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UPDATE: Samsung Elec Q3 memory OP stronger than expected at $5 bn, upbeat on Q4 (Updated with conference call comments) SEOUL, October 30 (AJP) - Samsung Electronics’ chip division staged a decisive turnaround in the July–September quarter, with profit from its core memory operation jumping to 7 trillion won ($4.9 billion) — nearly 18 times from the last quarter — on the back of record memory revenue fueled by high-value server demand. Memory sales climbed 26 percent on quarter and 20 percent on year to a fresh quarterly high of 26.7 trillion won. Including non-memory operations, revenue from Device Solution overseeing all chipmaking operation reached 33.1 trillion won, reflecting narrowing losses in logic and foundry segments as contract manufacturing activity picked up. Samsung shares rose 3 percent to 103,100 won in Thursday trading after the better-than-expected memory results. Even with the rebound, Samsung’s memory performance remains laggard behind SK hynix, which delivered 11.4 trillion won in operating profit and a 47 percent margin in the third quarter. The gap reflects hynix’s dominance in high-bandwidth memory (HBM) — the defining component for premium AI servers — where it held 62 percent of the market as of June. Samsung, once unrivaled in DRAM, remains a distant third in HBM, falling short of a breakthrough on HBM4 shipments for the fourth quarter, while SK hynix begins supplying Nvidia. While expecting stronger HBM4 demand and broader AI-driven memory momentum next year, Samsung is still awaiting customer clearance for mass production after delivering HBM4 prototypes, said Kim Jae-jun, memory division vice president, during a conference call. Samsung reportedly cleared Nvidia’s HBM3E tests last month, but its position in the next-generation HBM4 supply chain remains uncertain. To prepare for future demand, the company said it is making aggressive, preemptive investments. R&D spending reached a record 26.9 trillion won as of September. Capital investment totaled 32.3 trillion won, down 6.3 trillion won from a year earlier, with memory-infrastructure spending reduced but high-end chip production investment increased. Capex next year will again center on AI-related memory and return to 2024 levels, Kim added — signaling a deepening shortage in legacy chip supply. Samsung Electronics allotted around 57 trillion won for expansion in 2024. Outside its chip division, Samsung’s MX and networks business — home to its smartphone operations — reported 3.6 trillion won in operating profit, steady from 3.1 trillion won in the second quarter and 2.8 trillion won a year earlier on strong demand for new foldables. Mobile revenue rose 18 percent on quarter and 12 percent on year to 33.5 trillion won. On a consolidated basis, Samsung confirmed third-quarter operating profit at 12.2 trillion won, more than double the previous quarter and up 32.5 percent on year, the strongest performance since the second quarter of 2022. Sales rose 15.4 percent on quarter and 9 percent on year to 86.1 trillion won. Net profit came in at 1.22 trillion won, sharply higher than 51 billion won last quarter and 21 percent above a year earlier. Looking ahead, Samsung echoed SK hynix’s upbeat chip outlook, pledging to accelerate sales of high-performance AI and data-center products and push HBM4 mass production. While it reiterated the industry view that supply will remain tight amid surging, broad-based demand for generative AI, Samsung said it will focus on ramping output from its 2-nanometer fabrication line and readying its next-generation Taylor, Texas fab for start-up next year. 2025-10-30 10:27:18 -
TRAVEL: Exploring wild scenery of Korea's West Sea archipelago GUNSAN, October 30 (AJP) - The Gogunsan Archipelago, a stunning cluster of 63 islands in the Yellow Sea off Gunsan, South Korea, is no longer a world apart. Thanks to the massive Saemangeum Seawall — a 33.9 km engineering marvel connecting Gunsan and Buan — six of the largest islands are now accessible by car. These include Seonyudo, Jangjado, Daejangdo, Munyeodo, Sinsido, and Yamido. Work on the seawall began in 1991 and was finally completed on April 27, 2010, permanently linking these islands to the mainland. Often described as the most spectacular island scenery on Korea’s west coast, the Gogunsan Archipelago offers an unforgettable escape. We came to walk the Gogunsan-gil trail, a 10-kilometer route connecting the three most beautiful islands: Seonyudo, Jangjado, and Daejangdo. The walk takes a typical person about four hours. On a weekend, Jangjado was bustling with visitors. Shops were doing a brisk trade, with the scent of freshly fried ssiat-hotteok (sweet seed-filled pancakes) filling the air, alongside stalls selling traditional Korean sweets. Our journey began in Jangjado as we set off toward Daejangdo. The view is breathtaking: small islands dot the horizon, the sea lies calm like a lake, vast mudflats stretch in the distance, and high rocky mountains rise dramatically. With so many islands packed into such a short distance, it creates a visual trick — it seems as if the islands are encircling the sea, rather than the sea surrounding the islands. We headed for Daejangbong Peak on Daejangdo. From the bottom, the peak — only about 100 meters high — exudes an unexpected, profound dignity. The spectacular, almost fairyland quality of Seonyudo and Daejangdo is due to this unique terrain of bare rocky mountains crowned with scattered patches of resilient green trees. The climb was steep in sections but manageable. Closer to the top of Daejangbong, we were surprised to find a dense forest dominated by evergreens like camellia, pine, and spindle trees. The reward at the summit was the panoramic view of Gogunsan's hidden treasures. Looking out from the peak, the expanse of the island cluster is a photographer's dream. Fishing boats move between the islands, their white wakes carving streaks across the calm water, bringing a lively contrast to the tranquil sea. Back on Jangjado, we stopped at a hotteok shop with a back patio overlooking the ocean. Enjoying the sweet pancake and coffee while watching the ocean was the perfect healing moment. Two bridges link Seonyudo and Jangjado. The newer, robust Jangja Bridge is built for modern traffic, while the older structure, the Jangja Bridge Skywalk, is now a dedicated, cherished pedestrian walkway. Finally, on Seonyudo — the legendary “Island where immortals play” — the twin highlights are Seonyudo Beach and Mangjubong Peak. The beach itself is mystifying, a sweep of sand that connects two landmasses, making the island look like two separate entities. The smooth, clean sand is so fine that the beach has gained fame for centuries. The imposing Mangjubong Peak consists of two rocky mountains rising to about 150 meters. It has a unique seasonal spectacle: after heavy summer rains, a waterfall plunges directly down the sheer rock face from the summit. The Gogunsan-gil trail is an enriching experience, offering a mix of flat paths, mountain climbs, and seaside walks. With numerous eateries along the way, it’s an ideal destination for light-backpacking and genuine relaxation. 2025-10-30 10:12:56 -
Türkiye and South Korea reaffirm 'blood brotherhood' at Republic Day reception SEOUL, October 30 (AJP) - The Embassy of Türkiye in the Republic of Korea hosted a reception on Wednesday to mark the 102nd anniversary of the founding of the Republic, celebrating the long-standing friendship between Türkiye and South Korea — a relationship born of shared sacrifice during the Korean War. The event, held at the Ambassador Pullman Hotel in Seoul, brought together around 300 guests, including diplomats, government officials, scholars, media representatives, and business leaders. Ambassador Salih Murat Tamer and Mrs. Tamer welcomed attendees to the Turkish National Day reception, which reflected both pride in the past and confidence in the future. "It is a great honor and joy to celebrate the 102nd anniversary of the Republic of Türkiye together with you tonight," Ambassador Tamer said in his opening remarks. "On this meaningful occasion, we proudly remember the enduring legacy of the Republic of Türkiye and the deep friendship we share with the people of the Republic of Korea." He paid tribute to the visionary leadership of Gazi Mustafa Kemal Atatürk and highlighted Türkiye's continued progress under President Recep Tayyip Erdoğan. "Today, in line with the visionary goals set by the Great Atatürk and under the esteemed leadership of our President, Mr. Recep Tayyip Erdoğan, we are advancing with steadfast determination into the Century of Türkiye," he said. Ambassador Tamer also underlined the growing economic partnership between the two nations. "The trade volume between our countries has surpassed 11 billion US dollars, and we believe this is only the beginning," he said. "More mutual investments and new projects in renewable and peaceful nuclear energy will carry our cooperation to new heights." Vice Minister of Patriots and Veterans Affairs Kang Yoon-jin delivered a congratulatory address, emphasizing the historic bond between the two countries. "Korea and Türkiye are brothers that share blood," she said. "Seventy-five years ago, when South Korea was in crisis during the Korean War, Türkiye sent over 21,000 brave soldiers — the fourth largest among the 22 participating nations. The Korean people will never forget their noble sacrifice." Kang recalled her visit to Atatürk's mausoleum in Ankara and shared her memory of meeting Ayla, the Korean War orphan whose story inspired the 2017 Turkish film Ayla: The Daughter of War. "Even though she has left us, the love between Sergeant Süleyman and Ayla still lives in the hearts of Koreans," she said. The story of Sergeant Süleyman Dilbirliği and the orphaned Korean girl later known as Ayla remains one of the most moving symbols of the Türkiye–South Korea friendship. During the Korean War, Dilbirliği found the five-year-old child alone and freezing on the battlefield near Waegwan in 1950. He took her to his unit, cared for her like a daughter, and named her Ayla, meaning "moonlight" in Turkish. Though they were separated when he returned home after the war, the two reunited more than six decades later in 2010, a moment that touched hearts in both countries and was later immortalized in the film Ayla: The Daughter of War. "We sincerely support the bright future of our brother nation Türkiye," Kang added. "South Korea will continue to work closely with Türkiye in the fields of economy, culture, and defense, and together we will uphold the values of freedom, peace, and human rights." The reception concluded with a performance by K-pop duo HoonDoo and a dinner attended by guests from across the diplomatic and business communities. 2025-10-30 10:08:44 -
Business leaders to gather for dinner with Xi SEOUL, October 30 (AJP) - Chinese President Xi Jinping is making his first visit to South Korea in 11 years to attend the Asia-Pacific Economic Cooperation (APEC) summit in Gyeongju. According to industry sources, he is scheduled to meet with top business leaders and executives at a dinner to strengthen bilateral economic ties. The meeting is scheduled for Saturday, when the multilateral gathering wraps up. Attendees are expected to include leaders from top conglomerates such as Lee Jae-yong of Samsung Electronics, Chung Eui-sun of Hyundai Motor, Chey Tae-won of SK Group, and Koo Kwang-mo of LG Group. Among notable figures from the Chinese side, battery manufacturer CATL's chairman Zeng Yuqun and Chinese entrepreneur and former CEO of JD.com Liu Qiangdong, are expected to attend. "The dinner could be a chance to foster mutual understanding and improve relations between business leaders from both countries," one industry watcher said. Meanwhile, Xi arrives in South Korea on Thursday for a three-day stay, which includes a meeting with U.S. President Donald Trump. * This article, published by Economic Daily, was translated by AI and edited by AJP. 2025-10-30 09:54:05 -
Lee set for first summit with Japan's newly elected prime minister SEOUL, October 30 (AJP) - President Lee Jae Myung is expected to hold his first summit with Japan's newly-elected Prime Minister Sanae Takaichi on Thursday on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit in Gyeongju. With both sides still coordinating their schedules, the meeting is expected to take place later in the day. Takaichi, known as a staunch right-winger and a self-proclaimed successor to the late former Prime Minister Abe Shinzo, will also hold a series of talks with leaders of other countries during her three-day stay here. Despite her hardline stance on historical issues with South Korea as a key protégé of Abe's political legacies, she emphasized the importance of strengthening ties with South Korea through dialogue and mutual cooperation in her recent address at the Diet shortly after taking office as the island country's first female prime minister last week. Much attention is given to whether Lee and Takaichi can continue their shuttle diplomacy, in which the leaders of the two neighboring countries make regular reciprocal visits, as it was under her predecessor Shigeru Ishiba. 2025-10-30 09:19:08 -
OPINION: Embracing 'creative destruction' in South Korea's shipping industry SEOUL, October 30 (AJP) - This year’s Nobel Prize in Economics celebrated the power of innovation and sustainable growth through the lens of “creative destruction.” Co-recipient Prof. Peter Howitt underscored the need for a competitive environment that enables market leaders to keep innovating — a concept rooted in Joseph Schumpeter’s classic theory that progress is driven as much by destruction as by creation. That message resonates deeply with South Korea’s shipping industry, which is struggling to adapt to what many call the “Big Blur” era — when traditional industry boundaries are dissolving. Global giants like Amazon and Tesla have already transcended their original domains, evolving into platforms designed to solve complex customer problems. Yet South Korea’s shipping sector remains bound by convention, held back by resistance to mergers and acquisitions and a deep-seated wariness toward outside capital. The global landscape tells a starkly different story. Over the past two decades, the world’s leading shipping companies have expanded aggressively through M&A, consolidating their power and reshaping global logistics. Today, the top 10 players control roughly 84 percent of the world’s container capacity. Scale and integration have become prerequisites for survival. Against this backdrop, the planned privatization of HMM — the nation’s flagship carrier — is more than a question of ownership. It is a test of whether South Korea can move beyond its traditional view that only “shipping experts” can manage a shipping company. Such thinking risks isolating the industry at a time when cross-sector collaboration is the engine of global competitiveness. Elsewhere, the lines between manufacturing, logistics, and finance have long blurred. Germany’s Deutsche Post DHL and Denmark’s Maersk have both built integrated logistics ecosystems, creating resilient structures that can weather economic turbulence. South Korea’s shipping industry, by contrast, has struggled to escape the shadow of its past. The collapses of Hanjin Shipping and Hyundai Merchant Marine were not just business failures — they were symptoms of an industry that resisted change until it was too late. If HMM is to avoid a similar fate, it must embrace creative destruction and the discipline of private ownership. Clinging to old models, protecting vested interests, and erecting barriers to competition may feel like safety — but only in the short term. In the long run, such strategies erode competitiveness and innovation. The industry’s future depends on openness, flexibility, and diversification. As the saying goes, “Those who build walls perish; those who build roads prosper.” South Korea’s shipping industry must stop building walls around itself and instead build the roads that connect technology, capital, and service into a unified logistics platform. What the industry needs now is not fear of disruption but the courage to pursue it. Breaking down boundaries and reshaping industrial order is not a threat — it is the path to renewal. The question is whether South Korea’s shipping leaders will have the will to chart that course before the tide turns against them once again. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-10-30 08:54:17 -
Trump gives a go-ahead to Korea's nuclear submarine project GYEONGJU, October 30 (AJP) - After concessions over upfront cash payment in the $350 billion investment package from South Korea, U.S. President Donald Trump gave a go-ahead to Korean production of nuclear-powered submarine in a show of "stronger-than-ever" bilateral relations, indicating upgrade in military ties to the highest level, given Washington's protectiveness of nuclear submarine technology. "I have given them approval to build a nuclear-powered submarine, rather than the old fashioned, and far less nimble, diesel powered submarines that they have now," Trump wrote on his Truth Social account after he accepted President Lee Jae Myung’s argument for Seoul’s need to transition from diesel to nuclear propulsion in their second face-to-face summit on the sidelines of the Asia-Pacific Economic Cooperation meetings in Gyeongju. "This decision marks a historic step in advancing our security cooperation," he added. Washington shares its nuclear submarine technology with only a select few — the United Kingdom and Australia — underscoring the sensitivity and significance of Trump’s approval. Trump, who was adorned with a gold-glittering ancient crown and awarded South Korea’s highest honor during his visit, declared the bilateral alliance “stronger than ever,” calling Lee “a great president of South Korea.” The nuclear-powered submarine will be built at Philly Shipyard, which was purchased last year by Korea’s Hanwha Group. Trump’s endorsement came shortly after Seoul and Washington finalized details of the $350 billion investment pledge, including $150 billion dedicated to shipbuilding cooperation. A separate White House fact sheet said Korean Air will purchase 103 new Boeing aircraft valued at $26.2 billion, along with GE Aerospace engines worth $13.7 billion. Trump arrived in South Korea on Wednesday for a two-day trip. He is scheduled to meet Chinese President Xi Jinping on Thursday amid an escalating U.S.-China trade war. 2025-10-30 07:56:48 -
Upon "golden" treatment, Trump agrees to a trade deal with South Korea GYEONGJU, October 29 (AJP) -— President Donald Trump on Wednesday agreed to Seoul’s terms on South Korea’s $350 billion investment package after months of wrangling, clearing the way for a sweeping trade deal on the sidelines of the Asia-Pacific Economic Cooperation Summit, according to Seoul's presidential office. The agreement—$200 billion in cash and $150 billion in shipbuilding projects led by Korean firms—will cut U.S. tariffs on Korean autos from 25 percent to 15 percent, bringing them in line with rates applied to Japan and Europe, which reached similar deals with Washington, presidential chief of staff Kim Yong-beom told reporters in a briefing in Gyeongju. Kim said the annual cash outlay would be capped at $20 billion and distributed over several years depending on project progress. Final approval had been delayed since July as Seoul pushed for installment payments and non-cash components, arguing that a one-time $350 billion transfer—equivalent to roughly 80 percent of Korea’s foreign exchange reserves—risked destabilizing the won. Trump, up until his arrival in Korea, had publicly insisted that Seoul pay “upfront cash.” The breakthrough came after President Lee Jae Myung rolled out an unmistakably “golden” welcome for Trump visiting Korea on the final leg of his first Asian tour in his second presidency. Lee presented Trump with a replica of an ancient Silla gold crown and awarded him the Grand Order of Mugunghwa — Korea’s highest honor — citing his “contributions to peace on the Korean Peninsula.” The gesture played to Trump’s well-known affinity for gold and ceremonial recognition. Kim said the trade package includes most-favored-nation status for Korean pharmaceuticals and wood products, tariff-free access for aircraft parts, generics and non-U.S. natural resources, and semiconductor tariffs aligned with rates applied to Taiwan. Crucially, Korea secured protection for its agricultural sector, avoiding additional openings for rice and beef. Safeguards were built into the investment structure, Kim added. Payment timing and scale may be adjusted if foreign-exchange volatility rises, and only commercially viable projects will proceed under a memorandum of understanding emphasizing “multi-layered” risk controls. Profits will be split evenly between the two countries until principal repayment, with terms adjustable if full repayment is not met within 20 years. The agreement runs through January 2029. The “golden” diplomacy extended beyond the negotiation room. Lee greeted Trump at the National Gyeongju Museum wearing a custom golden tie embroidered with Korean script representing a “golden future” for the alliance. Trump, in a blue tie, laughed and shook hands warmly. He toured an exhibition of Trump-themed memorabilia — from MAGA hats to Korean-language editions of his books — asking aides to send photos to his wife, Melania. A luncheon followed, featuring fusion dishes including New York–inspired courses blended with regional Korean ingredients. Another crucial deal-making awaits Trump as he is slated to meet Chinese President Xi Jinping, also here for the APEC conference, on Thursday. Trump, meanwhile, said he won't be meeting North Korean leader Kim Jong-un who has not returned the U.S. president's repeated invite. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-10-29 21:33:47 -
S. Korean economists see signs of rebound, but growth momentum remains fragile SEOUL, October 29 (AJP) - South Korea’s economy is showing clearer signs of recovery, led by rebounding semiconductor exports and stronger outbound shipments, suggesting that the country may have passed the bottom of the current downturn. According to preliminary data released by the Bank of Korea on Monday, real gross domestic product (GDP) grew 1.2% in the third quarter from the previous quarter, beating market expectations of 1.0%. It marked the fastest quarterly expansion in a year and a half, driven by stronger exports of chips and autos as well as government measures to boost consumer spending. Economists said the recovery is evident but remains moderate. Many forecast growth to stay in the mid-1% range next year. Cho Dong-geun, professor emeritus of economics at Myongji University, said the rebound in the semiconductor industry has been the key driver. “AI-related chips are fueling the turnaround, with SK hynix and Samsung Electronics leading the recovery across the broader industrial landscape,” Cho said. He added that rising chip exports are improving corporate earnings, which in turn support wages and domestic consumption. “When companies make profits, those gains circulate back into the domestic economy,” he said. However, Cho cautioned that “domestic demand remains weak, as seen in the rise of small business closures and sluggish service-sector activity.” He stressed the need for a more business-friendly environment, saying, “Regulatory easing and tax incentives would help companies expand. High inheritance taxes, for instance, discourage firms from raising share prices. Relaxing those taxes or expanding investment credits could create a virtuous cycle for corporate growth and domestic demand.” Kim Jeong-sik, an economics professor at Yonsei University, said the government’s two supplementary budgets this year boosted public spending and helped lift consumption. “The combination of fiscal expansion and export recovery has driven growth higher,” he said. Kim projected next year’s GDP growth could reach 1.6% to 1.8% if trade negotiations between South Korea and the United States conclude smoothly. “Domestic demand is still fragile, but if the government uses its fiscal resources efficiently to support the construction sector, gradual improvement is possible,” he said. He added that the outcome of the Korea-U.S. trade talks would be a “crucial factor” shaping the upper end of next year’s growth outlook. Lee Hong-joo, a consumer economics professor at Sookmyung Women's University, attributed the stronger-than-expected 1.2% quarterly growth—up from an earlier estimate of 0.8%—to broad-based industrial improvements. “Orders for large offshore plant projects in the shipbuilding sector, increased defense exports, and rising semiconductor shipments all contributed to the positive momentum,” he said. Lee noted that both public and private consumption rose, not only due to short-term stimulus measures such as shopping coupons, but also because “those incentives encouraged additional spending, creating a multiplier effect that expanded overall consumption.” Still, he pointed to ongoing weaknesses in construction and agriculture as drags on the recovery. “Conditions will likely improve in 2025 and 2026, but it’s too early to say the economy has entered a full-fledged rebound,” he said. Economists agree that while the third-quarter GDP data signal a turning point, South Korea’s recovery remains uneven. Without a stronger rebound in domestic demand and construction, they say, the economy may struggle to enter a sustained expansion phase. Overall, most experts share the view that South Korea has passed its lowest point and entered a gradual recovery cycle—but its pace will depend heavily on policy direction and external economic conditions. 2025-10-29 17:59:53 -
Korea's young pharma breed Samsung Biologics and Celltrion bulk up as bottom line holds SEOUL, October 29 (AJP) - Korea's relatively young pharma heavyweights Samsung Biologics and Celltrion are outgrowing their older peers at home and abroad through aggressive and unconventional expansion. Samsung Biologics, founded in 2011, has scaled up relentlessly and now ranks No. 3 in the global contract development and manufacturing organization (CDMO) market. Within its second Bio Campus in Songdo, Incheon, the Samsung Group unit plans to complete Plants 6 to 8 by 2032, raising total capacity to 1.324 million liters — the largest for any single company worldwide. The massive scale is expected to give Samsung Biologics a structural edge in securing long-term production contracts with multinational drugmakers and position it as an industry power rivaling Samsung’s influence in semiconductors. Celltrion, established in 2002 as a pure drug maker, is expanding through M&A. It recently joined the small group of Korean pharma companies with production bases in the United States, which accounts for roughly half of prescription-drug sales revenue among OECD countries. Last month, Celltrion signed a deal to acquire Eli Lilly's biopharmaceutical manufacturing plant in Branchburg, New Jersey, for about 460 billion won. With planned expansion, total investment is expected to reach 1.4 trillion won — a move designed to reduce tariff risks, cut logistics costs, and strengthen supply-chain stability for North American demand. Their bold expansion rests on a solid bottom line and deep pipelines. Samsung Biologics on Tuesday reported consolidated revenue of 1.66 trillion won ($1.2 billion) and operating profit of 728.8 billion won for the third quarter, up 39.9 percent and 115.3 percent on year, respectively. Celltrion posted consolidated revenue of 1.26 trillion won and operating profit of 301 billion won, marking year-on-year gains of 16.3 percent and 44.9 percent. Samsung Biologics has climbed to the No. 3 global CMO position behind Switzerland's Lonza and China's WuXi Biologics, according to MarketsandMarkets. The CMO market is projected to grow 8.8 percent annually, reaching $34.1 billion by 2030 from $20.5 billion in 2024. 2025-10-29 17:59:41