Category: Korea-Business

Another sector of the Korean defense industry could be receiving some work in the near future in the United States:

The world’s largest shipbuilder, HD Hyundai Heavy Industries Co. Ltd. of Ulsan, South Korea, has signed a deal to seek U.S. government shipbuilding and maintenance contacts in alliance with Philly Shipyard Inc., which employs around 1,000 at the former Philadelphia Navy Yard site in South Philadelphia.

An agreement to “explore a potential business relationship” for government work was signed April 12 by Won ho Joo, chief executive of HD Hyundai’s naval and special ships unit, and Steinar Nerbovik, who has run the Philly yard since 2014 on behalf of its owner, Norway-based Aker ASA. The deal announced this week follows a February visit by U.S. Navy Secretary Carlos Del Toro to Korean shipyards where he invited owners to invest in U.S. shipyards to build for military and civilian clients.

Stars & Stripes

You can read more at the link.

It looks like Hyundai is understanding that the vast majority of consumers do not want to drive an EV. I have always said the focus should be on plug in hybrid because the range anxiety is a real thing when it comes to EVs:

Hyundai Motor will boost sales of its hybrid cars and SUVs as part of its key strategy to ensure profitable growth amid falling sentiment for electric vehicles (EV), the company said Thursday during a conference call.

The decision came as demand for hybrid vehicles is on the gradual rise, after the global EV industry entered a chasm this year. The company displayed the vision after disclosing a slight fall in its first-quarter operating profit.

In a regulatory filing, the carmaker reported an operating profit of 3.55 trillion won ($2.58 billion) in the first quarter, down 2.3 percent from the previous year, hit by an overall sales fall. The company, however, generated robust sales of 40.65 trillion won, up 7.6 percent during the same period.

The company said it will place its management focus on defending its profitability by widening sales for hybrid vehicles and SUVs, at a critical juncture when the global EV industry shows no immediate signs of a rebound.

Korea Times

You can read more at the link.

The defense industry continues to be a major growth sector for the South Korean economy:

South Korean defense firm Hanwha Aerospace Co. is expected to export an additional batch of Chunmoo multiple launch rocket systems (MLRS) to Poland, a deal estimated at around 2.2 trillion won (US$1.6 billion), multiple sources said Tuesday. 

A Polish delegation, led by Deputy Defense Minister Pawel Bejda, plans to observe a test-firing of the K239 Chunmoo MLRS at the state-run Agency for Defense Development’s Anheung testing site in Taean, 109 kilometers southwest of Seoul, on Wednesday. 

A successful test of the system, modified to fit a Polish military vehicle, is expected to lead to a deal, sources familiar with the issue said. 

As Poland committed to buying 288 units of the Chunmoo and signed a contract to purchase 218 units in November 2022, the anticipated deal is likely to cover the remaining 70 units, they noted.

Yonhap

You can read more at the link.

This is a big incentive for Samsung to build a chip plant in Texas:

The U.S. government announced a plan Monday to award Samsung Electronics up to $6.4 billion in grants to support the Korean tech giant’s chipmaking investment in central Texas, as it strives to strengthen domestic semiconductor production.

The Commerce Department said it has reached a nonbinding preliminary agreement with Samsung to provide the grants under the CHIPS and Science Act to back the company’s expected investment of more than $40 billion, in the establishment of a “leading-edge semiconductor ecosystem” in the state.

Korea Times

You can read more at the link.

Is this the next tech revolution where instead of everyone walking around with smartphones, everyone is instead wearing headsets?:

Meta founder and CEO Mark Zuckerberg, center, poses with LG Electronics CEO Cho Joo-wan, left, and LG Corp. Vice Chairman Kwon Bong-seok, during a visit to LG Twin Tower in Seoul, Wednesday. Courtesy of LG Electronics

Mark Zuckerberg, founder and CEO of Meta, the U.S. tech giant behind leading social network services like Facebook and Instagram, held meetings with officials from Korean tech companies, Wednesday, to expand the extended reality (XR) ecosystem and foster cooperation in artificial intelligence (AI).

The Meta founder, who arrived in Korea the previous night, marking his first trip here since 2013, visited LG Electronics’ office and met with the company’s CEO, Cho Joo-wan. The discussions centered around technological cooperation related to extended reality (XR).

On the same day, the Meta chief also held private meetings with officials from XR-related startups in Korea. Later in the evening, he met Samsung Electronics Executive Chairman Lee Jae-yong at Seungjiwon, Samsung Group’s VIP guest house located in Seoul.

Zuckerberg’s meeting with Korean tech company representatives is seen as a move to try to build a strong software and hardware manufacturing ecosystem like Meta’s rival Apple.

Korea Times

You can read more at the link.

Paris Baguette in my opinion is not a bad bakery, but it is not a great one either and they are going to be up against some big competition in the Hawaiian market:

SPC Group opened Hawaii’s first branch of Paris Baguette, the company said Monday.

The first outlet of the Korean bakery franchise in the idyllic island state that attracts around 10 million global tourists annually is located in Honolulu’s popular Bishop Street.

Since SPC Group entered the Chinese market in 2004, it has opened over 550 stores in 10 foreign countries, including the United States, France, Britain, Canada, Singapore, Vietnam, Cambodia, Indonesia and Malaysia.

Korea Times

You can read more at the link.

People must have a lot of money to waste to spend up $1,800 over the current asking price for the Vision Pro just to get it earlier than when it is officially released in South Korea:

A customer uses Apple’s Vision Pro headset at the Apple Fifth Avenue store in Manhattan in New York City, U.S., February 2, 2024. [REUTERS/YONHAP]

Apple’s Vision Pro is being sold at a premium of as much as 2.4 million won ($1,800) in Korea as the new wearable is not officially available in the country. 
  
Some are even paying to experience the device for a couple of hours.

Apple’s MR (mixed reality) headset, the Vision Pro, launched in the United States on Feb. 1 to better-than-expected popularity despite a hefty price tag of $3,500 for the cheapest 256-gigabyte storage option. An estimated 180,000 units or more have been sold, selling out the pre-order quantity.

Major secondhand marketplaces in Korea have dozens of posts reselling the device at an inflated price. Mostly purchased in the U.S., these devices are listed with a price 1 million won to 2 million won over the official price tag.

Joong Ang Ilbo

You can read more at the link, but has any ROK Heads try this headset out yet? Is it anywhere near being worth the price currently listed for it?

Is this a good thing or a bad thing that South Korea has so many Starbucks stores?:

 South Korea held the fourth-largest number of Starbucks stores around the globe as of last year, data showed Monday, driven by solid demand from local consumers.

South Korea held 1,893 Starbucks stores as of 2023, up 116 from a year earlier, according to the data compiled by the U.S. coffee giant.

The figure falls just behind Japan’s count at 1,901, despite the Asian neighbor having a population twice the size of South Korea’s.

The Seattle-based coffee giant introduced its first store in Seoul in 1999 in partnership with Shinsegae Group, a Korean retail group.

Yonhap

You can read more at the link.