Business

'Matching subsidies' to spur growth of Korea's EV market

The nation’s electric vehicle (EV) market will pick up stronger-than-expected momentum for a rebound this year — buoyed by the government’s “matching subsidy” policy aimed at boosting carmakers’ discount campaign, experts and industry officials said Wednesday. Under the updated subsidy rule, the Ministry of Environment decided to increase its matching subsidy rate to up to 80 percent from 40 percent. Its expiration has also been extended to the end of this year from the first half. When carmakers offer larger discounts on their EVs, the authority increases its subsidy rate in proportion to the range of their discounts. For example, if a carmaker offers a discount of 6 million won to its EV priced at a range of 45 million won to 53 million won, the ministry offers half of the discount through the matching subsidy. This is an increase of 600,000 won from the previous policy. The latest decision is widely expected to spur demand for EVs, as carmakers are encouraged to offer bigger discounts for the vehicles, according to experts and officials from the industry. “The updated mat

Hanwha, Samsung face greater pressure to reduce migrant shipyard workforce

Hanwha Ocean and Samsung Heavy Industries are facing the risk of a labor shortage as the newly elected mayor of Geoje pushes to reduce their reliance on migrant workers at shipyards on the island in South Gyeongsang Province. Geoje Mayor Byun Gwang-yong, who won the April 2 by-election as the candidate from the liberal Democratic Party of Korea (DPK), has remained committed to supporting unionized Korean shipyard workers. These workers have repeatedly called on management to prioritize improving labor conditions rather than hiring low-paid foreign workers. When the government decided late last year to allow migrant laborers to make up 30 percent of the full-time workforce at shipyards, Korean workers demanded that the quota be rolled back to the previous 20 percent. “We need to reduce the number of migrant workers by rolling back the quota and hire more domestic workers instead,” Byun said last month during a debate with a rival candidate from the conservative People Power Party (PPP), which had been the ruling party until the ouster of former President Yoon Suk Yeol. While adjusting

Trump pauses 'reciprocal' tariffs for 90 days, applies 10% baseline tariff to Korea

U.S. President Donald Trump on Wednesday paused the implementation of "reciprocal" tariffs for 90 days and applied a 10 percent baseline tariff to Korea and other countries, while increasing duties on China to 125 percent following Beijing's retaliatory move. In a social media post, Trump made the announcement as reciprocal tariffs went into effect on the day, with dozens of countries striving to negotiate deals over new levies. Last week, his administration unveiled 25 percent tariffs on Korea, 24 percent on Japan and 20 percent on the European Union, to name a few. "I have authorized a 90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10 percent, also effective immediately," Trump wrote on Truth Social. Trump said he made the decision based on the fact that more than 75 countries have reached out to U.S. representatives, including the Department of Commerce, the Department of the Treasury and the U.S. Trade Representative for negotiations, and that these countries have not retaliated against new U.S. tariffs. Trump reiterated his strong message against

Tech meets K-pop: KAIST, Galaxy Corp to launch AI enter-tech research center

The Korea Advanced Institute of Science and Technology (KAIST) is teaming up with entertainment technology company Galaxy Corp., home to K-pop star G-Dragon, to set up an artificial intelligence entertainment tech research center. The school said it held a launch ceremony for the project at its campus in Daejeon Wednesday. The collaboration aims to integrate technology with K-culture to develop creative cultural content and expand the future of Korea's entertainment industry. The center is set to officially launch in the third quarter of this year and is expected to be a key institution for platform development and content innovation, focusing on research in technological convergence including AI and robotics. "We will combine KAIST's cutting-edge AI technology with Galaxy Corp.'s fandom platform to provide fans around the world with an unprecedented entertainment experience," Galaxy Corp CEO Choi Yong-ho said. "The convergence of AI enter-tech is the beginning of an innovation that will enrich human life." The research center is the first outcome of the school and entertainment agency

Korea on course to conclude negotiations on Czech nuclear power plant project: minister

Korea is on course to conclude negotiations for a project to build a nuclear power plant in the Czech Republic, Seoul's industry minister said Wednesday, as the final agreement for the highly anticipated project is being delayed. "We have completed documentations for the project, and local procedures, such as a legal review and board meetings, are currently under way," Industry Minister Ahn Duk-geun told the parliamentary committee on industry and trade. "We hope to finalize the agreement in late April or early May at the latest," he added. A Korean consortium, led by the state-run Korea Hydro & Nuclear Power Co. (KHNP), was selected as the preferred bidder in July 2024 to build two reactors at the Dukovany power plant in the East European country. If finalized, the deal, estimated at 24 trillion won ($16.7 billion), would mark Korea's first overseas nuclear power plant project since 2009, when KHNP won the Barakah Nuclear Power Plant contract in the United Arab Emirates. The consortium had initially aimed to strike a final deal on the project by the end of March. Meanwhile, Ahn said the g

Celebrating partnership

Crisis-reading insights, timely expansion shape SK’s growth history

SK Group celebrated its 72nd anniversary on April 8, marking a history that began with a textile mill built from salvaged machinery in the aftermath of the 1950-53 Korean War and has since evolved into a corporate empire spanning energy, chemicals, IT, semiconductors, batteries and biopharmaceuticals. Throughout the journey, crisis-reading insights and timely expansion efforts have served as pivotal inflection points for the group’s growth. And the groupis now envisioning artificial intelligence (AI) as the next one, which will navigate what SK Group Chairman Chey Tae-won calls the “triple whammy” of tariff wars, inflation and rapid technological changes driven by AI. Textile to Chemical SK was founded by Chey Jong-gun, who was born in 1926 in Suwon, Gyeonggi Province. In 1944, he took his first job as an apprentice engineer at Sunkyong Textile in the city, which was at the time run by a Japanese owner. Chey left the company in 1949 to pursue his dream of becoming an entrepreneur, but that path was soon disrupted by the outbreak of the Korean War in 1950, which devastated nearly eve

CJ chairman visits Japan seeking Olive Young's entry

CJ Group Chairman Lee Jay-hyun visited Japan last week to review the retail group’s local operations and explore expansion opportunities there, including beauty product retailer Olive Young’s entry into the Japanese market, the group said Wednesday. According to CJ, Lee paid a three-day visit to Tokyo from April 2 to 4, inspecting the group’s Japanese bases and holding meetings with counterparts in Japan’s entertainment, retail and financial industries. During his visit to CJ’s Japanese headquarters, Lee said the current popularity of Korean culture is not just a passing trend but a critical opportunity for global expansion, and the group’s established businesses in Japan, such as Bibigo, must not miss the momentum. “We need to accelerate localization and the establishment of global infrastructure to enhance competitiveness and swiftly expand into global markets, aiming for CJ to become a leading global company,” Lee said. During a meeting with CJ’s managing leaders, Lee asked them to proactively seek new business opportunities, such as Olive Young’s entry into the Ja

Will Samsung, SK hynix pass on tariff burden to clients?

As the Donald Trump administration’s “reciprocal” tariffs on major trading partners took effect Wednesday, the chip industry’s attention is now on whether Korean chip giants Samsung Electronics and SK hynix will pass on extra costs to their American clients, after U.S. memory chipmaker Micron did the same. Reuters reported Wednesday that Micron told its U.S. customers that it plans to impose a surcharge on memory module and solid-state drives (SSD) products in response to the Trump administration’s new tariffs. In its letter, Micron notified its customers that Trump's tariff announcement last week exempted semiconductors, but the tariffs applied to memory modules and SSDs. Micron's overseas manufacturing facilities are primarily located in Asia, including China and Taiwan. While the exact rates appear to be subject to change, the U.S. plans to impose a combined tariff of up to 104 percent on Chinese imports, with a 32 percent duty applied to products from Taiwan. Micron’s reported decision to pass on tariff-related costs is widely seen as a signal that a wave of price hikes m

KOTRA helps firms enter China's growing market for older adult care

The Korea Trade-Investment Promotion Agency (KOTRA) is hosting the Korea-China Anti-aging Medical Plaza in Chengdu, China, to support Korean companies seeking to enter China’s rapidly growing medical market for older adults. The two-day event kicked off on Wednesday and is jointly organized with the South Gyeongsang Provincial Government. Ten Korean companies are participating in forums and business consultations, showcasing smart health devices, high-frequency stimulators, ultrasound therapy devices, anti-aging beauty products and solutions for cognitive improvement, as well as cosmetics and health supplements. "As China's older adult industry grows swiftly, demand from older consumers for medical beauty and care services is also increasing," said Hwang Jae-won, head of KOTRA's China regional headquarters. "We will actively support Korean companies entering major cities like Beijing, Shanghai, Guangzhou and Chengdu in China." According to China’s National Bureau of Statistics, its population aged 65 and over reached approximately 220 million in 2023, accounting for 15.4 percent of th