-25 16:37:58

'A Man Living With the King' Tops 15 Million Tickets, Ranks No. 3 All Time in Korea The film ‘A Man Living With the King’ has surpassed 15 million admissions in South Korea, reaching the milestone 50 days after its release. Distributor Showbox said Wednesday that the movie had topped 15 million cumulative viewers as of Wednesday afternoon. It reached 10 million admissions on its 31st day in theaters after opening Feb. 4, then hit 14 million on day 45 before adding another 1 million in just five days. The result makes ‘A Man Living With the King’ the third release in Korean box office history to cross 15 million, following ‘The Admiral: Roaring Currents’ (17.61 million) and ‘Extreme Job’ (16.26 million). It also moved past ‘Along With the Gods: The Two Worlds’ (14.41 million) and ‘Ode to My Father’ (14.25 million) to join the top tier of all-time Korean hits. Directed by Jang Hang-jun, the film is set in Cheongnyeongpo in 1457 and follows a village chief who chooses exile to revive his community and a young deposed king sent into exile. Strong word of mouth, driven by the on-screen pairing of Yoo Hae-jin and Park Ji-hoon, has helped sustain its long run.* This article has been translated by AI. 2026-03-25 16:31:06

KLPGA Players Pick Rising Star Kim Min-sol as Top Grand Prize Contender Players preparing for the 2026 Korea Ladies Professional Golf Association (KLPGA) Tour domestic opener singled out 20-year-old rising star Kim Min-sol as a leading candidate for the season’s grand prize award. The KLPGA Tour begins its domestic schedule April 2-5 with The Siena Open at The Siena Belluto Country Club in Yeoju, Gyeonggi Province. The 2026 season opened earlier with the Rejuran Championship, held March 12-15 in Chonburi, Thailand. The Siena Open carries a total purse of 1 billion won. Ahead of the domestic opener, the tour held its ‘Opening Ceremony’ on March 25 in Seoul. Attendees included last year’s money leader Hong Jeong-min, along with fan vote top finishers Im Hee-jeong and Park Hyeon-gyeong, and players Kim Min-sol, Park Gyeol, Park Min-ji, Park Hye-jun, Bae So-hyeon, Yoo Hyeon-jo, Lee Ga-young, Lee Se-hee and Lee Yul-lin. At media day, much of the focus was on the expected battle for the season’s top honors. Players pointed to Kim, praising her combination of distance and precision. Born in 2006, Kim won twice last year. Im, a five-time KLPGA winner, said Kim “hits it long and has a good short game,” adding that “if she builds experience well, she can be a strong grand prize candidate this season.” Park Hyeon-gyeong also backed Kim. “The one player who immediately comes to mind as a grand prize candidate is Kim Min-sol,” she said. “She has distance, and she’s strong across the technical parts. I think she’ll have a good season.” Kim thanked the senior players for their support. “I’m grateful they picked me as a grand prize candidate,” she said. “My goal this year is to live up to those expectations.” She named Park Hye-jun as her own pick, saying Park “showed a lot of good things last year.” Veterans also laid out their goals. Park Min-ji, who would set a new KLPGA career wins record with two more victories, said she is entering her 10th year on tour after going winless last season for the first time. “I think it became a turning point for me,” Park said. “I’d been winning every year and got complacent. This year I want to start over from the beginning like a rookie. I’m desperate to win.” Born in 1998, Park added that younger players “come out in short sleeves even in spring and fall,” while she needs “three layers,” and said she needs more fitness work and better body management to keep up. Bae So-hyeon, born in 1993, laughed at Park’s comments. “I’m thinking, what is she talking about?” Bae said, adding that adjusting preparation as players get older “looks professional,” but that it might be “a bit early” for Park to say. Park Gyeol, born in 1996 and in her 12th year on tour, said, “My stamina may be lower than the younger players, but I have the advantage of experience,” adding, “We can win, too.” Several players who joined new teams also set clear targets. Yoo Hyeon-jo, last year’s grand prize winner and scoring average leader, said joining Lotte brings some pressure, but she wants to do better than last year. “I especially want to be the multiple-wins leader,” Yoo said. “Last year I missed out on a lot of wins. I want to fix that and try to lead in wins.” Hong, last year’s money leader and co-leader in wins with three titles, said she has a new sponsor, Korea Land Trust, and is aiming higher. “Since I’m newly sponsored by Korea Land Trust, I’ll set a goal of more than last year’s three wins — four,” Hong said. “I’ll focus on four wins and keep pushing.”* This article has been translated by AI. 2026-03-25 16:18:00

South Korea's fertility nears 1.0 as births, marriages post double-digit gains SEOUL, March 25 (AJP) — South Korea’s notoriously low fertility rate gained a meaningful boost to 0.99 in January — the highest since monthly tracking began in 2024 — but questions remain over whether it can continue to hold near 1. According to the Ministry of Data and Statistics on Wednesday, the number of births in January reached 26,916, up 2,817, or 11.7 percent from a year earlier, marking the highest January figure in seven years. Marriages also continued to post similar-pace double-digit growth. The baby increase follows a 12.5 percent year-on-year rise recorded in January 2025, extending the upward trend in births into early 2026. The rebound also pushed up the total fertility rate — the average number of children a woman is expected to have over her lifetime — to near 1.0, a sharp jump from 0.74 in December. The figure compares with an annual average of 0.80 in 2025, 0.75 in 2024 and 0.72 in 2023. South Korea became the only OECD country with a fertility rate below 1 in 2022, when the figure first fell into the 0.7 range. Annual births also showed signs of recovery, rising to 254,500 last year from around 230,000 in the previous two years. Still, the sustainability of the rebound remains uncertain. The increase is partly attributed to the so-called “second echo boom,” as those born between 1991 and 1995 — the children of the second baby boom generation (1964–1974) — enter their prime marriage and childbearing years. This cohort, which recorded more than 700,000 births annually, has helped lift marriages, alongside the continued impact of government policies aimed at encouraging childbirth. Despite the uptick, the country still recorded a natural population decline of 5,539 in January, as deaths continued to outnumber births. Jeon Young-soo, a professor of international studies at Hanyang University, urged caution in interpreting the rebound, noting that demographic effects have played a major role. “The rise in fertility is not necessarily a sign that the overall birth environment has fundamentally improved,” Jeon said. “Because fertility is a ratio, changes in both the numerator and denominator matter — while births have increased by tens of thousands, the population base has declined more sharply.” He also pointed to a backlog of delayed marriages following the COVID-19 pandemic as a factor behind the recent increase in births. Jeon said the trend could continue for the next two to three years but warned against overinterpreting short-term gains. “This could be a temporary phase driven by demographic factors,” he said. “Rather than reacting to short-term fluctuations, policymakers should focus on long-term, structural strategies to improve the conditions surrounding marriage and childbirth.” A breakdown by age shows birth rates rose across all groups, led by women in their 30s — the core childbearing cohort. The birth rate for women aged 30–34 climbed to 90.9, up 8.7 from a year earlier, marking the largest increase. The rate for those aged 35–39 also rose sharply to 65.8, up 8.0. Among younger women, the rate for those aged 25–29 rose to 25.6, up 1.5, while rates for those aged 24 and under and 40 and above edged up to 2.4 and 5.1, respectively. On a monthly basis, births increased from 24,099 in January 2025, extending the early-year upward trend. Births rose across all regions except Sejong, indicating a broad-based rebound nationwide. By birth order, the share of first-born children increased by 1.4 percentage points from a year earlier, while the proportions of second-born and third-or-higher births each declined by 0.7 percentage points. Marriages, a leading indicator of births, also increased to 22,640 in January, up 2,489, or 12.4 percent from a year earlier, suggesting continued near-term momentum — though uncertainties remain over its durability. 2026-03-25 15:49:49

Homegrown sub sets sail on historic trans-Pacific journey for naval exercise in Canada SEOUL, March 25 (AJP) - A 3,000-ton homegrown submarine embarked on a trans-Pacific voyage for the first time to take part in a joint naval exercise with Canada scheduled for June, the Navy said on Wednesday. Attended by over 300 naval officers and other representatives from both countries, a send-off event for the Dosan Ahn Chang-ho, was held at a port in Jinhae, South Gyeongsang Province on Wednesday. Among them were Canadian Ambassador to Seoul Philippe Lafortune and British Ambassador to Seoul Colin Crooks. The heavy-duty submarine began its months-long journey, traveling about 14,000 kilometers from the southern naval port city of Jinhae to Victoria, the capital of British Columbia, with stops in Guam and Hawaii for replenishment. Two Canadian submariners will join the crew for the final leg of the journey. The lengthy voyage would mark the longest distance ever traveled by a South Korean submarine. After the joint exercise in Canada, it will also take part in the U.S.-led multinational Rim of the Pacific (RIMPAC) exercise in Hawaii in late June before returning home. "I hope the voyage will demonstrate the superior technology and operational capabilities of South Korean submarines," Navy chief Kim Kyung-ryul said at the event. The voyage comes as a South Korean consortium led by Hanwha Ocean and HD Hyundai Heavy Industries competes with Germany's Thyssenkrupp Marine Systems (TKMS) for a landmark contract to supply 12 submarines to the Canadian Navy to replace its aging fleet, a deal worth about 60 trillion won (US$40 billion). 2026-03-25 15:42:12

GM commits $600 mln to South Korea plants, doubling down on small SUV hub SEOUL, March 25 (AJP) - General Motors announced it will invest $600 million in its South Korean operations to upgrade production facilities and sharpen its global competitiveness, cementing the country's role as a key manufacturing hub for small SUVs. The Detroit automaker said Wednesday the latest commitment of $300 million — earmarked for press machinery upgrades and plant modernization — builds on an equal investment announced in December 2025 for product enhancement and technology improvements across its Korea-built SUV lineup, bringing the combined total to $600 million. GM Korea President and CEO Hector Villarreal said the investment reflects the company's confidence in its local workforce and operations. "Competition continues to grow across the global industry, with many new OEMs entering export markets around the world. While our work is not done, we have a strong foundation, and this investment is a sign of confidence in our operations," he said. Korea Development Bank Chairman Park Sang-jin, whose institution holds a stake in GM Korea as a secondary shareholder, said the bank would continue working with GM to ensure the unit sustains its competitiveness in global markets over the long term. 2026-03-25 15:40:29

Korea turns to coal, nuclear and diversification to improvise vs Gulf shock SEOUL, March 25 (AJP) - As the Middle East war grinds deeper and energy lifelines fray one by one, South Korea finds itself staring down a crisis it long feared but never quite prepared for — the real prospect of running short on the gas that powers homes and electricity grids, keeping Asia's fourth-largest economy running. QatarEnergy, the Gulf state's national energy company, announced Tuesday it would suspend LNG deliveries to South Korea, China, Italy and Belgium, citing severe damage to production facilities at the Ras Laffan industrial complex from Iranian missile strikes on March 18 and 19. The company's CEO Saad al-Kaabi said about 17 percent of Qatar's LNG export capacity had been knocked out, with repairs expected to take three to five years. The force majeure strikes at a critical artery of the South Korean economy, while rippling across Asia's tightly linked gas market. Natural gas accounted for about 20 percent of the country's primary energy consumption in 2024, roughly 56 million to 61 million metric tons of oil equivalent. Gas-fired plants generated about 26 percent of the nation's electricity last year, burning an average of 69,000 tons of LNG per day for power generation alone. Matching its needs, South Korea is the world's third-largest LNG importer behind China and Japan, bringing in about 46.7 million tons in 2025. Qatar supplied about 14.9 percent of that total, ranking as the third-largest source after Australia at 31.4 percent and Malaysia at 16.1 percent, according to the Korea International Trade Association. While the Qatari share is far from dominant, the knock-on effects of its withdrawal threaten to reshape the entire global supply landscape. Ras Laffan handles about 20 percent of the world's total LNG supply, and spot prices in Northeast Asia have already surged roughly 88 percent in under a month, climbing from $10.73 per million British thermal units in late February to $20.18 by mid-March. "This is no longer a matter of spot price spikes. The structural premise that long-term Middle Eastern contracts offer the cheapest and most reliable gas has been shaken at its foundation," said Lee Dong-wook, an analyst at IBK Securities. "What we are witnessing is a signal that Asia's entire gas procurement framework may need to be redrawn." With markets rattled and winter stockpiling season approaching, Seoul has moved swiftly. President Lee Jae Myung ordered a government-wide emergency response at a cabinet meeting on Tuesday. "The escalation and prolongation of the Middle East war are intensifying supply instability in crude oil and natural gas," Lee said, adding that "a preemptive emergency response system must be activated at the government level." The Ministry of Climate, Energy and Environment rolled out a sweeping energy conservation plan the same day. Starting at midnight Tuesday, about 1.5 million vehicles belonging to public institutions and their employees face mandatory weekday driving restrictions in a rotational system — the first such measure in 15 years, since the Middle East oil supply scare of 2011. The government's most aggressive move targets the power mix itself. Five nuclear reactors currently undergoing maintenance will be brought back online by May to lift the national utilization rate from 73 percent to above 80 percent. Coal-fired power plants will also be given greater latitude, with seasonal fine dust restrictions that cap output at 80 percent set to be eased on days when air quality permits. The government is further considering extending the lifespan of three coal plants slated for decommissioning this year. The Gulf-triggered LNG crunch is expected to leave a deeper carbon footprint across Asia, as countries are forced to fall back on fossil fuels to replace natural gas. In South Asia, Bangladesh is increasing coal-fired generation and imports, while Pakistan is leaning more heavily on domestic energy sources to avoid a repeat of LNG-driven power shortages seen during past supply shocks. Across Southeast Asia, the Philippines and Thailand are boosting coal-fired output, while Vietnam is negotiating additional coal supply to offset reduced LNG usage. Like Korea, Japan's major utilities are maintaining high coal utilization rates and ramping up nuclear output. Korea's ministry projects the recalibrated energy mix would cut daily LNG consumption in the power sector by up to 20 percent. The Gulf crisis has also accelerated Korea's push to wean itself off Middle Eastern fuel. It is expected to lend fresh momentum to the $44 billion Alaska LNG project, which Washington has been pitching to Seoul and Tokyo as a geopolitically secure alternative to Gulf supplies. POSCO International has already taken a stake in Glenfarne Alaska Partners, the project's lead developer, and U.S. Energy Secretary Chris Wright has said he is in discussions with Korean and Japanese firms over participation. Broader U.S. LNG imports are also gaining appeal. South Korea has steadily raised its American share to about 9.4 percent of total purchases, and a deal struck last year commits Korea Gas Corp. to an additional 3.3 million tons per year from U.S. terminals. But since new supply projects will take years to bear fruit, Seoul must navigate the immediate shortfall with the tools at hand. "Even if the Alaska LNG project is a full go, it will be at least 2040 before any results materialize. The Qatar cut will likely push Korea to seek extra supply from other contractors, including Canada and the United States," said Kim Seon-yong, a gas policy researcher at the Korea Energy Economics Institute. Kim noted that unlike crude oil, LNG is difficult to store for extended periods — but added that the timing offers a narrow window of relief, as peak winter demand is still months away. "The government can diversify its energy portfolio to cope with certain shortages from the Middle East conflict, but every energy source has an irreplaceable purpose," Kim said. "If geopolitical difficulties prevent Korea from stacking a full load by October, we may have to resort to expensive spot LNG options." 2026-03-25 15:36:36

South Korea Game Industry Revenue Tops 23.85 Trillion Won, Ranks No. 4 Globally South Korea’s game industry continued to grow in 2024, with revenue topping 23.85 trillion won, according to a government-backed report released Tuesday.   The Ministry of Culture, Sports and Tourism and the Korea Creative Content Agency said in the “2025 Korea Game White Paper” that 2024 domestic game-industry revenue totaled 23.8515 trillion won, up 3.9% from a year earlier. Exports came to $8.50346 billion (about 11.5985 trillion won), a 1.3% increase year over year, the report said. By segment, 2024 sales were led by mobile games at 14.0710 trillion won (59.0%), followed by PC games at 6.0094 trillion won (25.2%), console games at 1.1836 trillion won (5.0%) and arcade games at 275.9 billion won (1.2%). Mobile games accounted for more than half of total revenue. The global game market in 2024 was estimated at about $220.071 billion, up 0.7% from the previous year. South Korea’s share was 7.2%, holding fourth place behind China, the United States and Japan, the report said.  By destination, exports were concentrated in China (29.7%), Southeast Asia (20.6%), North America (19.5%) and Japan (8.3%). The shares for North America and China rose from a year earlier, up 4.7 and 4.2 percentage points, respectively. Imports fell 3.2% to $245.574 million (about 334.9 billion won). KOCCA Acting President Yu Hyeon-seok said the white paper “will serve as a central milestone” for closely assessing the industry’s current state and designing future strategies. He said KOCCA would continue providing “systematic, data-based support” to help Korean games strengthen competitiveness in global markets. The “2025 Korea Game White Paper” is available for free download on KOCCA’s website.* This article has been translated by AI. 2026-03-25 15:24:15