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Hyundai Motor steps on the gas in Indian foray as US and China turn inward SEOUL, October 23 (AJP) - South Korea's Hyundai Motor Group is accelerating its push into India following last year's landmark $3.3 billion initial public offering of its Indian unit, positioning the country as a central pillar of its global growth strategy amid rising protectionism in the United States and China. "India is a strategic priority in Hyundai's global growth vision. India isn't just important to Hyundai's global strategy — India is Hyundai's global strategy," said Jose Munoz, president of Hyundai Motor, at the 2025 CEO Investor Day held in Mumbai last week. The inclusion of Mumbai in the company's first overseas investor roadshow this year underscores its new focus. Munoz announced that Hyundai plans to invest about 7.2 trillion won — roughly $5 billion — over the next five years, matching its cumulative investment in India over the past three decades. The group plans to introduce 26 new models, including its first hybrid vehicle designed specifically for Indian road and lifestyle conditions, as well as premium models under the Genesis brand. The "India pivot" strategy comes as the world's two largest auto markets, the United States and China, grow increasingly protectionist with contrasting tariff regimes and local subsidy incentives. India, meanwhile, has taken a different course — slashing its goods and services tax (GST) in September to cushion potential shocks from the 50 percent U.S. tariffs. Consumption taxes on small cars were cut from 29 percent to 18 percent, and on large vehicles, including SUVs, from 50 percent to 40 percent. New Delhi has also pledged to reduce import tariffs to 15 percent from 100 percent for automakers investing more than $500 million and launching electric vehicle production within three years. Beyond policy incentives, India's vast population of 1.4 billion and low vehicle ownership rate — just 7.5 percent — make it a "blue ocean" for global automakers. The country now ranks third worldwide in vehicle sales behind China and the U.S., with its electric and hybrid markets expanding rapidly. The government's latest GST 2.0 reforms, which further trimmed small-car taxes by up to 13 percent, are expected to boost consumption even more. India's appeal also lies in its manufacturing competitiveness. According to the International Monetary Fund, India's per capita GDP stood at $2,396 last year — less than one-fifth of China's $13,306 — while its median age of 29.8 years makes it one of the youngest major economies. In contrast, Japan's median age is 49.9, South Korea's 45.5, China's 40.2, and the U.S.'s 38.9. This youthful demographic provides both abundant labor and long-term consumer potential. "Hyundai initially found success in India with compact cars — affordable pricing and reliable after-sales service built strong brand trust," said Lee Soon-cheul, professor at the Department of Indian Studies at Busan University of Foreign Studies. "As India's per capita income rises, car demand will expand further, particularly since public transport infrastructure remains underdeveloped and roads poorly maintained." Hyundai Motor India (HMI), which went public last year in India's largest IPO to date, boasts a net profit margin of 8 to 9 percent — the highest among Hyundai's overseas operations. In September, HMI sold 70,347 vehicles, up 10 percent from a year earlier. SUV sales reached a record 37,313 units, accounting for 72.4 percent of domestic sales, while exports of 18,800 units marked a 33-month high. Sister brand Kia India posted 22,700 sales during the same period, up 15.8 percent. Both Hyundai and Kia are projected to achieve record annual sales in India this year. Production capacity is expanding in step with sales. Hyundai, which currently operates two plants in Chennai, will open a new facility next year in the western city of Pune, adding 250,000 units of annual capacity and pushing its total Indian output above one million vehicles. Industry analysts expect Hyundai's local production to rival that of Maruti Suzuki and Tata Motors. In January, the company appointed Tarun Garg as the first Indian chief executive of HMI in its 29-year history — a move credited with sustaining record sales and overseeing the successful IPO. But bumpy roads lie ahead. "India offers affordable yet skilled labor and a vast market for carmakers, but weak infrastructure and tensions between central and state governments may pose difficulties for Korean firms," said Kim Jai-june, professor emeritus at the College of Economics and Commerce at Kookmin University. "Hyundai will also need to navigate shifting environmental regulations, high tax rates, protectionist trade policies, and legal uncertainties in India," Kim added. Despite its rapid growth, India's modest GDP per capita, wide income disparity, and uneven consumer spending continue to limit purchasing power. Industry observers estimate that only about 280 million of India's 1.4 billion people earn more than $10,000 a year — a reminder that while the Indian market is vast, it is far from uniformly affluent. Still, with narrowing options as the U.S. and China turn increasingly inward, Hyundai Motor's best bet for mid-term growth may rest on India’s demographic vitality and reform-driven momentum — a gamble that could define the next chapter of its global expansion. 2025-10-23 15:19:31 -
Lee backs US efforts to engage in dialogue with North Korea in CNN interview SEOUL, October 23 (AJP) - President Lee Jae Myung expressed his willingness to help facilitate dialogue between Pyongyang and Washington in an interview with CNN conducted on Wednesday and released the following day. "I hope that (U.S. President Donald Trump and North Korean leader Kim Jong-un) will be able to engage in dialogue," he said. "I also believe that wants to achieve world peace, and that is why I have made the recommendation for him to take on the role of a peacemaker." When asked about a possible meeting during Trump's visit to South Korea next week to attend the Asia-Pacific Economic Cooperation (APEC) summit in Gyeongju, he said it would be a "good thing" if they could "get together." Regarding trade negotiations that are still dragging on despite last July's deal between the two countries to lower reciprocal tariffs from 25 percent to 15 percent in return for Seoul's massive investment in the U.S., Lee admitted there are "differences in opinion" but remained optimistic, saying that "eventually we will get there because the United States is the leading country when it comes to the values of democracy and the free market system." He added, "I believe that we will, in the end, be able to reach a rational result that can be acceptable." Addressing China's "ambitions and growing capabilities in high-tech industries," which have nearly caught up with or overtaken South Korea's, Lee said there still remain "many areas where South Korean firms can win," particularly in sectors like semiconductors and automobiles. He highlighted that South Korea is willing to share its expertise with its closest ally, as the bilateral relationship encompasses "economic, technological, and military cooperation." "In the past we have received a lot of assistance from the United States, and so we are willing to provide assistance for..... efforts to revamp its manufacturing industry to the extent possible," he said. 2025-10-23 14:30:44 -
HD Hyundai merger plan gets shareholders' approval SEOUL, October 23 (AJP) - HD Hyundai Heavy Industries will officially merge with its affiliate HD Hyundai Mipo Dockyard on Dec. 1, following overwhelming shareholder approval on Thursday — a move the company says will sharpen its competitiveness in the global shipbuilding and defense markets. At the respective shareholder meetings, 98.54 percent of HD Hyundai Heavy Industries’ shareholders and 87.56 percent of HD Hyundai Mipo’s shareholders voted in favor of the merger, including the National Pension Service, one of South Korea’s largest institutional investors. The two companies first announced their merger plan in August, positioning the combined entity as a leader in defense technology and next-generation shipbuilding. The Fair Trade Commission approved the deal in September, saying it would not restrict market competition. The merger will consolidate HD Hyundai Heavy Industries’ shipbuilding expertise with HD Hyundai Mipo’s production capacity and workforce, allowing the new entity to strengthen its foothold in the defense and special-purpose vessel markets. The company also plans to expand its research and development operations to accelerate technological innovation and respond more effectively to tightening environmental regulations. Executives said the integration would help streamline design and production processes, reduce costs, and improve responsiveness to global demand shifts. The company has set an ambitious target of $27 billion in revenue by 2035, up from an estimated $14 billion in 2024, with roughly $7 billion expected to come from the defense sector. “Shareholders have recognized the strategic necessity of this merger,” an HD Hyundai Heavy Industries spokesman said. “By combining our strengths, we aim to lead the future of the shipbuilding and defense industries.” * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-10-23 14:20:49 -
Bangladesh's investment chief visits South Korea to discuss deepening ties SEOUL, October 23 (AJP) - South Korea and Bangladesh are moving to strengthen economic cooperation as Dhaka prepares to transition from least-developed country (LDC) status, officials here said Thursday. South Korean Trade Minister Yeo Han-gu met with Chowdhury Asik Mahmud Bin Harun, chairman of the Bangladesh Investment Development Authority, in Seoul to discuss ways to expand bilateral trade and investment , according to the Ministry of Trade, Industry and Energy. Yeo underscored Bangladesh’s potential as a key economic partner and reviewed progress on negotiations for a Comprehensive Economic Partnership Agreement (CEPA) — a bilateral trade deal aimed at facilitating market access and industrial collaboration. He expressed hope for “meaningful progress” before Bangladesh’s formal graduation from the United Nations’ LDC category. Both sides noted the complementary nature of their economies — Bangladesh’s young labor force and resource base alongside South Korea’s advanced manufacturing and technology capabilities — and agreed to broaden cooperation in manufacturing, infrastructure, and industrial development. Yeo also raised concerns voiced by South Korean firms operating in Bangladesh, citing customs delays, inconsistent product classifications, and complex licensing procedures as persistent obstacles to investment. He urged Dhaka to address these issues to create a more stable business environment. In a statement, the ministry said Seoul remains committed to strengthening institutional frameworks to boost trade and industrial ties not only with Bangladesh but across the broader South Asian region. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-10-23 14:09:37 -
Korean won weakens past 1,440 per US dollar, hitting 6-month low SEOUL, October 23 (AJP) - The South Korean won slid past 1,440 per U.S. dollar on Thursday, its weakest level in six months, as investors reacted to a mix of global and regional pressures — from U.S. policy uncertainty to shifting dynamics in Japan and China. The won was traded at 1,440.3 per dollar, down 10.45 won from the previous session as of 1:00 p.m., marking its lowest point since April 29. The currency opened at 1,431.8 won. Speaking at a press conference after the Bank of Korea held its key interest rate steady at 2.5 percent, Governor Rhee Chang-yong said that only about a quarter of the won’s recent depreciation could be attributed to the dollar’s global strength. The rest, he noted, stemmed from regional and policy factors, including delayed U.S.-Korea tariff negotiations, Japan’s anticipated fiscal expansion under newly elected Prime Minister Sanae Takaichi, and renewed U.S.-China trade tensions. Rhee cited uncertainty surrounding the U.S.-Korea tariff talks as a particular source of market pressure. “The dollar index shows that negotiation delays are weighing on the won's value,” Rhee said. “A reduction in U.S. tariffs on Korean goods — from the current 25 percent to around 15 percent — would likely ease pressure on the won.” Rhee also pointed to lingering concerns over a $350 billion U.S. investment funding package, saying its details would help clarify its influence on global capital flows. “We are monitoring closely and working to reduce volatility in the foreign exchange market,” he said. Meanwhile, the Japanese yen continued to weaken, trading at 152.45 per dollar, as markets braced for potential fiscal expansion and the Bank of Japan’s continued reluctance to raise rates following Takaichi’s election as the prime minister. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-10-23 13:57:04 -
Korea raises $1.7 bn in FX bonds at lowest spread, 2025 issuance hits $3.4 bn SEOUL, October 23 (AJP) - South Korea has raised $1.7 billion in foreign-currency sovereign bonds at record-low spreads, signaling investor confidence in Asia’s fourth-largest economy despite U.S. tariff uncertainties and slowing global demand, the Ministry of Economy and Finance said Thursday. The ministry said it completed the issuance of $1 billion in U.S. dollar-denominated bonds and 100 billion yen (about $700 million) in yen-denominated foreign-exchange stabilization bonds. The dollar-denominated bond was priced at 3.741 percent, just 17 basis points above the corresponding five-year U.S. Treasury yield — beating the previous record-low spread of 25 basis points set in 2024. The multi-tranche yen issuance spanned two, three, 5.25- and ten-year maturities, with yields as follows: 2-year at 1.065% (TONA mid-swap +16 bps) 3-year at 1.208% (TONA mid-swap +20 bps) 5.25-year at 1.457% (TONA mid-swap +30 bps) 10-year at 1.919% (TONA mid-swap +46 bps) TONA mid-swap serves as the benchmark rate in the yen bond market. With the latest sale, total foreign-exchange stabilization bond issuance this year reached $3.4 billion — the largest since the program was introduced in the wake of the 1998 Asian financial crisis and just shy of the $3.5 billion annual ceiling approved under the May supplementary budget. In the first half, the government issued 1.4 billion euro (about $1.5 billion) in euro-denominated bonds, marking the first time South Korea has completed FX stabilization issuance in all three major global currencies — the dollar, euro and yen — within a single year. “This year’s successful issuance of foreign-exchange stabilization bonds in the world’s three major currencies is expected to improve overall conditions for foreign-currency procurement in the domestic market,” the ministry said in a statement. As of 2 p.m. in Seoul, the won was trading at 1,440.8 per U.S. dollar on Thursday, down 8 won from the previous session. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-10-23 13:49:04 -
Asian shares lower early Thursday, Korea flat on rate freeze SEOUL, October 23 (AJP) - Asian markets opened lower Thursday as investors locked in profits following Wall Street’s overnight decline, though a few selective gainers held their ground. In Seoul, the main indices hovered near flat after the Bank of Korea kept its policy rate unchanged for a sixth consecutive month, underscoring the complex uncertainties weighing on the economy. The KOSPI inched up 0.1 percent to 3,888.2, while the KOSDAQ was little changed at 879.24. SK hynix returned to positive territory, retrying record levels, while Samsung Electronics slipped 1.8 percent to 96,900 won despite overnight confirmation by Elon Musk about Samsung Electronics joining TSMC in the production of its AI5 chips powering its next-generation Tesla fleet. Hanmi Semiconductor, a key high-bandwidth-memory (HBM) equipment maker, eased 0.7 percent to 150,700 won as analysts cited profit-taking after the U.S. market slump. Battery makers also weakened. LG Energy Solution dipped 0.4 percent to 450,200 won after Tesla’s weaker-than-expected results, and EcoPro Materials lost 3 percent to 67,000 won. Parent EcoPro, which had surged more than 15 percent Wednesday, gave back 2.5 percent to 85,200 won on the KOSDAQ. By contrast, LG Chem extended its momentum, adding 0.7 percent to 394,000 won after Wednesday’s 13-percent jump triggered by Palliser Capital’s activist campaign urging value-enhancing reforms. ISU Chemical soared over 20 percent to 9,200 won, following a limit-up rally the previous session. Company officials said they could not identify any specific catalyst for the move. In Tokyo, the Nikkei 225 dropped 1.5 percent to around 48,560, dragged by SoftBank Group, down another 3 percent to 22,900 yen ($150.5). Defense contractors outperformed, with Sumitomo Heavy Industries up 7 percent to 3,930 yen and Kawasaki Heavy Industries gaining 2.7 percent to 10,800 yen on optimism over Prime Minister Sanae Takaichi’s pledge for stronger defense spending. The Shanghai Composite Index opened around the 3,880, down roughly 0.7 percent. Shares related to natural resources and trade advanced across the board, while property and technology stocks declined broadly. Taiwan’s TAIEX fell 0.8 percent to 27,410, erasing the prior day’s mild gains. 2025-10-23 11:31:18 -
HOT STOCK: Hanwha Ocean surges on LNG boom, defense tech spotlight SEOUL, October 23 (AJP) - Shares of Hanwha Ocean are sailing full speed ahead, buoyed by a swelling orderbook for liquefied natural gas (LNG) carriers and upbeat earnings expectations. The stock traded 3.7 percent higher at 137,100 won ($95) as of 10:15 a.m. Thursday in Seoul, after soaring nearly 10 percent the previous day. Hanwha Ocean has gained more than 20 percent so far this month, reflecting investor optimism over robust third-quarter results and sustained global demand for LNG carriers. The rally accelerated following the company’s strong showing at Seoul ADEX 2025, where it unveiled AI-driven naval technologies, and amid reports that South Korea’s trade envoy urged China to lift sanctions affecting Hanwha Ocean’s U.S. affiliates. Investor sentiment was further boosted by the government-backed K-Shipbuilding Tech Alliance and expectations of strong quarterly earnings fueled by a steady stream of LNG and special-purpose vessel orders. The convergence of defense export hopes, policy support, and easing geopolitical pressure has propelled Hanwha Ocean to its highest level in over a year, outpacing most large-cap stocks on the Kospi. The company’s shares have more than tripled from their annual opening of 37,800 won after taking the banner “Make American Shipbuilding Great Again”—the flagship slogan of South Korea’s U.S. investment drive announced during President Lee Jae-myung’s visit to Washington in August. Hanwha Ocean is set to release its third-quarter earnings on Monday, with analysts projecting an operating profit nearly three times higher than a year earlier. The frenzy over shipbuilding shares underscores a growing bet on a new seaborne boom. “Shipbuilding is a cyclical business, typically following 20- to 30-year patterns,” said Lee Eun-chang, senior researcher at the Korea Institute for Industrial Economics and Trade. “The last peak came in 2011. Under ordinary circumstances, the next boom might not arrive until around 2040, but shifts in global energy policy and geopolitics are reshaping the timeline.” While Korean shipbuilders may not fully regain their dominance over China, Washington’s moves to curb Chinese shipbuilding practices could open fresh opportunities for Korean yards, Lee added. Eom Kyung-ah, a shipbuilding and shipping industry analyst at Shinyoung Securities, pointed to the growing anticipation ahead of the APEC Summit, noting that U.S.–Korea cooperation in shipbuilding is emerging as a key agenda item—with Hanwha Ocean and Hyundai Heavy Industries positioned as central players. 2025-10-23 11:30:07 -
LG CNS donates AI legal support system for refugees to UNHCR SEOUL, October 23 (AJP) - LG CNS has donated an artificial intelligence–based legal support system to the United Nations High Commissioner for Refugees (UNHCR) to improve legal assistance for refugees in South Korea. The system, developed jointly by LG CNS and UNHCR, was officially handed over during a ceremony in Seoul on Oct. 17, attended by LG CNS President Hyun Shin-kyun and UN High Commissioner for Refugees Filippo Grandi. The AI system — named Agentic Works — is intended to improve legal protection for refugees in South Korea and support lawyers handling asylum cases. By analyzing application materials, interview transcripts, and multilingual documents, the platform can help generate legal drafts in a fraction of the time it currently takes. According to the company, the system can reduce document preparation from several days to just a few hours. Refugee applications are frequently rejected because of language barriers, procedural complexity, and insufficient documentation. LG CNS said its AI solution will help address these issues by enabling lawyers to input and verify essential information more accurately and efficiently. “This program reflects our commitment to using AI not only to advance industry, but to solve pressing social issues,” Hyun said at the signing ceremony. “We hope it will make a meaningful difference for refugees facing legal challenges.” Grandi welcomed the initiative, calling it an example of technology being used for humanitarian support. “This collaboration shows how AI can overcome barriers such as language and help ensure refugees receive the legal support they need,” he said. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-10-23 10:51:04 -
South Korea, US to soon begin talks on revising nuclear energy pact, FM says SEOUL, October 23 (AJP) - Along with ongoing tariff-related negotiations, South Korea will soon begin talks with the U.S. to revise the bilateral nuclear energy pact, which currently prevents Seoul from reprocessing its spent nuclear fuel, Foreign Minister Cho Hyun said on Thursday. He made the comments during a radio interview, confirming that some consensus has been reached on revising the decades-long pact and that relevant discussions will take place soon as part of broader security talks. Cho said Seoul has "strongly" called for the right to reprocess spent nuclear fuel and enrich uranium, and the U.S. has signaled its willingness to consider the request. Seoul and Washington first signed the pact in 1974, which details the scope of nuclear technology South Korea can use for civilian purposes. Under the pact, South Korea has been restricted from reprocessing its own spent nuclear fuel rods and enriching uranium for power generation, as Washington fears that South Korea could obtain materials to produce nuclear weapons if allowed. This is why, after years of revision talks, the U.S. only agreed in 2015 to conduct joint research with South Korea on reprocessing spent nuclear fuel rods through a process known as pyroprocessing, which does not produce weapons-grade plutonium. Meanwhile, when asked whether the two countries could finally resolve several contentious issues in trade negotiations in time for next week's Asia-Pacific Economic Cooperation (APEC) summit, he said, "There is no strict deadline," explaining that President Lee Jae Myung has stressed "prioritizing national interests" to reach a deal that should be "commercially rational." He added, "If these conditions are not met, negotiations may take more time." Despite difficulties in ironing out the complex aspects of the negotiations such as how to fulfill and fund Seoul's $350 billion investment in the U.S., part of the deal reached last July to lower reciprocal tariffs from 25 percent to 15 percent, Cho pledged to achieve a "win-win" solution for both countries. 2025-10-23 10:34:12