Business - The Korea Times

Defense, refinery, shipping firms expected to gain from Iran crisis

Intensifying tensions in the Middle East following U.S. and Israeli military strikes on Iran, which killed Iranian Supreme Leader Ayatollah Ali Khamenei, have not only raised concerns about potential impacts on the Korean economy but also lifted investor sentiment toward several key sectors. With expectations that the ongoing conflict in the oil-rich region could disrupt shipments through the Strait of Hormuz, investors in the Korean stock market bet on defense, refinery and shipping firms on Tuesday, the first trading day since the war started. LIG Nex1 hit the daily upper price limit at 661,000 won ($451), driven mainly by expectations for its M-SAM II mid-range surface-to-air missiles. The company has already supplied the system to Saudi Arabia and the United Arab Emirates, both now under retaliatory attack from Iran targeting Arab allies of the United States. Other major Korean defense companies, including Hanwha Systems, Hanwha Aerospace, Hyundai Rotem and Poongsan, also saw sharp gains. Hana Securities analyst Chae Un-sam said a potential shortage of missiles capable of interceptin

Mar 3, 2026By Park Jae-hyuk

Defense, refinery, shipping firms expected to gain from Iran crisis

Middle East turmoil threatens Hyundai Motor, KGM

Hyundai Motor Group and KGM are feared to bear the brunt of the escalating geopolitical tensions in the Middle East, as mounting external uncertainty is expected to raise logistics costs and dampen market demand there for the export-reliant carmakers. The joint U.S.-Israel attack on Iran has rapidly driven up global oil prices, which in turn is increasing shipping costs for carmakers. Hyundai Motor, Kia and KGM are three representative domestic carmakers that generate a significant portion of their earnings from exports, making them highly vulnerable to such external shocks. KGM particularly remains vigilant over the growing uncertainty in the Middle East, as its exports to the territory accounted for roughly 25 percent of its total last year. The company formerly named SsangYong Motor is accelerating efforts to normalize its earnings by focusing on exports to the Middle East, after undergoing corporate restructuring. Rising freight rates are also expected to push up overall operating costs for the carmakers at a time when they have to tackle other risk factors. For instance, Hyundai Mot

Mar 3, 2026By Lee Min-hyung

Middle East turmoil threatens Hyundai Motor, KGM

Coupang's MAUs fall for 3rd straight month in Feb. after data breach

Monthly active users (MAUs) of Coupang fell for the third consecutive month in February following a large-scale data breach incident involving the e-commerce company disclosed late last year, industry data showed Tuesday. The company's MAUs stood at 33.12 million last month, down 0.2 percent from 33.18 million in January, according to market tracker Wiseapp Retail. The month-on-month decline slowed from a 3.2 percent drop in January. Compared with November, before the impact of the data breach was reflected, MAUs were down 3.7 percent in February. Coupang has faced scrutiny since authorities disclosed in November that a massive data leak had affected 33.7 million customers in Korea. The company said last month it had identified an additional 165,000 accounts affected by the breach. The New York-listed retailer said the data incident weighed on fourth-quarter revenue growth, active customers, paid Wow membership subscriptions and profitability beginning in December. The disclosure came as the company released its 2025 annual earnings results last week. Fourth-quarter operating profit plung

Mar 3, 2026By Yonhap

Coupang's MAUs fall for 3rd straight month in Feb. after data breach

CJ Logistics delivers two KAI T-50i jets to Indonesia

CJ Logistics has successfully transported two T-50i advanced trainer jets manufactured by Korea Aerospace Industries (KAI) to Indonesia, demonstrating its capability in handling military equipment requiring the highest levels of security and precision, the Korean logistics company said Tuesday. The aircraft, produced in Sacheon, South Gyeongsang Province, were delivered safely to an Indonesian Air Force base after undergoing a complex logistics process that included domestic inland transportation, air shipment, customs clearance and local ground delivery. Each aircraft, weighing about 30 tons and measuring approximately 13 meters in length and 4.8 meters in height, required meticulous planning to ensure safe transport. During the inland transportation phase, the company conducted a detailed “road survey” to analyze structural clearances and turning radii along the route, preventing potential collisions with bridges, traffic signs and other roadside structures. The survey also took into account local road conditions in Indonesia. The domestic inland segment covered roughly 530 kilomet

Mar 3, 2026By Ko Dong-hwan

CJ Logistics delivers two KAI T-50i jets to Indonesia

Middle East tensions expose fragility of Korea’s low-cost carriers

Korea’s major low-cost carriers (LCCs) are expected to face structural deficits as the escalating armed conflict in Iran drives up global oil prices. The surge in crude oil prices, coupled with the strengthening dollar against the Korean won, presents two major cost burdens to budget airlines. Concerns are rising that the latest Middle East crisis will erode the profitability of the LCCs even further, after they reported sharp earnings declines last year. West Texas Intermediate crude oil was traded at around $65 on Thursday, but its value soared to more than $74 on Sunday when the conflict between the United States and Iran reached its peak. Unlike full-service carriers with diversified revenue streams, LCCs such as Jeju Air, Jin Air and T’way Air are particularly vulnerable to external uncertainties, as most of their operating costs in fuel, aircraft leasing and maintenance are denominated in dollars. LCCs’ mounting financial strain was clearly reflected in their steep earnings decline last year, driven largely by the prolonged appreciation of the U.S. dollar against the Korean w

Mar 2, 2026By Lee Min-hyung

Middle East tensions expose fragility of Korea’s low-cost carriers

Korean firms shift to risk-control mode amid Iran tensions

Korean firms are scrambling to scale back or delay major events and operations in the Middle East, as geopolitical tensions spiked following the joint U.S. and Israeli attack on Iran. Companies that had prepared high-profile marketing events and other regular business activities in the region are now reassessing their plans with a low-key approach, in a bid to minimize possible risk exposure. Hyundai Motor Group’s Genesis luxury brand was supposed to invite a group of journalists to Qatar to promote its participation in the 2026 World Endurance Championship (WEC) for three days from March 26. However, the carmaker is conducting an internal review over whether to proceed with the program as scheduled amid the sudden escalation of tensions in the Middle East. “We are discussing whether to cancel the media invitation program for the 2026 WEC, but nothing specific has so far been confirmed,” a group official said. The aviation sector is also directly affected by the geopolitical risk. Korean Air has decided to temporarily suspend its Incheon-Dubai route until Thursday in response to the

Mar 2, 2026By Lee Min-hyung

Korean firms shift to risk-control mode amid Iran tensions

LG unveils K-EXAONE global push at MWC 2026

LG Group unveiled a road map Sunday (local time) in Barcelona to elevate its artificial intelligence (AI) model K-EXAONE into a globally competitive platform by pairing advanced model development with large-scale infrastructure. The announcement, made by LG AI Research Co-President Lim Woo-hyung and LG Uplus Chief Technology Officer Lee Sang-yeob, came a day ahead of the opening of Mobile World Congress 2026. Lim emphasized that LG’s AI vision goes beyond building the most powerful model. “The AI that LG pursues is not about competing in the height of intelligence, but about creating a partner that helps people and solves problems in the real world,” Lim said. “What ultimately matters is what we create with AI. We will focus on delivering tangible value in physical spaces.” LG outlined four priorities for K-EXAONE: securing leadership in AI foundation models, developing expert-level AI, expanding adoption across industrial sites and strengthening trust and safety. During the second phase of the national AI foundation model project in the first half of this year, LG aims to devel

Mar 2, 2026By Nam Hyun-woo

LG unveils K-EXAONE global push at MWC 2026

Korean companies step up safety measures after Iran strikes

Korean companies operating across the Middle East are scrambling to shore up contingency plans, as turmoil deepens across the region following U.S. and Israeli airstrikes on Iran that led to the death of its supreme leader, Ayatollah Ali Khamenei. Major conglomerates with operations in Iran, Iraq, the United Arab Emirates, Kuwait and Saudi Arabia are moving swiftly to secure the safety of employees and assess business risks. Samsung Electronics said it has so far confirmed no casualties among its employees in the Middle East, including Iran. “At this point, we have not identified any damage or casualties,” the company's official said. “We plan to do everything possible to ensure the safety of our employees.” LG Electronics has confirmed the safety of its regional staff and implemented protective measures. It evacuated a Korean employee stationed in Iran last week, while those in the Israel branch are preparing to depart in line with embassy guidance. The company has also issued travel warnings to its employees in other Middle Eastern countries and advised them to take safety preca

Mar 1, 2026By Lee Gyu-lee

Korean companies step up safety measures after Iran strikes

Iran crisis leaves Korea’s oil, gas supplies unthreatened — for now

Korea’s oil and gas imports from the Middle East have remained largely unaffected by the U.S. and Israeli military strikes on Iran that killed Iranian Supreme Leader Ayatollah Ali Khamenei during a joint operation that began Saturday (local time), the Korean government said Sunday. Moon Shin-hak, first vice minister of trade, industry and energy, held a second emergency meeting with officials from the foreign, energy, and oceans ministries, as well as state-run companies in the trade, energy, and power sectors, to assess how the crisis could affect Middle Eastern supplies of key energy resources to Korea. The meeting followed an initial session convened late Saturday by Industry Minister Kim Jeong-kwan shortly after the attack began. The back-to-back meetings, attended by officials from the Korea National Oil Corp., the Korea Gas Corp., and the Korea Electric Power Corp., confirmed Korea has secured enough oil reserves to last for months in the event of supply disruptions. Authorities added that current gas reserves exceed the country’s mandatory stockpile requirement. The situation,

Mar 1, 2026By Ko Dong-hwan

Iran crisis leaves Korea’s oil, gas supplies unthreatened — for now

Samsung Electronics to shift to AI-driven autonomous factories by 2030

Samsung Electronics said Sunday it plans to transform its domestic and overseas production facilities into factories driven by artificial intelligence (AI) by 2030 as part of its push for manufacturing innovation. The company will introduce digital twin-based simulations across the entire manufacturing process from materials warehousing to production and shipments while deploying AI agents dedicated to quality control, production and logistics to strengthen data-driven analysis and verification systems. The move is expected to enhance quality and productivity, while broader AI applications in environmental health and safety management will also help improve workplace safety, according to Samsung. Building on AI expertise accumulated in its mobile business, the company said it will apply "agentic AI," introduced with the Galaxy S26, to manufacturing innovation. Agentic AI refers to systems capable of independently setting and executing plans to achieve specific goals. Samsung is also working to introduce humanoid manufacturing robots across production lines in phases with a goal of buildi

Mar 1, 2026By Yonhap

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