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South Korea launches petrochemical restructuring plan amid global glut SEOUL, August 20 (AJP) - South Korea’s finance chief pledged government support for sweeping cuts in the country’s petrochemical industry, Wednesday, as officials seek to shore up competitiveness in a sector battered by global oversupply. Deputy Prime Minister and Finance Minister Koo Yoon-cheol said that 10 major petrochemical companies have agreed to reduce as much as 3.7 million tons of production capacity by the end of the year. The pledge came after the Lee Jae Myung administration convened its first inter-ministerial meeting on industrial competitiveness, held at the government complex in Seoul. Koo criticized domestic producers for ignoring repeated warnings of oversupply and instead expanding facilities during past boom years without moving quickly enough into higher-value products. “Resolving this crisis requires drastic capacity reduction and fundamental competitiveness enhancement, pursued with a do-or-die determination,” he said. Under the plan, participating firms must submit detailed reorganization strategies by the end of 2025, with a focus on scaling back their naphtha cracking operations, the backbone of petrochemical production. Koo pressed companies and their shareholders to put forward binding restructuring plans grounded in “painful self-rescue efforts,” and urged them to begin implementing changes as early as next month. The government said it would provide regulatory easing, tax incentives and financial assistance to companies that commit to restructuring. But Koo warned that firms attempting to delay or avoid the process would be excluded from support programs and could face punitive measures. He cited the shipbuilding industry’s recovery through painful restructuring as a precedent the petrochemical sector should follow. Officials plan to hold regular reviews of the industry’s progress and promised further intervention if needed, with the aim of what Koo described as a “revival” of South Korea’s petrochemical industry. 2025-08-20 15:08:39
US push for equity in Intel raises alarm for Samsung Electronics, SK hynix SEOUL, August 20 (AJP) - The Trump administration is seeking an equity stake in Intel as part of its semiconductor subsidy package, a move that could reverberate across the global chip industry and unsettle South Korea’s Samsung Electronics and SK hynix, both of which are planning major U.S. investments with government support. White House spokeswoman Karoline Leavitt confirmed Tuesday (local time) that the administration is negotiating for roughly a 10 percent stake in Intel in exchange for a $10.9 billion grant to expand the company’s domestic manufacturing. “The president wants to put America’s needs first, both from a national security and economic perspective,” Leavitt said at a press briefing. Commerce Secretary Howard Lutnick described the plan as a straightforward swap: government funding for company shares. “We should get an equity stake for our money,” he said in an interview with CNBC. “We will deliver the money, which was already committed under the Biden administration. We will get equity in return for it.” The subsidies stem from the CHIPS Act, a 2022 bipartisan law that set aside $52.7 billion to bolster U.S. semiconductor production. But since taking office, Trump has pushed to toughen the program’s requirements, framing subsidies not only as industrial policy but also as leverage for extracting concessions from chipmakers. The policy shift could complicate the expansion strategies of Samsung and SK hynix, which have announced tens of billions of dollars in U.S. projects. Samsung is investing $37 billion through 2030 to build factories and research centers, while SK hynix plans a $3.87 billion artificial intelligence memory packaging facility in Indiana. Under the Biden administration, Samsung and SK hynix had been awarded subsidies of $4.75 billion and $458 million, respectively. But in June, Lutnick said several semiconductor awards were being renegotiated, casting doubt on those commitments. Washington has signaled similar intentions in other sectors. Earlier this year, the U.S. approved Nippon Steel’s acquisition of U.S. Steel only after securing a so-called golden share, giving the government veto power over decisions tied to national security. Analysts say equity stakes in foreign-owned projects could force Korean companies to align more closely with U.S. supply chains, potentially limiting their flexibility in global operations. Lutnick sought to play down those concerns. “It’s not governance,” he said. “We’re just converting what was a grant under Biden into equity for the American people. We have no intention of interfering in day-to-day operations.” 2025-08-20 14:48:04
Kim Jong-un's sister throws another tantrum against South Korea SEOUL, August 20 (AJP) - North Korean leader Kim Jong-un's sister, Yo-jong, has again criticized South Korea, saying it is not even a "partner" in diplomatic relations. South Korea "cannot be a diplomatic partner of the for decades..... and now we are sick and tired of it." She also mocked Lee, saying he is "not the sort of man who will change the course of history," and dismissed his recent overtures to take gradual steps toward restoring inter-Korean relations as merely a fanciful "pipe dream." Her latest outburst came just days after the North Korean leader denounced South Korea's ongoing joint military exercise with the U.S., calling it a "clear expression" of hostility toward Pyongyang. 2025-08-20 14:36:42
[[K-Pop]] BTS' brother band CORTIS releases music video for debut track "What You Want" SEOUL, August 20 (AJP) - CORTIS, the new boy band under BigHit Music, has released the music video for its debut title track "What You Want." The video was posted at midnight on August 20 on the HYBE Labels YouTube channel. It serves as the title track of the group’s debut album "Color Outside the Lines," which is scheduled for official release on September 8. CORTIS, consisting of members Martin, James, Juhun, Sunghyun, and Gunho, took part in directing the video themselves, further highlighting their involvement in the creative process. The group officially debuted on August 18 with the digital release of "What You Want." By the morning of August 20, the track had entered the iTunes Top Songs chart in 15 countries and regions, including Thailand, Indonesia, and the Netherlands. 2025-08-20 14:34:19
Korean food exports to US shrink for first time in 26 months amid tariffs SEOUL, August 20 (AJP) - South Korea’s agricultural and food shipments to the United States declined in July for the first time in more than two years, as new American tariffs began weighing on demand. Exports fell 6.7 percent from a year earlier to $139 million, data from the Korea Trade Statistics Promotion Institute showed on Wednesday. It was the first monthly contraction since May 2023 and followed a stretch of rapid growth that had lifted first-half shipments by 27 percent. The downturn was led by staples of the Korean food boom in American supermarkets. Instant noodle exports dropped 17.8 percent to $14 million, after soaring more than 40 percent in the first half. Snack shipments tumbled 25.9 percent to $20 million, while sauces fell 7.2 percent to $7 million. Industry sources said the reversal partly reflected importers rushing to front-load orders ahead of a 15 percent blanket tariff imposed by the Trump administration. Samyang Foods, whose fiery Buldak noodles have become a best seller in the United States, said it had accelerated exports through June to build inventory before duties took effect. The slowdown also coincides with weakening U.S. consumer sentiment. More than half of Americans cite grocery bills as their biggest source of financial strain, according to a recent AP-NORC poll. Analysts say Korean food giants including CJ CheilJedang and Nongshim posted sluggish second-quarter results in the American market. Despite the setback, South Korea’s farm and food exports to the United States totaled $1.07 billion in the January–July period, up 21.3 percent from a year earlier, though the pace of growth has cooled since June. The deceleration poses risks for Seoul’s goal of reaching $14 billion in agricultural exports this year. The Ministry of Agriculture, Food and Rural Affairs is scheduled to hold its third export strategy meeting this week. Minister Song Mi-ryung is expected to discuss corporate concerns and consider additional support measures to sustain momentum. 2025-08-20 12:47:04
PHOTOS: A street where time stands still, Dongdaemun Stationery and Toy Market SEOUL, August 19 (AJP) - The Dongdaemun Stationery and Toy Wholesale Market, with around 100 shops, is the largest of its kind in South Korea. Stretching across a 200-meter intersection in every direction, the market is lined with stores offering every imaginable type of stationery and toy, inviting visitors to browse, touch, and choose at leisure. Walking down the street feels like stepping into a time machine. Shop windows burst with color, filled with red fire trucks, yellow-haired dolls, and blue transforming robots neatly on display, evoking the atmosphere of a massive toy museum. Inside, shelves stacked to the ceiling hold rows of dolls ranging from teddy bears and princesses to superhero figures. Some stores still display spinning tops and pencil-case toys from the early 2000s, now covered in a layer of dust, while just next door, transparent tubs overflow with rainbow-colored building blocks. Old learning booklets for practicing Hangul, coloring books, and maps of Korea, their pages faded with time, add to the sense of nostalgia. Step inside a shop and the scent of plastic and cardboard greets you, unlocking childhood memories. Under the fluorescent lights, shiny figurines of the latest animation characters share space with walls full of crayons and colored pencils, while in the corners sit marbles and tops from the past. From Pororo and Power Rangers to Dragon Ball and Pokémon, toys beloved by different generations coexist side by side. The market’s biggest draw remains its prices. Many items sell at roughly 30 percent below retail, a reason families continue to visit. Yet the hustle and bustle is mostly confined to weekends or special days like Children’s Day. "There are fewer kids now, and online shopping has taken over. It’s not like before," one shop owner admitted with regret. Still, the market offers experiences that online shopping cannot. Parents and children can compare hundreds of toys at once, watch a child’s reaction firsthand, and receive recommendations from merchants who know every cartoon and character by heart. Their advice often feels more vivid and trustworthy than online reviews. Changsin-dong’s toy street continues to hold its ground against the tide of change. Though the crowds have thinned, it remains a place to relive old memories and create new ones. Nestled among Dongdaemun’s gleaming shopping malls, this modest but enduring market reveals another side of Seoul. Here, where time seems to pause, adults revisit their childhood while children dream of the future. 2025-08-20 11:11:25
S. Korea's presidential office orders probe into Czech nuclear deal with Westinghouse SEOUL, August 19 (AJP) - South Korea’s presidential office on Tuesday ordered an investigation into media reports that state-run energy companies accepted "unfavorable" terms from Westinghouse Electric, the American nuclear technology firm, during negotiations for a multibillion-dollar power plant project in the Czech Republic. Presidential spokeswoman Kang Yu-jung said Chief of Staff Kang Hoon-sik directed the Ministry of Trade, Industry and Energy to conduct the inquiry after high-level discussions at a morning meeting. The move, she said, was aimed at addressing public concerns about the negotiation process and the fairness of the contract terms. The order followed local media reports that a “global agreement” signed in January between Korea Hydro & Nuclear Power, Korea Electric Power Corporation and Westinghouse included sweeping provisions favoring the U.S. firm. Among them were requirements that future Korean-designed nuclear reactors intended for export be verified by Westinghouse, as well as obligations to purchase $650 million worth of equipment and services per reactor and to pay $175 million in technology licensing fees per unit. Kang said the investigation would determine whether the two Korean companies complied with relevant laws and procedures in reaching the agreement and whether they had properly safeguarded national interests in the process. Prime Minister Kim Min-seok told reporters earlier Tuesday that the government had already begun preliminary fact-finding efforts. Critics warn that the terms of the Czech contract could undermine Seoul’s bid to establish itself as an independent nuclear exporter rather than a "junior partner" to U.S. firms. 2025-08-19 17:31:06
Annual report on North Korean human rights abuses to be kept under wraps SEOUL, August 19 (AJP) - The Unification Ministry here said on Tuesday that it will continue compiling its annual report on human rights abuses in North Korea, though it will be published for internal use only. The report, mostly based on testimonies from North Korean defectors, documents their suffering and harrowing tortures during their escape from the isolated country. The ministry has published the report annually since 2018, although some previous governments had kept it under wraps. When asked why the report is kept confidential, a ministry official explained during a press briefing, "The disclosure of the report has had little effect on improving the human rights situation in North Korea," adding that merely naming and shaming the North may appear "confrontational." The latest decision was also due to the lack of fresh testimony. 2025-08-19 17:30:25
Mercedes-Benz faces sanctions in Korea over misleading claims on EV batteries SEOUL, August 19 (AJP) - South Korea’s antitrust regulator has begun sanction proceedings against Mercedes-Benz Korea over allegations that it misled consumers about the batteries used in its electric vehicles, an issue that has gained public attention after a high-profile apartment fire last year. Mercedes-Benz Korea is suspected of violating advertising and fair trade laws, according to sources from the Fair Trade Commission, Tuesday. Regulators allege that the Korean unit falsely claimed all of its electric models were equipped with batteries from Contemporary Amperex Technology Co. Ltd., or CATL, China’s leading battery supplier, when in fact some vehicles used lower-cost alternatives. The company is also accused of directing affiliated dealers to pass along those claims to customers, raising the prospect of deceptive consumer practices under Korean law. The matter gained urgency after a Mercedes EQE caught fire and exploded in the underground garage of an apartment complex in Incheon last August. Investigators later found that the car had been fitted with batteries from Farasis, a Chinese manufacturer considered less premium than CATL, despite Mercedes’ advertising to the contrary. The commission’s inspectors conducted on-site inspections at Mercedes-Benz Korea headquarters and dealerships in September and January. A hearing will be held to determine the severity of any penalties, with both regulators and company representatives participating. Separately, 24 plaintiffs, including Mercedes-Benz EV owners, filed a lawsuit last October at the Seoul Central District Court, seeking compensation over what they described as misrepresentation of battery suppliers and unresolved safety concerns. 2025-08-19 17:27:10
Two dead, several injured after train hits railway workers in Cheongdo SEOUL, August 19 (AJP) - Two men were killed and five others were injured after a passenger train struck a group of railway workers on the tracks in Cheongdo, North Gyeongsang Province, police said on Tuesday. The accident occurred around 10:50 a.m. when a train bound for Jinju, South Gyeongsang Province, that had departed from Dongdaegu, collided with seven workers inspecting railway damage caused by recent heavy rainfall. There were 89 passengers aboard the train, but no injuries among them have been reported so far. The exact cause of the accident is under investigation, and police are also examining whether the workers complied with safety regulations. 2025-08-19 16:58:44