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K-beauty buttresses Korean exports while defining global mainstream SEOUL, October 13 (AJP) - Beauty has joined chips and cars as another defining powerhouse for Korea, with K-beauty now shaping trends and commanding markets in two of the world's largest economies. Korea ranked as the world’s third-largest cosmetics exporter last year, trailing only France and the United States. In both the U.S. and Japanese markets, Korean beauty products have overtaken long-dominant French labels to become the top imported cosmetics. According to the Ministry of Food and Drug Safety, Korea's cosmetics exports hit a record $5.51 billion in the first half of this year, up 14.8 percent from a year earlier. Shipments have maintained a near-unbroken streak — $9.2 billion in 2021, $8 billion in 2022, $8.5 billion in 2023, and $10.2 billion in 2024 — weathering global slowdowns with only a brief dip during China’s market contraction in 2022. Even as Korea's total exports fell 7.5 percent in 2023 before rebounding 8.1 percent last year, cosmetics shipments grew 6.3 percent and 20.3 percent, respectively, according to the Korea International Trade Association (KITA). The rise of K-beauty has coincided with a strategic pivot away from China, where nationalist consumption trends and local favoritism squeezed out Korean products. The share of cosmetics exports to China plunged from 34.7 percent in 2023 to 19.6 percent ($1.08 billion) in the first half of this year — the first time it dropped into the 10-percent range. By contrast, exports to the U.S. and Japan climbed 17.7 percent and 15.7 percent, respectively. In the U.S. market, Korean cosmetics exports surged to $1.71 billion last year, surpassing France's $1.26 billion, followed by Canada, Italy, China, Mexico, the United Kingdom, and Japan. Building on this momentum, Korean beauty retailers are expanding aggressively overseas. CJ Olive Young, the country's largest health and beauty chain, established a local subsidiary in Los Angeles earlier this year after opening its Japanese branch in May 2024. Its first U.S. store is slated to open by year-end, signaling a deeper K-beauty push into the global mainstream. Olive Young has become a major growth engine for CJ Group, maintaining double-digit expansion despite remaining unlisted. In the second quarter, the company reported 1.46 trillion won ($1.07 billion) in sales, up 21 percent from a year earlier, with 144 billion won in net profit — marking its eighth consecutive quarter surpassing the 1 trillion won revenue mark. For the first half of 2025, sales rose 17.9 percent year-on-year to 2.7 trillion won, and net profit gained 17.1 percent to 270 billion won. Analysts forecast Olive Young's annual revenue could exceed 5 trillion won this year — a record for the retailer. The government is also throwing its weight behind the beauty boom. The Ministry of SMEs and Startups plans to designate 500 innovative products across cosmetics, fashion, lifestyle, and food as "K-Export Strategy Items" by 2030. About 80 items will be selected this year, with similar additions annually over the next five years. "The cosmetics industry now has a high proportion of exports driven by small and medium-sized enterprises," said Kim Do-wan, an official in charge of global growth policy. "To ensure continued expansion, we need to nurture these smaller brands. We're identifying promising companies with export potential and providing targeted support so they can strengthen their global competitiveness." 2025-10-13 16:54:01 -
Pyongyang's new ICBM blends technical ambition with political theater SEOUL, October 13 (AJP) - North Korea unveiled a new intercontinental ballistic missile (ICBM), the Hwasong-20, during a military parade in Pyongyang last Friday, underscoring its continued drive to advance long-range missile capabilities—possibly with Russian assistance—and to strengthen its leverage ahead of any potential resumption of dialogue with the United States. The Oct. 10 parade, marking the 80th anniversary of the founding of the Workers' Party of Korea, showcased North Korea's latest strategic weapons, including new hypersonic and cruise missiles. Senior officials from China, Russia, and Vietnam attended as VIPs, highlighting Pyongyang's bid to demonstrate solidarity within the emerging "neo-Cold War" axis. The Hwasong-20 is believed to be an upgraded solid-fuel ICBM featuring a high-thrust engine and a carbon-fiber composite motor casing. North Korea claims the new engine can generate up to 1,971 kilonewtons of thrust—roughly enough to lift 200 tons. Unlike traditional solid-fuel engines that rely on heavy metal casings, the use of a carbon-fiber composite shell reduces weight, allows for larger propellant capacity, and boosts thrust efficiency—critical advantages for long-range missile performance. Visually, the missile's diameter appears slightly larger than its predecessor, the Hwasong-19, and its rounder nose suggests room for additional re-entry vehicles—detachable warheads capable of targeting multiple locations, an essential feature of modern ICBMs. The 11-axle transporter erector launcher (TEL) appears unchanged, and analysts estimate the Hwasong-20 could have a theoretical range of up to 15,000 kilometers, enough to strike the U.S. mainland. "Overall, the Hwasong-20 looks almost identical to the Hwasong-19, using the same TEL," said Shin Seung-ki, research fellow at the Korea Institute for Defense Analyses (KIDA). "The missile's nose appears slightly rounder, which may allow it to carry more re-entry vehicles—perhaps six to eight compared with four or five on the Hwasong-19." Shin added that Russian technical support or materials may have contributed to the upgrade, citing the deepening military cooperation between Pyongyang and Moscow. Despite the apparent sophistication, experts remain cautious about the missile's actual capabilities. The Hwasong-20 has so far undergone only ground testing and has not yet been flight-tested, leaving its real-world performance unproven. South Korea's Unification Ministry noted that while Kim Jong-un avoided direct mention of the U.S. or South Korea in his speech, the display itself carried a clear strategic signal. "From North Korea's perspective, unveiling this type of strategic weapon itself carries a message to South Korea and the U.S.," ministry spokesperson Koo Byung-sam said Monday in Seoul. Analysts see the parade as Pyongyang's latest effort to position itself as a de facto nuclear power on par with Russia and China. "North Korea's message is clear," said Yang Uk, research fellow at the Asan Institute for Policy Studies. "Pyongyang is signaling that it can strike the U.S., that it sees itself standing shoulder to shoulder with Russia and China, and that no one should expect it to give up its nuclear weapons." 2025-10-13 16:46:48 -
LG Elec Q3 results beat forecasts, raising fanfare ahead of India stock debut SEOUL, October 13 (AJP) - South Korea’s top consumer goods maker LG Electronics posted stronger-than-expected third-quarter earnings on Monday, driven by record automotive electronics sales, setting the stage for its Indian unit’s stock market debut on a buoyant note. According to its preliminary earnings release on Wednesday, the home appliance and consumer goods giant reported an operating profit of 688.9 billion won ($515 million) for the July–September period, surpassing the market consensus of 605 billion won. Revenue came to 21.88 trillion won, down 1.4 percent from a year earlier but up 5.5 percent from the previous quarter. Operating profit fell 8.4 percent on year, weighed by U.S. tariffs and restructuring costs, yet exceeded forecasts thanks to strong vehicle component sales and stable appliance performance. Shares of LG Electronics rose 2.53 percent to 81,000 won in Seoul trading Monday following the results. The upbeat earnings come as the company’s Indian subsidiary prepares to debut on the Bombay Stock Exchange on Tuesday through a $1.3 billion initial public offering expected to value the unit at up to $8.7 billion. The 71.3 million-share offering was fully subscribed on the first day, drawing anchor investors including sovereign wealth funds from Abu Dhabi, Norway, and Singapore, along with asset managers such as BlackRock. India, with its 1.4 billion population and low household appliance penetration, is viewed as one of LG’s key growth markets. The company operates two factories there and is building a third at Sri City. The vehicle component division was the standout performer, recording its highest quarterly profitability on the back of rising demand for premium infotainment systems as the business pivots from hardware to automotive content platforms. The home appliance division maintained its premium leadership while expanding subscription-based services to offset pricing pressures amid weak global demand. The media and entertainment unit, however, booked one-time costs tied to a voluntary retirement program and higher marketing expenses in a fiercely competitive TV market. LG said increased U.S. tariffs also dented profitability but that it is optimizing production and expanding direct-to-consumer online sales to mitigate the impact. Meanwhile, the HVAC business secured multiple large-scale contracts for AI data center cooling systems across major regions and is accelerating commercialization of liquid cooling technology, viewed as essential for next-generation AI infrastructure. LG Electronics will release detailed divisional results and net income on October 31. 2025-10-13 16:04:54 -
USD-KRW nears annual highs as trade talks stall, China tensions mount SEOUL, October 13 (AJP) - South Korean authorities issued a strong verbal warning – and possibly followed up by won-propping action - on Monday, after the U.S. dollar hovered above the psychologically important 1,430-won mark amid stalled tariff negotiations with Washington and renewed trade tensions between the United States and China. The won opened at 1,430.0 per dollar, up 9.0 won from the previous session, briefly touching 1,434.0 before stabilizing in the mid-1,420s. It was the weakest level since May 2, when it hit 1,440.0. The currency, down nearly 3 percent so far this month, later recovered to 1,426.1 following government intervention. In a joint statement, the Ministry of Economy and Finance and the Bank of Korea warned against “potential herd behavior,” adding, “The foreign-exchange authorities are closely monitoring the market with heightened vigilance, as volatility in the won has increased due to recent domestic and global factors.” The dollar remains firm, with the U.S. Dollar Index at 99.018. Persistent uncertainty over the U.S. government shutdown since Oct. 1 and heightened trade-war fears have fueled risk aversion. Beijing’s move to tighten rare-earth exports prompted U.S. President Donald Trump to threaten a 100 percent tariff on Chinese imports starting Nov. 1. Trump later struck a softer tone on Truth Social, writing, “Don’t worry about China. Everything will be fine,” while noting that President Xi Jinping was facing a “bad moment” but did not want a recession. Korean markets reacted nervously. The KOSPI fell more than 1 percent to the 3,500 range as foreign investors offloaded shares. The won-yen exchange rate rose to 940.31 per 100 yen, up 10.67 won from the previous close of 929.64, while the yen-dollar rate weakened 0.6 percent to 151.931 yen. “Trump’s criticism of China’s export controls and his tariff threats could spark sharp declines in Asian markets and currencies,” said Min Kyung-won, economist at Woori Bank. “Although foreign selling and local buying may temporarily support prices, prolonged uncertainty over trade negotiations will likely weigh on sentiment.” 2025-10-13 16:04:34 -
South Korea's industry minister defends Czech nuclear deal SEOUL, October 13 (AJP) - South Korea’s industry minister on Monday defended the country’s contentious nuclear power contract with the Czech Republic, calling it a “standard agreement” despite mounting criticism over its terms and the involvement of U.S. nuclear firm Westinghouse. Speaking during a parliamentary audit, Industry Minister Kim Jung-gwan acknowledged that “every agreement has its pros and cons,” but argued that the deal gives South Korea a valuable strategic foothold in Europe’s growing nuclear energy market. He added that further negotiations are expected once the Czech Republic’s new government takes office. The remarks come amid an escalating debate over South Korea’s partnership with Westinghouse Electric Co., which critics say has constrained the country’s nuclear export ambitions. The controversy dates back to a 2022 lawsuit filed by Westinghouse in the United States, claiming ownership of key technologies used in Korea Hydro & Nuclear Power’s (KHNP) APR1400 reactor — the model South Korea hopes to export to Europe. The case fueled concerns that South Korea’s nuclear exports could become dependent on U.S. approval, undermining the country’s long-cultivated autonomy in reactor design. Earlier this year, KHNP and Westinghouse reached a settlement that allowed them to jointly bid on overseas projects, including the Czech tender. But the arrangement has been criticized by some lawmakers and industry experts, who argue that it limits South Korea’s leverage and reduces potential profits. Minister Kim pushed back against such criticism, saying the collaboration reflects the realities of international nuclear trade. “We must look at the broader picture — our exports need to thrive for our companies to succeed,” he said. “Even with certain restrictions, South Korea has continued to expand its nuclear presence abroad.” Kim also acknowledged lingering “trust issues” between Seoul and Washington over nuclear technology rights but urged policymakers to take a long-term view of national interests. The Czech Republic’s nuclear expansion project, one of the largest in Europe, has become a key test of South Korea’s ability to reassert itself as a global reactor exporter after years of slowdown. Despite the controversy, officials in Seoul see the project as a critical opportunity to reestablish the country’s nuclear credentials on the world stage. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-10-13 16:01:26 -
Korean firm wins manufacturing contract for US shingles vaccine SEOUL, October 13 (AJP) - South Korea's GC Biopharma said Monday it has secured contract manufacturing rights for a shingles vaccine being developed by its U.S. affiliate, Curevo Vaccine. Under the agreement, GC Biopharma will produce part of the commercial supply of the vaccine, known by its project name amezosvatein (CRV-101). The product aims to challenge GlaxoSmithKline’s Shingrix, which has dominated the shingles vaccine market for years. The global market for shingles vaccines has expanded rapidly, driven by aging populations and rising awareness of preventive care. Since Shingrix’s commercial launch in 2018, annual sales have grown nearly 20 percent each year, from roughly 1 trillion won ($730 million) in 2017 to about 6 trillion won ($4.4 billion) in 2024. The GSK vaccine accounted for more than 90 percent of global market share last year, with sales exceeding 5 trillion won ($3.4 billion). Amezosvatein, like Shingrix, is a recombinant protein vaccine with an adjuvant designed to boost immune response. But Curevo’s version uses a synthetic adjuvant, which researchers say may reduce injection site pain and systemic reactions — potentially improving patient tolerability. Early Phase 2 trials have shown that amezosvatein achieved non-inferiority to existing products while demonstrating favorable safety results, according to GC Biopharma. Curevo is now conducting an expanded Phase 2 trial involving 640 adults aged 50 and older, with plans to complete the study by 2026 and advance to Phase 3 thereafter. “This agreement marks a significant milestone in securing GC Biopharma’s long-term growth drivers,” said CEO Huh Eun-chul. “We will continue to expand our presence in the global vaccine business and strengthen our role in high-value biopharmaceutical manufacturing.” * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-10-13 15:36:09 -
Taiwan leaps ahead on AI boom as South Korea staggers SEOUL, October 13 (AJP) - Once regarded as twin Asian tigers for their industrial and geographic similarities, South Korea and Taiwan are now charting divergent paths — Taiwan riding high on the artificial intelligence boom, while South Korea struggles under structural and demographic headwinds. Taiwan's economy is projected to grow 5.3 percent this year, upgraded from 4.5 percent in a consensus of eight global banks in late August. South Korea, by contrast, is expected to eke out growth of just 1.1 percent after a modest 2 percent expansion in 2024. Both resource-poor economies remain export-driven and dependent on high-tech manufacturing. But Taiwan's all-in bet on semiconductors — and its ability to capture the AI upcycle — has sharply widened the gap. South Korea posted record exports of $65.95 billion in September, up 12.7 percent from a year earlier, with semiconductor shipments surging 22 percent to $16.61 billion. Taiwan's exports reached $54.25 billion during the same month, but its growth pace was far faster at 33.8 percent, powered by electronics worth $21.43 billion and semiconductor exports that jumped 27.1 percent. "Semiconductors are definitely the main reason for the differing performance of the two economies," said Wang Shu-feng, professor of business administration at Ajou University in South Korea and National Chengchi University in Taiwan. Taiwan Semiconductor Manufacturing Co. (TSMC), the world's largest contract chipmaker and often described as the country's "benchmark stock index," accounts for nearly 10 percent of Taiwan's GDP and serves as the key driver of its economic momentum. Semiconductors contribute roughly 15 percent of Taiwan's GDP, compared with 7 to 8 percent in South Korea, although the sector represents about one-fifth of Korea's total exports. Korea has concentrated on mass-market memory chips, while Taiwan has focused on customized logic chips — a strategy that shields producers from cyclical volatility through long-term contracts and close client relationships. "Taiwan goes all in on chipmaking. Most top students join TSMC or other semiconductor firms after graduation, whereas many South Korean students pursue medical or biochemistry fields, with broader career options," said Ko Jong-wan, head of strategy at the Korea Semiconductor Industry Association. Taiwan's bipartisan political support has also bolstered its semiconductor ascendancy. Seoul's efforts, in contrast, are often mired in debate over favoritism toward large conglomerates. Korea's special semiconductor law, which would have exempted chip workers from the 52-hour workweek limit, stalled in the National Assembly, while Taiwan passed legislation in 2017 allowing chipmakers to exceed the standard 40-hour week. During Taiwan's severe drought in 2022, the government prioritized water supply to TSMC over agriculture — a reflection of its strategic importance. In South Korea, the planned Yongin semiconductor cluster has faced persistent controversy over public resource allocation to major firms. When the United States, Japan, and the European Union rolled out massive subsidies to build local chip industries, Taiwan formally designated semiconductors as a "core national industry" in 2023 and introduced tax credits covering 25 percent of R&D investments. Korea's parliament only passed a moderate "K-Chips Act" in January this year, raising tax credits for facility investments from 15 percent to 20 percent. "With the AI boom driving demand for advanced packaging and chipmaking capabilities led by Taiwan's TSMC, it may be difficult for South Korea to close the gap in the near term," Wang said. 2025-10-13 15:18:34 -
Korean-made gas turbines will be exported to US for first time SEOUL, October 13 (AJP) - South Korea's Doosan Enerbility said Monday that it has signed a deal to export two large gas turbines to the United States, marking South Korea’s first overseas shipment of domestically developed turbine technology. Under the agreement, Doosan will supply two 380-megawatt gas turbines to a major U.S. technology company by the end of next year. The company did not identify the buyer but described the contract as a landmark step in its push to expand into global energy markets, and a milestone for South Korea’s power equipment industry. Doosan became only the fifth company in the world to develop large-scale gas turbine technology in 2019, following years of research and testing. Its model successfully completed more than 15,000 hours of operation in a local power plant, demonstrating commercial readiness. Since then, the company has secured contracts for eight turbines, all for domestic use — until now. The latest deal comes amid a surge in electricity demand driven by data centers and artificial intelligence infrastructure, which are fueling renewed interest in stable, high-capacity power sources such as gas turbines. Doosan’s U.S. subsidiary, Houston-based Doosan Turbomachinery Services, played a crucial role in finalizing the contract and will oversee maintenance for the units once installed. “This agreement marks South Korea’s transition from being an importer to an exporter of gas turbine technology,” said Son Seung-woo, head of Doosan Enerbility’s Power Service Business Group. “We will ensure high-quality production and timely delivery to strengthen trust with our customers and expand further into the U.S. and other global markets.” Industry analysts say the deal could open new opportunities for South Korean manufacturers in the global energy equipment market, traditionally dominated by American, European, and Japanese players. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-10-13 14:42:14 -
South Korea's OCI Holdings to acquire solar wafer plant in Vietnam SEOUL, October 13 (AJP) - OCI TerraSus, a wholly owned subsidiary of South Korea’s OCI Holdings, said Monday that it has established a new company in Singapore to take a majority stake in a solar wafer plant in Vietnam — a move aimed at strengthening its supply chain for U.S.-bound solar products. The new entity, OCI ONE, will acquire a 65 percent stake in a wafer plant built by Elite Solar Power Wafer in Vietnam. The facility, expected to be completed by the end of October, will have an annual production capacity of 2.7 gigawatts and is slated to begin producing solar wafers early next year. OCI said the $120 million project will provide immediate revenue once production begins, with OCI ONE’s share valued at $78 million. The company added that an additional $40 million investment could double the plant’s capacity to 5.4 gigawatts within six months, significantly increasing output and sales potential. The wafers will be made using polysilicon supplied by OCI TerraSus, creating a vertically integrated production chain the company says will improve both competitiveness and profitability. The products will also comply with new “non-PFE” standards — referring to the exclusion of products linked to forced labor — established in July under the U.S. Office of Budget and Business Bureau Act. “This strategic investment brings us closer to completing a non-PFE supply chain favorable for U.S. exports,” said Lee Woo-hyun, chairman of OCI Holdings. “We will continue working with partners across Southeast Asia to strengthen our position in the global solar industry.” * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-10-13 14:08:17 -
Seoul raises alert, protection for Koreans in Cambodia amid rising crimes SEOUL, October 13 (AJP) - South Korea is beefing up protection measures for its nationals abroad following the violent killing of a Korean college student in Cambodia. National Security Adviser Wi Sung-lac on Monday chaired a task force meeting at the presidential office with senior officials from the Foreign Ministry, Justice Ministry, and National Police Agency to devise coordinated action against the recent murder and related crimes. President Lee Jae-myung over the weekend ordered the Foreign Ministry to make the protection of citizens overseas, particularly in Cambodia, a top priority. Following the president’s directive, the government is making multifaceted efforts to protect our citizens from job scams and detentions in Cambodia,” the presidential office said in a statement. “We will enforce strict legal measures against organized crime.” The response comes after the body of a South Korean student was discovered in Cambodia’s Kampot Province in August. Repatriation of the victim’s body has been delayed, while additional cases of Koreans falling prey to similar crimes have since emerged. Cambodia’s state news agency AKP reported that three Chinese nationals in their 30s and 40s have been indicted by local prosecutors for allegedly torturing and killing the Korean student near Bokor Mountain in Kampot. They were charged with murder and fraud as part of a broader crackdown on online scam syndicates operating in the country. The National Police Agency said Sunday it will hold a bilateral meeting with Cambodian police on Thursday to discuss measures to prevent further crimes against Koreans. NPA Commissioner Park Sung-joo is also considering a visit to Cambodia to press for stronger cooperation. The agency plans to strengthen coordination with Interpol, dispatch 30 additional officers for cross-border investigations, and discuss establishing a dedicated “Korean Desk” within the Cambodian national police to handle cases involving Koreans. The South Korean Embassy in Phnom Penh currently has one police officer and two liaison officers, a level deemed insufficient amid a surge in scams and detentions. The ruling party is also pushing for stronger legal grounds to protect Koreans abroad. “The recent incidents in Cambodia have exposed the limitations of our current system, which is reactive rather than preventive,” Democratic Party Rep. Park said on social media. He called for swift passage of his amendment to the Consular Assistance Act to institutionalize continuous risk monitoring in crisis regions and establish an emergency protocol for coordination among the Foreign Ministry, National Intelligence Service, and local embassies. “It’s time for state systems — not individual courage or chance — to safeguard our citizens’ lives,” he said. Meanwhile, the Foreign Ministry on Friday raised its travel advisory for Phnom Penh to a special advisory, urging Koreans to exercise extreme caution or postpone nonessential travel. Foreign Minister Cho Hyun also summoned the Cambodian ambassador in Seoul to demand stronger action against the surge in online scams and detentions targeting Korean nationals. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-10-13 13:55:51