The Korea Times

Proposed ban on new chip clusters in capital area raises concerns

The government’s plan to deny support for additional semiconductor industrial complexes in Seoul and surrounding Gyeonggi Province is fueling concerns that it may undermine a chip cluster under construction in Yongin, Gyeonggi Province, backed by a combined 1,000 trillion won ($670 billion) investment from Samsung Electronics and SK hynix. Although the Yongin cluster will remain eligible for previously promised support, the new plan triggers suspicions that the government may encourage partner companies in the cluster to relocate to noncapital regions. According to sources familiar with the matter, the government is set to announce the enforcement decree of the Special Act on Strengthening Competitiveness and Supporting the Semiconductor Industry later this month. The decree will stipulate that semiconductor industrial complexes built in Seoul, Incheon and Gyeonggi Province cannot be designated as “chip clusters” eligible for state support for electricity, water and roads. The announcement follows the passage of the act in January. The law, which will take effect Aug. 11, states th

May 17, 2026By Park Jae-hyuk

Proposed ban on new chip clusters in capital area raises concerns

Companies

HD Hyundai XiteSolution's forklifts attract MENA customers

HD Hyundai XiteSolution has secured a series of large-scale forklift supply deals in the Middle East and North Africa. The intermediary holding company overseeing HD Hyundai’s construction equipment business said Sunday it recently signed a contract with the Algerian government to supply 316 industrial vehicles worth 37 billion won ($25 million), with deliveries to be completed in phases by August. The order includes 10-ton, 25-ton and 30-ton forklifts used for handling and transporting heavy loads at large-scale construction sites such as shipyards and ports. The company said it secured the deal by offering equipment configurations tailored to local conditions in Algeria and emphasizing its capabilities in stable parts supply and after-sales service. With a higher proportion of large and ultralarge models, HD Hyundai XiteSolution expects the deal to boost both revenue and profitability. The company secured additional contracts in the Middle East worth a combined 4 billion won. It won orders for about 50 small and mid-sized forklifts from an automotive parts manufacturer in the United Ar

May 17, 2026By Park Jae-hyuk

HD Hyundai XiteSolution's forklifts attract MENA customers

Companies

Politicians slam POSCO's once-lauded hiring plan

The ruling Democratic Party of Korea (DPK) has begun voicing concerns over POSCO's plan to directly hire around 7,000 subcontracted workers performing manual labor at its plants in Pohang, North Gyeongsang Province, and Gwangyang, South Jeolla Province. With the plan drawing severe backlash from both regular and subcontracted workers, the shift in political sentiment is adding pressure on the steelmaker ahead of the June 3 local elections. The election campaign of Min Hyung-bae, the DPK candidate for the proposed South Jeolla-Gwangju integrated special city, issued a statement denouncing POSCO's plan as an attempt to sidestep repeated Supreme Court rulings ordering the company to ensure equal treatment of subcontracted workers, who are under its supervision and perform similar duties to regular employees. The criticism comes as it was revealed that POSCO plans to classify newly hired workers separately and pay them about 60 percent of existing employees' wages. "The Ministry of Employment and Labor should investigate the matter and take firm action against any legal violations," the camp

May 14, 2026By Park Jae-hyuk

Politicians slam POSCO's once-lauded hiring plan

Companies

Korea strengthens shipbuilding alliances with US, Canada

Seoul strengthened partnerships with Washington and Ottawa in the shipbuilding sector following Industry Minister Kim Jung-kwan’s weeklong visit to North America. While discussing Korea’s plan to invest $350 billion in the United States in exchange for tariff reductions, Kim also sought to persuade lawmakers there of the need for the ongoing investigation into Coupang. The Ministry of Trade, Industry and Resources said Sunday that Kim held in-depth discussions with U.S. Commerce Secretary Howard Lutnick on details of strategic investment projects in American industries and explained Korea’s legislation for a special law to support the initiative. The two governments also signed a memorandum of understanding to expand bilateral shipbuilding cooperation by opening the Korea-U.S. Shipbuilding Partnership Center in Washington later this year to support collaboration among government, industry and research institutions in both countries. Still, it remains unclear which U.S. project will be Korea’s first investment target. Before Kim’s departure, reports suggested that construction of

May 10, 2026By Park Jae-hyuk

Korea strengthens shipbuilding alliances with US, Canada

Companies

Doubts remain about HMM's relocation

Controversy continues to surround HMM’s relocation from Seoul to Busan, despite the nation’s largest container shipping company having secured union approval last month and shareholder approval Friday to revise the head office location in its articles of association. During his announcement on April 30 that the union had agreed to the relocation plan, HMM CEO Choi Won-hyok said a Seoul branch would remain necessary for sales and finance functions. His remarks have been widely interpreted as signaling that HMM plans to allow most of its 900 Seoul-based employees to remain in the capital rather than relocate to the southeastern port city, where the company currently operates an office with about 200 employees. Before reaching an agreement, the union representing HMM employees in Seoul had said it would accept the relocation only if most members were allowed to stay. Civic groups in Busan have urged the company to present detailed relocation plans. “If it follows the precedent of public institutions that retained key functions in Seoul, the relocation will fail to deliver the expected

May 10, 2026By Park Jae-hyuk

Companies

Korean battery firms take hit as more EV projects in US fall through

Repeated cancellations of electric vehicle (EV) production projects in the United States are weighing on Korean companies that had planned to supply batteries, prompting them to tighten partnerships with European automakers. SK On is reconsidering its plan to supply $10 billion worth of batteries to Nissan Motor’s Canton plant in Mississippi after the Japanese carmaker decided not to produce EVs at the U.S. facility. The move follows SK On’s decision last December to dissolve its joint venture with Ford Motor amid slow progress in the U.S. carmaker’s electrification efforts, raising concerns about the Korean battery maker’s business there. In March last year, SK On agreed to supply 99.4 gigawatt hours of high-nickel batteries to Nissan, marking the first time a Japanese automaker would use the Korean company’s products. However, after delays in its electrification strategy, Nissan informed dealers and parts suppliers in the U.S. on April 30 that it would cancel a $500 million project to produce electric SUVs in Canton. "Canton does have a future that will include diverse powertr

May 6, 2026By Park Jae-hyuk

Korean battery firms take hit as more EV projects in US fall through

Companies

PHOTO HMM on edge

An employee enters the office of HMM Ocean Service in Busan, HMM's ship management subsidiary running a fleet control center, Tuesday, a day after an explosion aboard the Korean shipping firm-operated vessel in the Strait of Hormuz. With all 24 crew members unharmed, the damaged ship will be towed to a nearby port in Dubai to verify the cause of the explosion and carry out repairs. Yonhap

May 5, 2026By Park Jae-hyuk

Companies

Mom's Touch, Burger King return to M&A market with increased earnings

Private equity firms are resuming efforts to sell their fast food franchises, as the businesses have become more attractive investment targets amid growing demand for affordable meals during prolonged inflation. KL&Partners recently sent requests for proposals to major investment banks and accounting firms to select an underwriter for the sale of Mom's Touch & Co. After acquiring a 57 percent stake in Mom's Touch for 200 billion won ($135 million) from its founder in 2019, the Korean private equity firm delisted the chicken sandwich chain by purchasing the remaining 43 percent stake in 2022 and sought to sell the company the same year. However, the attempt fell through as potential buyers balked at the 1 trillion won valuation. Following the failed sale, KL&Partners expanded Mom's Touch stores overseas, increasing revenue by 14.6 percent year-on-year to 479 billion won last year and operating profit by 22.2 percent to 89.7 billion won. While the Chinese fast food chain Tastien has been mentioned as a potential buyer, industry officials are closely watching whether KL&Partners can secure

May 5, 2026By Park Jae-hyuk

Mom's Touch, Burger King return to M&A market with increased earnings

Companies

Skepticism persists despite earnings recovery in petrochemical sector

Korean petrochemical firms are beating market expectations with their first-quarter earnings, but analysts warn it is too early to take an optimistic view of their profitability. Amid prolonged geopolitical tensions disrupting logistics, skepticism persists that the companies could swing back to losses in the second half of the year. On Thursday, LG Chem said its first-quarter operating profit from its petrochemical business reached 164.8 billion won ($112 million), rebounding from a loss of 239 billion won in the fourth quarter of last year. The company attributed the earnings recovery to higher prices for raw materials it had purchased at lower costs. It also cited the European Union’s reinstatement of antidumping tariffs. “This reflects our efforts to cut costs, improve our business portfolio and strengthen structural competitiveness,” LG Chem Chief Financial Officer Cha Dong-seok said during a conference call on first-quarter earnings. “We had already begun turning a profit even before the Iran conflict escalated in February.” On April 28, Hanwha Solutions Chemical Division

May 5, 2026By Park Jae-hyuk

Skepticism persists despite earnings recovery in petrochemical sector

Companies

Shinsegae chief disgraced by scrapped OpenAI partnership, delayed merger of affiliates

Doubts are growing about Shinsegae Group Chairman Chung Yong-jin’s ability to lead the retail giant, as the group has suffered setbacks in major projects, including the deployment of artificial intelligence (AI) in its businesses and the merger of affiliates. Last month, Shinsegae Group baffled the market by abruptly canceling its partnership with OpenAI just 11 days after signing a memorandum of understanding with the developer of ChatGPT. Instead, the Korean conglomerate partnered with Reflection AI, another U.S. AI company, citing a “selection and concentration” strategy. Amid mounting criticism of Shinsegae Group’s hasty decision-making and its lack of thorough technological review, the reversal led to the removal of Shinsegae Property CEO Lim Young-lock from his concurrent post as the group’s chief strategy officer. Lim had signed the agreement with OpenAI Korea Country Manager Kim Kyung-hoon on April 6 for the joint development of an AI-powered e-commerce model with advanced customization features. Although Shinsegae Group said the personnel change was necessary to allow

May 4, 2026By Park Jae-hyuk

Park Jae-hyuk

Read more

Proposed ban on new chip clusters in capital area raises concerns

HD Hyundai XiteSolution's forklifts attract MENA customers

Politicians slam POSCO's once-lauded hiring plan

Korea strengthens shipbuilding alliances with US, Canada

Doubts remain about HMM's relocation

Korean battery firms take hit as more EV projects in US fall through

PHOTO HMM on edge

Mom's Touch, Burger King return to M&A market with increased earnings

Skepticism persists despite earnings recovery in petrochemical sector

Shinsegae chief disgraced by scrapped OpenAI partnership, delayed merger of affiliates

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