• “EU Approves Merger of Korean Airlines, Clearing Path to Create Mega Carrier”

  [SEOUL-News2day] In a long-awaited move, European Union regulators have given the green light to the merger of Korean air giants, Korean Air and Asiana Airlines. The approval, granted on the condition of certain business concessions to address competition concerns, marks a significant milestone in the protracted process. The EU's decision comes after a period of rigorous scrutiny, during which Korean Air held its breath, aware of the strict standards imposed by European regulators. With this approval, the merger now awaits the final hurdle: clearance from US authorities. If approved, the consolidation would birth a "Mega Carrier," reshaping the global aviation landscape. However, caution remains paramount. Korean Air must fulfill the merger conditions set by the EU and carefully monitor the stance of the remaining regulatory authority, the United States. The intricacies of navigating these processes underscore the tension and uncertainty surrounding the merger. According to Korean Air officials, the EU approval is contingent upon compliance with remedies agreed upon with the regulatory authorities. The merger process, which began with preliminary discussions in January 2021, saw formal submission of documents in January 2023, followed by Phase 2 scrutiny announced in February of the same year. Despite expectations of a final decision by August 2023, the process faced setbacks with the EU's issuance of a Statement of Objections, delaying the outcome. In response, Korean Air submitted remedial measures to the EU, leading to the recent conditional approval based on actions such as the divestiture of Asiana Airlines' cargo business and support for new entrants on overlapping passenger routes. The approval paves the way for Korean Air and Asiana Airlines to proceed with the divestment process for the cargo business and support entry by new airlines on overlapping passenger routes. T'way Air has been designated as the Remedy Taker, set to enter select routes in the latter half of this year. With EU approval secured, attention now turns to the crucial decision from US regulators, which has been indefinitely postponed by the Department of Justice (DOJ). The DOJ intensified scrutiny last year, seeking specific measures to address concerns of monopolistic practices. Amid uncertainties surrounding the US decision, speculations abound about potential legal challenges to block the merger. Reports suggest that concerns about adverse effects on competition in passenger and cargo transportation between the US and Korea may prompt legal action. In response, Korean Air aims to expedite discussions with US regulators following the EU approval, emphasizing the resolution of concerns through the divestiture of Asiana's cargo business. Nevertheless, a significant challenge lies in smoothly concluding the divestment of Asiana's cargo business. Industry insiders anticipate imminent bids, with budget carriers like Jeju Air and Eastar Jet emerging as strong contenders. With debts soaring to trillions of won as of the third quarter of 2023, Asiana Airlines faces financial prowess as a crucial criterion in the selection of a buyer for its cargo business. Strategies involving mobilization of major shareholders' funds or consortium formation with strategic investors are anticipated. In light of these developments, attention also shifts to Hanjin Group Chairman, Won Tae Cho. His successful maneuver to gain control through the acquisition of Asiana Airlines as part of a three-party consortium in 2020 sets the stage for potential resolution of management disputes upon successful completion of the merger. As Korean Air awaits the US regulatory decision, the aviation industry braces for further developments, with the merger's impact on competition and market dynamics under intense scrutiny. By Soyeong Jeon, a reporter of News2day / [email protected]

• “Aviation Industry Takes Flight: Navigating Post-Pandemic Challenges Toward 2024 Recovery”

  (SEOUL-News2day) In 2023, as the clouds of the COVID-19 pandemic lifted, and the skies reopened, the aviation industry embarked on a robust recovery, fueled by the surging desire for travel that had been suppressed during the pandemic. The pent-up travel demand, exacerbated by the COVID-19 endemic, exploded alongside a rapid recovery in passenger demand, with Low-Cost Carriers (LCCs) notably achieving record-breaking quarterly performances. While Full-Service Carriers (FSCs), represented by major airlines like Korean Air, saw a decline in cargo business due to the unique circumstances of the pandemic, improvements in passenger operations helped offset these losses and stabilize their overall performance. As a result, Incheon International Airport recorded its highest monthly passenger transport performance in December, reaching 5.6 million passengers, representing a recovery to 92% of the pre-pandemic levels of December 2019. The primary challenge for the aviation industry this year is the complete normalization of passenger operations. • Korean Air: Navigating Challenges with Cargo Success Korean Air, a representative FSC, faced a downturn in international passenger operations during the COVID-19 period. However, a surge in air cargo rates and supply shortages propelled its cargo business into an unprecedented boom, compensating for the passenger-related setbacks. Despite achieving operational profitability through this cargo success, Korean Air is now confronted with the task of restoring its passenger business to pre-COVID-19 levels, considering the uncertain global situation, high fuel prices, and declining cargo rates. This trend became evident from the first quarter of 2023 when Korean Air reported KRW 3.2 trillion ($2.7 billion) in revenue, a 14% increase year-on-year, but a 47% decrease in operating profit. Subsequent quarters showed similar patterns, with revenue increasing but operating profit declining. While the decline in quarterly operating profit may raise concerns, the increase in ancillary costs such as fuel, operational expenses, and labor costs due to expanded flight operations should be considered. Additionally, the crucial passenger business has consistently shown signs of improvement. • Low-Cost Carriers (LCCs): Soaring to Unprecedented Heights Even LCCs that do not engage in cargo operations experienced a resurgence in passenger demand due to the endemic. Jeju Air, the leading LCC, achieved its highest-ever quarterly performance in the first quarter, surpassing the record set in the first quarter of 2019. This success was notable despite operating fewer aircraft compared to 2019. In the traditionally slow second quarter for the aviation industry, Jeju Air once again achieved record-breaking results. Notably, in the third quarter, the airline set another quarterly performance record, demonstrating a 125.5% increase in revenue compared to the same period last year. Similarly, T'way Air, the second-largest LCC, reported its best-ever quarterly performance in the first quarter, marked by a substantial increase in both revenue and a transition from an operating loss to profit. The airline continued this positive trend in the second and third quarters, further solidifying its position in the market. • Outlook for 2024: Anticipating Full Recovery Amid Challenges While the fourth-quarter results for 2023 are pending, the year is widely considered as a turning point for the aviation industry, marking a substantial recovery in passenger demand. Industry players are now gearing up for a complete return to pre-COVID-19 levels in 2024. In anticipation of this trajectory, airlines are focusing on strategies such as route diversification and enhanced customer services to expand demand. Korean Air, for instance, is concentrating on initiatives like expanding in-flight Wi-Fi services and introducing a one-stop insurance service to streamline the insurance purchasing process for travelers. The impending merger between Korean Air and Asiana Airlines, aiming to transform into a "Mega Carrier," remains a significant focus. While awaiting approvals from regulatory bodies, including the EU, the U.S., and Japan, Korean Air is actively working towards a successful conclusion of the merger. LCCs are also diversifying their routes. Jeju Air expanded its network to include lesser-known Japanese cities and initiated new routes to Oita and Hiroshima, along with the Incheon to Dalat route, the first for a domestic airline. T'way Air, differentiating itself from other LCCs, has been expanding into long-haul routes since 2022 and is planning to secure European routes through new Croatia services this year. However, despite optimism for 2024, the industry remains cautious. Economic uncertainties and intense supply competition pose challenges, and while the effects of the pandemic are expected to linger, the extent of market prosperity remains uncertain. An industry insider shared with News2day, "Expecting the recovery trend to continue for three years, given the prolonged impact of the pandemic and the significant drop in international oil prices. However, with the market being highly competitive, especially with the increased supply from LCCs, caution is warranted." In conclusion, while the aviation industry looks towards 2024 with hope for a complete recovery, the prevailing economic uncertainties and fierce competition suggest that caution is essential in predicting sustained prosperity. make a title and subtitle By Soyeon Jeon, a reporter of News2day / [email protected]

• Defense Industry Challenges in South Korea: Examining Submarine Procurement Issues

  By Han-Kyung Kim, National Security Correspondent In recent times, South Korea's defense industry has garnered global attention as it seeks new avenues for growth. The Defense Acquisition Program Administration (DAPA) is actively pursuing continuous institutional improvements and legislative revisions to overcome challenges faced by the defense industry. Despite these efforts, various issues are impeding the industry's development. News Today launches the "Defense Industry Issues Diagnosis" series, delving deep into these challenges. (Editor's Note) • Hanwha Overtakes Hyundai in Submarine Project (SEOUL-News2day) Hanwha recently secured the priority negotiation rights for the construction of the 3600-ton-class submarine (Dosan An Chang-ho Batch-Ⅱ), beating its competitor, Hyundai Heavy Industries (HHI). If the final contract is signed after negotiations with DAPA, Hanwha Ocean will not only be responsible for the detailed design of the Dosan An Chang-ho Batch-Ⅱ submarine but will also build all three vessels. This would set a record, with Hanwha Ocean constructing 17 out of the total 24 submarines ordered by the Navy. HHI, which competed for the project, previously collaborated with Daewoo Shipbuilding & Marine Engineering (now Hanwha Ocean) on the basic design of the 3000-ton Dosan An Chang-ho Batch-Ⅰ submarines and built one of them. However, failing to secure the Dosan An Chang-ho Batch-Ⅱ submarine construction contract raises concerns about Hanwha Ocean's dominance in overall submarine projects. The Dosan An Chang-ho Batch-Ⅱ model features increased size and displacement compared to the Dosan An Chang-ho Batch-Ⅰ submarines. It incorporates improved combat and sonar systems, as well as four additional vertical launch tubes for Submarine-Launched Ballistic Missile (SLBM) capabilities. Notably, the inclusion of lithium batteries enhances stealth and operational performance compared to conventional lead-acid batteries. • Hyundai's Questionable Bid and Core Equipment Costs In an unusual turn of events, HHI submitted a proposal with a bid higher than the estimated cost provided by DAPA, leading to its exclusion from the negotiation process. DAPA had set the estimated cost for the third submarine at approximately KRW 1.6 trillion, and it is customary for bidding companies to offer a price below this estimation. According to regulations, submitting a bid below 95% of the estimated cost ensures a full score in the cost evaluation, while bids between 100% and 96% face deductions. In response, Hanwha Ocean, aware of the competition with HHI, submitted a bid of KRW 1.02 trillion, approximately 95% of the estimated cost. On the contrary, HHI, known for setting exceptionally high prices for four critical components (vertical launch system, fuel cell system, integrated mast, function and armament system), provided a bid significantly exceeding the estimated cost. HHI explained that the high costs were due to the excessive pricing of these core components. • Bid Price Discrepancy and Low Construction Costs The fundamental issue in this procurement lies in the inadequacy of the submarine construction budget allocated in batch units. Typically, budgets are set for three vessels in a batch, and the construction period for these three submarines spans nearly a decade. During this time, fluctuations in prices or disruptions in the supply chain can result in budget shortfalls, making it difficult to incorporate new technologies. The process of increasing the budget, based on industry feedback, is also challenging, leading to delays and insufficient project funding. For the third submarine, the initial estimated cost was in the range of KRW 1 trillion, similar to the second vessel. However, due to factors such as rising raw material prices and supply chain uncertainties related to conflicts, the industry (represented by Daewoo Shipbuilding & Marine Engineering at the time) requested KRW 1.47 trillion, causing a one-year delay in the project. During this period, DAPA re-evaluated costs, underwent additional budget reviews with fiscal authorities, and eventually increased the estimated cost by KRW 300 billion, KRW 300 billion less than the industry's demand. The underlying problem is that the project was re-launched with low construction costs, inevitably leading to deficits. Surprisingly, the same company that insisted on significantly higher construction costs the previous year now submitted a bid lower than the estimated cost, raising concerns about the viability of submarine construction costs. • Issues with Subcontracting Core Equipment and Price Differences Another challenge is the government-led development of core equipment for submarines, which is managed by DAPA rather than directly by the defense contractors. This structure forces companies like HHI to manage subcontracting for the core equipment, adding uncertainty to how the pricing of these components affects the overall bidding proposal. On the contrary, the torpedo combat system supplied by Hanwha Systems follows a government-managed approach. Under this arrangement, DAPA directly contracts with Hanwha Systems to supply the torpedo system to the shipyard constructing the submarine. This ensures that, regardless of the shipyard selected through competition, the torpedo system is supplied at a consistent price, preventing abnormal situations like the current submarine project. If the 30% of the submarine construction cost, attributed to the four critical components, transitions from subcontracting to direct government management, fair competition can be ensured. This shift can also prevent equipment price inflation and allow for bulk procurement, leading to lower equipment prices. However, under the current subcontracting approach, these advantages are lost, and the competitiveness of the companies continues to diminish. • Government Initiatives Needed for Sustainable Development Without solutions to these two fundamental problems, HHI, which does not produce core equipment, will find it challenging to secure contracts, making it difficult to sustain a submarine production base. While Hanwha Ocean secured the third submarine construction project, the lack of profitability poses challenges for the company, hindering further investment or capacity building. Establishing a mutually beneficial relationship between the companies is crucial for global market dominance, as engaging in intense competition without a stable foundation may lead to setbacks. Therefore, long-term solutions are necessary to secure the sustainability of the entire submarine industry, enabling South Korea to compete globally in areas such as the K2 tank, K9 self-propelled howitzer, and FA-50 fighter jet. Government initiatives, aligned with past specialization and consolidation efforts, should be pursued. This involves selecting and designating competitive companies for each submarine type, ensuring equitable distribution of contracts. Additionally, flexibility in cost verification during the budget allocation process for batch projects is essential. Urgently transitioning the management of core equipment, a significant portion of construction costs, from subcontracting to government management is crucial. These measures will be vital to overcoming the challenges posed by unrealistic submarine acquisition budgets, losses due to intense competition, and monopolization and price hikes associated with subcontracting core equipment.

• “Low-Cost Carriers (LCCs) Edge Out FSCs and Foreign Airlines in International Route Competition“

  SEOUL (news2day) -The year 2023, marked by the full onset of the COVID-19 pandemic, is witnessing the heyday of Low-Cost Carriers (LCCs), heralding a new era in the aviation industry. As of the third quarter of this year, major Full-Service Carriers (FSCs) have experienced an increase in revenue but a decrease in operating profits. In contrast, LCCs have achieved their best performance to date. Notably, LCCs have demonstrated outstanding results in the international sector this year, surpassing Full-Service Carriers such as Korean Air and Asiana Airlines in international passenger market share. According to the aviation statistics from the Ministry of Land, Infrastructure and Transport, the number of international passengers from January to October was 55 million. Among them, Korean Air and Asiana Airlines accounted for a total of 18 million, with 11 million and 7.2 million, respectively, representing 33.45% of the total international passengers. In comparison, the international passenger count for the nine domestic LCCs was 19.5 million, constituting 35.45% of the total. In terms of passenger share, this is 2%P higher than the FSCs. The top three LCCs are Jeju Air, T'way Air, and Jin Air, with passenger counts of 6 million, 4 million, and 2.9 million, respectively. Until the outbreak of the COVID-19 pandemic in 2019, LCCs had been expanding their presence in the international sector. The percentage of total international passengers for LCCs steadily increased over the years: 9.63% in 2013, 11.48% in 2014, 14.60% in 2015, and 12.28% in 2016. Subsequently, it reached the 30% range with 26.38% in 2017, 29.17% in 2018, and 29.47% in 2019. While LCCs experienced a decline from 2020 amid the COVID-19 pandemic, dropping to 6.46% in 2021, they have rebounded in 2022. LCCs attribute their successful international performance this year to the popularity of "short-haul routes." Industry insiders state that the activation of routes to Japan and Southeast Asia, known as strengths for LCCs, played a significant role. Another industry source mentioned a shift in travel trends post-COVID-19, stating, "The pandemic has ended, and travel trends have changed. Many now prefer shorter trips abroad rather than long-distance travel, benefiting LCCs." Jeju Air's analysis of international passenger demand from January to June this year revealed that out of 2.66 million round-trip ticket purchasers, 54.8% (1.46 millions) traveled for 3 to 4 days. Among them, 20.8% (0.3 million) chose routes to Vietnam, the Philippines, Thailand, and other Southeast Asian destinations. The most popular destination by route was Japan, with 1 million, reaching 70.3% of the 2.66 million round-trip ticket purchasers. In response, LCCs are intensively competing to expand their short-haul routes. Jeju Air increased its international routes from 26 in Q3 of the previous year to 55 in Q3 of this year. In June, it introduced new flights three times a week on the Incheon-Oita route, followed by new routes in July (Incheon-Hiroshima) and December (Incheon-Da Nang). Jeju Air is set to launch new flights seven times a week on the Incheon-Da Nang route starting from December 20, 2023. During the summer peak season, Jeju Air expanded operations on popular routes to Japan, Southeast Asia, and Oceania. Depending on the route, the number of flights increased, such as Incheon-Sapporo from 120 to 186, Incheon-Fukuoka from 300 to 310, Incheon-Tokyo (Narita) from 326 to 336, and Busan-Tokyo (Narita) from 78 to 86, totaling 760 additional flights. Similarly, T'way Air expanded its international network by introducing new routes from Cheongju Airport to Da Nang, Bangkok, Osaka, Nha Trang, and Yeosu starting from early this year. T'way Air increased its routes from regional airports to absorb non-capital area passenger demand. T'way Air explained that these efforts contributed to the actual increase in performance. According to T'way Air, from January to October this year, 223,660 who traveled abroad through T'way Air from Cheongju Airport accounted for about 80% of the total international passengers at Cheongju Airport, which was over 278,900. Jin Air also expanded its international network by introducing new routes from Busan to Nha Trang in July, Incheon to Nagoya in September, and planning new routes from Busan to Taipei and Incheon to Phu Quoc in December, continuing to expand its international route network. The continued expansion of short-haul routes ultimately enables more efficient operation of aircraft, allowing for the transportation of more passengers. An industry insider explained, "The number of passengers is proportional to the supply of passenger planes. LCCs frequently travel short distances, while FSCs, considering long-haul flights, naturally have fewer passengers." If the trend of LCCs expanding their international presence continues in the fourth quarter, LCCs are expected to surpass FSCs in annual international passenger numbers for the first time since their inception in 2003. The aviation industry is closely watching developments in the fourth quarter. By Soyeong Jeon/ [email protected]

• “Lee's Vision for ‘New Samsung’ Hangs in the Balance as Verdict Looms”

  SEOUL (news2day) - In the midst of the ongoing first-instance verdict proceedings over the allegations of "illegal management succession" against Lee Jae-yong, the Chairman of Samsung Electronics, the prosecution has concluded its case, seeking a prison sentence for the Chairman. The fate of Lee Jae-yong is now in the hands of the court. The legal risk facing the top executive has far-reaching implications for the overall management of the company. Consequently, the current trial is viewed not merely as a personal issue for the Chairman but as a concern affecting the entirety of Samsung. Samsung, grappling with an unprecedented semiconductor crisis this year, is experiencing its worst performance, and the uncertainties surrounding its business environment make the absence of its leader potentially detrimental. As the verdict looms, there is a sense of unease within Samsung's internal atmosphere, particularly with the year-end approaching. According to industry sources, Chairman Lee became embroiled in controversy in 2015 for allegedly unlawfully intervening in the merger of Jeil Worldwide and Samsung C&T to strengthen the group's control and ensure a stable succession of management. He faced charges of violating capital market laws, external audit laws, and business embezzlement, and the trial has been ongoing for approximately three years since September 2020. The first-instance verdict hearing took place on the 17th of November. Throughout the proceedings, Samsung argued that the Chairman had not directly intervened in the merger and had never prioritized personal gain. However, the prosecution has sought a substantial penalty, proposing a prison term of five years and a fine of 500 million won. This decision takes into account Chairman Lee's final decision-making authority and the fact that he stands to gain from the alleged actions. Samsung is currently hopeful for a reduction in the sentence during the final verdict, aiming for the best-case scenario of acquittal or a suspended sentence. Nevertheless, the possibility of the Chairman's arrest cannot be entirely ruled out. If he is imprisoned, Samsung would face another leadership vacuum, leading to a period of emergency management. This potential scenario is a significant concern for both Samsung and Chairman Lee. The Chairman, previously entangled in legal issues related to the 2017 national scandal, experienced arrest during the first trial in February 2017. After being released on probation in August 2018, practical participation in management was restricted due to employment limitations. This restriction had tangible consequences for Samsung's strategic decisions. The absence of major mergers and acquisitions (M&A) since the Chairman's initial arrest is notable. Despite occasional mentions of M&A possibilities by key executives, no such deals were executed. Large-scale investments also fluctuated depending on the Chairman's active involvement. After his release and the subsequent significant investments in 2018 and 2020, no major announcements of additional investments were made in 2021, a year in which he was again incarcerated. Considering this history, if the Chairman faces another leadership vacuum due to the illegal succession trial, the repercussions for Samsung could be substantial. In 2022, after being released on probation as a special presidential pardon, Chairman Lee ascended to the leadership role and significantly accelerated Samsung's activities. Over the past year, he actively oversaw core businesses such as semiconductors, displays, and batteries, contributing to the accelerated transformation of "New Samsung." This year, Samsung's semiconductor business, its major source of strength, hit rock bottom. Facing continuous losses in the first and second quarters, totaling 8.94 trillion won in operating losses, the company was surrounded by crisis talks. Chairman Lee's assertive actions during this challenging period reflected Samsung's DNA of turning crises into opportunities. Amidst rapidly changing industrial landscapes, Samsung is gearing up for proactive responses to future challenges, focusing on innovation and growth preparation. While there are positive signals indicating a semiconductor industry recovery in the latter half of next year, losing Chairman Lee, Samsung's key driving force, at a time when the company is rebounding from its lowest point, raises concerns about weakened competitiveness. Chairman Lee emphasized these points in his plea to the court, expressing his commitment to generating continuous profits for the company and creating more job opportunities for young talents. He underscored his dedication to steering Samsung into becoming a truly world-class and beloved company. Industry insiders stress the critical role of top leadership in challenging business environments. Chairman Lee assumed the leadership role during challenging times, directly overseeing major domestic and international business operations, raising expectations for Samsung's crisis management and future growth potential. They further emphasized that with Chairman Lee having laid the groundwork for the leap to "New Samsung" over the past year, it is now time to expand on these foundations. Therefore, the impending verdict, even if it results in an acquittal or a suspended sentence, is crucial to preventing a leadership vacuum at Samsung and ensuring the Chairman's continued presence during a time when his influence is needed more than ever. By Soyeong Jeon / [email protected]

• "LG Electronics Seizes Growth Opportunities in Electric Vehicle Charging Infrastructure"

  SEOUL (news2day) - In a surprising turn of events, LG Electronics, led by CEO Cho Ju-wan, reported an impressive third-quarter consolidated revenue of KRW 20.7 trillion and an operating profit of KRW 9.967 trillion. Notably, the profit from the core home appliances sector more than doubled compared to the same period last year. The Vehicle Component Solutions (VS) division, a strategic business unit for LG, achieved record-breaking results in Q3, with revenue reaching KRW 2.5035 trillion and operating profit hitting KRW 1.349 trillion. This stellar performance positions the VS division as a cornerstone for LG's overall growth, with expectations of reaching an annual revenue exceeding KRW 10 trillion for the first time this year. With the company's focus on expanding its portfolio, LG Electronics is strategically tapping into the rapidly growing market of electric vehicle (EV) charging infrastructure. The global trend of increasing electric car adoption, with an estimated 14% of total new car sales being electric vehicles, has prompted LG to explore opportunities in the EV charging station sector. Rapid Growth of EV Charging Infrastructure with Increasing Electric Car Sales International Energy Agency (IEA) reports indicate a surge in electric car sales, with an expected record of 14 million units sold by the end of 2022, constituting 14% of all new car sales. This trend aligns with the steady growth of electric car sales in South Korea, reaching 162,987 units in 2022, as reported by the Korea Automotive Research Institute. As electric car adoption expands, so does the need for a robust charging infrastructure. The global charging infrastructure market is projected to grow at an average annual rate of 27%, reaching approximately $128.13 billion by 2030, according to a report by accounting firm Samjong KPMG. As of December 2022, South Korea had 19,408 electric vehicle charging stations, including 2,641 fast chargers and 17,344 slow chargers. In response to this growing demand, the government has outlined ambitious plans to increase the number of charging stations to 123,000 by 2030. LG's Strategic Entry into the Electric Vehicle Charging Business LG Electronics recognized the potential in the electric vehicle charging sector early on. In 2018, the company's Chief Technology Officer initiated the development of electric vehicle charging solutions. The acquisition of 'Apple Mango' (now known as High Bee Charger), a specialized electric vehicle charging company, in the late 2021 further strengthened LG's capabilities in charging technology and production. Expanding its foothold in the EV charging business, LG Electronics recently collaborated with major retail giant E-Mart to install 100 kW fast chargers and 7 kW slow chargers in over 30 E-Mart locations nationwide. The strategic partnership aims to enhance the overall customer experience, providing not only efficient charging solutions but also integrated cloud-based management systems. This collaboration is seen as a significant step towards LG Electronics' commitment, as mentioned by CEO Cho Ju-wan in July, to nurture the electric vehicle charging business into a multi-trillion won industry. The company's dedication to providing diverse services based on customer needs positions LG as a key player in the competitive EV charging market. As part of its long-term plan unveiled in July, LG Electronics aims to leverage its superior manufacturing capabilities, global operations, and business-to-business (B2B) initiatives to foster the electric vehicle charging business on a mega-scale. With a focus on delivering high-quality products, efficient after-sales service, and advanced solutions, LG Electronics is poised to expand its electric vehicle charging business not only in South Korea but also in North America and Europe. LG Electronics, along with other major South Korean conglomerates such as GS, SK, Hyundai, Hanwha, and LS, is actively exploring opportunities in the burgeoning electric vehicle charging infrastructure market. The collaboration between LG and E-Mart is expected to serve as a benchmark for the industry, showcasing the integration of convenient charging solutions with advanced control systems. In a statement, an LG Electronics spokesperson emphasized, "In the demanding field of electric vehicle charging, where reliability is crucial, we will leverage our manufacturing, quality, after-sales service, supply chain, and solution capabilities to expand the electric vehicle charging business globally." As the global electric vehicle market continues to evolve, LG Electronics remains at the forefront, strategically positioning itself to drive innovation and shape the future of electric vehicle charging infrastructure. By Soyeong Jeon / [email protected]

실시간 기사

• "South Korean Business Leaders Showcase Their Passion for Sports"

  SEOUL (News2day) = South Korean business leaders are showcasing an extraordinary passion for sports, with their enthusiasm becoming increasingly evident through their involvement in major sporting events. In 2023, their commitment to the world of sports took center stage, as they lent their support to events like the Hangzhou Asian Games in China and the regular season of the KBO League, South Korea's professional baseball league. Among these corporate giants, LG stands out as a company with a deep-rooted love for baseball. The LG family, including the late Koo Ja-kyung (died in 2019), the former honorary chairman of the LG Group, and several other members, is renowned for their avid passion for baseball. The late Koo Bon-moo (died in 2018), the former chairman of LG Group, served as the team owner for nearly 20 years, from 1990 to 2008. Following in his footsteps, Koo Kwang-mo, the current chairman, took the reins as the youngest team owner in 2019. Despite their fervor, LG Twins had struggled to secure a regular season championship since their fourth-place finish in 2002. However, on the 3rd of this month, LG Twins clinched the KBO regular season championship for the first time in 29 years. This achievement brings them one step closer to the long-cherished dream of winning the Korean Series. While the success can be attributed largely to the players, coaches, and management, Chairman Koo Kwang-mo's emphasis on "enhancing the customer experience" has positively influenced the team's operations, such as reviving the iconic black away jerseys, in line with his long-standing approach. The LG Twins' triumph signifies more than just a victory on the field. LG Sports, the company overseeing the team's operations, had reported a deficit of 10.8 billion KRW (approximately $9 million) up until last year. However, with the championship win, they now have the opportunity to generate income through various business avenues, potentially turning a profit in the process. In contrast, if baseball is associated with LG, then football is deeply connected to Hyundai Motor. The stability of the team's operations and the boost in player morale heavily depend on financial support, which comes from Hyundai Motor Group's chairman, Jung Eui-sun, known for his generous investments. Hyundai has been at the forefront of supporting underrepresented sports, including Korean fencing, handball, weightlifting, swimming, and e-sports. This commitment paid off at the 2023 Hangzhou Asian Games, where Hyundai-sponsored athletes brought home a total of 25 medals across various disciplines. SK Group has taken a different approach, going beyond popular sports like baseball and football to support lesser-known disciplines. This was notably highlighted during the 2023 Hangzhou Asian Games when SK Group, under the leadership of Chairman Choi Tae-won, sponsored nine different sports, including fencing, handball, weightlifting, swimming, and e-sports. This support resulted in 25 medals and widespread attention. Notably, SK Group once operated the prestigious baseball team 'SK Wyverns,' winning the Korean Series four times. However, in 2021, the group's decision to sell the baseball team without financial constraints raised many questions. It was seen as a strategic move to focus on generating broader societal value rather than purely seeking commercial profits through professional sports. SK's emphasis on supporting less popular sports is further validated, with plans to expand their involvement in disabled sports. The active participation of business leaders in sports offers several benefits, including enhancing corporate recognition, improving their image, and capturing a younger fan base. Nevertheless, it's important to recognize that sports marketing isn't without its challenges, as a team's performance or operational issues can sometimes harm a company's image or lead to financial deficits. For instance, fans' dissatisfaction with Jeonbuk Hyundai Motors' performance and lack of communication led to protests and public criticism, even involving Chairman Jung Eui-sun directly. This has led some companies to reduce their emphasis on sports marketing. Samsung, for instance, streamlined its sports management by consolidating its subsidiary teams' ownership and operations under the aegis of Jeil Wordwide. This move was initially expected to improve the financial performance of their sports teams, but results have been mixed, with some teams facing declines and even sale rumors, indicating that Samsung might be diminishing its focus on sports marketing. A corporate insider noted, "Sports teams aren't expected to generate profits for businesses. These teams are often run to uphold tradition, creating a sense of continuity." He added that corporate sports sponsorships aim to create job opportunities, boost local economies, and engage with the community, ultimately contributing to brand promotion by expanding community and social involvement. Therefore, companies are increasingly expanding their sports-related social contributions, both directly through athlete and event sponsorship and indirectly by enhancing various aspects of society. By Soyeong Jeon / [email protected]

  • ENGLISH

  2023-10-26

• "Lotte Unveils Mega Commercial Complex 'Lotte Mall Westlake Hanoi' in Vietnam"

  Hanoi (News2day) - In Hanoi, Vietnam, Mr. Kim Sang-hyun, Vice Chairman of Lotte Corporation, revealed their ambitious vision for the 'Lotte Mall Westlake Hanoi' during a press conference on the 20th of September. The commercial complex, showcasing Lotte Group's extensive expertise, is set to open its doors on the 22nd, establishing itself as Vietnam's largest commercial complex. Lotte Shopping is setting its sights on elevating 'Lotte Mall Westlake' to become Vietnam's new landmark. Kim stated, "Lotte Mall Westlake is a grand-scale commercial complex that Lotte is presenting for the first time, akin to Lotte World Mall in Jamsil. It's an integration of hotel, mart, department store, aquarium, and cinema, among others. We anticipate it to become Vietnam's new landmark." Mr. Kim Jun-young, the head of Lotte Properties Hanoi, highlighted the distinctive features of Lotte Mall Westlake. First, he emphasized the exceptional Merchandising Director (MD) lineup in the shopping mall. Globally renowned SPA brands such as 'Zara,' 'Uniqlo,' and 'Muji,' as well as major flagship stores like 'Nike Rise,' 'Victoria's Secret,' and 'Diesel,' have made their mark. The mall boasts around 233 stores, and approximately 40%, or 85 stores, are specialized with 'first in the market' and 'flagship concept' features. Mr. Kim further added, "Lotte Mall Westlake can pride itself on having the highest MD standard within Vietnam. In terms of shopping mall size, there may be larger malls in Hanoi than Lotte Mall, but there's no shopping mall within Vietnam that can compare in terms of concept and MD." The complex also offers 'distinctive specialized spaces,' featuring trendy lifestyle stores. Notably, the 'Samsung Flagship' store is the only overseas outlet officially licensed by Samsung. Additionally, they have planned the first-ever 'Culture Avenue,' serving as a cultural hub, receiving enthusiastic responses from the local community. Lastly, the complex introduces themed F&B options like 'K-Food Street' and 'Selective Food Hall.' The F&B facilities are structured in a 'Let's Eat Alley' format, showcasing handpicked local culinary delights. Mr. Kim Jun-young, the corporate director, emphasized, "We have initiated a pre-opening by introducing elements that were not present in the Vietnamese market or attempting new endeavors. We are already receiving positive feedback from customers. Moving forward, we aim to be a company that goes beyond a simple shopping space, allowing people to enjoy culture and leading the market." Lotte Mall Westlake aims to achieve a total revenue of 80 billion Korean won by the end of this year. Furthermore, Lotte Shopping plans to utilize this launch as a stepping stone to venture into the Southeast Asian market through asset development. Lastly, Jeong Jun-ho, CEO of Lotte Department Store, outlined their broader vision, stating, "Up until now, our operations have been primarily centered around retail and sales facilities. In the future, our plan is to enter the Southeast Asian market in the form of asset development, including Lotte Construction's housing business. This is the primary objective of Lotte Mall Westlake." At the grand opening ceremony on the 22nd of September, key figures such as Shin Dong-bin, Chairman of Lotte Group, Kim Sang-hyun, Vice Chairman of Lotte Corporation, Park Hyun-chul, Vice Chairman of Lotte Construction, Jeong Jun-ho, CEO of Lotte Department Store, and Kang Sung-hyun, CEO of Lotte Mart, were present alongside relevant executives from affiliated companies and high-ranking Vietnamese officials. By Yerim Seo, a reporter of News2day / [email protected]

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  2023-09-29

• "Airline Industry Takes Off with Innovative In-Flight Cuisine to Delight Passengers"

  SEOUL (News2day) - As air travel becomes more accessible to the masses, a new era of seeking more than just getting on a plane has arrived. In response, airlines are deploying differentiated marketing strategies to attract more passengers. One of the marketing trends garnering recent attention is "in-flight cuisine." In the past, in-flight menus were limited, often featuring simple items like bibimbap. However, the demand for delicious and diverse in-flight meals has grown, prompting airlines to introduce innovative menu options. Particularly, airlines are collaborating with renowned chefs and dining service companies to offer high-quality in-flight cuisine, expanding passengers' choices. Recently, Eastar Jet unveiled the "VIPS Pepperoni Pizza," available for pre-order and on-site purchase in collaboration with CJ Foodville's VIPS. This Pepperoni Pizza, exclusively developed by CJ Foodville for Eastar Jet's in-flight menu, caters to family travelers on medium-haul international routes, offering a convenient option for both children and adult passengers to enjoy, possibly with wine or beer, according to Eastar Jet. Eastar Jet previously made aviation history by collaborating with the chicken brand BBQ, introducing the "BBQ Chicken Gangjeong" in 2018. This menu became immensely popular with an average in-flight sales rate of 80%. The "VIPS Pepperoni Pizza" will be available for sale on select routes to Taiwan, Japan, and Southeast Asia starting this month, alongside the "BBQ Chicken Gangjeong.“ An Eastar Jet representative stated, "We were the first airline to introduce branded chicken and pizza as in-flight meals. Through our exclusive convenience meals, passengers can find another source of enjoyment during their flight." Air Seoul, in partnership with Chef Jeong Hoyoung, known for his expertise in Japanese cuisine, introduced the "Takamatsu Udon In-Flight Meal," which has garnered attention. This menu includes three variations: "Plump Shrimp Salad Udon," "Soy Sauce Butter Udon with Eggs," and "Beef Marze Udon." These dishes feature a bibim udon style not commonly found in Korea and replicate the chewy texture of Takamatsu Udon, Chef Jeong's hometown specialty, with his unique recipes. Air Seoul also launched magnetic forms of the udon in-flight meal, adding another layer of fun and memories for travelers. They also offered a promotion of free premium check-in services for passengers who pre-ordered the udon in-flight meal. Furthermore, Jin Air collaborated with the popular donut brand Noted to offer a limited-time "Grape Cream Donut Set" for pre-order as an in-flight meal until July 13th. The donuts featured the airline's brand colors and a logo chocolate pick, grabbing passengers' attention. A Jin Air spokesperson commented, "Our collaboration with Noted was aimed at providing our customers with a fun and special experience. We plan to continue offering differentiated value to our customers through collaborations with various brands." These collaborative in-flight meals have received enthusiastic responses from passengers. An Air Seoul representative stated, "Since launching the bibim udon in-flight meal in May, it has consistently been the top-selling in-flight meal, surpassing all others." An Eastar Jet representative expressed expectations, saying, "Just as we developed products suitable for the in-flight environment and expanded routes along with promotions for BBQ Chicken, we aim to captivate passengers' in-flight experiences once again with branded chicken and pizza." For low-cost carriers (LCCs) offering budget fares, ancillary businesses such as in-flight meals and duty-free items are crucial revenue streams. These initiatives can also serve as opportunities for route promotion and customer attraction. For example, the Takamatsu Udon introduced by Air Seoul originates from Takamatsu, Japan, renowned for its udon. Interestingly, Air Seoul operates a direct flight to Takamatsu. Passengers can now sample udon on board before arriving at the udon capital, creating a promotional effect that may entice travelers to revisit the destination and reminisce about their journey. An industry expert emphasized, "In-flight meals are also part of an airline's service competitiveness. While revenue is important, in-flight meal marketing is a vital strategic aspect, as it can capture the interest of today's passengers and the future generation of travelers, the 2030 youth demographic." By Soyoung Jeon, a reporter of News2day / [email protected]

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  2023-09-13

• SP Lab launches clinical trials for three new developmental drug candidates to decrease cancer in patients

  SEOUL (News2day) - The biotech startup SP Lab(Solution Providing Lab) has recently initiated clinical trials in Bahrain for three developmental drug candidates. Representatives from SP Lab assert that, given recent advancements in medical and pharmaceutical biosciences, the mechanism underlying cancer initiation is now being understood as a metabolic disease or metabolic oxidative stress. Their commitment lies in addressing metabolic diseases, including cancer, by harnessing this scientific knowledge and the principles of quantum mechanics. According to our current scientific understanding, the universe is structured based on a standard model, similar to the periodic table used by physicists. Following the Big Bang, a complex interplay of particles, including photons, protons abundant in elements like hydrogen, and leptons like electrons, governs the formation of the cosmos. Even in the past, Schrödinger's profound insights, as exemplified in the book 'What is Life?', delved into the fundamental principles of life from a purely quantum mechanical perspective. In simpler terms, the interactions among the mentioned particles—photons, protons, and electrons—can be regarded as the foundational explanation for life's phenomena. SP Lab has developed candidate drugs rooted in these principles of physics, reinterpreting the domain of metabolic diseases. They have leveraged mitochondria, a pivotal element in metabolic diseases, and incorporated mechanisms inspired by the bacterial origin of mitochondria and the symbiosis of mitochondria in eukaryotic cells to enhance energy metabolism and electron transfer within mitochondria. This advancement aims to ameliorate issues related to imbalances in proton gradients within mitochondria. Thanks to the unique attributes of quantum mechanics, these drug candidates are expected to produce effects at an exceedingly rapid pace, akin to the speed of light in Einstein's theory of relativity or the velocity of electromagnetic waves. Currently, clinical trials are underway, focusing on the most prevalent diseases in Saudi Arabia, including non-small cell lung carcinoma (NSCLS), pancreatic ductal adenocarcinoma (PDAC), and hepatocellular carcinoma (HCC). Each of these trials involves ten participants, totaling thirty individuals. The assessment of Drug Metabolism and Pharmacokinetics (DMPK) for the three drug candidates, such as TQY-729 in the pipeline, is in progress. Upon the completion of preclinical trials, SP Lab will collaborate with the global Clinical Research Organization (CRO), OPIS, headquartered in Italy. The designated hospital for the registration of Saudi Arabian patients is Ibn Al-Nafees Hospital in Bahrain, with Dr. Ali Ahmed Dhaif and Dr. Jalal Al-Maskati serving as overall clinical supervisors. Additionally, clinical trials will expand to include the Expanded Access program, with plans for multi-center trials in Vietnam, expecting the participation of approximately 200 individuals. The Expanded Access program aims to provide renewed hope to terminal cancer patients who have exhausted available medical resources. By Jin young Park, a reporter of News2day / [email protected]

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  2023-09-11

• “SK Group Chairman Choi Tae-won Marks 25 Years of Transformative Leadership”

  SEOUL (News2day) = Chairman Choi Tae-won, 63, celebrated his 25th year at the helm of SK Group, a conglomerate that has thrived under his transformative leadership. Choi took over as chairman at the age of 38 in 1998, amid the tumultuous backdrop of the Asian financial crisis and IMF intervention. However, true to his resilient DNA, Chairman Choi steered SK Group with a philosophy of "Deep Change," propelling the conglomerate to new heights. Thanks to his leadership, SK Group overtook Hyundai Motor Group last year, ending their 17-year reign as the second-largest business group in South Korea. But Chairman Choi's influence extends beyond SK Group. As the youngest sibling in the business world, he now stands as the eldest, serving as the Chairman of the Federation of Korean Industries and leading the charge as the frontman for the bid to host the 2030 Busan World Expo, making significant contributions to the nation's economy and business landscape. Innovative Transformation Led by "BBC" Business When Chairman Choi assumed leadership on September 1, 1998, SK Group's assets were valued at 32.8 trillion won, ranking fifth in the industry. However, under his guidance, SK Group steadily climbed the ranks, securing the second spot last year with assets totaling 327.3 trillion won (as of May 2022), marking nearly a tenfold increase. At the core of SK Group's growth lies the innovative transformation centered around the "BBC" businesses—Battery, Bio, and Chip. In 2021, SK Group made headlines by acquiring semiconductor manufacturer Hynix (formerly Hyundai Electronics) for 3.4 trillion won, rebranding it as "SK Hynix." Despite initial opposition within the group, Chairman Choi's conviction prevailed, and the acquisition proved pivotal. SK Hynix faced challenges initially, posting a 220 billion won operating loss in its first year under SK Group. However, by 2013, it achieved an operating profit of 3.3 trillion won, and in the record-breaking year of 2018, it reached an operating profit of 20.8 trillion won, growing more than sixfold in just five years. Despite recent setbacks due to industry challenges, SK Hynix remains resilient and is eyeing future growth in the high-performance, high-capacity DRAM sector, with its "HBM" (High Bandwidth Memory) technology boasting a 50% global market share, promising a new avenue for success. Bolstering the Bio Sector The bio sector at SK Group traces its roots back to Chairman Choi's father, the late Chairman Choi Jong-hyun, who aimed to develop life-saving medications under the SK brand. Chairman Choi has further refined this vision by establishing bio-related companies such as SK Biopharmaceuticals, SK Bioscience, SK Plasma, and SK Pharmteco. These four companies collectively saw their revenue surge from 953.2 billion won in 2019 to 2.4 trillion won in 2021, achieving the highest growth rate within the group, second only to semiconductors and batteries. Chairman Choi continues to invest in expanding SK Biopharmaceuticals' new drug pipeline by establishing the "Innovation Drug TFT (Task Force Team)" in collaboration with SK Holdings, demonstrating his commitment to the bio sector's growth. Empowering the Battery Business Chairman Choi initiated the "Golden Egg" battery business, with SK On leading the charge. Despite being in its early stages, SK On has achieved remarkable revenue growth. In the first half of this year alone, its revenue soared to 7 trillion won, a 174.0% increase from the previous year. SK On plans to invest over 6 trillion won domestically, including the expansion of its third plant in Chungnam Province with an investment of 1.5 trillion won. By 2028, its total production capacity is expected to reach 14 gigawatt-hours (GWh), making it capable of supplying batteries to approximately 280,000 electric vehicles annually. This achievement brings Chairman Choi one step closer to his goal of having "every car run on SK batteries." Championing the Busan World Expo Bid Chairman Choi's dedication extends beyond the business world. As the Chairman of the Federation of Korean Industries, he has played an active role in revitalizing the organization and bolstering its role in economic cooperation. His leadership has stood out, even surpassing his role as SK Chairman in public perception. Chairman Choi has devoted substantial efforts to secure the 2030 Busan World Expo bid. He passionately states, "This is the moment; we cannot afford to miss it," as he tirelessly promotes Busan as the host city. His extensive global travels and tireless advocacy for the Expo have garnered attention and support. Despite facing challenges, including the controversy surrounding the "2023 New Songdo 25th World Scout Jamboree," Chairman Choi remains unwavering in his commitment to the Busan World Expo bid. The platform "Wave," established by the Federation of Korean Industries for this purpose, is actively facilitating discussions on global issues, providing solutions to address the challenges facing humanity. In closing, a business insider remarked, "Amid a global economic downturn affecting SK Group's key businesses, there are high expectations for Chairman Choi as a resilient player in times of crisis. His demonstrated crisis management and drive to overcome challenges could lead SK to emerge from its current difficulties and create opportunities for a new leap forward when economic stability is restored." Chairman Choi's successful conclusion of the Busan World Expo bid, despite recent setbacks, could be a pivotal moment for reevaluating his leadership once again. By Soyeong Jeon / [email protected]

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  2023-09-06