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Asian markets fall, KRW breaches crisis-linked 1,450 per USD SEOUL, November 07 (AJP) - Asian shares fell sharply in early Friday trading as investors reacted to overnight losses on Wall Street, sending South Korea’s benchmark indices below key thresholds and pushing the Korean won past a psychologically critical level historically associated with periods of upheavals. The won weakened rapidly in morning trade, with the dollar rising to 1,454.8 won as of 10:20 a.m. in Seoul. The breaches of the 1,450 level have typically coincided with extraordinary events — including the presidential impeachment in April, the martial law crisis in December, and stress periods following the 2009 global financial crisis. The currency’s slide came alongside a broad selloff in equities. The KOSPI dropped 2 percent, falling back below the 4,000 mark, while the KOSDAQ slipped under 900, reflecting deteriorating sentiment across risk assets. The downturn followed steep losses in the United States, where all three major indices declined on Thursday. The Dow Jones Industrial Average fell 0.8 percent, the S&P 500 dropped 1.12 percent, and the Nasdaq Composite tumbled 1.9 percent to 23,053.99, weighed down by a pullback in semiconductor and AI-linked names. Nvidia lost 3.7 percent, AMD slumped 7.3 percent and Palantir shed 6.8 percent. Qualcomm retreated 3.6 percent despite reporting stronger-than-expected earnings, amid speculation that Apple could reduce future chip orders. Investor nerves were further rattled after David Sacks, the White House’s AI policy chief and colloquially known as the administration’s “AI czar,” posted on X that there would be “no federal bailout for AI.” His comment fueled worries that the sector may not receive government support if market volatility deepens. Adding to the unease, new labor data pointed to rising job losses tied to restructuring across the tech sector. According to Challenger, Gray & Christmas, U.S. employers cut 153,074 positions in October, marking the largest October layoffs since 2003. So far this year, 218 technology companies have eliminated more than 112,000 jobs, including staff reductions at Intel, Microsoft and Amazon. Nearly 300,000 public-sector workers have also been laid off. Tesla, which closed down 3.5 percent at $445.91 on Thursday, rose more than 2 percent in after-hours trading after shareholders approved CEO Elon Musk’s long-debated compensation package. The plan could award Musk stock options worth up to $1 trillion if Tesla meets a set of market-value and operational milestones totaling $8.5 trillion. Still, the relief did not extend to Korean battery suppliers with exposure to Tesla. Samsung SDI slid 4.2 percent to 308,500 won, Ecopro dropped 2.9 percent, Ecopro BM declined 3.3 percent and LG Energy Solution shed 1.3 percent. Analysts said lingering fears over an AI-driven bubble overshadowed any optimism from Tesla’s governance developments. Markets elsewhere in Asia also retreated. Japan’s Nikkei 225 fell 1.5 percent to 50,117.88, with Toyota down 0.9 percent and Sony 1.6 percent lower. AI- and chip-equipment names bore the heaviest losses, with Advantest tumbling 5.9 percent and SoftBank dropping 7.9 percent. SoftBank briefly plunged more than 8 percent in morning trade, erasing most of Thursday’s rebound after a volatile week in which shares fell 10 percent on Wednesday, rose 3 percent Thursday and then reversed sharply again. In Greater China, the Shanghai Composite Index slipped 0.2 percent to 4,000.62, while Hong Kong’s Hang Seng Index declined 0.7 percent to 26,314.37, extending weakness from the previous session. 2025-11-07 11:33:26 -
Korea's Kakao posts record Q3 earnings, eyes AI-driven boost in Q4 SEOUL, November 07 (AJP) - Kakao reported its strongest quarterly earnings ever in the third quarter, with operating profit surpassing 200 billion won ($138 million) for the first time since its founding and expects the rollout of ChatGPT-powered services to offer meaningful boost to the chat platform most Koreans use starting fourth quarter. According to its regulatory filing Friday, Kakao’s consolidated revenue reached 2.087 trillion won in the July–September period, up 9 percent from a year earlier. Operating profit jumped 59 percent on year and 12 percent on quarter to 208 billion won — the highest in company history. As of 11:20 a.m., shares of Kakao were trading at 62,900 won, up 3.46 percent. The platform division generated 1.06 trillion won in revenue, up 12 percent on year. Advertising led the gains with an 11 percent rise to 325 billion won. Within ads, business-message services climbed 22 percent, while display advertising returned to growth — up 0.5 percent after five consecutive quarters of decline. Platform subsidiaries also delivered solid results, with combined revenue rising 24 percent on year to 453 billion won. Kakao Pay reported record operating profit, while Kakao Mobility posted steady gains. The commerce unit underperformed, recording 209 billion won in sales — down 0.1 percent on year and 6 percent on quarter. Still, Kakao said total transaction volume increased 4 percent to 2.5 trillion won as self-purchases rose. Some sales delayed by Chuseok-related logistics will be reflected in fourth-quarter results, it added. Revenue from Kakao’s portal business, led by Daum, fell 5 percent. To improve efficiency, Kakao plans to spin off Daum into a company-in-company (CIC). The content division posted 1.03 trillion won in revenue, up 5 percent on year. The games segment remained weak, with revenue tumbling 34 percent to 154 billion won due to delayed and canceled releases — a trend the company expects to continue for at least the next six months until new titles launch. In contrast, the music business grew 20 percent to 565 billion won, driven by new album launches and concert activity. The entertainment unit booked 84 billion won in revenue, down 11 percent on year due to postponed intellectual property releases. Meanwhile, the media division surged 75 percent to 96 billion won thanks to a robust slate of new film releases. Piccoma, the Japanese distribution arm of Kakao Webtoon, generated 127 billion won in revenue, up 2 percent on year. It remained Japan’s top-grossing app in 2025, and its operating profit doubled from a year earlier. Responding to questions about user engagement, a Kakao official said: “Average daily time spent on KakaoTalk has rebounded from 24 minutes to 26 minutes after the update, meeting our initial targets.” The redesign increased both session duration and advertising efficiency, the company added. Kakao expects double-digit growth in Talk Biz ad revenue, boosted by its new services Kanana, on-device AI – and ChatGPT deployment. 2025-11-07 11:29:53 -
K-food exports surge in Middle East, North America SEOUL, November 07 (AJP) - South Korea’s exports of food and agricultural products climbed 5.7 percent to $11.24 billion this year, buoyed by strong demand for ramen, beverages, and other Korean food products across global markets, the government said on Friday. According to the Ministry of Agriculture, Food and Rural Affairs, agricultural and food exports rose 5 percent to $8.56 billion, while exports in the broader agricultural industry — including animal medicines, fertilizers, and seeds — increased 7.8 percent to $2.64 billion. Growth was strongest in the Middle East, where shipments surged 20.4 percent from a year earlier, followed by North America at 13.9 percent and the European Union at 4.8 percent. Between July and October, demand from the Middle East focused on ice cream, beverages, and sauces, while exports to Greater China grew on the strength of ramen, processed foods, and table grapes. Popular items overall included ramen, kimchi, coffee products, grapes, and ice cream. Exports of ramen — one of South Korea’s most recognizable global products — continued to soar, fueled by the global popularity of spicy noodle dishes and the rise of “K-content” marketing linked to Korean pop culture. Grape exports benefited from expanded cultivation and the introduction of a new product registration system in Taiwan. “Despite external uncertainties, K-food exports has achieved strong growth so far this year,” said Kim Jeong-wook, director of agricultural innovation policy at the ministry. “Korean food products have become a key part of the country’s soft power and an increasingly important source of trade growth. The government will continue to support exporters to reach the $14 billion target by year-end.” * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-11-07 11:07:31 -
PHOTOS: Enjoy autumnal foliage before winter sets in SEOUL, November 7 (AJP) - Mild, warm weather is expected with daytime highs hovering above 20 degrees across the country on Friday, a day known as Ipdong or the beginning of winter in the lunar calendar. As unseasonably warm temperatures persisted through September and October, with fickle weather bringing occasional cold chills, this year's autumn arrived late and is likely to recede soon before people can fully enjoy the season. With many trees and leaves yet to turn into their flaming colors, winter seems to be arriving suddenly. Even before the autumnal foliage reaches its peak, winter descends without warning, a pattern that has repeated in recent years, meaning that the autumn season is getting shorter and shorter. In fact, unpredictable seasonal changes and abnormal weather are now becoming the norm in a country once known for its four distinct seasons, bringing prolonged summers largely due to global warming. While trees once turned red and other brilliant autumn colors from late October to early November, many now remain green through mid-November, creating an unusual seasonal mix. On the cusp of winter, many people gather in parks, strolling trails, hiking paths, and other scenic spots to enjoy the brief moments of seasonal change. They may be aware that this beautiful season could fade even faster or appear in entirely different shades and colors just a few decades from now. 2025-11-07 10:45:28 -
Hyundai Motor signs strategic partnership with UK AI startup SEOUL, November 07 (AJP) - Hyundai Motor Group said on Friday that it has formed a strategic partnership with CuspAI, a British artificial intelligence startup, to accelerate the development of next-generation materials for mobility applications. The agreement was signed on Nov. 6 at CuspAI’s headquarters in Cambridge, England, where researchers are pioneering the use of generative AI, deep learning, and molecular simulation to design new materials with specific performance characteristics. Through the partnership, Hyundai said in a press release that it plans to apply CuspAI’s technology to improve the efficiency, durability, and safety of materials used in vehicles and future mobility platforms. “Hyundai Motor is pursuing material innovation from multiple directions to advance future mobility,” said Park Cheol, the company’s director of new business strategy. “This partnership will help address scientific challenges that conventional approaches could not solve and secure next-generation materials to strengthen our competitiveness.” Chad Edwards, chief executive of CuspAI, said the collaboration would unite AI research and large-scale manufacturing capabilities. “Next-generation materials are the only path to a sustainable future,” he said. “Our partnership with Hyundai, a global leader in engineering and manufacturing, will accelerate the building of that future.” * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-11-07 09:50:49 -
OPINION: Investing in innovation is South Korea's best defense SEOUL, November 07 (AJP) - Last week, the world’s attention turned to Gyeongju, where U.S. President Donald Trump and Chinese President Xi Jinping met on the sidelines of the APEC summit. The two leaders agreed to ease trade and resource tensions, offering a glimmer of hope for the global economy. Yet the thorniest issues — Taiwan, security, and the future of global supply chains — remain unresolved. Their meeting, the first since the 2019 G20 summit in Osaka, suggests a possible thaw in U.S.-China relations, and global markets have responded enthusiastically. The KOSPI and Nikkei indices both hit record highs, reflecting renewed investor optimism. For South Korea, whose economy depends heavily on trade and technology exports, these developments carry both opportunity and risk. As the global order shifts, Seoul must prepare for a more volatile environment shaped by the enduring U.S.-China rivalry. Crafting flexible economic and security strategies will be essential to navigate the uncertain years ahead. Recent summits have clarified South Korea’s diplomatic landscape. The South Korea-U.S. summit settled tariff negotiations and strengthened defense cooperation, providing a lift to the stock market. Meanwhile, the South Korea-China summit restored dialogue on trade and economic collaboration, improving bilateral ties that had frayed in recent years. Now, five months into the Lee Jae Myung administration, responding wisely to the Trump administration’s evolving policies will be critical. South Korea must strengthen its alliance with Washington while also deepening pragmatic engagement with Beijing. The goal should be strategic autonomy — building the ability to stand apart from either camp through technological and industrial differentiation. Investment in research and development should be at the core of this strategy. Taiwan’s TSMC offers a compelling example: by dominating the global semiconductor market, it has made itself indispensable to both the United States and China. South Korea’s own champions, SK hynix and Samsung Electronics, are global leaders in high-bandwidth memory (HBM) chips, vital for artificial intelligence applications. Continued investment in next-generation technologies such as Compute Express Link (CXL) and Processing-In-Memory (PIM) could ensure Korea’s long-term leadership. At the same time, Seoul must reassess its relationship with China. Exports to China — once a key growth engine — have declined as Beijing pushes for greater technological self-sufficiency. The recent summit’s pledge to restore cooperation should lead to new export strategies, particularly in high-value sectors like eco-friendly materials and advanced chemicals. Consumer industries, too, hold promise: South Korea’s global cultural influence through K-pop and entertainment can help expand its soft power and market reach. Amid intensifying competition between the world’s two superpowers, South Korea faces a pivotal moment. By strengthening competitiveness, investing in innovation, and pursuing a clear-eyed strategy of autonomy, it can transform today’s challenges into opportunities for sustainable growth. About the author Joo Young-seop is a professor at Seoul National University and president of the Korea Digital Innovation Association. He holds a Ph.D. in industrial engineering from Pennsylvania State University and previously served as CEO of Hyundai Autonet and the chief of the Small and Medium Business Administration. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-11-07 09:35:57 -
South Korea's Lotte Chemical opens petrochemical complex in Indonesia SEOUL, November 07 (AJP) - South Korea's Lotte Chemical said on Friday that it has completed construction of a massive petrochemical complex in Cilegon, a port city in Indonesia’s Banten Province. A completion ceremony was held Thursday, attended by Lotte Group Chairman Shin Dong-bin, Lotte Chemical Chief Executive Lee Young-joon and Indonesian President Prabowo Subianto. The facility — called the Lotte Chemical Indonesia New Ethylene Complex, or LINE — represents a $3.95 billion investment aimed at strengthening the company’s foothold in Southeast Asia’s rapidly expanding petrochemical market. Built on 110 hectares of land, the complex began construction in 2022 and was finished in May. Now in commercial operation, the plant is designed to produce 1 million tons of ethylene, 520,000 tons of propylene, 350,000 tons of polypropylene, 140,000 tons of butadiene, and 400,000 tons of BTX annually, the company said. Indonesia has identified petrochemicals as a strategic sector under its “Making Indonesia 4.0” roadmap for industrial development. The industry has grown by about 5 percent annually, but domestic production has lagged demand, forcing the country to import large volumes of key materials. Indonesia’s self-sufficiency rate for ethylene stood at 44 percent last year. Lotte’s new complex is expected to raise that figure to around 90 percent by supplying most of its output to local manufacturers. The project will also bolster Indonesia’s trade balance, create new jobs, and spur investment in related industries. The Indonesian government has granted Lotte tax incentives to support the venture’s competitiveness. The LINE complex will also supply ethylene to the nearby Lotte Chemical Titan Nusantara plant, achieving vertical integration of production and improving overall efficiency. Lotte Chemical said it plans to use Indonesia as a strategic base for expansion across Southeast Asia while continuing to streamline its domestic petrochemical operations and invest in specialty materials. “This project is one of the largest investments ever made by a Korean company in Indonesia,” Chairman Shin said at the ceremony. “It will serve as a foundation for advancing Indonesia’s petrochemical industry and national competitiveness, generating about $2 billion in economic value and contributing to sustainable growth.” * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-11-07 09:16:54 -
Seoul reiterates its planned nuclear-fueled submarine fleet built at home SEOUL, November 7 (AJP) — Senior Seoul officials on Thursday reiterated that South Korea’s planned fleet of nuclear-powered submarines must be built domestically, arguing that constructing them in the United States would be “realistically” unfeasible. National Security Adviser Wi Sung-lac told lawmakers during a parliamentary hearing that Seoul aims to develop “cost-effective nuclear-fueled submarines tailored to our operational needs, rather than adopting the U.S. Virginia-class model,” reaffirming earlier remarks made by Prime Minister Kim Min-seok and Defense Minister Ahn Gyu-back during recent government audits. Wi said investing in new submarine facilities at the Philadelphia Naval Shipyard is impractical. He also dismissed suggestions that General Dynamics, the American defense contractor, could take on construction of the vessels. The series of clarifications followed U.S. President Donald Trump’s social-media post last week claiming he had approved South Korea’s plan to build a nuclear-powered submarine — and that the project would be carried out in Philadelphia. Trump offered his endorsement during his visit to South Korea during last week’s APEC summit, after President Lee Jae Myung stressed the need for conventionally armed submarines powered by stable nuclear propulsion. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-11-07 07:40:54 -
HOT STOCK: Hyosung Heavy flies to rank as most expensive KOSPI stock SEOUL, November 06 (AJP) - The most expensive stock on Korea’s main bourse is no longer Samsung Electronics or Hyundai Motor, but Hyosung Heavy Industries — trading at 2.3 million won ($1,591) per share and cementing its position as the priciest KOSPI-listed company. The stock has surged 462.6 percent this year as of Tuesday, making it the top performer on a KOSPI that itself has jumped 72 percent year-to-date. Hyosung Heavy manufactures core power-grid equipment such as extra-high-voltage transformers. Its share-price explosion is fueled by soaring global investment in electricity transmission infrastructure amid the artificial intelligence (AI) boom, which is driving unprecedented demand for stable, high-capacity power systems. A major subsidiary of Hyosung Group, the company sits within a conglomerate founded by Cho Hong-jai, who once partnered with Samsung’s founder Lee Byung-chul. The group’s historical ties place Hyosung within Korea’s wider Samsung-origin family network. Investors are increasingly betting on a stock split to make the seven-digit share price more accessible to retail traders. A split reduces the face value and multiplies the number of outstanding shares, lowering the trading price per share while preserving market capitalization. Samsung Electronics undertook a 50-for-1 split in 2018 when its shares exceeded 2.5 million won. Hyosung Heavy has received inquiries from shareholders but says no specific plan is under review. Last Friday, Hyosung Heavy reported a preliminary consolidated operating profit of 219.8 billion won ($152 million) for the July–September quarter, up 97.3 percent from a year earlier. Eleven securities firms subsequently raised their target prices. NH Investment & Securities and Hana Securities both set their targets at 3 million won per share. Based on current outstanding shares, this implies a market capitalization of about 27.97 trillion won. NH Investment & Securities cited the company’s strong position in U.S. utility upgrades and tight supplier dominance, projecting improved profitability from rising North American and European demand. The firm raised its target from 1.5 million won to 3 million won. Shinhan Investment & Securities offered a similar view, expecting the stock to reach 3 million won in the mid- to long-term. Researcher Lee Dongheon noted that despite U.S. tariffs, power-equipment margins widened sharply, and stabilization in the construction division supported record earnings. With North America’s backlog-to-sales ratio at high levels, profit momentum is expected to continue for years. Hyosung Heavy’s meteoric rise reflects mounting confidence in grid-equipment suppliers as AI data centers, renewable energy transitions and power-intensive industrial clusters reshape global electricity demand. 2025-11-06 17:57:06 -
Asian markets rebound in tandem with Wall Street recovery SEOUL, November 06 (AJP) - Asian stocks closed higher on Thursday, snapping a sharp two-day selloff as easing concerns over an AI bubble and a rebound on Wall Street lifted sentiment across the region. South Korea’s benchmark KOSPI rose 0.55 percent to 4,026.45, recovering from the “Black Wednesday” rout the previous day. Retail investors bought 885 billion won ($611 million) of shares and institutions added 832 billion won, while foreign investors sold 1.7 trillion won, reversing earlier intraday gains of more than 1.5 percent. Semiconductor leaders were mixed. SK hynix rose 2.42 percent to 593,000 won after reaching an intraday high of 607,000 won. Samsung Electronics slipped 1.19 percent to 99,400 won, falling back below the key 100,000-won threshold as foreigners offloaded more than seven million shares. AI-related stocks remained under pressure. Naver, which had surged the previous session on record quarterly earnings, fell 5.21 percent to 264,000 won on heavy profit-taking by foreign investors. Power-grid and transformer names extended recent gains. Hyosung Heavy Industries added 1.62 percent to 2,255,000 won, HD Hyundai Electric rose 0.81 percent to 875,000 won, and LS Corp. jumped 5.58 percent to 217,500 won on optimism over its electricity value-chain businesses including LS Cable and LS Electric. Japan’s Nikkei 225 gained 1.19 percent to 50,810.50, partially recovering Wednesday’s steep drop. Daikin Industries surged 7.79 percent to 19,295 yen ($125.3) after reporting stronger-than-expected earnings on robust industrial cooling demand. China’s Shanghai Composite Index advanced 0.97 percent to 4,007.76, reclaiming the 4,000 mark. Rare-earth producer Inner Mongolia Baotou Steel Union was steady at 2.7 yuan ($0.38) as momentum in the segment eased after U.S.-China trade talks. Cutting-tool maker Beijing Worldia Diamond Tools rose 10.7 percent to 56.13 yuan. Elsewhere in the region, Taiwan’s TAIEX gained 0.66 percent to 27,899.45, and Hong Kong’s Hang Seng Index climbed 2.12 percent to 26,485.90. 2025-11-06 17:56:30