I guess Korean consumers are just not into Canadian coffee:
Canadian coffee brand Tim Hortons, operated in Korea by BKR, closed its Cheongna location in Incheon on Sunday, according to industry sources on Friday.
This marks the first closure of a directly operated store since the brand entered Korea, coming just over a year after the location opened in April 2024.
Industry experts attribute the decision to multiple factors, including declining profitability and the fierce competition within the saturated Korean coffee market.
I think Philadelphia has such a bad reputation that skilled workers may be hesitant to move there. This means Hanwha may have to offer large pay options to attract additional workers:
Hanwha Ocean’s recent invitation of domestic securities analysts to its Philly Shipyard has sparked both optimism and skepticism over the Korean shipbuilder’s efforts to revive the money-losing facility in Philadelphia.
While analysts anticipate Hanwha will benefit from a surge in orders driven by U.S. President Donald Trump’s push to counter China’s maritime rise by bolstering the American shipbuilding sector, they also questioned whether it will be feasible to secure enough labor in one of the world’s highest-paying countries.
Shinyoung Securities analyst Eom Kyung-ah pointed out that securing the workforce will be key for Hanwha to meet its goal of increasing Philly Shipyard’s revenue to $4 billion by 2035 from $368 million in 2024 by expanding annual capacity to up to 10 vessels from the current 1 to 1.5.
President Trump’s tariffs are definitely contributing to this, but exports across the board are down for South Korea, not just to the U.S.:
South Korea’s exports plunged nearly 24 percent in the first 10 days of May, signaling that the US Trump administration’s tariffs are beginning to take a toll on the trade-dependent economy.
Outbound shipments totaled $12.8 billion during the May 1-10 period, down 23.8 percent from a year earlier, according to preliminary data from the Korea Customs Service released Monday.
Factoring in fewer workdays — five days during the period this year compared to 6.5 days in 2024 — average daily exports fell by just 1 percent, the agency added.
Shipments to China and the US — Korea’s two largest export markets — fell 20.1 percent and 30.4 percent, respectively. Exports to Vietnam declined 14.5 percent, while those to the European Union plunged 38.1 percent. Among the top five destinations, only Taiwan posted growth, with its shipments jumping 14.2 percent.
I guess we will see if this trip to Korea by Trump Jr. will lead to any breakthroughs in trade negotiations with the U.S.:
Donald Trump Jr., the eldest son of US President Donald Trump, arrived in Seoul on Tuesday for a meeting with around 20 business leaders from South Korean conglomerates, industry sources said.
The two-day trip by Trump Jr., his first to South Korea since his father’s inauguration in January, comes at the invitation of Shinsegae Group Chairman Chung Yong-jin.
Per sources, Trump Jr. arrived at Gimpo International Airport, western Seoul, in his private jet at around 6:25 p.m. Tuesday. It had been scheduled to touch down at 4:45 p.m. but there had been a slight delay before the departure.
Wearing a black cap and a long-sleeve shirt, Trump Jr. left the airport without speaking to the dozens of waiting South Korean reporters.
South Korean business circles asked Chung to facilitate Trump Jr.’s visit as a way to establish contact with the Trump administration, according to the sources.
I guess we will see next week if the ROK can strike a deal or not with the Trump administration. What will be interesting is if a deal is struck will the likely Lee Jae-myung administration in two months stick to it?:
The United States will engage in trade negotiations with South Korea next week, Treasury Secretary Scott Bessent said Monday, stressing the “first mover advantage,” as countries are striving to strike deals with the U.S. to minimize the impact of President Donald Trump’s tariff policy on their economies.
In a Bloomberg interview, Bessent touched on plans for upcoming negotiations with South Korea and Japan. Earlier this month, Trump imposed steep “reciprocal” tariffs on the two allies and dozens of other countries but later placed a 90-day pause on the new tariffs.
“We had Vietnam in last week. We (have) Japanese in on Wednesday. … South Korea next week,” he said. “So it’s going to move fast.”
The secretary underscored there will be a “first mover” advantage as Japanese Prime Minister Shigeru Ishiba told parliament Monday (Tokyo time) that Japan will not make compromises for the sake of quickly wrapping up tariff talks with the U.S.
“I think there will be advantage to our allies, especially a first mover advantage,” he said. “Usually, the first person who makes a deal gets the best deal.”
Since Samsung has so much production in Vietnam compared to Apple’s heavy reliance on China, they probably are in better position to navigate the growing trade war between the U.S. and China:
Samsung Electronics remains on alert amid the Donald Trump administration’s unpredictable trade policies, despite the United States granting tariff exemptions for smartphones, laptops, personal computers and semiconductor equipment.
The U.S. Customs and Border Protection said Saturday (local time) that those devices will be excluded from the sweeping 10 percent baseline tariff on nearly all countries, as well as the retaliatory 125 percent duty on China.
Following the updated guidance, Samsung has been considered one of the beneficiaries along with Apple and TSMC. Bloomberg described the measure as a “big win” for major tech firms.
The optimistic outlook stems from Samsung’s heavy reliance on production in Vietnam, which is on the verge of facing a 46 percent “reciprocal tariff” from the U.S. if trade talks between Hanoi and Washington fail following the current 90-day pause. The Korean company produces nearly 50 percent of all Galaxy smartphones sold globally at its Vietnamese facilities.
I think this is where the political crisis has really impacted South Korea, which is the inability to effectively negotiate tariffs with the Trump administration because you don’t know who will be President week-to-week:
Industry Minister Ahn Duk-geun, right, speaks at the Korea Chamber of Commerce and Industry in Seoul, Thursday, during a meeting with businesspeople to discuss countermeasures against U.S. reciprocal tariffs. In the middle is Trade Minister Cheong In-kyo.
Korea has been hit with the highest reciprocal tariff rate among the 20 countries that have free trade agreements (FTAs) with the United States.
With it clear that Seoul had failed to persuade Washington to impose lower tariffs on Korean products compared to those from major exporters like Japan and the European Union, concerns are growing over Korea’s diplomatic approach and future trade negotiations with the U.S.
The White House announced on Wednesday (local time) that the U.S. will impose a 26 percent reciprocal tariff on Korea, while charging 24 percent on Japan and 20 percent on EU member states.
It will not only be South Korean stocks dipping this week, but likely most of the world as well:
South Korean stocks fell 3 percent to a near two-month low Monday ahead of U.S. reciprocal tariffs set to be announced later this week amid the removal of a short selling ban. The local currency sharply fell against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) dropped 76.86 points to close at 2,481.12, marking the lowest closing since Feb. 3, when it finished at 2,453.95.
Trade volume was slim at 385.5 million shares worth 8.1 trillion won (US$5.5 billion), with losers sharply outnumbering winners 824 to 87.
Foreigners sold a net 1.5 trillion won worth of stocks, while institutions and individuals purchased a net 666.9 billion won and 789.9 billion won, respectively.
Analysts said investors were concerned that U.S. President Donald Trump’s reciprocal tariffs, slated for Wednesday (U.S. time), would trigger a global trade war. He also confirmed 25 percent tariffs on all imported cars set to take effect Thursday.
It looks like Korea is learning how to get in the good graces of the Trump administration, invest in America:
Hyundai Motor Group Executive Chair Euisun Chung listens, as U.S. President Donald Trump delivers remarks at the White House, in Washington on March 24, 2025 in this photo released by Reuters.
South Korean conglomerate Hyundai Motor Group said Monday it will invest US$21 billion in the United States through 2028, as U.S. President Donald Trump is ramping up tariff pressure to boost domestic manufacturing.
The group’s Executive Chair Euisun Chung, alongside Trump and Louisiana Gov. Jeff Landry, made the announcement on the plan that includes an investment of $8.6 billion for the automotive sector, $6.1 billion for the steel industry, component parts and logistics, and $6.3 billion for future industry sectors and energy.
“Today, I am pleased to announce an additional $21 billion in new investment over the next four years — our largest U.S. investment ever. A key part of this commitment is our $6 billion investment to strengthen the U.S. supply chain (for) steel and parts for automobiles,” he said at the White House.
This is quite a turn over in restaurants when the number of closures is even worse than the COVID years:
South Korea’s restaurant industry is in the midst of its worst downturn in nearly two decades, with over 107,000 eateries shutting down in 2024 — the highest number on record.
For the first time in 16 years, more restaurants closed than opened, signaling a shift in a sector once known for its resilience and fierce competition. A combination of rising ingredient costs, slowing consumer spending, and post-pandemic economic struggles has created a perfect storm in the industry.
According to government data, 10.4 percent of full-service restaurants closed in 2024, the highest closure rate since 2005. In the capital city of Seoul, the rate was even higher at 13 percent, while Sejong City saw a staggering 14.6 percent closure rate. These figures reflect a growing financial strain on restaurant owners, who have faced mounting challenges since the COVID-19 pandemic reshaped the dining industry.
