Businesskorea

Minister of Trade, Industry and Energy Kim Jung-kwan poses for a photo with U.S. Secretary of Commerce Howard Lutnick while attending the G20 Innovation Ministerial Meeting in Chapel Hill, North Carolina, on Sept. 2. (Photo courtesy of the Ministry of Trade, Industry and Energy) The government suddenly canceled a closed-door report to the National Assembly regarding investments in the United States originally scheduled to be held on Sept. 17. This is because South Korea and the United States failed to narrow down their last-minute differences over reactor model selection and control in the nuclear power plant construction sector, which is the core of the $200 billion U.S. investment project. According to the Ministry of Trade, Industry and Energy and the Trade, Industry, Energy, SMEs, and Startups Committee of the National Assembly on Sept.16, the committee postponed the closed-door plenary session scheduled for Sept. 17. The government had planned to report the progress of the first U.S. investment projects and detailed negotiations between South Korea and the United States at the meeting, including investment conditions for a gas combined cycle power plant in Texas, participation in an Alaska liquefied natural gas (LNG) project, and an equity investment in Westinghouse (WEC). An official from the Ministry of Trade, Industry and Energy reported that the schedule was adjusted during the consultation process between the National Assembly and the government, and the follow-up schedule will be determined later. Originally, the signing of a memorandum of understanding (MOU) between the two countries was highly likely on Sept. 18, right after the National Assembly report, but as working-level and ministerial-level negotiations were delayed, the postponement of the signing ceremony also became inevitable. The most decisive cause of the negotiation delay is the fight for control over the reactor model for the construction project of 8 new nuclear power plants in the United States, into which $120 billion out of the $200 billion investment will be injected. The two countries have agreed on the broad framework of building 8 nuclear reactors, but they continue to be in a tight confrontation over specific implementation plans regarding which reactor model to build, when, and how many units. The South Korean side adheres to the position that it will start early construction and build multiple units of the ‘APR1400,’ a domestic reactor model independently developed by receiving technology transfers from Westinghouse (WEC) in the 1980s. This is because successfully establishing the ‘APR1400,’ which has both construction experience and price competitiveness, in the U.S. market can widen the path for domestic nuclear supply chain companies to enter the United States and significantly boost their dominance in the global market. On the other hand, the US side hopes that the ‘AP1000,’ developed by its domestic nuclear company WEC, will be built with South Korean capital. The United States aims to revive its nuclear industry, which had been stalled for a long time since the Three Mile Island accident in 1979, but its position is unstable as Vogtle Unit 3, to which the ‘AP1000’ was applied, was completed 7 years late, and the construction of the V.C. Summer nuclear power plant was halted. Accordingly, the United States has a plan to first rebuild the ecosystem of its domestic nuclear supply chain by prioritizing the additional construction of the ‘AP1000.’ Due to the asymmetrical negotiation structure, it is highly likely that the ‘AP1000’ will account for the majority, but South Korea is persuading the United States to secure the quantity of the ‘APR1400’ and the timing for its early construction. This is due to concerns that if the focus is placed entirely on building the ‘AP1000,’ South Korea could bear the investment risk while its actual benefits could be drastically reduced. In addition, the South Korean side is attempting to increase its bargaining power by securing a stake in WEC, which is pursuing an initial public offering (IPO), but is experiencing difficulties due to opposition from WEC. As additional ministerial-level negotiations between Minister of Trade, Industry and Energy Kim Jung-kwan and U.S. Secretary of Commerce Howard Lutnick have grown distant, a final announcement within this week appears difficult. The domestic nuclear auxiliary equipment and materials industry, which had been establishing follow-up strategies for entering the U.S. market in line with the government’s policy timing, has also temporarily stopped its work and turned to a mood of watching the situation. Experts analyze that the tug-of-war over detailed conditions between the two countries could be prolonged because the symbolism and ripple effects of the reactor model that serves as the first project in the U.S. market, the birthplace of nuclear power, are massive. The South Korean government has been left with the task of securing the maximum possible volume of the ‘APR1400’ to maximize practical benefits against the investment injection, and thoroughly preparing measures to share the risks associated with the construction of the ‘AP1000.’

KOSPI daily trading volume hits year-low of 21 trillion won. (Yonhap) As investor sentiment freezes over surging oil prices and interest rates, the daily average trading value in the KOSPI market this month has dropped to the lowest level of the year. According to the Korea Exchange and Yonhap Infomax on Sept. 16, the daily average trading value in the KOSPI market from Sept. 1 to Sept. 15 was recorded at 21.432 trillion won (about $15.66 billion). This is the smallest volume on a monthly basis this year. The daily average trading value of the KOSPI continued an upward trend from 27.056 trillion won in January, swelling to 50.347 trillion won in June. However, it subsequently decreased to 36.875 trillion won in July and 25.846 trillion won in August, before falling into the 21 trillion won range this month. Compared to June, this level has dropped by more than half. Trading volume also contracted significantly. The daily average trading volume of the KOSPI this month stood at 3.467 billion shares, marking the lowest figure of the year. As the war between the United States and Iran prolongs, international oil prices are exceeding $100 per barrel, and government bond yields have soared due to inflation concerns, seemingly weighing down investor sentiment. Major countries taking successive steps to raise policy rates is also increasing the burden on the stock market. The yield on the 10-year United States Treasury note, which serves as a benchmark for global interest rates, continues to remain at a high level, having surpassed 5%, considered a psychological resistance level, on the previous day. The Bank of Korea raised its benchmark interest rate for two consecutive times last month, and the European Central Bank (ECB) also recently executed a rate hike. Amid forecasts that the Bank of Japan (BOJ) will raise interest rates this week, the possibility of a rate hike by the United States Federal Reserve (Fed) is also growing. The renewed spread of caution toward artificial intelligence (AI) technology stocks, which had led the KOSPI’s rise, is also cited as a factor for the trading contraction. As heads of major AI companies have recently mentioned the need to moderate the pace of investment one after another, the stock price movements of semiconductor stocks with large market capitalization weights, such as Samsung Electronics and SK Hynix, are also in a sluggish state. Lee Kyung-su, a researcher at Hana Securities, reported, “The market has lost its vitality due to the expansion of interest rate volatility, the continued preference for safe assets, and retail investors selling to break even.” He further analyzed that while short-term sector rotation movements are appearing, it is merely trading centered on stocks with large price drops, rather than a trend of funds continuously flowing into specific stocks. Han Ji-young, a researcher at Kiwoom Securities, pointed out, “The current downward pressure on stock prices strongly holds the characteristic of market caution temporarily heightening in the process where uncertainty over the September Federal Open Market Committee (FOMC) and noise regarding AI investment reduction are intertwining.” However, he forecast, “Unless a shock sufficient to express a willingness to fully launch a tightening cycle, such as an additional upward revision of the dot plot, emerges from the September FOMC scheduled for the early hours of tomorrow (Sept 16, local time), the pressure for further correction driven by the Fed will be limited.”

!Kim Dong-wook, Executive Vice President and Head of the LG Electronics SW Center is delivering a welcoming speech. [Photo provided by LG Electronics]Kim Dong-wook, Executive Vice President and Head of the LG Electronics SW Center is delivering a welcoming speech. [Photo provided by LG Electronics] LG Electronics held a developer conference, ‘LG AI DevCon 2026,’ to share its artificial intelligence (AI)-based software development know-how and achievements. About 1,500 developers from LG affiliates, including LG Electronics, LG CNS, and LG Uplus, participated online and offline in the LG AI DevCon 2026, which was hosted by the LG SW Council at LG Sciencepark in Magok, Gangseo-gu, Seoul, on Sept. 15 and 16. An exhibition space was also prepared where attendees could directly experience the latest AI technologies from NVIDIA, Microsoft, Google Cloud, Amazon Web Services (AWS), and LG AI Research. The keynote speeches were delivered by Jeong Ji-hoon, an adjunct professor at the Daegu Gyeongbuk Institute of Science and Technology and founding partner of A2G Capital, a Silicon Valley-based investment firm in the United States, and Shim Hyun-chul, a professor at the Korea Advanced Institute of Science and Technology (KAIST), well-known as the first generation of drone research in South Korea. Professor Jeong explained the transition process of AI-based software development methods, while Professor Shim discussed the recent trends in physical AI technology and its future development direction. LG Electronics shared the know-how and achievements accumulated by utilizing AI in the software development of its proprietary smart TV platform, webOS. LG CNS presented its results on improving outdated systems using AI, and LG Uplus announced its achievements in content creation utilizing a conversational AI agent. LG Electronics has reorganized the LG Software Developer Conference, which started in 2022, into the LG AI DevCon to align with changes in the AI-based software development environment. Kim Dong-wook, Executive Vice President and Head of the LG Electronics SW Center, said, “We will actively share AI utilization experiences and innovation cases accumulated in the development field to accelerate AI-based development innovation, and we will connect this to new values and services that customers can experience.”

McDonald’s Korea will launch two items, ‘McCrispy Gochujang Butter’ and ‘McSpicy Gochujang Butter Burger’ (Photo courtesy of McDonald’s Korea) McDonald’s Korea announced on Sept. 16 that it will introduce two new menu items utilizing its self-developed ‘Gochujang Butter Sauce’ and expand them to 13 Asian markets, stepping up efforts to strengthen the competitiveness of menus originating from Korea. According to McDonald’s Korea, the new products will be launched on Sept. 17 and consist of two burgers: ‘McCrispy Gochujang Butter’ and ‘McSpicy Gochujang Butter’. McDonald’s Korea led this campaign from the planning stage, and it will be sequentially rolled out in 13 Asian markets, including China, Vietnam, and Indonesia. Each market plans to introduce menus tailored to local customer tastes and market characteristics, using the Gochujang Butter Sauce as a motif. The Gochujang Butter Sauce features the soft and savory flavor of butter added to spicy gochujang. ‘McCrispy Gochujang Butter’ combines a Cajun patty made with whole chicken leg meat, Gochujang Butter Sauce, and Colby Jack cheese. ‘McSpicy Gochujang Butter’ enhances the spicy and savory flavor by adding Gochujang Butter Sauce and Colby Jack cheese to a spicy chicken breast patty. Along with the two burgers, the Gochujang Butter Sauce will also be sold separately. Customers can enjoy it according to their preferences by pairing it with McNuggets or French fries. An official from McDonald’s Korea said, “This new menu utilizes the Gochujang Butter Sauce developed in Korea, allowing people to enjoy Korean spiciness in a unique way,” adding, “As this campaign planned and led by McDonald’s Korea is being carried out in various Asian markets, we hope customers will also enjoy a special experience through diverse menus and content.”

SK Biopharmaceuticals has obtained approval for its innovative new drug in Japan, the world’s second-largest epilepsy market, fitting the last puzzle piece for its strategy to target the Northeast Asian market. SK Biopharmaceuticals announced on Sep. 16 that its partner, Ono Pharmaceutical, obtained a new drug approval for the epilepsy treatment ‘Cenobamate (Japanese product name Excopri)’ from the Japanese Ministry of Health, Labour and Welfare (MHLW). This approval was based on the results of a multinational phase 3 clinical trial conducted on adult patients with focal seizures in Korea, China, and Japan. Japan is considered the second-largest epilepsy market in the world on a single-country basis, following the United States. The number of local epilepsy patients is estimated to be about 1 million, and there is an unmet medical need for approximately 30% of them who do not see sufficient seizure control effects even with existing treatments. This Japanese approval is highly meaningful in that it has completed the market entry into the three Northeast Asian countries. SK Biopharmaceuticals had already secured approvals in Korea and China in November and December of last year, respectively. In China, it was officially launched in March of this year and the first prescription began, and in Japan as well, Ono Pharmaceutical saw the fruitful result of approval just over a year after submitting the new drug application in September of last year. The improvement in profitability following commercialization is also expected to become visible. SK Biopharmaceuticals will receive a milestone payment upon this approval according to the technology export contract signed with Ono Pharmaceutical in October 2020. Although the specific amount is undisclosed due to contract conditions, Currently, Cenobamate has obtained approval in more than 45 countries worldwide, including the United States and Europe. In the United States market, the local subsidiary SK Life Science is in charge of direct sales, while in other regions, the market is being expanded through partnerships. The Japanese partner Ono Pharmaceutical is currently conducting a phase 3 clinical trial for adolescent and adult patients with generalized tonic-clonic seizures, and a phase 3 clinical trial for pediatric patients with focal seizures is also speeding up. SK Biopharmaceuticals CEO Lee Dong-hoon emphasized that Japan is a core market that must be secured for global growth, stating that as the foundation for entering major Northeast Asian markets has been completed, the company will focus on creating commercialization outcomes that lead to actual patient prescriptions.