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  • Koreas Land Minister Proposes Housing Development at Yongsan Park, Seoul City Stays Firm
    Korea's Land Minister Proposes Housing Development at Yongsan Park, Seoul City Stays Firm The Ministry of Land, Infrastructure and Transport has expressed its intention to explore housing supply options utilizing parts of Yongsan Park, while the Seoul City government reaffirmed its cautious stance against housing development that would damage the park. On August 14, Seoul City spokesperson Lee Min-kyung issued a statement emphasizing, "Our position remains unchanged that supplying housing by damaging Yongsan Park, the last large urban green space in Seoul, requires extreme caution." Earlier that day, Minister of Land, Infrastructure and Transport Kim Yoon-deok revealed that he is considering using not only the Yongsan Children's Garden but the entire Yongsan Park for housing supply. He stated, "We will consult with relevant agencies and strive to supply as many houses as possible, while also addressing pollution, purification issues, U.S. military consultations, and legal procedures." In response, Seoul City emphasized that Yongsan Park is not merely an idle space but a national asset that must be preserved for the well-being of citizens in the face of climate change and for future generations. Seoul City explained, "The fundamental purpose of the 'Special Act on the Creation of Yongsan Park' is to preserve Yongsan Park as much as possible for public leisure, rest, and natural ecological space." While acknowledging the necessity of expanding housing supply, the city stressed that any discussion regarding the use of Yongsan Park should be preceded by sufficient social dialogue and consensus. Seoul City reiterated, "This is not a matter that should be pursued without adequate social discussion and consensus just to meet immediate supply goals." As a result, even if discussions occur between the Ministry and Seoul City regarding the use of parts of Yongsan Park for housing supply, the divergence in their positions on park preservation and housing supply is expected to continue for the foreseeable future.* This article has been translated by AI. 2026-08-14 17:48:10
  • Tmap Mobility Reports 4.4 Billion Won EBITDA in Q2, Driven by AI and Data Growth
    Tmap Mobility Reports 4.4 Billion Won EBITDA in Q2, Driven by AI and Data Growth Tmap Mobility has improved its profitability, bolstered by the strengthening of its AI-based platform and growth in its mobility data business.On August 14, Tmap Mobility announced it achieved an EBITDA of 4.4 billion won in the second quarter of this year, marking a 3.6 billion won increase compared to the same period last year. The company reported second-quarter revenue of 74.4 billion won, a 7.4% increase year-over-year.In June, the company also turned its monthly operating profit positive. Tmap Mobility expressed optimism, stating, "Expectations for annual profit improvement have increased."The core growth driver, the 'mobility data and solutions' sector, saw a 14% increase year-over-year, driven by expanded data collaborations across various industries and service enhancements.The Tmap Auto, integrated into vehicles, grew by 11.7% compared to the previous year. The usage-based insurance (UBI) based on driving habits increased by 9.6%, thanks to the introduction of insurance products that diversify offerings, such as a step count-based insurance rider. The number of subscribers to the driving score rider has consistently exceeded 1 million each quarter. The application programming interface (API) and data business also grew by 2.9%, driven by demand for business-to-business (B2B) data.The platform sector introduced new services, including open profiles. Additionally, the AI location recommendation service 'Where to Go' has been enhanced, strengthening the competitiveness of AI and content-based services. Tmap plans to launch the 'Where to Go' service in September 2024, utilizing Tmap's driving and visit data along with AI to recommend restaurants, cafes, and tourist attractions. Since then, the service has been enhanced with features like 'Menu Search' for searching restaurants and a review summary function.The monthly active users (MAU) averaged 15.2 million for the quarter, with 14.7 million monthly users engaging with content such as location exploration and recommendations, and AI agent traffic increasing to 5.56 million, indicating broad growth across usage metrics. The company stated, "We plan to continue expanding services in the second half of the year to maintain our platform growth momentum."Lee Jae-hwan, CEO of Tmap Mobility, remarked, "The business transformation centered on AI and mobility data is yielding tangible results. We will enhance our AI-based platform competitiveness and expand synergies with the mobility data business to strengthen our foundation for sustainable growth and stable profit generation."* This article has been translated by AI. 2026-08-14 17:44:20
  • Dunamu Reports 60% Drop in Q2 Net Profit at 38.9 Billion Won
    Dunamu Reports 60% Drop in Q2 Net Profit at 38.9 Billion Won 가상자산 거래소 업비트를 운영하는 두나무는 올해 2분기 순이익이 389억원으로 전년 동기보다 60％ 감소했다고 14일 밝혔다. 매출은 1735억원으로 39.2％ 감소했고 영업이익은 235억원으로 84.6％ 줄었다. 상반기 당기순이익은 1084억원으로 지난해 같은 기간보다 74.1% 감소했다. 매출과 영업이익도 각각 49%, 79% 줄었다. 이번 실적 하락은 글로벌 디지털자산 시장 전반의 유동성 축소에 따른 투자 심리 위축이 영향을 미친 것으로 풀이된다. 업비트의 거래대금은 지난해 2분기 2024억4000만 달러에서 올해 2분기 932억2000만 달러로 54% 줄었다. 가상 자산 시장에서 빠져나간 돈은 주식 시장이 흡수하는 모습이다. 한국거래소와 넥스트레이드에 따르면 올해 2분기 국내 주식 일평균 거래대금은 약 118조원으로 전 분기보다 39.8% 증가했다. * This article has been translated by AI. 2026-08-14 17:44:00
  • YTN Ownership Change Approval Dispute Divides Broadcasting Commission
    YTN Ownership Change Approval Dispute Divides Broadcasting Commission The Broadcasting Media and Communications Commission (BMCC) was unable to reach a conclusion regarding the cancellation of the approval for the change of YTN's largest shareholder. With opinions split 2-2 between immediate cancellation and waiting for a final ruling, the decision of non-permanent member Ryu Shin-hwan, who chose to withhold judgment, is expected to determine the outcome.On August 14, the BMCC held its 28th general meeting at the government complex in Gwacheon, where members shared their views on the cancellation of the approval for YTN's largest shareholder change.Chairman Kim Jong-cheol, who has previously submitted an opinion advocating for the cancellation of the approval, did not participate in the discussion. The meeting was conducted by Ko Min-soo, who served as acting chair.Non-permanent members Choi Soo-young and Lee Sang-geun were the first to speak, expressing that it would be difficult to cancel the approval at this stage.Choi stated, "The first-instance ruling declaring the two-member decision illegal has not yet been finalized. Even if there are issues with the handling of the disqualification request and additional review procedures, it requires further legal examination to determine if there are independent and significant defects warranting the cancellation of the entire approval."He emphasized the need for caution, noting that since the composition and decision-making process of the commission were not determined by Yujin ENT, it would be problematic to disadvantage an approved operator based on procedural flaws within the former Korea Communications Commission.Choi added, "Knowing that there is controversy and recognizing that the decision is legally flawed are two different matters. If the decision is canceled, it could create significant uncertainty regarding Yujin ENT's voting rights and share disposition, as well as YTN's board and management structure." He also warned that the potential for prolonged disputes through injunctions and administrative lawsuits could exacerbate YTN's management instability.Lee also expressed the need to withhold judgment until a final ruling is made. He pointed out, "If the commission participates as a party in the trial, public opinions from the members could lead to controversies about influencing the court. This could also create grounds for disqualification of the members when reviewing future matters related to Yujin ENT and YTN."He raised questions about the practical benefits of a cancellation by the commission, stating, "Even if the BMCC cancels the approval, if the court grants Yujin ENT's request for an injunction, nothing will realistically change. The commission could only face criticism."In contrast, member Yoon Sung-ok argued that the commission should begin a hearing process in the next meeting. Yoon noted, "The illegality of the two-member decision has already been recognized in the first-instance ruling. There are precedents where administrative agencies have canceled existing decisions without waiting for a final ruling, even while an appeal is ongoing." He continued, "There are multiple legal grounds for cancellation, including the two-member decision, the handling of disqualification procedures, unfair reviews, integrated sales, and violations of collective agreements. Therefore, cancellation is possible at this stage, and the hearing process should commence in the next meeting."Acting Chairman Ko stated that the previous approval decision by the former Korea Communications Commission could be considered void rather than simply cancelable. He asserted, "To maintain the essence of a collegial body, a quorum of at least three members is necessary. A decision made by two members, which is below the majority of five, is a significant violation of the essence and the establishment law of a collegial administrative body."Ko also urged for a swift decision, indicating that the differences in members' positions have been sufficiently revealed, and he would announce whether to include the matter in the agenda for the next meeting.Meanwhile, non-permanent member Ryu Shin-hwan chose to withhold judgment. He acknowledged the illegality of the two-member decision and the potential infringement on public broadcasting but deemed it necessary to further verify Yujin ENT's false statements, collusion, and the circumstances surrounding the inadequate review. He suggested that alternative sanctions should also be considered, holding YTN and its board directly accountable, in addition to canceling the approval.* This article has been translated by AI. 2026-08-14 17:40:00
  • 23rd Sacheon Natural Jeon-eo Festival to Open August 20
    23rd Sacheon Natural Jeon-eo Festival to Open August 20 The 23rd Sacheon Natural Jeon-eo Festival, celebrating the summer delicacy of jeon-eo, will take place from August 20 to 23 at the Palpo Food Specialization District in Sacheon City, South Gyeongsang Province.With the slogan "Eat, Play, and Sleep Well!", the festival will feature a variety of experiential events and performances centered around the rich and tender summer jeon-eo.Each day at 3:30 PM, attendees can participate in a "barehanded jeon-eo catching experience." The festival will also include interactive stages such as "I Am a Singer (Karaoke)" and a "Video Quiz Show." On August 20, 22, and 23, a free tasting of jeon-eo will be available on a first-come, first-served basis starting at 6 PM. However, the city has noted that the quantity available for tasting may vary depending on the supply and price fluctuations of jeon-eo.On the second day of the festival, August 21, an opening ceremony will be held at 8 PM, followed by a fireworks display lighting up the night sky. Additionally, "Trot Day" will kick off on August 20, with "Gaksul Day" events featuring invited singers and local artists scheduled for August 22 and 23.The prices for jeon-eo dishes at participating vendors in the Palpo Food Specialization District will be transparently standardized. According to the city, the prices are set at 30,000 won for jeon-eo sashimi, 15,000 won for jeon-eo bibimbap, and 10,000 won for grilled jeon-eo, all of which will be clearly displayed on outdoor banners for visitors. The city will also conduct daily inspections in collaboration with health authorities to ensure the origin and hygiene of the seafood, in line with the "natural" designation.This year's festival has a budget of 145 million won, fully funded by the city. Following last year's attendance of approximately 90,000 visitors, a similar turnout is expected this year, prompting the city to prioritize safety management.A total of 287 parking spaces have been secured near the festival site, including 187 spaces at the Sacheon Port public parking lot and 100 at a temporary parking area. Police and security personnel will be deployed on-site to manage traffic control.To prevent safety incidents due to crowding, participation in the popular barehanded jeon-eo catching experience will be limited to 50 people per session, with the festival organizing committee overseeing the management. Plans to address natural disasters, such as heatwaves, have also been incorporated into the safety management strategy.Jang Je-young, chair of the Jeon-eo Festival organizing committee, stated, "Sacheon summer jeon-eo is a delicious summer delicacy with a light and nutty flavor. I hope everyone enjoys the romance of Sacheon Port's blue sea and the beautiful summer nights, creating unforgettable memories."After the festival concludes, Sacheon City plans to separately tally the sales of jeon-eo and other seafood during the event for future festival planning.* This article has been translated by AI. 2026-08-14 17:40:00
  • Weather Forecast for Liberation Day: Rain Expected Across the Country
    Weather Forecast for Liberation Day: Rain Expected Across the Country On Liberation Day, August 15, the weather is expected to be mostly cloudy nationwide. From the afternoon, heavy rain will primarily affect the southern regions. Rain is anticipated to spread to most areas of the country starting early on the 16th.According to Yonhap News on the 14th, scattered showers are likely in the central region from the afternoon to evening on the 15th, while Jeju Island will experience rain throughout the day.The forecasted rainfall for the central region, including Seoul, Incheon, Gyeonggi, and inland and mountainous areas of Gangwon, is expected to be between 0.2 to 2 inches. In the southern region, Gwangju, Jeollanam-do, and Jeollabuk-do are forecasted to receive 1.2 to 3.1 inches (with some areas in Jeollanam-do's southern coast and Jirisan exceeding 4.7 inches), while Busan, Ulsan, and Gyeongsangnam-do are expected to see 2 to 4 inches (with some areas in Gyeongsangnam-do's southern coast and Jirisan exceeding 5.9 inches). Daegu, Gyeongsangbuk-do, and Jeju are forecasted to receive 1.2 to 3.1 inches (with mountainous areas in Jeju exceeding 5.9 inches).There is a possibility of strong winds and thunderstorms, so caution is advised. Swells are also expected along the east and south coasts, as well as Jeju's coastline.Morning low temperatures are expected to range from 68 to 77°F, with daytime highs reaching 81 to 90°F.The expected morning low temperatures in major cities are as follows: △Seoul 75°F △Incheon 77°F △Suwon 75°F △Chuncheon 72°F △Gangneung 72°F △Cheongju 75°F △Daejeon 73°F △Sejong 73°F △Jeonju 73°F △Gwangju 75°F △Daegu 73°F △Busan 75°F △Ulsan 73°F △Changwon 75°F △Jeju 75°F.Daytime high temperatures are expected to be: △Seoul 90°F △Incheon 88°F △Suwon 88°F △Chuncheon 88°F △Gangneung 81°F △Cheongju 90°F △Daejeon 88°F △Sejong 88°F △Jeonju 88°F △Gwangju 88°F △Daegu 90°F △Busan 86°F △Ulsan 86°F △Changwon 86°F △Jeju 86°F.Wave heights are expected to be 1.6 to 3.3 feet in the East and West Seas, and 1.6 to 4.9 feet in the South Sea. Offshore, wave heights within about 124 miles of the coastline are forecasted to be 1.6 to 3.3 feet in the East Sea, 1.6 to 4.9 feet in the West Sea, and 1.6 to 6.6 feet in the South Sea.* This article has been translated by AI. 2026-08-14 17:36:00
  • Dredged Soil: A Resource, Not Waste
    Dredged Soil: A Resource, Not Waste This summer, heavy rainfall has continued across the country, highlighting the need for dredging to prevent river flooding and maintain the functionality of reservoirs and dams. Dredging is an essential public project for flood prevention and water resource management. However, the soil left over after dredging remains largely overlooked.The government has recently prioritized the circular economy as a key national policy, aiming to expand the use of recycled materials and strengthen resource circulation in the public sector. Yet, the figures released by the Ministry of Environment are sobering. As of 2020, the total waste generated nationwide was 190 million tons, of which only 1.69 million tons, or 0.8%, was officially recognized as recycled resources. Dredged soil has also failed to pass through this narrow gate, with most being treated as waste.Large-scale dredging occurs annually in national and local rivers, reservoirs, dams, and ports. The dredged sediment generated is estimated to reach tens of millions of cubic meters each year. However, a significant portion is treated as waste or sent to dredged soil dumping sites due to unclear utilization standards. While there is a considerable amount of dredged soil that could be utilized, the supporting systems and standards are still insufficient. Current laws, including the River Act, the Rural Community Maintenance Act, and the Port Act, regulate dredging projects, while the Waste Management Act and the Soil Environment Conservation Act serve their respective roles. However, the criteria for evaluating the soil generated during dredging and when it can be utilized as a resource remain unclear. The same dredged soil may be used as fill material in some cases while being treated as waste in others, depending on the project purpose or applicable laws. This results in a structure where the treatment method varies based on administrative standards rather than the quality or potential use of the dredged soil.As a result, project operators find it difficult to predict the potential for utilization, and administrative agencies struggle to apply consistent standards. Usable dredged soil is often treated as waste. Considering industry processing costs, estimates suggest that even converting half of the dredged sediment generated annually into recycled resources could save the country billions of dollars in processing costs. While promoting a circular economy, usable resources are wasted due to institutional gaps, leaving the associated costs as a social burden.In contrast, other countries have adopted different approaches. The European Union operates an 'End of Waste' system under Article 6 of the Waste Framework Directive (Directive 2008/98/EC), which allows for the removal of waste status for materials that meet market demand, have legal uses, and do not negatively impact the environment or health. By clearly defining the boundary between waste and resources in legislation, businesses can better predict recyclability, and administrative agencies can apply consistent standards.Signs of change are emerging in South Korea as well. In the marine sector, dredged materials that meet certain criteria are being used for beach nourishment and coastal restoration. This demonstrates that even the same soil can be effectively utilized as a resource if quality and safety are ensured. However, these systems are currently limited to the marine sector and do not encompass dredged soil generated from rivers, reservoirs, and dams. With climate change increasing the importance of river management and flood prevention, dredging will continue to be necessary. Therefore, the focus of discussions should shift from where to dispose of dredged soil to how to utilize it safely and economically.To utilize dredged soil as a resource, consistent management standards must be established. Quality assessment criteria reflecting contamination levels and physical properties should be developed, and systems should be organized to allow dredged soil meeting certain standards to be used as recycled materials. The management standards scattered across individual laws also need to be organically linked. This will help reduce confusion in the field and save wasted budgets.The circular economy is not merely a policy for recycling waste. It is a societal system for safely reusing materials that can become resources. Dredged soil should not be an exception. It is time to establish clear criteria on whether to view dredged soil as waste or to utilize it as a circular resource. This will serve as a starting point for advancing the circular economy.* This article has been translated by AI. 2026-08-14 17:36:00
  • Doosan Construction Reports 35.6% Increase in First Half Operating Profit
    Doosan Construction Reports 35.6% Increase in First Half Operating Profit Doosan Construction reported a 35.6% increase in operating profit for the first half of the year, despite a decline in revenue. On August 14, Doosan Construction announced that its consolidated operating profit for the first half of the year reached 72.7 billion won. Revenue fell to 764.5 billion won, a 12% decrease compared to the same period last year, while net profit rose by 47.1% to 52.5 billion won. The cost ratio for the first half was 84.8%, down 4.7 percentage points from the previous year. Consequently, the operating profit margin increased from 6.2% last year to 9.5% this year, a rise of 3.3 percentage points. Doosan Construction explained that the risks associated with its housing projects have decreased as most sales in key regional sites have been completed. The company noted that the move-in process for completed projects is now underway, leading to improvements in its financial outlook. In terms of new contracts, the company expanded its operations in the metropolitan area, particularly in Seoul, and selectively targeted major regional projects. This strategy has resulted in securing construction rights for urban redevelopment projects worth approximately 2.6 trillion won. A representative from Doosan Construction stated, "The results reflect the success of our profitability-focused selective bidding strategy, which is now translating into performance as major projects progress. We aim to strengthen our business foundation in Seoul and the metropolitan area while diversifying our portfolio through private urban redevelopment and public housing projects to ensure stable growth." Additionally, Doosan Construction opened a model house for the 'Doosan We’ve the Zenith Bucheon' redevelopment project in the Sosa Bon 1-1 district of Bucheon, which it is pursuing in a consortium with Ssangyong Construction, and has begun full-scale sales.* This article has been translated by AI. 2026-08-14 17:32:00
  • President Lee: Failure is the Mother of Success No Longer Applies
    President Lee: 'Failure is the Mother of Success' No Longer Applies 이재명 대통령은 14일 “정부 정책의 문제점은 공급자 중심의 사고를 한다는 것”이라고 말했다. 청년 당사자의 수요와 현실을 중심으로 청년정책을 전면적으로 재설계해야 한다고 강조했다. 이 대통령은 이날 오후 청와대에서 열린 ‘청년정책 대전환을 위한 청년정책 전문가 간담회’에서 “공급자는 ‘이 정도면 충분하지 않을까’라고 생각하지만 정책 대상자 입장에서는 ‘그게 아닌데, 헛다리를 짚는데’라는 생각이 들 때도 많을 것”이라며 이같이 밝혔다. 간담회는 기존 청년정책의 낮은 체감성과 실효성 부족 문제를 진단하고, 국정 운영 전반을 청년 친화적으로 전환할 방안을 논의하기 위해 마련됐다. 노정석 비팩토리 대표와 천관율 칼럼니스트, 기현주 경기도미래세대재단 청년본부장, 정세정 한국보건사회연구원 연구위원, 서복경 청년정책조정위원회 부위원장 등 청년정책 전문가 11명이 참석했다. 청와대에서는 강훈식 비서실장과 김용범 정책실장, 홍익표 정무수석, 하준경 경제성장수석, 김경자 사회수석 등이 자리했다. 이 대통령은 자신을 비롯한 기성세대가 경험한 청년기와 현재 청년들이 마주한 현실은 근본적으로 다르다고 진단했다. 이 대통령은 “저나 서복경 교수 같은 분들도 어려운 청년 시대를 살아왔지만 그때와 지금의 청년 시대는 많이 다른 것 같다”며 “우리가 살았던 시대는 객관적으로 어려웠지만 기회와 희망이 많았던 시대”라고 말했다. 이어 “경제가 계속 고속 성장했고 인구도 늘어났으며 사회가 발전하는 시대였기 때문에 청년들에게도 기회가 정말 많았다”며 “그때는 ‘실패는 성공의 어머니’라는 이야기를 해도 혼나지 않았다”고 설명했다. 특히 “지금 청년들에게 ‘실패는 성공의 어머니다’, ‘도전하는 청년이 아름답다’는 이야기를 하면 뺨 맞게 돼 있다”며 “그만큼 기회가 매우 부족한 사회가 됐다”고 지적했다. 이 대통령은 저성장과 인공지능(AI) 중심의 산업구조 변화가 청년의 일자리와 도전 기회를 더욱 줄이고 있다고 진단했다. 이 대통령은 “지금은 경제적으로 저성장 사회가 됐고 사회도 더 이상 팽창하기보다는 유지·관리되는 단계에 접어들었다”며 “기성세대는 많은 기회를 누리고 그에 따른 결과도 취했지만 새로운 세대에게는 기회가 많이 줄어든 것 같다”고 말했다. 현 정부 출범 이후 성장률이 일정 부분 회복되고 있지만 성장의 내용이 과거와 달라졌다는 점도 짚었다. 이 대통령은 “성장의 회복이 노동력을 많이 필요로 하지 않는, 그야말로 ‘고용 없는 성장’의 형태로 나타나는 것 같다”며 “앞으로 인공지능이 미래 산업사회의 중심이 되면 성장을 해도 과거만큼 그에 상응하는 일자리가 생겨날지 의문”이라고 우려했다. 정부가 여러 청년 지원정책을 추진하고 있지만 청년들이 일상에서 체감할 정도의 성과로 이어지지 못하고 있다는 반성도 내놨다. 이 대통령은 “정부가 청년들의 어려움을 해결하기 위해 많은 정책적 노력을 하고 있지만 몸으로 느껴질 만큼 확실한 성과를 내는 것은 아니다”며 “꽤 오랫동안 청년들을 정책적으로 배려한다고 했지만 현재 청년들이 처한 상황에 비춰볼 때 과연 충분했는지 돌아봐야 한다”고 말했다. 이어 “노인 세대에 대한 정책적 배려는 너무 당연하고 계속 압도적으로 늘어나고 있지만 청년 세대에 대해서는 충분한 배려를 했는지 생각해봐야 한다”며 “청년은 기회가 많고 건강하며 미래가 창창하니 넘어지고 실패하는 것도 경험이 된다는 기성세대의 인식이 있었던 것이 사실”이라고 지적했다. 이 대통령은 청년정책에 대한 근본적인 반성과 정책 결정 방식의 전환이 필요하다고 강조했다. 이 대통령은 “오늘은 그런 근본적인 반성에 관한 이야기를 해보고 싶다”며 “무엇을 어떻게 하는 것이 효율적인지, 청년들이 구체적으로 바라는 것이 무엇인지 점검하면 좋겠다”고 말했다. 이 대통령은 “현장의 전문가와 청년 당사자들이 기존 정부 정책의 문제점을 정리하고 정책 전환의 방향과 본질적인 문제에 대해 허심탄회하게 의견을 내달라”며 “제시된 의견들을 정책 결정과 집행에 크게 활용하겠다”고 밝혔다. * This article has been translated by AI. 2026-08-14 17:28:10
  • MASGA gets liftoff with drones with Washingtons push 
    MASGA gets liftoff with drones with Washington's push  SEOUL, August 14 (AJP) - Washington's push to rebuild strategic industries at home while reducing dependence on China is creating new openings for South Korean companies in two seemingly different sectors: shipbuilding and drones. The latest U.S. moves point to a broader strategy of tapping production capacity from trusted allies where American industry cannot immediately meet demand, while using tariffs, investment and procurement rules to steer strategic supply chains away from China. For South Korea, that could mean access to markets that have long been difficult to enter, particularly U.S. naval shipbuilding and the fast-growing drone sector. But the opportunities come with a costly catch: Korean shipbuilders will have to put substantial investment, technology and production capacity into the United States, while drone makers will have to sharply reduce their reliance on Chinese components if they want preferential treatment. The shipbuilding sector offers the more immediate opening. U.S. President Donald Trump on Thursday signed a memorandum creating what the White House calls the "Finland Model," modeled on an earlier U.S.-Finnish icebreaker partnership. Foreign suppliers can build the first two vessels of qualifying ship classes at their home-country yards, but only if they simultaneously build a new U.S. shipyard or take ownership or a majority stake in an existing one. Subsequent vessels must be built in the United States by an American workforce, using transferred technology and a U.S. supply chain. The model can initially be applied to up to three ship classes. That structure could put South Korean shipbuilders in a favorable position. The Pentagon and U.S. Navy have already tested Korean capabilities. HD Hyundai Heavy Industries and Hanwha Ocean responded to requests for information on combat vessels, while the two companies and Samsung Heavy Industries responded separately on medium-sized fleet replenishment ships. Among them, Hanwha appears most directly positioned because it already owns Hanwha Philly Shipyard in Pennsylvania and has announced a $5 billion expansion program aimed at raising annual production from fewer than two vessels to as many as 20. "Because Hanwha already has a yard in the United States, it has a relative advantage," said Woo Jong-hun, a professor of naval architecture and ocean engineering at Seoul National University. HD Hyundai Heavy Industries and Samsung Heavy Industries do not currently own U.S. yards, although both have been expanding partnerships with American shipbuilders. Shipbuilding shares gained Friday, with Hanwha Ocean rising about 5.6 percent and Samsung Heavy Industries more modestly of 1.36 percent and HD Hyundai Industries of 3 percent. Woo said the absence of a U.S. yard would not necessarily exclude other Korean companies if they eventually establish or acquire American production bases. "The way I read it, the first two ships could be built in the company's home country, but to build the follow-on vessels in the United States, it would ultimately need to secure a U.S. shipyard, either by acquiring one or building one," he said. He added that HD Hyundai could make an aggressive push for such opportunities, while Samsung Heavy Industries may face a disadvantage because of its more limited experience in naval shipbuilding. Hanwha is already trying to deepen its position in the U.S. naval supply chain. The group has made a nonbinding preliminary offer valuing Austal USA at between $1.05 billion and $1.2 billion. The Alabama-based company builds ships for the U.S. Navy and Coast Guard and supplies modules for Virginia- and Columbia-class submarines. Still, Korean shipbuilders would not have the field to themselves. The White House framework applies to foreign suppliers generally rather than South Korea specifically, leaving Korean yards to compete with shipbuilders from Japan and Europe. Korea's advantage lies largely in scale, productivity and experience building complex vessels quickly and at competitive cost. "Allied countries are not limited to Korea," Woo said. "There are Italian and other European shipyards that could compete, but Korea still has a relative advantage in areas such as productivity and cost, particularly for non-combat vessels." Drones face a tougher supply-chain test A parallel shift is taking place in drones. Trump on Thursday imposed new tariffs on imported unmanned aircraft systems and components after a Commerce Department investigation concluded that heavy dependence on foreign suppliers posed a national-security risk. The measure imposes a 100 percent tariff on drones weighing more than 25 kilograms, drones with thermal-imaging capabilities and certain sensitive components. Smaller and less sensitive systems generally face a 25 percent rate. South Korea, Japan, the European Union, Taiwan, Switzerland and Liechtenstein instead qualify for a 15 percent rate, while British products face 10 percent. But the preferential rate carries an important condition: substantially all of a drone's hardware, software and technology must originate in the qualifying country or the United States. The tariffs take effect 21 days after signing, with some less sensitive components given a 180-day transition period. That provision is particularly important for Korea. Although the tariff policy is broader than China alone, it is part of a wider U.S. effort to reduce dependence on Chinese drone technology. Chinese manufacturer DJI controls almost 70 percent of the global drone market and more than 90 percent of the consumer segment, according to the U.S.-China Economic and Security Review Commission. It also accounts for more than 90 percent of the U.S. commercial drone market. The war with Iran has underscored the military importance of inexpensive unmanned systems. U.S. Central Command launched Operation Epic Fury against Iran on Feb. 28 and listed LUCAS one-way attack drones among the systems deployed during the first 10 days of the campaign. Their combat use highlighted the Pentagon's growing interest in cheaper unmanned weapons that can be produced and deployed at scale. That shift could give Korean drone makers an opening in a market where their presence has already begun to grow. A Korea International Trade Association report showed that South Korea exported $27.54 million worth of drones in 2024, nearly 10 times the $2.81 million recorded in 2022. Yet Korea accounted for only 0.48 percent of global drone exports, ranking 20th worldwide. The small base means U.S. restrictions on Chinese products could create room for alternative suppliers. But the same supply-chain realignment also exposes one of Korea's biggest weaknesses. "In the long term, localization of core components is essential," said Kim Mu-hyun, a senior researcher at KITA. "But the country's heavy reliance on Chinese imports is not simply due to a lack of technical capability, but stems from structural issues such as low profit margins, often linked to a focus on low-cost models for civilian use." According to the Ministry of Land, Infrastructure and Transport and Korea Institute of Aviation Safety Technology's 2025 drone-industry survey, Chinese-made components accounted for 45.3 percent of parts used by Korean drone companies, exceeding the 40.5 percent share for domestic components. Chinese products accounted for 55.3 percent of batteries. That dependence now has a direct commercial consequence. Korean manufacturers cannot necessarily gain preferential U.S. treatment simply by assembling Chinese components into a Korean-made drone. Washington's new rule explicitly ties the lower tariff to the origin of the underlying hardware, software and technology. The opportunity therefore depends not just on replacing Chinese-branded finished drones, but on building a supply chain Washington is willing to regard as secure. An ally model with American production at its center Taken together, the shipbuilding and drone measures illustrate an emerging form of ally-based U.S. industrial policy. Washington is not simply trying to move production from China to South Korea. It is using allied industrial capacity as a bridge while seeking to expand production, technology and employment inside the United States. The shipbuilding memorandum makes that logic unusually explicit. Foreign yards can temporarily build the first two ships, but they must invest in U.S. shipyards, train American workers, transfer shipbuilding technology and move subsequent construction to the United States. The drone policy applies the same logic from the opposite direction: allied producers receive preferential access, but only when their products meet stringent origin requirements and reduce exposure to supply chains Washington regards as a security risk. Neither opening is unconditional. U.S. law under 10 U.S.C. §8679 generally bars Armed Forces vessels from being built in foreign shipyards. Trump's memorandum invokes the national-security waiver available under that law and delegates individual determinations to the secretary of war. Each qualifying contract must still be reported to Congress, and no contract can be made until 30 days after lawmakers receive that notification. For Korean drone makers, the risk lies partly in the supply chain itself. Chinese components remain embedded in Korean production, meaning tighter Chinese export controls or other retaliation could increase costs just as U.S. policy creates new demand. AJP Takeaways: · Trump's new "Finland Model" creates a path for allied yards to build the first two U.S. vessels overseas, but only alongside major investment, technology transfer and subsequent production in America. · Hanwha starts with an advantage because it already owns a U.S. shipyard and is pursuing Austal USA, while HD Hyundai and Samsung would need deeper U.S. production footprints. · Korean drone makers could benefit from sharply higher U.S. tariffs on many imported drones, but the 15 percent Korean rate comes with strict hardware, software and technology origin requirements. · Korea's dependence on Chinese drone components turns supply-chain localization from a long-term industrial goal into a near-term requirement for gaining from Washington's security-driven trade realignment. 2026-08-14 17:24:35