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South Korea signals fresh push to join Asia-Pacific trade bloc SEOUL, September 3 (AJP) - The South Korean government said on Wednesday that it would consider joining a sweeping Asia-Pacific trade pact, reviving long-dormant discussions as the country looks to diversify export markets amid heightened uncertainty over U.S. trade policy. The announcement came during an economic ministers’ meeting led by Deputy Prime Minister and Finance Minister Koo Yoon-cheol, where officials also outlined support measures for exporters hit by recent tariff negotiations with Washington. The government said it would “review CPTPP membership to secure an economic alliance network with like-minded countries.” South Korea first weighed joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, or CPTPP, in 2021 under former President Moon Jae-in. The effort stalled in the face of fierce opposition from farmers worried about an influx of agricultural imports. The renewed interest reflects Seoul’s growing unease over its dependence on the United States and China, its two largest trading partners, as tensions between the superpowers deepen and protectionist policies spread. Officials say that large-scale free trade agreements are becoming more important for safeguarding access to global markets. The CPTPP, which took effect in 2018 after the United States pulled out of its predecessor pact, now counts 12 members including Japan, Canada, Australia, Mexico and the United Kingdom. Together, they represent about 14 percent of global economic output. Securing entry would not be straightforward. All existing members must approve new applicants, and Japan holds particular influence. While ties between Seoul and Tokyo have warmed under President Lee Jae Myung, longstanding disputes — including South Korea’s ban on Japanese seafood imports following the 2011 Fukushima nuclear disaster — remain major obstacles. At home, agricultural groups are also expected to resist any move toward membership. For now, officials stressed that the government is only beginning a review process, with any formal application requiring extensive consultations and approval at the highest levels. 2025-09-03 15:27:28 -
LG Energy Solution lands major battery deal with Mercedes-Benz SEOUL, September 03 (AJP) - LG Energy Solution said Wednesday that it had signed a major supply agreement with Mercedes-Benz to provide electric vehicle batteries for the German automaker’s European and U.S. operations. The deal, disclosed in a regulatory filing, covers two contracts. In Europe, LG Energy Solution will deliver 32 gigawatt-hours of batteries from August 2028 through late 2035. In the United States, it will supply 75 gigawatt-hours beginning in July 2029 and continuing through the end of 2037. Though financial terms were not revealed, industry analysts estimated the contracts’ value at roughly 15 trillion won, or $10.8 billion, based on their scale. The agreement is the second between the two companies. In October 2024, Mercedes signed a deal with LG Energy Solution for 50.5 gigawatt-hours of batteries. Under the new contract, the South Korean firm is expected to provide Mercedes with its 46-series cylindrical cells, a format gaining traction in the industry for its energy efficiency. Analysts said the agreement underscores LG Energy Solution’s ability to compete against Chinese rivals such as CATL and Farasis, which have been expanding aggressively with lower-cost offerings. 2025-09-03 15:21:47 -
Hyundai, Kia power Korean EV market to strong rebound SEOUL, September 03 (AJP) - South Korea’s electric vehicle market is showing signs of revival this year, fueled by a wave of new models from Hyundai and Kia after several years of declining sales. From January through July, registrations of new electric vehicles reached 118,047, according to data released Wednesday by the Ministry of Land, Infrastructure and Transport. The figure represents a 46.7 percent increase from the same period a year earlier and pushed cumulative registrations past the 100,000 mark in just seven months. The rebound follows three years of contraction. Annual new registrations slipped to 164,324 units in 2022, then to 162,507 in 2023 and 146,734 in 2024. If momentum continues through the second half of the year, analysts say, annual sales could surpass 200,000 units for the first time. Domestic automakers remain at the center of the surge. Hyundai and Kia accounted for nearly 63 percent of new registrations in the first seven months of 2025, propelled by the launch of high-profile models including Hyundai’s Ioniq 9 and Ioniq 6, and Kia’s EV3 and PV5. Industry analysts credit the fresh lineup with restoring consumer confidence in the market, noting that competitive pricing and extended driving ranges have helped boost demand. 2025-09-03 14:40:45 -
South Korea's economy rebounds on strong exports, consumer spending SEOUL, September 3 (AJP) - South Korea’s economy returned to growth in the second quarter, lifted by a revival in consumer spending and a surge in exports, the central bank said Wednesday. Gross domestic product expanded 0.7 percent from the previous quarter, according to revised figures from the Bank of Korea. That was slightly higher than the 0.6 percent preliminary estimate issued in July and a reversal from the 0.2 percent contraction recorded in the first three months of the year. Private consumption rose 0.5 percent, fueled by higher spending on automobiles and medical services, while government outlays climbed 1.2 percent, largely because of health care expenditures. Exports jumped 4.5 percent, driven by strong global demand for semiconductors and petrochemical products. Still, weaknesses persisted in investment and construction. Facility investment slid 2.1 percent as companies cut spending on machinery and transportation equipment, including semiconductor manufacturing tools. Construction investment fell 1.2 percent, reflecting a slowdown in civil engineering projects. Manufacturing output advanced 2.5 percent, led by electronics and optical products. Services grew 0.8 percent as wholesale, retail, accommodation and transportation sectors recovered from first-quarter declines, even as the information and communication industry contracted. Overall construction activity contracted sharply by 3.6 percent, while output in electricity, gas and water supply tumbled 5.4 percent. Agriculture, forestry and fisheries shrank 1.2 percent. Domestic demand contributed 0.4 percentage points to growth, compared with a 0.5 percentage point drag in the first quarter. Net exports added 0.3 percentage points. Real gross national income rose 1 percent, outpacing GDP growth, as improved trade conditions offset weaker income from overseas, the central bank said. 2025-09-03 14:36:43 -
Gold prices soar on US rate cut expectations, geopolitical strains SEOUL, September 03 (AJP) - Gold prices surged to fresh records on Tuesday (local time), fueled by mounting expectations of U.S. Federal Reserve interest rate cuts and heightened geopolitical uncertainty. Spot gold climbed to $3,530 an ounce on Sept. 2, topping the previous peak of $3,500 set in April. Futures contracts on the Commodity Exchange rose even higher, touching about $3,600 an ounce during the session. The rally comes as investors increasingly bet that the Fed will lower borrowing costs when policymakers meet later this month. At the Jackson Hole economic symposium in August, Jerome Powell, the Fed chair, signaled that officials were prepared to act if evidence of slowing growth continued to build. The Federal Open Market Committee is scheduled to convene Sept. 16-17. A reduction in rates would likely weaken the dollar and bolster demand for gold, which is widely viewed as a hedge against inflation and economic instability. Traders are now turning their attention to the U.S. jobs report for August, due Friday. A further cooling in the labor market, after recent signs of softness, could strengthen the case for a rate cut and push gold even higher. 2025-09-03 13:49:45 -
Trump says 'not concerned at all' on Beijing military parade SEOUL, September 3 (AJP) - U.S. President Donald Trump on Tuesday brushed off suggestions that deepening ties among China, Russia and North Korea posed a challenge to Washington as the leaders of those countries gathered in Beijing for a military parade. In an interview with the Scott Jennings Radio Show, Trump said he was "not concerned at all" about the possibility of an "axis" against the United States. He added, "They would never use their military on us ... that would be the worst thing they could ever do." Speaking to reporters at the White House later the same day, Trump again rejected the idea that the joint appearance of Russian President Vladimir Putin and North Korean leader Kim Jong-un at the parade could amount to a challenge to U.S. influence. "Not at all," he said. "China needs us, and I have a very good relationship with President Xi ... China needs us much more than we need them. I don't see that at all." The parade held Wednesday to mark the 80th anniversary of the end of World War II showcased China’s military capabilities, with Xi standing alongside Putin and Kim. The parade followed a Shanghai Cooperation Organization meeting in Tianjin earlier in the week that both Xi and Putin attended. 2025-09-03 13:22:50 -
South Korea begins Security Council presidency, to host debate on AI SEOUL, September 3 (AJP) - South Korea on Tuesday (local time) began its one-month term as president of the United Nations Security Council, confirming the agenda for September and taking up the role of chairing the council's meetings. As its main event, South Korea will hold a high-level open debate on artificial intelligence and its implications for international peace and security. President Lee Jae Myung is scheduled to preside over the session on September 24 at UN headquarters in New York. It will be the first time a South Korean president has chaired a Security Council meeting. Speaking to reporters after closed consultations, Ambassador Kim said South Korea’s history embodies the UN’s three core pillars of peace, development, and human rights. "These values are deeply embedded in our national DNA," he said. "As president of the council, South Korea will provide leadership based on efficiency, transparency, and inclusiveness." President Lee will already be in New York for the UN General Assembly’s high-level week, which begins on September 23. He is expected to deliver a keynote speech that day. Ambassador Kim said the council’s focus on AI is timely. "The Security Council has already held two meetings on AI since 2023, considering how fast it is developing and spreading worldwide. We think a high-level debate is necessary to maximize benefits and minimize risks," he said. Unlike June 2024, when South Korea last held the presidency and convened a meeting on North Korea’s human rights situation, no North Korea-related meetings are scheduled for September. Kim noted that the council is ready to respond if necessary. "There is no plan for a North Korea meeting this month, but if it conducts an intercontinental ballistic missile launch or other provocation, we are prepared to convene," he said. During its term, South Korea is also expected to oversee discussions on major international issues such as the wars in Ukraine and the Middle East, including matters related to Palestine and Iran. The Security Council is the UN’s most powerful body with primary responsibility for international peace and security. It is made up of 15 members, including five permanent members with veto power, the United States, the United Kingdom, France, Russia, and China, and 10 non-permanent members elected for two-year terms. The presidency rotates monthly in alphabetical order among the members. The council president chairs both official and informal meetings, represents the council to other UN bodies, and has a central role in setting the agenda. This gives the presiding country influence over the direction of discussions and the shaping of international opinion. South Korea is serving as a non-permanent member for the 2024 to 2025 term. This is its first time holding the presidency since June 2024. 2025-09-03 13:21:42 -
Kim Jong-un joins Xi, Putin at Beijing military parade, daughter absent from ceremony SEOUL, September 03 (AJP) - For the first time in 66 years, the leaders of North Korea, China, and Russia stood side by side as Kim Jong-un joined Chinese President Xi Jinping and Russian President Vladimir Putin at China’s "Victory Day" military parade on Wednesday. The parade, marking the 80th anniversary of the end of World War II, began at 9 a.m. in Beijing's Tiananmen Square. Official photographs showed Xi at the center with his wife, Peng Liyuan, to his left. Kim stood next to Peng, while Putin took position on Xi's right. Kim walked in just ahead of Putin, taking the second-to-last spot in the procession. After a photo, the three leaders walked side by side toward the Tiananmen reviewing stand, presenting a rare image of unity among Beijing, Moscow, and Pyongyang. Noticeably absent was Kim's daughter Ju-ae, whose presence during her father's arrival in Beijing had drawn widespread attention. Since her first public appearance in November 2022, Ju-ae has frequently appeared at military and political events in North Korea, but this was her first official trip abroad. Analysts say her presence on the international stage signals she may be undergoing early grooming as Kim's successor. At Beijing station, Ju-ae was seen standing directly behind her father as he was welcomed by senior Chinese officials. According to Cheong Seong-chang, vice president of the Sejong Institute, "Kim's decision to bring her to China strongly suggests he is signaling to the international community that she is his heir, while giving her early diplomatic training." Cheong said this approach is a marked departure from Kim's own upbringing. Although named heir by his father at the age of eight, Kim Jong-un had little opportunity to engage in foreign affairs before assuming power, leaving him largely isolated until his summit diplomacy in 2018. By introducing Ju-ae early to international settings, Kim appears determined to avoid repeating that experience and to ensure she develops the skills and stature needed for leadership. Kim left Pyongyang by armored train on Monday and arrived in Beijing the following afternoon. In a rare move, state-run media released both his departure and arrival within hours. For the parade, Xi wore a Mao-style suit, while Kim broke from his usual attire, opting instead for a black Western suit with a bright gold tie, a choice some interpreted as an effort to project the image of "normal state." The trip was Kim's first visit to China since January 2019 and his first appearance on a multilateral diplomatic stage since assuming power in late 2011. The parade is widely seen as underscoring a broader geopolitical divide, placing China, North Korea, and Russia on one side against Japan, South Korea, and the U.S., amid intensifying U.S.-China rivalry. Speculation is also mounting over a possible trilateral meeting among Kim, Putin, and Xi, given the rare occasion of them appearing together, though observers say bilateral talks are more likely. 2025-09-03 12:47:09 -
South Korea unveils $10.2 billion emergency support for tariff-hit exporters SEOUL, September 03 (AJP) - The South Korean government on Wednesday announced a sweeping 13.6 trillion won ($10.2 billion) relief package aimed at helping exporters weather U.S. tariffs, while expanding trade financing to a record 270 trillion won ($203 billion). The measures, unveiled during a joint meeting of economic ministers and industry officials, are designed to offset the burden of recently negotiated tariffs with Washington. Under the agreement, South Korea and the United States reduced planned mutual tariffs from 25 percent to 15 percent. Automotive tariffs were also cut to 15 percent from 25 percent, but officials warned that the new rates still weigh heavily on Korean exporters. The plan centers on expanded access to credit and lower borrowing costs. Korea Development Bank will raise lending limits tenfold for affected companies, lifting the cap for small businesses from 3 billion won to 30 billion won and for mid-sized firms from 5 billion won to 50 billion won. Interest rates will be reduced by an additional 0.3 percentage points from current levels of 2 to 3 percent. The Export-Import Bank of Korea will broaden its crisis lending program to include firms with weaker credit ratings. Targeted relief is also planned for companies in steel, aluminum, copper and related industries, which face tariffs as high as 50 percent. The government pledged 570 billion won in support, including 150 billion won in subsidized loans, with interest rate reductions of up to two percentage points for small and mid-sized firms. Trade insurance coverage will be expanded by 14 trillion won to 270 trillion won, the largest on record, to help ensure liquidity for exporters. Fee discounts of up to 90 percent will be extended for small firms with less than $1 million in overseas sales. Other measures include 420 billion won in tariff-related export vouchers, higher subsidies for logistics and consulting costs, and the creation of a 100 trillion won National Growth Fund to spur domestic investment. Industry Minister Kim Jung-kwan said the plan would be rolled out quickly to help exporters adapt to shifting trade conditions. “Our goal is not only to minimize tariff damage but also to create new opportunities for Korean industry,” he said. 2025-09-03 10:58:42 -
Hyundai Motor union launches first strike in seven years amid wage standoff SEOUL, September 3 (AJP) - Hyundai Motor Company’s labor union began a partial strike on Wednesday, ending a rare seven-year stretch of labor peace at South Korea’s largest automaker as wage talks collapsed. The union stages two-hour work stoppages during morning and afternoon shifts at the company’s domestic plants on Wednesday and Thursday, and plans to extend the walkout to four hours on Friday. The action halts production across Hyundai’s key facilities in the country. The strike is the first since 2019. Over the past six years, labor and management had managed to sidestep strikes even through the pandemic and a period of heightened trade tensions between South Korea and Japan. This year, however, negotiations broke down after 20 rounds of talks since June 18. Hyundai had offered a second proposal that included a base salary increase of 95,000 won, or about $68 a month, performance bonuses worth 400 percent of monthly pay plus 14 million won in cash, and 30 shares in the company for each worker. Union leaders rejected the package, demanding a larger monthly raise of 141,300 won, performance pay equivalent to 30 percent of last year’s net profit, and an extension of the retirement age to 64 without income gaps. “It is regrettable that the union decided to strike despite insufficient substantial discussions on negotiation items,” Hyundai said in a statement, adding that it would continue to seek “reasonable" results that allow labor and management to coexist. The dispute centers on wages and retirement age, with the union pointing to Hyundai’s strong performance — a record 14.2 trillion won operating profit last year and a 7.3 percent revenue increase in the second quarter. Management, however, has cited rising concerns over U.S. tariff pressures and a slowdown in the global electric vehicle market. The unrest spread beyond Hyundai. On Wednesday afternoon, unions at HD Hyundai, the country’s top shipbuilder, also walked off the job. 2025-09-03 10:53:15