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Kazakhstan bids Korean companies onboard in its digital, crypto drive SEOUL, October 16 (AJP) - Kazakhstan is envisioning Alatau Smart City as a regional capital of innovation and digital finance and sees South Korea as an ideal partner for the goal, said the country's deputy prime minister. "The government's goal is to position Alatau as an innovation center," Deputy Prime Minister Kanat Bozumbayev said in Seoul this week. He led a high-level delegation for a two-day forum aimed at drawing Korean participation and investment in the country's ambitious initiative. "We welcome all innovations coming from Korea," he said, adding that U.S. and Chinese capital are already committed to the ventures. "The city's industry and infrastructure will be filled with innovation from the very beginning. It will be developed as a smart city built on intelligent systems and digital technologies applied across all sectors," he said. He also described Alatau as a "crypto city," where blockchain and digital finance will be part of daily life. "There will be crypto mortgages, crypto exchanges, and stablecoins in circulation," he said. "This kind of system does not exist yet in Kazakhstan or anywhere else in Central Asia, so we will test it within a regulatory sandbox." Bozumbayev said Kazakhstan plans to introduce AI-driven mobility, drone logistics, and other smart infrastructure as part of the city's growth, and hydrogen energy is one of the most promising fields for collaboration. "We hope that Doosan's innovative technologies will also be implemented in Alatau, particularly in the field of blue and green hydrogen," he said. "Together with Korean partners, we can build the infrastructure for hydrogen production, transport, and storage, and eventually develop hydrogen-powered engines for vehicles and trains." Alatau will operate under a special legal framework that allows faster approval and certification for new technologies. "If national laws do not perfectly fit the city's innovative projects, the city will be able to create its own local regulations to support them," he said. "We plan to make Alatau the first city in the world to combine all of these elements into one system." The project, which consists of four districts — Gate, Golden, Growing, and Green — will bring together finance, education, industry, and leisure in a single ecosystem. The Kazakh government is seeking participation from South Korean construction and engineering firms such as Samsung C&T, Hyundai E&C, and Daewoo E&C during the city's initial development phase. Bozumbayev said nurturing human talent is central to the project. "Around half a million people are born in Kazakhstan every year. In 18 years, that's half a million new workers joining the labor market," he said. "We are a young nation, and we need to train more specialists in technical fields." Talks are underway with Korean institutes to establish a campus in Alatau focused on AI, robotics, and mobility systems. The project also includes plans for a Korean medical cluster and a K-content complex called K-Park. "We are already seen as a regional leader, and many neighboring countries are learning from our experience," Bozumbayev said. "What succeeds in Alatau will later be expanded to other cities across Kazakhstan and beyond." 2025-10-16 15:56:30 -
Seoul moves to tackle Beijing's rare earth export controls SEOUL, October 16 (AJP) - Amid China’s tightening restrictions on rare earth exports, South Korea has launched a high-level task force to strengthen communication with Beijing and craft a comprehensive supply chain strategy by the end of the year, officials said Thursday. The move follows China’s Oct. 9 announcement of expanded export controls that require foreign companies to obtain government permits for seven types of rare earths — materials vital to advanced technologies such as semiconductors, electric vehicles and defense systems. The new rules also extend controls to five additional rare earths and equipment used in permanent magnet manufacturing, as well as lithium-ion battery materials and diamond powder used for industrial cutting and grinding. While the measures stop short of a full export ban, South Korean officials and industry analysts warned that the new permit process could slow shipments and disrupt supply chains heavily dependent on Chinese materials. China produces about 70 percent of the world’s rare earths and dominates global refining capacity. In response, the Ministry of Trade, Industry and Energy convened an emergency meeting Thursday to coordinate its response. The newly formed task force — led by Vice Minister Moon Shin-hak — will include multiple government agencies and work closely with major private-sector players. Officials said the task force’s immediate focus will be maintaining steady communication channels with Chinese authorities to ensure export permits for South Korean companies are processed quickly. The ministry noted that previous dialogue with Beijing had helped resolve supply issues after earlier export controls were introduced in April. To support local firms, the government will establish a support center to address company concerns, monitor inventories and provide emergency assistance. Information on China’s export procedures will also be made available through South Korea’s trade and investment agencies. Seoul plans to diversify its supply chain by expanding research into rare earth substitutes and recycling technologies, backing overseas mining ventures, and increasing public stockpiles to guard against future disruptions. “Rare earths are critical to our semiconductor and electric vehicle industries,” Vice Minister Moon said. “We will work closely with the private sector to strengthen resilience and safeguard our economy from external shocks.” * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-10-16 15:22:55 -
South Korea's HMM orders $2.3 billion fleet of LNG-powered container ships SEOUL, October 16 (AJP) - HMM, South Korea’s largest shipping company, said Thursday that it will order 12 eco-friendly container ships from domestic shipbuilders in a deal worth 3.05 trillion won ($2.3 billion), marking its first major local order in seven years. The 13,000 twenty-foot equivalent unit (TEU) vessels will be built by HD Hyundai Heavy Industries and Hanwha Ocean, two of South Korea’s leading shipbuilders. Each ship will run on liquefied natural gas (LNG), a lower-carbon alternative to conventional marine fuels. According to DNV, a Norwegian classification society, LNG can cut greenhouse gas emissions by more than 23 percent, nitrogen oxides by over 80 percent, and sulfur oxides by more than 99 percent compared with traditional fuels. The company already operates a fleet of cleaner vessels, including nine methanol-fueled and two LNG-fueled container ships. HMM last placed a major domestic order in 2018, commissioning 20 vessels — twelve 24,000-TEU ships and eight 16,000-TEU ships — for about 3.15 trillion won. It followed up with additional orders for twelve 13,000-TEU ships in 2021 and nine 9,000-TEU methanol-fueled vessels in 2023. “In the increasingly competitive global shipping environment, this investment will allow HMM to expand its capacity and strengthen its eco-friendly capabilities,” HMM said in a press release. “We plan to enhance our competitiveness through ongoing investments based on our mid- to long-term strategy.” The order is also expected to boost South Korea’s shipbuilding sector, which has been recovering from years of cyclical downturns, driven in part by rising global demand for low-emission vessels. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-10-16 14:20:07 -
Korean, Japanese firms to collaborate on Korea's power transmission upgrade SEOUL, October 16 (AJP) - South Korea's HD Hyundai Electric has joined forces with Hitachi Energy, a global leader in high-voltage direct current (HVDC) systems, to take part in South Korea’s ambitious West Coast energy highway project, a key step in the nation’s push toward renewable energy integration. The partnership was formalized on Thursday at the Korea-Sweden Sustainable Partnership Summit in Seoul, where Kim Young-gi, president of HD Hyundai Electric, and Niklas Persson, CEO of Power Solutions at Hitachi Energy, signed a strategic cooperation agreement. Under the deal, the two companies will collaborate on developing and localizing HVDC technology — essential for long-distance, high-efficiency electricity transmission — to strengthen South Korea’s energy infrastructure and align with the government’s localization policy. The agreement includes joint studies on contract models, project execution, and system components such as converters, transformers, and control systems. The West Coast energy highway is designed to enhance grid stability and accommodate the growing share of renewable power. Hitachi Energy has supplied more than 70 percent of related electricity transmission systems and completed South Korea’s first such project, connecting Wando and Jeju Island, in December 2023. HD Hyundai Electric contributed high-voltage transformers for that project. HD Hyundai Electric plans to use its Ulsan plant as a dedicated production base for HVDC transformers. The company said the move will enhance its ability to compete in global energy markets and support the government’s goal of developing domestic expertise in core power technologies. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-10-16 13:41:32 -
Major flour companies of South Korea under probe over alleged price fixing SEOUL, October 16 (AJP) - South Korea’s antitrust regulator has launched an investigation into seven major flour producers, including Daehan Flour Mills and CJ CheilJedang, over allegations of price fixing and other unfair market practices. The Korea Fair Trade Commission (KFTC) is examining whether the companies colluded to set flour prices or coordinated shipment volumes, actions that could have distorted competition and inflated costs for consumers. The probe comes amid broader government scrutiny of rising food prices and corporate practices in essential goods markets. During a Cabinet meeting on Sept. 30, President Lee Jae Myung called for stronger enforcement against unfair business conduct, urging regulators to “respond swiftly and firmly to anti-competitive behavior that harms consumers.” KFTC Chairman Joo Byung-ki said the commission is closely monitoring potential collusion in key raw materials, including flour, sugar, and eggs. The investigation has since widened to include companies such as Samyang Foods, which, along with CJ CheilJedang, is being reviewed for possible coordination in pricing or supply adjustments. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-10-16 13:28:14 -
Asian stocks rise broadly; KOSPI scales new heights, SK shares mixed SEOUL, October 16 (AJP) - Asian stocks traded broadly higher on Thursday, buoyed by renewed bets on another U.S. rate cut, with South Korean shares testing fresh record highs amid optimism over an imminent U.S.–Korea trade deal and a stronger-than-expected chip boom. The benchmark KOSPI climbed 1.7 percent to 3,718.93 as of midday, crossing the 3,700 mark for the first time ever. Investor sentiment improved on expectations that trade negotiations between Seoul and Washington are nearing a breakthrough, spurring foreign buying led by institutional inflows. Heavyweights such as Samsung Electronics and Hyundai Motor hit new highs, while the KOSDAQ rose 0.24 percent to 866.82, reflecting steady gains among small-cap tech firms. Shares of SK Group affiliates were mixed after the Supreme Court sent back the $1 billion divorce settlement case between Chairman Chey Tae-won and his estranged wife to a lower court. SK hynix jumped 5.8 percent, while SK Networks fell 1.7 percent. In Japan, the Nikkei 225 advanced 0.83 percent to 48,068.35, lifted by broad-based gains in tech and export-oriented shares. Mainland Chinese stocks rebounded strongly, with the Shanghai Composite Index rising 1.22 percent, reclaiming the 3,900 level. Taiwan’s main index was little changed, supported by optimism over the island’s tech sector and the debut of Song Chuan Precision Co., Ltd. on the Taiwan Stock Exchange, which boosted turnover expectations. In Hong Kong, the Hang Seng Index edged higher alongside gains in mainland China, though investor caution lingered amid uncertainty over global interest rate trajectories and regional export trends. 2025-10-16 12:48:32 -
Naver partners with United Korea Founders to expand global tech footprint SEOUL, October 16 (AJP) - South Korean internet giant Naver has teamed up with United Korea Founders, North America's largest Korean entrepreneur network, to strengthen ties with the global startup ecosystem and secure new growth engines in emerging technologies. Naver and Naver Webtoon announced they would participate as official sponsors in UKF's three-day KOOM Festival starting Wednesday in New York. UKF, a non-profit organization, brings together Korean entrepreneurs and investors from Silicon Valley, New York and other tech hubs to the festival. Sharing Korean music, culture, and speeches from prominent industry leaders, the KOOM Festival will also feature food and beverages from 16 F&B brands as well. On the opening day, Naver Webtoon chief executive Kim Jun-koo will deliver a keynote on the global rise of new storytelling formats, sharing the company's platform strategy and webtoon success story. The festival's final day will spotlight Naver's virtual and XR technologies, with executives from its Realtime Engine Studio and Prism Studio unveiling production capabilities and the growth secrets behind Prism, the world's top live-streaming application. Sessions will feature startups backed by Naver's venture arm D2SF, including virtual intellectual property firm Scone and artificial intelligence motion capture company Movin, as the company seeks to expand its virtual ecosystem globally. "Through D2SF, Naver supports startup growth and global expansion, and this UKF sponsorship will further strengthen our connection with North America's startup ecosystem," Naver chief executive Choi Soo-yeon said. 2025-10-16 12:03:29 -
PHOTOS: Ancient historic city of Gyeongju lights up ahead of APEC summit SEOUL, October 16 (AJP) - With the Asia-Pacific Economic Cooperation (APEC) summit just around the corner, rehearsals and other preparations are underway in South Korea's southeastern city of Gyeongju. One project involved a 15 billion Korean won investment to enhance nighttime scenery around an artificial lake in Bomun, a popular tourist destination in the historic city. At a pre-event called the "Festival of Light" held on Wednesday ahead of the summit to be held from Oct. 31 to Nov. 1, the exterior of Yukbuchon, a traditional Korean house or hanok with tiled roofs and wooden-and-clay structures, was adorned with an illuminated façade, showing the history of Gyeongju, once the capital of the ancient kingdom of Silla that flourished for over 1,000 years. Other dazzling light and media art displays also promoted the summit, showcasing symbols and installations, including a 15-meter-tall egg-shaped structure inspired by the myth of the kingdom's first king, who is believed to have been born from an egg, according to folklore. Governor of North Gyeongsang Province Lee Cheol-woo said, "The festival brings together the city's past, present, and future in a modern style," adding that it is not merely a temporary spectacle limited to the APEC period. Additionally, various events and performances is expected to amaze visitors before and after the summit near a slew of national heritage sites there including Daereungwon, a complex of Silla-era tombs. 2025-10-16 11:28:34 -
Hanwha to unveil next-generation AI weapons at ADEX 2025 SEOUL, October 16 (AJP) - South Korea's Hanwha Group plans to unveil a suite of AI-driven defense systems designed to address manpower shortages and enhance battlefield efficiency. The group said Thursday Hanwha Aerospace, Hanwha Systems, and Hanwha Ocean will jointly participate in the Seoul International Aerospace and Defense Exhibition (ADEX) 2025, to be held Oct. 20–24 at KINTEX in Ilsan, northwest of Seoul. The companies plan to showcase more than 10 thematic zones centered around a “space zone,” underscoring Hanwha’s commitment to AI integration across land, sea, air, and space technologies. Among the highlights will be the debut of the Loitering Precision Guided Weapon (L-PGW), a next-generation system that combines the capabilities of a missile and a drone. Designed as a future export model, the L-PGW can be launched from Hanwha’s Chunmoo multiple rocket launcher and uses AI to locate, track, and engage targets via satellite link before deploying a self-destructing drone on impact. The company will also introduce the Themis-K, an unmanned ground vehicle (UGV) tailored for the Korean military and built on a platform developed by Estonia’s Milrem Robotics. The vehicle, equipped with Hanwha Aerospace’s remote-controlled weapon system, will appear alongside smaller UGVs such as the Arion-SMET and Grunt models. Another exhibit will feature the evolution of Hanwha’s signature K9 self-propelled howitzer — from the semi-automated K9A2, which reduces crew needs from five to three, to the fully unmanned K9A3, capable of autonomous maneuvering in coordinated formations under a single command vehicle. At sea, Hanwha Ocean will showcase a next-generation “strategic surface ship” equipped with AI-based threat detection, while Hanwha Systems will present a “Smart Battleship” that integrates combat, engine control, and bridge operations through AI-assisted target recognition and engagement management. In the space zone, Hanwha Systems will display the Nuri rocket, slated for its fourth launch, alongside a 0.15-meter ultra-high-resolution synthetic aperture radar (SAR) satellite. The company said that combining AI with satellite imaging will dramatically enhance surveillance and target identification capabilities. Hanwha will also outline its long-term vision for “Defense Sovereign AI” — a Korean-developed AI framework for secure defense applications. Working with domestic IT firms and small and midsize enterprises, Hanwha aims to build an integrated system linking detection, command, and strike capabilities based on Korean defense data and infrastructure. “In a rapidly changing security environment, we aim to contribute to self-reliant defense with cutting-edge AI technology,” Kim Dong-kwan, vice chairman of Hanwha Group, said in a press release. “Together with our partners, we hope to build a competitive domestic defense ecosystem that serves as a growth engine for the future.” * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-10-16 11:11:32 -
Korean builders face $9 billion PF maturities and govt judgment in Q4 SEOUL, October 16 (AJP) — South Korean construction firms reeling from a prolonged industry slump are on edge as 13 trillion won ($9.4 billion) in real estate project financing (PF) debt comes due in the fourth quarter, with the government set to decide next month which projects to rescue or wind down. According to the National Assembly’s Land, Infrastructure and Transport Committee, PF bonds worth 13.48 trillion won mature between October and December. Of that, roughly 5 trillion won is under rollover negotiations, while more than 3 trillion won is at risk of default. Financial authorities are scheduled to unveil the second phase of their PF restructuring plan next month. Given the liberal administration’s hawkish stance on real estate, market watchers expect tighter standards for classifying distressed projects, stricter limits on bridge loan rollovers, and expanded requirements for credit enhancements. A Ministry of Land, Infrastructure and Transport official said the focus of policy “will shift from liquidity to stability,” stoking fears among industry insiders of another wave of funding freezes and liquidity crises across construction sites. Authorities plan to release the results of a nationwide PF project audit by the end of November, determining which ventures will be salvaged and which will be liquidated. Mid-sized builders have been under acute financial strain since the industry-wide crunch of 2022, when the default of a Legoland theme park developer sent funding costs for construction firms to the highest levels in more than a decade. “Negotiating maturities is now a bigger challenge than winning new orders,” said a finance official at a mid-tier builder, adding that “creditor meetings have effectively replaced management meetings.” Even large builders have not been spared. A prolonged property market downturn and project delays have eroded cash flows, while average debt ratios have climbed by more than 10 percentage points from a year earlier. PF loan-linked borrowing costs have averaged above 7 percent this year, further squeezing profitability. Government aid has also been slow to arrive. The Korea Land and Housing Corporation’s program to purchase unsold homes has reached only 40 percent execution, while the Housing and Urban Guarantee Corporation’s PF guarantees have fallen 25 percent from last year. The reduction in guarantees has worsened liquidity bottlenecks by restricting developers’ ability to raise funds. As of September, PF refinancing rates averaged 8.1 percent — up 1.8 percentage points from the end of last year. Smaller builders face borrowing costs exceeding 12 percent, with some projects unable to cover monthly interest payments. “Even high returns aren’t attracting investors to construction-linked bonds,” a commercial banker said. The Korea Construction Industry Institute projects construction starts will plunge 21 percent in the fourth quarter from a year earlier. The sharp decline in new projects threatens to further choke cash inflows and drive up PF defaults. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-10-16 11:01:51