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KOSPI, this year's stellar winner, crashes into year-end on AI bubble scare and FX pressures SEOUL, November 21 (AJP) - South Korea’s KOSPI has been the strongest-performing major Asian index this year, but this week’s rout has laid bare its structural fragility — an equity market dominated by a few tech bellwethers and increasingly shunned by foreign investors as the won sinks to new lows. Until just days ago, enthusiasm bordered on euphoria. Forecasts that the KOSPI could surge to 5,000 or even 7,000 became commonplace. Even after Friday’s 3.8 percent plunge — the sharpest drop among major Asian markets — the benchmark is still up 60.5 percent for the year, rising from 2,399.49 at the end of 2024 to 3,853.26. Outsized weight of mega-caps and the AI fad Korea’s equity market has become more concentrated than ever. According to Leaders Index, the combined market-cap share of the top five conglomerates — Samsung, SK, Hyundai Motor Group, LG, and HD Hyundai — rose from 45.9 percent at the start of the year to 52.2 percent as of Nov. 3. More than half of the KOSPI is effectively tied to a handful of corporate groups. AI-driven semiconductor giants Samsung Electronics and SK hynix alone account for over a quarter of total capitalization. When they fall, the entire index buckles. On Friday, SK hynix plunged 8.76 percent to 521,000 won, while Samsung Electronics slid 5.77 percent to 94,800 won — the two steepest drops among Korea’s market heavyweights. Traders call it a “follow-the-leaders market,” with sector performance rarely diverging from the megacaps. Even power-related stocks — which should benefit from surging AI electricity demand — remain dominated by conglomerates. Hyundai Motor Group controls key nuclear-construction player Hyundai Engineering & Construction, while HD Hyundai owns transformer leader HD Hyundai Electric. Both fell sharply Friday: HD Hyundai Electric slid 7.85 percent to 751,000 won, and Hyundai E&C dropped 3.73 percent to 59,300 won. The squeeze on smaller companies is intensifying. A joint survey by the Korea Chamber of Commerce and Industry and the Korea Venture Capital Association found that 91.8 percent of VCs dependent on policy financing struggled to raise private capital this year. The IPO market, meanwhile, is frozen. As of Nov. 21, only seven companies had listed on the KOSPI — the same anemic tally as last year, when the index barely moved. FX volatility fans foreign outflows Tech concentration alone does not fully explain the KOSPI’s vulnerability. Taiwan’s TAIEX is similarly top-heavy — TSMC represents roughly 40 percent of the index, and the top five names exceed half of total market cap. Yet Taiwan has suffered far less from the global AI correction. The critical difference is currency risk. On Friday, the Korean won traded at 1,475.1 per U.S. dollar, down nearly 8 percent from the June average of 1,366.92. With Korea’s benchmark rate at 2.50 percent — far below the U.S. Fed Funds target range of 3.75–4.00 percent — the carry disadvantage leaves Korean assets exposed. A persistently weak won also deprives foreign investors of the chance to earn FX gains. Rate hikes are largely off the table. Korea’s economy is expanding at under 1 percent annualized, and household debt remains one of the highest among advanced economies. Bank of Korea Governor Rhee Chang-yong has repeatedly noted the limits of intervention, saying the won’s weakness reflects external forces such as broad dollar strength and heavy Korean retail investment in U.S. equities. “Given Korea’s internal constraints, the country has little choice but to hope for external relief such as U.S. rate cuts,” said Cho Yong-gu, a researcher at Shinyoung Securities. Weaker FX buffers than regional peers South Korea’s foreign-exchange reserves stand at $420 billion, or about 23 percent of GDP — well below Taiwan’s $600.2 billion, which equals 77.4 percent of its GDP. The gap gives Taipei far stronger firepower to defend its currency or cushion capital-flow shocks. 2025-11-21 17:31:38 -
Samsung Electronics names new DX, DS co-CEOs and brings in global science talent in sweeping leadership reshuffle SEOUL, November 21 (AJP) - Samsung Electronics unveiled a major leadership reshuffle on Friday, reinstating a two-CEO structure and appointing Harvard professor Hongkun Park and software veteran Janghyun Yoon to top technology roles as the company accelerates its transition toward next-generation semiconductor and AI innovation. TM Roh, head of the Mobile eXperience (MX) Business and acting chief of the Device eXperience (DX) Division, has been formally promoted to President & CEO of DX, joining Young Hyun Jun, Vice Chairman and chief of the Device Solutions (DS) Division, as co-CEOs. Both leaders will continue to oversee Samsung’s core mobile and memory businesses, respectively. The company also promoted Samsung Venture Investment CEO Janghyun Yoon to President, Chief Technology Officer of DX and Head of Samsung Research, leveraging his background in software platforms, IoT and Tizen development, and deep experience in frontier technology investments including AI, robotics, biotech and semiconductors. In one of its boldest talent moves in recent years, Samsung tapped Hongkun Park, a Mark Hyman Jr. Professor of Chemistry and Professor of Physics at Harvard University, as the new Head of the Samsung Advanced Institute of Technology (SAIT). Park, a leading global figure in nanoscience, quantum research and next-generation device physics, is expected to spearhead work on quantum computing, neuromorphic semiconductors and other future device platforms once he joins the company on Jan. 1, 2026. Samsung said the appointments reflect its “People First” philosophy and a strategy to secure top-tier scientific and engineering talent as geopolitical and technological competition intensifies. The reshuffle aims to strengthen execution under uncertain macro conditions while laying the groundwork for AI-driven business transformation. The company also adjusted responsibilities at the executive level. Vice Chairman Jun will continue as head of DS and Memory Business without concurrently serving as SAIT chief, while President Roh retains leadership over the MX Business alongside his expanded DX CEO role. Friday’s announcement follows a series of year-round promotions Samsung executed earlier in 2025. The company elevated Choi Won-joon to President and COO of the MX Business in March for his role in advancing Galaxy S25 development and global device competitiveness, and appointed Mauro Porcini—former chief design officer at PepsiCo and 3M—as DX’s Chief Design Officer in April. Samsung said it plans to maintain its rolling promotion system to secure high-performing leaders throughout the year. Samsung will soon announce its broader executive and organizational reshuffle for 2026, following Friday’s top-level appointments. 2025-11-21 17:20:47 -
POSCO removes Pohang steel plant chief after safety accidents SEOUL, November 21 (AJP) - POSCO has removed the head of its Pohang steel mill after a series of safety incidents, including a toxic gas leak on Thursday that sent six workers to the hospital. The company said it will launch a special safety task force led by its newly established subsidiary, POSCO Safety Solutions. Industry sources said Friday that POSCO dismissed Pohang mill chief Lee Dong-ryeol after subcontracted workers and a POSCO employee were exposed to harmful gas during an outdoor cleaning operation. POSCO CEO Lee Hee-geun will temporarily take charge of the mill as the company investigates the incidents and rolls out additional safeguards. The gas leak was the latest in a string of accidents at the site. Earlier this month, a chemical leak at the mill’s stainless steel plant left one worker dead and three others injured. POSCO Safety Solutions, launched in September, will lead the new task force in partnership with Swiss safety consultancies SGS and DSS. The unit, headed by veteran safety specialist Yoo In-jong, is expected to identify root causes and craft measures to prevent further incidents. The company said it will strengthen oversight of high-risk operations by ensuring safety managers are present for all hazardous tasks. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-11-21 17:19:15 -
Asian stocks tumble across the board SEOUL, November 21 (AJP) - All major stock markets in Asia fell more than 2 percent on Friday, with South Korea's benchmark KOSPI plunging nearly 4 percent. In Seoul, the KOSPI fell 3.8 percent to close at 3,853.26, while the junior KOSDAQ slumped 3.1 percent to 863.95. In large-cap stocks, Samsung Electronics plunged 5.8 percent to 94,800 Koren won ($64), and SK hynix dropped 8.8 percent to 521,000 won. Among the top 10 market-cap companies, only Kia gained 0.5 percent, while Samsung Biologics remained suspended from trading. The rest closed lower from the previous session. Foreign investors offloaded a net 2.82 trillion won ($1.9 billion) worth of shares, marking their largest single-day selloff of this year. Market sentiment soured following renewed talk of an artificial intelligence (AI)-driven market bubble. Although Nvidia posted stronger-than-expected earnings overnight, U.S. stocks reversed early gains, with the Philadelphia Semiconductor Index tumbling 4.8 percent. Comments from a senior Federal Reserve official referencing the possibility of an AI bubble further unsettled investors. Japan's Nikkei 225 also fell 2.4 percent to close at 48,625.88. In China, the Shanghai Composite Index fell 2.5 percent to 3,834.89. 2025-11-21 17:07:05 -
Friendship Week returns to Shandong, boosting relations between South Korea and China SEOUL, November 21 (AJP) - A special weeklong event is taking place this week in the Chinese city of Jinan, Shandong Province, the South Korean Embassy in China said on Friday. Under the banner of "Friendship Week," which was first launched in 2003, the event had served as a key platform for local cooperation between the two countries, promoting economic and cultural exchanges. This year's event marks both the first since the coronavirus pandemic and the first held in Shandong since 2012. The event follows the momentum generated by last month's summit between South Korean President Lee Jae-myung and Chinese President Xi Jinping on the sidelines of the Asia-Pacific Economic Cooperation (APEC) meeting in the southeastern city of Gyeongju. Around 160 participants including embassy officials and business representatives, are taking part, with 106 Chinese and 69 South Korean companies in attendance. At the opening ceremony on Thursday, South Korean Ambassador to China Noh Jae-heon expressed hope that the event would usher in a new era of practical cooperation with Shandong. He highlighted the province's population, industrial base, and geographical advantages, emphasizing the need to expand cooperation in supply chains and emerging industries like biotech. Lin Wu, Shandong's Party Secretary, thanked Noh for his first visit to Shandong since taking up his post and highlighted the significant growth in trade since diplomatic ties were established, pledging a fair investment and business environment for South Korean companies in China. Shandong Governor Zhou Naixiang also expressed a commitment to expanding cooperation in artificial intelligence (AI), biotech, and pharmaceuticals, requesting support for Shandong companies investing in South Korea. Among the participants were representatives from the Korea Chamber of Commerce in China, as well as around 20 small and medium-sized enterprises from Gyeonggi Province. South Korean companies held one-on-one meetings to discuss projects for bilateral cooperation. Until Saturday, Qingdao's largest mall, Vientiane City, also hosts a promotional event featuring South Korean pavilion in collaboration with the Korea Trade-Investment Promotion Agency (KOTRA), Korea Agro-Fisheries & Food Trade Corporation, and the Korea Tourism Organization (KTO). * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-11-21 16:55:48 -
Deutsche Motors, BMW's South Korean distributor, under 'special' tax probe SEOUL, November 21 (AJP) - South Korea’s National Tax Service has launched a tax probe into Deutsche Motors, the country’s official distributor of BMW vehicles. Industry sources said tax officials recently visited the company’s Seoul headquarters to secure documents and computer records as part of the inquiry. The investigation is being led by the Seoul Regional Tax Office and is classified as a "special" audit, according to the sources. Deutsche Motors has faced heightened scrutiny amid a stock manipulation scandal. Former Chairman Kwon Oh-soo received a suspended prison sentence in April in connection with the case. Separately, a special prosecutor team led by Min Joong-gi is examining whether prosecutors adequately investigated the matter after the Seoul Central District Prosecutors’ Office declined to indict in July last year then-first lady Kim Keon-hee, who is suspected of being involved in the stock rigging case. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-11-21 16:45:42 -
Korea's late-40s breast cancer spike: researchers identify a surprising risk group SEOUL, November 21 (AJP) - Overweight and obesity are the most common drivers of post-menopausal breast cancer in American women — but for Koreans, new evidence suggests the opposite: being underweight may be the greater risk factor. New data highlight that breast-cancer risk in Korea follows a markedly different biological pathway from that of Western populations, where excess body fat typically fuels tumor development after menopause. In Korea and Japan, breast-cancer incidence peaks in women’s late 40s — nearly two decades earlier than in the United States — and researchers say this divergence may stem from hormonal patterns unique to lean Asian women entering menopause. A study led by Kangbuk Samsung Hospital and Seoul Asan Medical Center tracked 4,737 Korean women for seven years and found that underweight participants (BMI <18.5) experienced a temporary surge in estrogen and breast-tissue density during the early menopause transition. Both factors increase breast-cancer risk. The findings were published in Breast Cancer Research in October 2025. Korea’s national cancer registry recorded 29,729 new breast-cancer cases among women in 2019, with a median diagnosis age of 52.8. Women in their 40s accounted for the largest share. Incidence has risen 4.8-fold since 2000, underscoring an age-specific vulnerability among Asian women. Breast density is another key differentiator. Korean women have among the highest rates of dense breasts in the world — a characteristic that raises cancer risk and reduces mammographic accuracy. In Korea, dense-breast prevalence drops sharply from about 78 percent in the late 40s to 30 percent in the 50s. Western cohorts show only a modest shift, from roughly 47 percent to 44 percent. Researchers say these rapid hormonal and anatomical changes compress Asian women’s risk window into a narrower, younger age band. Clinicians say lifestyle patterns may further amplify this vulnerability. “Korean women tend to show much more extreme BMI distributions than Western women — they are often either very underweight or severely obese, with relatively few in the normal range,” said Shim Kyung-won, a family medicine specialist at Ewha Mokdong Hospital. “Many girls and young women grow up under strong pressure to stay thin, which leads to unnecessary dieting and early exposure to hormone-regulating or weight-control medications. This frequent hormonal exposure at a young age can contribute to infertility issues and potentially raise breast-cancer risk later in life.” Shim noted that Korean women frequently have higher body-fat percentages and more abdominal fat than Western women of the same weight because of carbohydrate-heavy diets and lower muscle mass, placing additional metabolic strain during their 30s and 40s. American data show the opposite dynamic. According to the U.S. Centers for Disease Control and Prevention, more than 716,000 obesity-associated cancers occurred in 2022, including 495,000 among women. Post-menopausal breast cancer is the most common obesity-linked cancer in American women, driven by hormone-responsive pathways tied to excess fat. Recent U.S. research has identified a biological mechanism behind this trend. Leptin — a hormone produced by fat cells — was found to promote estrogen receptor-positive tumor growth by increasing activity of stearoyl-CoA desaturase (SCD), a metabolic enzyme that fuels cancer cell proliferation and motility. “Our data indicate that the combined upregulation of leptin and SCD identifies a subgroup of breast cancers with poorer recurrence-free survival,” the research team said. Blocking SCD “almost completely counteracted the pro-tumorigenic effects driven by leptin,” said Dr. Barone, suggesting the enzyme’s potential as a therapeutic target for obese ER-positive patients. Korean clinicians say shifting family patterns may also be reshaping risk. “We are seeing earlier menopause among younger women today,” Shim said. “Delayed marriage and childbirth, a rise in never-married women, shorter or absent breastfeeding, and increasing use of fertility treatments all contribute to greater hormonal fluctuation. Many young patients present with health issues linked to extremely unbalanced lifestyles.” She added that “a growing number of underweight young women mistakenly believe they are overweight due to unrealistic beauty standards,” reinforcing the need for healthier weight perceptions. These contrasting biological pathways show that American and Korean women face opposite risk profiles: obesity drives hormone-dependent breast cancer after menopause in the West, while low BMI may trigger hormone-density spikes that push Korean women into earlier cancer onset. 2025-11-21 16:36:05 -
Mega malls emerge as Korean retailers' answer to online challenges SEOUL, November 21 (AJP) - South Korea’s retail giants, squeezed by the rapid proliferation of online shopping and a prolonged slump in domestic consumption, are betting on mega-sized mixed-use malls to regain foot traffic by drawing customers through leisure and tourism appeal. Gwangju has become the latest city to embrace the trend, breaking ground this week on a large-scale multi-complex mall that blends retail with entertainment. These mega malls combine shopping with dining, games and cultural activities, positioning themselves as weekend destinations for families. Unlike traditional department stores or hypermarkets, they devote a significant share of space to non-retail functions — from VR attractions to libraries — in a bid to differentiate themselves and extend visitor stay. "Malls are not only about purchasing items — they are spaces to eat, spend time and hang out," Lotte Department Store CEO Jeong Jun-ho said, noting that this approach aligns with the preferences of Korea’s MZ generation. At Lotte World Mall in Seoul, one of the capital’s most visited complexes, retail accounts for just 30 percent of the total area, while entertainment takes up 57 percent and food and beverage 13 percent. The mall drew more than 8 million visitors during July and August amid a severe heat wave, according to operator Lotte Property & Development. Purchasers made up 66 percent of visitors in July and 63 percent in August, meaning that more than a third came primarily for non-shopping activities. A survey by Embrain, a Korean market-research firm, found that 48.4 percent of respondents prefer multi-complex malls because they "can experience almost everything in one place." Other reasons included expanded entertainment and cultural facilities, convenient accessibility and the ability to escape heat waves or air pollution — key considerations that influence indoor activity choices in Korea’s extreme seasonal climate. Visitor numbers at major complexes have continued to rise. From January to April 2024, footfall at large malls such as The Hyundai Seoul, I’Park Mall and Starfield increased 28.8 percent compared with the same period in 2022. South Korea’s three major retail groups — Shinsegae, Lotte and Hyundai — are now racing to expand their mall portfolios. Of the 21 new department stores or malls planned by the groups, 19 are multi-complex malls. As consumer behavior shifts toward "experience-based consumption," with shoppers seeking leisure and culture alongside purchases, retailers are moving away from traditional department store-centered strategies. Lotte Group plans to convert nine large land parcels — originally secured for department stores and outlets — into malls, including sites in Songdo and Daegu. Seven existing outlets will also be renovated or expanded into mall formats. Lotte Department Store said it aims to reduce department stores’ share of total revenue from 75 percent today to 60 percent by 2030, while increasing mall revenue from 1 percent to 30 percent. Shinsegae Group plans to open 13 new locations within five years, 11 of them multi-complex malls. Its development arm, Shinsegae Property, will invest about 13 trillion won ($9.4 billion) by 2030. "Malls offer an offline experience that online shopping cannot provide," a Shinsegae official said. "This increases the time customers spend on-site and boosts non-retail revenue." Hyundai Department Store is also expanding the model pioneered by its flagship The Hyundai Seoul into regional markets. It will break ground next month on The Hyundai Busan, a 7.343-trillion-won project targeting a 2027 opening. A separate site in Gwangju, a metropolitan city of 1.4 million people, is slated to open in 2028 with an estimated project cost of 1.2 trillion won — the largest single retail development in Hyundai’s history. "We have focused on the Seoul metropolitan area for years, but expanding into major regional cities will create a new growth axis," a Hyundai official said. 2025-11-21 16:26:12 -
PHOTOS: Annual expo showcases thousands of coffee and beverage brands SEOUL, November 21 (AJP) -The Seoul International Café Show kicked off its four-day run at COEX in southern Seoul on Wednesday. Held every November, the annual event provides a key business platform for coffee and beverage makers, as well as related companies in the booming industry. The show features a wide range of products beyond coffee including tea, bakeries, desserts, alcoholic beverages, and café equipment. Some 631 companies from 35 countries participated in this year's event, showcasing nearly 4,000 brands. The first two days of the event are reserved for buyers, industry professionals, and aspiring entrepreneurs, with the final two days open to the general public. Visitors can sample coffee, take part in aroma tests, and try a variety of baked goods and desserts at booths. The show also offers opportunities for business consultations and information exchange. 2025-11-21 16:15:10 -
PHOTOS: Tattoos step into the light with inaugural expo SEOUL, November 21 (AJP) - An inaugural expo covering everything about tattoos kicked off its three-day run in Goyang, Gyeonggi Province earlier this week. Long gone are the days when tattoos were synonymous with heavyset gangsters, as relevant regulations legalizing the practice were passed at the National Assembly last September. Under the new regulations, tattoos and cosmetic procedures like ombré shading and microblading are now permitted, and not only tattooists but also non-medical practitioners are legally allowed to perform them. The expo, in particular, drew strong interest from overseas participants, who demonstrated scalp micropigmentation (SMP) pigments at their booths. The technique is widely used for hairline enhancement, scar camouflage and other cosmetic purposes. Many of them expressed high expectations for the industry's growth potential in South Korea, where tattoos had long been widely practiced even though they were technically illegal. "After more than three decades in the shadows, tattoos are finally stepping into the light," said Kim Jae-hyeong, head of the expo's organizing committee. "I hope this expo serves as a catalyst for the industry's growth and development." The expo wraps up on Saturday. 2025-11-21 15:41:42