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기획코너 > Global Metro
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Disappointing Performance in the Electronics Industry… Operating Profit Down 29.19% for Samsung and 80.5% for LG Electronics Compared to the Third Quarter

The home appliance industry has revealed a disappointing fourth-quarter performance. While both revenue and operating profit showed growth compared to 2023, which was impacted by the "three highs" (high inflation, high interest rates, and high exchange rates), there was a noticeable decline compared to the previous quarter. On January 8, Samsung Electronics and LG Electronics announced their preliminary results for the fourth quarter of 2024. Samsung Electronics reported consolidated revenue of 75 trillion KRW and operating profit of 6.5 trillion KRW, while LG Electronics posted revenue of 22.78 trillion KRW and operating profit of 1.46 trillion KRW. Both companies reported a sharp decline in operating profit compared to the third quarter. Samsung Electronics saw a 29.19% decrease in operating profit, falling from 9.18 trillion KRW in the previous quarter. Revenue also declined by 5.18% compared to the prior quarter. The main reason for the weak fourth-quarter performance is attributed to the downturn in the DS (Device Solutions) division, which handles Samsung's semiconductor business. Although Samsung did not disclose division-specific results in its preliminary earnings report, industry experts estimate that the operating profit for the DS division in the fourth quarter was in the mid-3 trillion KRW range, down from 3.9 trillion KRW in the previous quarter. LG Electronics reported an 80.5% drop in operating profit for the fourth quarter compared to 7.52 trillion KRW in the third quarter of 2023. However, its revenue grew by about 2%. On a positive note, LG Electronics achieved a record-high annual cumulative revenue of 87.74 trillion KRW in 2024, marking a 6.66% increase compared to 2023. This continues the streak of record-breaking annual revenues since 2021, with a compound annual growth rate (CAGR) exceeding 10%. LG Electronics attributed the decline in operating profit for the fourth quarter to the surge in international shipping rates caused by risks in the Middle East region and the uncertain business environment in the second half of 2024. Industry insiders also believe that intensified competition in key business areas such as TVs and home appliances, along with increased marketing costs and higher new business investment expenses in the Business Solutions (BS) division, were significant contributing factors. An LG Electronics representative stated, "We will focus on strengthening the fundamental competitiveness of our business, including quality and cost, while also striving to secure a healthy profit structure through the optimization of fixed costs." ChatGPT를 사용하여 번역한 기사입니다.

2025-01-08 15:23:02 메트로신문 기자
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"From Trustworthiness to AI Agents"... Crowdworks Publishes '2025 AI Trend Report'

AI tech company Crowdworks announced on the 8th that it has published the "2025 AI Trend Report," forecasting new trends in the AI market for 2025. One of the key AI trends highlighted in the 2025 AI Trend Report is 'trustworthiness.' The report predicts that as the importance of reliable and responsible AI technology grows, the advancement of AI will be ethical and transparent. Securing trustworthiness is emphasized not as an option for businesses, but as a critical factor for long-term success. Governments of major countries, including South Korea, are expanding policies to enhance AI safety and trustworthiness, and companies are actively seeking strategies to build reliable AI systems, according to the report. The report identified "multimodal AI" as another key trend. Multimodal AI is a technology that processes and integrates various data formats, such as text, images, videos, and simulations. Crowdworks stated, "Multimodal AI will lead future technological advancements," and explained, "It has the potential to improve interactions with customers using rich datasets and offer high productivity in domain-specific applications." The company also projected that it will significantly contribute to driving organizational operations and research and development (R&D) innovation, enhancing efficiency, while also strengthening the contextual accuracy of AI models. The report also highlighted "autonomous AI agents" as another trend to watch. Autonomous AI agents are technologies that help process tasks with minimal human intervention. As a result, businesses are expected to redefine their operational methods and workforce management strategies through AI agents. It is particularly anticipated that AI agents will play a significant role in streamlining workflows and driving innovation across various industries, including customer service, product design, and field support. In addition, the report also highlighted the following AI trends to watch in 2025: ▲ the development of generative AI services, ▲ sustainable AI development, ▲ cybersecurity, ▲ changes within corporate organizations, and ▲ the commercialization and specialization of large language models (LLMs). Kim Woo-seung, CEO of Crowdworks, stated, "As AI's influence on daily life continues to grow, 2025 will be a crucial turning point for AI technology to make a new leap." He added, "Only companies that actively utilize AI and innovate their technologies will be able to maintain competitiveness in the changing market." Meanwhile, Crowdworks plans to launch an AI trustworthiness verification service within this year. This service will provide a comprehensive verification system, including automated assessments and red team operations, to help companies efficiently validate the trustworthiness of AI and gain practical insights. ChatGPT를 사용하여 번역한 기사입니다.

2025-01-08 15:11:47 메트로신문 기자
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[CES2025] The World's Largest IT and Electronics Expo Kicks Off… Samsung and LG's Home AI Showdown

Dive in! The world's largest electronics and IT trade show, CES 2025, opened on January 7 (local time) in Las Vegas, USA. This year's CES, which will run until January 10, features over 4,500 companies from 160 countries, making it the largest event in its history. The organizer, the Consumer Technology Association (CTA), has set the theme for this year's CES as "Dive in." The core agenda is to "connect through technology, solve problems, discover new possibilities, and dive in." This year's CES is once again focused on artificial intelligence (AI). While last year's CES highlighted the potential and direction of AI technology, this year’s event showcases more concrete directions and the application of AI across vast areas, featuring vertical AI. Vertical AI refers to AI that has been customized and advanced from general-purpose AI models, such as large language models (LLMs), to perform specific functions. ◆AI Homes: Making My Home More Personalized… Samsung Electronics vs. LG Electronics Battle This year, both Samsung Electronics and LG Electronics set up massive booths at the main exhibition hall, the Las Vegas Convention Center (LVCC), showcasing the CES flagship theme of "Smart Homes." Smart homes refer to AIoT technology, which combines the Internet of Things (IoT) with artificial intelligence (AI), enabling efficient management and control of the entire home system. Samsung presented "Home AI," offering a highly personalized experience for users, while LG proposed a "holistic experience," where AI blurs the boundaries between physical spaces and virtual environments in everyday life. Ahead of the CES 2025 opening on January 6 (local time), Samsung Electronics held the "CES 2025 Samsung Press Conference" and unveiled its Home AI vision under the theme, "AI for All: Expanding Experiences and Innovation." Home AI, powered by the AIoT platform SmartThings, connects over 100 products within the SmartThings ecosystem, including Samsung products and those from more than 300 partner companies. This enhanced connectivity provides an AI experience that reflects all user data. By considering living arrangements, lifestyles, daily routines, work and leisure activities, space usage, and objects, it offers a highly personalized experience that distinguishes various situations and patterns. On this day, Samsung Electronics introduced SmartThings Ambient Sensing technology, based on spatial AI. Ambient Sensing uses connected devices to detect and analyze user patterns, movements, and surrounding sounds, summarizing home information or providing notifications and suggestions for actions when needed, ultimately enhancing comfort and convenience. Samsung plans to further enhance usability by incorporating its AI voice assistant, Bixby, into the overall Home AI experience in the future. As a hyper-connected and hyper-personalized Home AI system, strong security has been ensured using the security solution Samsung Knox. A Samsung Electronics representative explained, "Through blockchain technology, the connected devices are protected from security threats, safeguarding both data and each other. We will expand Samsung Knox Matrix to all Wi-Fi-enabled home appliances." On the same day, LG Electronics held its world premiere under the theme "Life's Good with Empathetic Intelligence" and presented its future vision. LG Electronics President Cho Joo-wan stated, "The seamless connection of products and services across various spaces in daily life is the differentiated customer value that empathetic intelligence can provide, setting it apart from other AI technologies." He added, "LG Electronics' ultimate goal is to create a holistic customer experience through empathetic intelligence, anytime and anywhere." CEO Cho identified key elements for realizing a holistic experience, including ▲connected devices, ▲competent AI agents, and ▲integrated services, and shared the company's efforts to secure these components. To implement these essential elements, LG Electronics acquired the global smart home platform company AtHome last year, securing a network of smart products reaching hundreds of millions worldwide. LG Electronics has also established connectivity with over 170 IoT device brands globally and plans to expand further. Additionally, the company is accelerating the development of LG Puron, which serves as the brain of the AI home system. LG Puron understands customers' situations and contexts in real-time and uses this information to control devices and services accordingly. LG Electronics plans to further advance and evolve its AI home technology through a strategic partnership with Microsoft. By combining Microsoft's AI technology with the products LG owns across various spaces—such as homes, vehicles, and commercial spaces—and leveraging the customer insights gained from these environments, LG aims to lead innovation and implement integrated empathetic intelligence services. ChatGPT를 사용하여 번역한 기사입니다.

2025-01-07 16:18:23 메트로 기자
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Amid China's Dominance, K-Battery Market Share 'Shaken'... Diversifying Business Strategies for Counterattack

Amid the steady global increase in demand for EV batteries, South Korea's market share is declining due to the rapid growth of Chinese companies. Despite U.S. and European efforts to curb its influence, China is leveraging its domestic market to produce excess supply and expand sales to emerging markets. In response, South Korean battery manufacturers plan to focus on diversifying their business strategies, including the production of low-cost models and hybrid batteries. According to industry sources on January 7, the total battery usage in electric vehicles registered worldwide from January to November 2024 reached approximately 785.6 GWh, a 26.4% increase compared to the same period the previous year. During the same period, South Korea's top three battery manufacturers (LG Energy Solution, Samsung SDI, and SK On) saw growth in their global EV battery usage. However, their market share declined by 3.7 percentage points year-over-year, falling to 19.8%. In this context, South Korean companies are expected to enter the LFP (Lithium Iron Phosphate) battery market, which is dominated by Chinese manufacturers, to achieve tangible results. The growing exports of Chinese firms have made it increasingly challenging for South Korea's battery makers to compete with their NCM (Nickel, Cobalt, Manganese) batteries, which are their core products. Automakers such as Volkswagen, GM, and Hyundai Motor are reportedly expanding the use of LFP batteries in their mid- to low-priced vehicle lineups. LFP batteries are, on average, 20-30% cheaper than NCM-based ternary batteries. This cost advantage significantly enhances the price competitiveness of electric vehicles, making LFP batteries highly attractive in the market. China holds a dominant position in LFP battery-related patent filings. As of 2022, China accounted for 63% of all LFP-related patents, with 4,695 filings. It was followed by the United States (11%), Europe (9%), and South Korea, which holds approximately 10% of the share. In this context, South Korea is pursuing a strategy to secure its market position through qualitative competitiveness in patents and technological breakthroughs. With China's price advantage driven by low labor costs and access to raw materials, there is a growing consensus that domestic companies must focus on developing differentiated technologies to maintain their competitiveness. LG Energy Solution has signed a contract with Renault in France to supply pouch-type LFP batteries for electric vehicles. The agreement spans five years, starting at the end of 2025, and involves the supply of approximately 39 GWh of batteries—enough to produce around 590,000 pure electric vehicles. The batteries will be manufactured at LG Energy Solution's Poland plant and will be installed in Renault's next-generation EV models. Samsung SDI has begun developing LFP batteries for energy storage systems (ESS) with the goal of mass production by 2026. The company is particularly focusing on lightweighting LFP batteries to enhance its technological competitiveness. Meanwhile, SK On was the first among South Korea's top three battery manufacturers to unveil a prototype LFP battery for electric vehicles in March 2023, targeting mass production between 2026 and 2027. An industry insider stated, "LFP batteries have high price competitiveness, and demand is expected to steadily increase, particularly in the mid- to low-priced EV market." They added, "As the EV market expands, the proportion of the mid- to low-priced segment will inevitably grow, making it highly likely that the market share of LFP batteries will continue to increase." ChatGPT를 사용하여 번역한 기사입니다.

2025-01-07 16:08:28 메트로 기자
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K-Shipbuilding Anticipates 'Supercycle Boom'… Accelerates Global Market Expansion

The domestic shipbuilding industry has officially entered a "supercycle," characterized by high demand and strong performance. Notably, the "Big Three" shipbuilders in South Korea—HD Korea Shipbuilding & Offshore Engineering, Hanwha Ocean, and Samsung Heavy Industries—are raising expectations of achieving a collective profit for the first time in 13 years. This trend of profitability improvement is anticipated to continue this year. According to industry sources on January 7, South Korea's "Big Three" shipbuilders are expected to post a collective profit for the first time in 13 years, based on annual performance for last year. This marks their first joint profitability since 2011. Financial data provider FnGuide projects the combined revenue of HD Korea Shipbuilding & Offshore Engineering, Hanwha Ocean, and Samsung Heavy Industries for 2023 to reach 45.64 trillion KRW. This represents a 24.3% increase compared to the previous year's 36.71 trillion KRW. Operating profits also saw significant growth during the same period. HD Korea Shipbuilding & Offshore Engineering is projected to record an operating profit of 1.42 trillion KRW for 2023, more than quadrupling its 2022 figure of 282.3 billion KRW. Hanwha Ocean and Samsung Heavy Industries are also estimated to achieve annual operating profits of 156.7 billion KRW and 474.7 billion KRW, respectively. An industry insider stated, "Revenue and operating profits have significantly increased as shipbuilders have begun delivering selectively secured orders." The upward trend in the performance of South Korea's shipbuilding industry is expected to continue this year. As the delivery of low-cost ships ordered before 2020 is completed, the industry is entering a period where the benefits of selective order-taking are being maximized. HD Korea Shipbuilding & Offshore Engineering secured $20.56 billion (approximately 30.24 trillion KRW) in orders last year, achieving 152.2% of its annual target of $13.5 billion. Samsung Heavy Industries recorded $7.3 billion (approximately 10.74 trillion KRW) in orders, reaching 75% of its $9.7 billion target. Hanwha Ocean also achieved an order intake of $8.86 billion (approximately 13 trillion KRW). HJ Shipbuilding & Construction achieved its highest-ever annual order volume last year. The company secured orders worth 1.75 trillion KRW in its shipbuilding division, marking a 150% increase compared to 2022 and a 300% increase compared to 2023. In addition, expectations for additional orders from countries such as the United States and India are growing this year. U.S. President-elect Donald Trump has mentioned the possibility of a shipbuilding alliance with ally South Korea. Amid these developments, Hanwha Ocean and HD Hyundai Heavy Industries are making their presence felt in the U.S. naval vessel maintenance, repair, and overhaul (MRO) market, where orders are expected to increase to around 10 ships this year. Hanwha Ocean became the first in South Korea to secure an MRO (Maintenance, Repair, and Overhaul) contract for U.S. Navy ships last year. The company won consecutive contracts for the MRO of two vessels, the USS Willi Shear and the USS Yukon, boosting expectations for additional orders in the future. HD Hyundai Heavy Industries, a rival in the specialized ship sector, is also gearing up to enter the MRO (Maintenance, Repair, and Overhaul) business in earnest starting this year. According to market research firm Mordor Intelligence, the global naval vessel MRO market is valued at approximately 85 trillion KRW, with the U.S. alone accounting for nearly 22 trillion KRW. Both Hanwha Ocean and HD Hyundai Heavy Industries completed preparations to enter the U.S. MRO market by signing a Master Ship Repair Agreement (MSRA) with the U.S. Navy Supply Systems Command in July last year. Additionally, key officials from the Indian government visited the facilities of South Korea's Big Three shipbuilders to discuss potential shipbuilding cooperation between the two countries. Recently, the Indian government announced its ambition to become one of the world's top five shipbuilding nations by 2047. As part of this goal, India plans to establish shipbuilding and maintenance clusters locally. The country aims to expand its fleet from the current 1,500 vessels to approximately 2,500 in the coming years. An industry insider stated, "The shipbuilding industry's large supercycle should have transitioned from an upturn to a downturn by now, but the prolonged Russia-Ukraine conflict has solidified energy trade flows, allowing shipbuilders to maintain an advantage in negotiations." They added, "In particular, South Korea's major shipbuilders have already secured 3 to 4 years' worth of orders, and with the strong dollar trend expected to persist, their performance is likely to continue its upward trajectory." ChatGPT를 사용하여 번역한 기사입니다.

2025-01-07 16:02:23 메트로신문 기자
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China's Export Restrictions on Cathode Materials and Lithium Technology... Battery Material Independence Becomes Crucial

Amid escalating U.S.-China trade tensions, China's Ministry of Commerce is reportedly considering export restrictions on electric vehicle battery manufacturing processes and the extraction technologies for lithium, a critical mineral. In response, South Korea's secondary battery industry, heavily reliant on China for battery materials, is actively working to diversify its value chain and stabilize its supply chain to address this challenge. According to industry sources on January 6, China's Ministry of Commerce has reportedly announced plans to include electric vehicle battery cathode material manufacturing technologies and the extraction processes for lithium and gallium in its export prohibition and restriction list. This move is expected to expand export controls from graphite to the cathode material and lithium sectors. China's Ministry of Commerce announced that it will accept public feedback on the proposed measures until February 1. However, no specific timeline for implementing the technology export controls has been provided yet. According to China's state-run Xinhua News Agency, the move is part of the government's efforts to strengthen the management of technology exports and imports. In December 2024, the United States announced semiconductor export controls that added certain high-bandwidth memory (HBM) products to its list of restricted items for export to China. In response, China immediately imposed export bans on dual-use items such as gallium, germanium, and antimony the following day, escalating the trade conflict. This latest announcement is seen as China's strategic move to leverage its dominance in battery component manufacturing and critical mineral processing technologies amid President-elect Donald Trump's plans to escalate tariff conflicts with China. China produces over 70% of the world's lithium batteries and accounts for 90% of the production of lithium iron phosphate (LFP) battery cathode materials. With export restrictions expanding from anode materials to cathode materials, the United States and Europe are expected to become even more vigilant about battery energy security risks. South Korean companies are also likely to accelerate efforts to reduce their reliance on China within the battery supply chain by pursuing concrete diversification strategies. The battery industry is expected to focus not merely on cost reduction but on ensuring supply chain stability. Given the current structure that relies on China—a key competitor—for intermediate and raw materials for cathode production, securing a stable supply chain has emerged as an even more critical challenge. POSCO Future M has taken steps to secure stable resources through non-Chinese supply chains. To this end, the company signed a contract with POSCO Pilbara Lithium Solutions to purchase and supply 20,000 tons of lithium hydroxide for cathode material production. Additionally, POSCO Future M plans to strengthen its technological competitiveness in high-nickel ternary cathode materials, its core product, and expand its product portfolio to include cathode materials for both low- and high-end electric vehicles. This strategy aims to meet the diverse needs of its customers. The EcoPro Group is pursuing vertical integration of nickel, precursors, and cathode materials in Indonesia. As part of this strategy, the company plans to establish an integrated cathode material subsidiary in Indonesia and actively work on securing nickel resources. An industry official stated, "As efforts to reduce reliance on China intensify, securing the stability of the battery material supply chain has become a critical challenge." They added, "The key lies in achieving sustainable competitiveness through diversification of the global supply chain." ChatGPT를 사용하여 번역한 기사입니다.

2025-01-06 16:19:17 메트로신문 기자
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Big Tech's AI Data Center Race: The Hidden Side... Microsoft Leads with $46 Billion Investment

As competition intensifies over dominance in artificial intelligence (AI) technology, big tech companies are aggressively investing in the construction and expansion of AI data centers. However, with the cost of establishing a single data center running into trillions of won, criticism is mounting that this competition is becoming the exclusive domain of large corporations with ample financial resources. According to reports from The Wall Street Journal (WSJ) and other international media on January 6, Microsoft plans to invest $80 billion (approximately 117.76 trillion KRW) in data center construction by the end of its fiscal year in June 2025. This figure represents about 38% of the total capital expenditure of $209 billion (approximately 308 trillion KRW) by the four major big tech companies—Microsoft, Google, Meta, and Amazon—last year. Brad Smith, Vice Chair of Microsoft, stated in an official blog post on January 3 (local time), "Microsoft will make substantial investments in AI data centers during the 2025 fiscal year to train AI models and deploy AI and cloud-based applications worldwide." He added, "More than half of this investment will be made within the United States." Microsoft's move is seen as a strategic effort to secure a leading position in AI technology, addressing the growing demand for data centers required to train and deploy generative AI models. Microsoft currently operates over 300 data centers worldwide. Since beginning its investment in OpenAI in 2019, the company has actively expanded its AI investments, including the development of its own AI technologies. Microsoft is already leading in AI data center investments. According to a report by the multinational information analytics firm Visual Capitalist, Microsoft invested $46 billion (approximately 67 trillion KRW) in AI data centers from January to August 2024, making it the largest global investor in this sector. During the same period, Google invested $33 billion (approximately 48.15 trillion KRW), Meta invested $27 billion (approximately 39.4 trillion KRW), and Amazon invested $19 billion (approximately 27.72 trillion KRW) in AI data center operations and infrastructure development. Amazon, with 215 data centers, follows Microsoft in terms of scale and capacity. However, concerns are growing that such large-scale investments could exacerbate the technological gap between nations. Countries lacking the substantial capital and technological infrastructure required to build data centers are increasingly at risk of falling behind in the global AI race. The rising costs of training AI models are fueling concerns that global big tech companies may monopolize AI technology. In fact, Google and Amazon are spending significantly more on training AI models than on inference, which refers to running those models. This is attributed to the continuously increasing costs of essential infrastructure, such as dataset creation, power consumption, and high-performance GPUs required for AI training. In South Korea, there is a growing call for policy support and international cooperation to bridge the technological gap and remain competitive in the global AI race. In response, the Ministry of Science and ICT (MSIT) has increased the 2024 budget for AI research and development (R&D) by 20% compared to the previous year. This initiative aims to support small and medium-sized enterprises (SMEs) and startups in developing AI technologies. An industry expert stated, "Building AI infrastructure at the national level is essential for securing technological sovereignty and will have a positive long-term impact on the national economy." They added, "Strengthening collaboration with international companies is crucial to narrowing the technology gap and enhancing competitiveness." ChatGPT를 사용하여 번역한 기사입니다.

2025-01-06 16:07:18 메트로신문 기자
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Refining Industry Accelerates Development of SAF and Bio-Marine Fuel Technologies Amid Expectations for Government Support

The oil refining industry is expected to face significant uncertainty this year due to complex factors such as the prolonged global economic downturn and rising exchange rates. In response, there is a growing trend of seeking breakthroughs through eco-friendly business initiatives. According to industry sources on January 5, the European Union (EU) has mandated that all aircraft departing from European airports must use a fuel blend containing at least 2% Sustainable Aviation Fuel (SAF) starting this year. The mandatory blending ratio is set to increase to 6% by 2030 and 70% by 2050. Similarly, the United States has set a goal to replace all aviation fuel with SAF by 2050. In line with this trend, the need for government support in the fields of SAF and bio-marine fuel was highlighted at the recent government-led "Petroleum Conference." Consequently, the industry is optimistic that concrete support measures will be introduced starting next year. On December 26, the Ministry of Trade, Industry, and Energy, along with the Ministry of Land, Infrastructure, and Transport, held the second plenary meeting of the "SAF Blending Mandate Design Task Force." SAF (Sustainable Aviation Fuel) is an alternative aviation fuel that reduces carbon emissions by up to 80% compared to conventional jet fuel. The SAF market, valued at approximately 1 trillion KRW in 2021, is projected to grow to around 29 trillion KRW by 2027, according to industry forecasts. Previously, the government announced plans to mandate a 1% SAF (Sustainable Aviation Fuel) blending requirement for all international flights departing from South Korea starting in 2027. This aligns with the International Civil Aviation Organization's (ICAO) Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), which will become mandatory that year. In response, the oil refining industry has begun developing SAF to pioneer the eco-friendly aviation fuel market. SK Energy, a subsidiary of SK Innovation, has established a dedicated production line for SAF using the co-processing method and has commenced commercial production. Notably, SK Energy became the first South Korean oil refiner to export SAF to Europe. The exported SAF was produced through the co-processing method, which processes bio-feedstocks such as used cooking oil and animal fats. HD Hyundai Oilbank became the first in South Korea to export SAF to Japan in May 2024. The company reportedly exported products certified under the ISCC EU system, which is recognized by the European Union. GS Caltex supplied CORSIA-compliant SAF to Japan last year by blending general aviation fuel with SAF sourced from Finland’s Neste. The company also plans to invest in facilities (CAPEX) for direct production of SAF in the future. S-Oil also established a co-processing production line and began supplying SAF to Korean Air's regular passenger routes once a week in August 2024. In September, the company expanded its supply to include Asiana Airlines and T'way Air's regular passenger routes. Bio-marine fuel is emerging as a key eco-friendly business area for oil refiners. The market is projected to grow to 11 trillion KRW by 2034. Bio-marine fuel is a blend of traditional marine fuel and biodiesel, offering significant advantages such as eliminating the need to retrofit ship engines or fuel supply systems. Additionally, it can utilize the existing marine fuel supply infrastructure, making it a highly practical alternative. The government conducted a 1.5-year pilot project on bio-marine fuel from July 2023 to December 2024. Based on the results of this study, the Ministry of Trade, Industry, and Energy plans to establish quality standards and refine legal and institutional frameworks to support the domestic commercialization of new biofuels. As a result, bio-marine fuel is expected to become commercially available in South Korea as early as this year. An industry official stated, "Eco-friendly fuels such as SAF and bio-marine fuel are gaining attention as growth drivers for refiners, especially in light of stricter global regulations." They added, "With government support and advancements in technology, the domestic refining industry can secure a competitive edge in the global market." ChatGPT를 사용하여 번역한 기사입니다.

2025-01-06 13:48:01 메트로신문 기자
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SK Energy Exports Sustainable Aviation Fuel to Europe... "A First Among Korean Refiners"

SK Energy became the first South Korean oil refinery to export Sustainable Aviation Fuel (SAF) to Europe. SK Energy announced on the 5th that it has exported Sustainable Aviation Fuel (SAF) to Europe, produced using a co-processing method. This approach involves processing bio-based materials such as used cooking oil and animal fats. As of January this year, European countries have implemented regulations requiring that at least 2% of aviation fuel must be blended with Sustainable Aviation Fuel (SAF). Currently, Europe is the only global market where the use of SAF is mandatory. SK Energy, which has established a leading large-scale production system for SAF, successfully commenced exports immediately after the European Union (EU) implemented its SAF usage mandate. Previously, in September 2024, SK Energy established a production line using the co-processing method and began commercial production of SAF. Co-processing involves integrating a separate bio-feedstock supply pipeline into existing petroleum product production processes, enabling the simultaneous production of SAF, bio-naphtha, and other low-carbon products. In particular, SK Energy has secured a competitive edge in exports by establishing a large-scale production system capable of producing approximately 100,000 tons annually of SAF and other low-carbon products. An SK Energy representative stated, "Leveraging the R&D capabilities of the Environmental Science and Technology Institute and the engineering expertise of SK Innovation's Ulsan Complex (Ulsan CLX), we established a large-scale production system and activated commercial production lines, which proved instrumental in achieving successful exports." Previously, SK On Trading International, a subsidiary of SK Innovation, invested in a waste-resource-based feedstock company. With SK Energy successfully producing and exporting SAF, the company has completed a global value chain encompassing raw material procurement, production, and sales. Building on this foundation, SK Energy plans to expand its presence in the global SAF market while also supplying SAF domestically during the first half of this year. Lee Chun-gil, head of SK Energy's Ulsan CLX, stated, "We plan to closely monitor market conditions, including changes in domestic and international SAF policies and demand fluctuations, while actively pursuing the expansion of SAF production and exports." ChatGPT를 사용하여 번역한 기사입니다.

2025-01-05 15:35:38 메트로신문 기자
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Hyundai Glovis: Target Prices Raised by Securities Firms Following News of Major Contract Signing

Securities firms have positively assessed Hyundai Glovis' stock, raising its target price, as the company is expected to see improved performance following the renewal of maritime transportation contracts with Hyundai Motor and Kia. According to the Korea Exchange on January 5, Hyundai Glovis closed at 134,500 KRW on January 3, up 0.52% from the previous trading day. Over the past three trading days, the stock has surged approximately 15%, continuing its upward trend. This sharp rise is attributed to improved investor sentiment following the announcement on December 31 of a five-year long-term maritime transportation contract with Hyundai Motor and Kia, valued at approximately 6.7 trillion KRW. The new contract extends the previous three-year agreement to five years and significantly increases the contract value. Yang Ji-hwan, a researcher at Daishin Securities, commented, "This renewal of the long-term transportation contract is considered an exceptional outcome that exceeds market expectations." He explained, "The annualized contract value amounts to approximately 1.34 trillion KRW, which represents a 105% increase compared to the 6,550 billion KRW annual average of the previous three-year, 1.9 trillion KRW contract signed in 2021." As expectations for Hyundai Glovis' profitability improvement grow, securities firms have consecutively raised their target prices for the company. Daishin Securities increased its target price from 160,000 KRW to 170,000 KRW. Researcher Yang noted, "The proportion of Hyundai Motor and Kia's shipping volume has decreased from 60% to 50%, reducing the company's reliance on affiliates. Additionally, the five-year long-term transportation contract, reflecting the peak boom in pure car carrier (PCC) freight rates, has further strengthened performance stability." Hana Securities also raised its target price for Hyundai Glovis from 150,000 KRW to 164,000 KRW. Researcher Song Seon-jae from Hana Securities stated, "Hyundai Glovis is improving profitability by acquiring new customers, such as Chinese automakers, which has led to an increase in non-affiliate sales. Non-affiliate volumes are estimated to have grown by over 30% last year and continue to rise." He added, "Considering these factors, Hyundai Glovis' revenue from finished car maritime transportation is expected to grow by 11% this year." Alongside performance improvement, enhanced shareholder returns are also anticipated. Researcher Song emphasized, "While the growth potential of core business units is strengthening, Hyundai Glovis is also expected to expand shareholder returns, including a dividend payout ratio of at least 25% and a minimum 5% increase in dividends per share (DPS). Additionally, the company has set ambitious business goals of achieving over 40 trillion KRW in revenue and a return on equity (ROE) of more than 15% by 2030, which will further enhance shareholder value." ChatGPT를 사용하여 번역한 기사입니다.

2025-01-05 15:35:30 메트로신문 기자
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Domestic Auto Industry Faces Sluggish Domestic Demand… Turns to Exports for Growth

The domestic automobile industry faced a significant blow to local sales last year due to the economic downturn and high-interest rates. However, increased export volumes helped mitigate the impact on overall performance. According to the automobile industry on January 5, Hyundai Motor and Kia Motors failed to meet their combined sales target of 7.44 million units last year, largely due to the sluggish domestic market. Meanwhile, Korea GM (GM Korea) and KG Mobility (formerly SsangYong Motor) experienced their worst domestic sales performances. On the other hand, Renault Korea Motors maintained a positive trajectory, buoyed by the success of new model launches. Last year, Hyundai Motor sold 705,000 units domestically, a 7.5% decline compared to the previous year, while Kia managed 540,000 units, down 4.2%. However, both Hyundai and Kia successfully offset the domestic downturn by leveraging strong export growth to stabilize their overall sales volumes. Notably, Kia achieved its highest-ever global sales record last year, selling 3,089,457 units. The decline in domestic sales was offset by overseas sales, which reached 2,543,361 units—a 1% increase compared to 2023. For this year, Kia has set a global sales target of 3,216,000 units, representing a 4.2% growth compared to last year’s performance. Hyundai Motor and Kia are focusing on penetrating global markets to overcome challenges. They are targeting the North American eco-friendly vehicle market by ramping up operations at their Georgia plant, while also expanding sales in emerging markets through localization strategies in India and Indonesia. Hyundai plans to launch the large electric SUV Ioniq 9 in the U.S. this year. Kia, meanwhile, aims to drive innovation in the automotive industry with its purpose-built vehicle (PBV) PV5 and expand its presence in emerging markets. The company is set to introduce the compact SUV Siroce and the pickup truck Tasman, targeting markets in India, the Asia-Pacific region, Latin America, and Africa. Mid-sized domestic automakers experienced mixed fortunes in domestic and export markets. Notably, Korea GM (GM Korea) and KG Mobility (formerly SsangYong Motor) recorded their worst domestic sales figures. Korea GM sold 24,824 units, a decline of approximately 35% year-over-year, while KG Mobility sold 47,000 units, a 25.7% drop. Korea GM's domestic sales last year were its lowest since 1982, when it sold 22,184 units. However, both Korea GM and KG Mobility saw notable increases in export volumes. Korea GM recorded 474,735 units in overseas sales, a 10.6% year-over-year increase, marking its highest export figure since 2014. KG Mobility achieved a significant 18.2% rise in exports, with 62,378 units sold abroad. KG Mobility aims to boost both domestic and export sales in 2025 with the launch of new models such as the Torres Hybrid and O100. These initiatives highlight the company's strategy to strengthen its market presence globally and locally. In contrast, Renault Korea Motors, which had struggled with declining sales for an extended period, experienced a resurgence thanks to the popularity of its first new model in four years, the Grand Koleos. Renault Korea achieved a total of 106,939 units sold last year, comprising 39,816 units domestically and 67,123 units for export. Notably, its annual domestic sales rose by an impressive 80.6% year-over-year. Buoyed by the success of its new model, Renault Korea aims to maintain its upward momentum through additional launches. Domestically, the company will focus on boosting Grand Koleos sales, while expanding export volumes with the Arkana. The Grand Koleos is also expected to make significant contributions to export performance. Additionally, Renault Korea plans to strengthen its presence in the domestic electric vehicle market by introducing the compact electric SUV Renault Scenic E-Tech next year, targeting environmentally conscious consumers. An official from the automobile industry stated, "Last year, the domestic market faced significant challenges due to the economic downturn caused by high interest rates and inflation." They added, "This year, the focus will be on increasing sales volumes by addressing the sluggish domestic market while also intensifying localization strategies to penetrate emerging markets, including the U.S." ChatGPT를 사용하여 번역한 기사입니다.

2025-01-05 15:35:22 메트로신문 기자
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U.S. Solar Cell Import Dependence to Increase This Year… Positive News for Korean Solar Industry

U.S. solar module imports are expected to decline throughout 2025 following the expiration of tariff exemptions for Chinese-origin modules assembled in Southeast Asia. However, the increase in solar cell imports signals a positive trend for domestic companies involved in building the solar energy value chain within the United States. According to industry sources on January 2, U.S. solar module imports peaked at 5.88 GW (gigawatts) in May 2024 but began to decline in June 2024. This downturn coincided with the expiration of duty-free measures on June 6 for panels assembled in four Southeast Asian countries—Thailand, Vietnam, Cambodia, and Malaysia. These countries have been widely regarded as alternative routes for Chinese manufacturers to assemble and export solar modules to the U.S. market. In contrast, U.S. solar cell imports have significantly increased, rising from a low of 0.71 GW in April 2024 to 1.41 GW in October 2024—an approximately 100% growth. Cumulative solar cell imports for the U.S. reached 10.86 GW by October, a staggering 281% year-over-year increase. This growth is largely attributed to the tariff rate quota system implemented under the U.S. International Trade Commission's (ITC) safeguard measures. In January 2018, during the Trump administration, the U.S. introduced a safeguard policy that exempted tariffs on annual imports of up to 2.5 GW of crystalline silicon solar cells. In February 2022, President Biden raised the quota to 5 GW, and in August 2023, expanded it further to 12.5 GW. Imports exceeding this limit remain subject to a 14.25% tariff. This policy adjustment has been identified as a key factor driving the substantial increase in U.S. solar cell imports. In this context, the U.S. is projected to face a mid- to long-term shortage in solar cell production capacity compared to its module production capacity. According to the Solar Energy Industries Association (SEIA), the U.S. has an estimated solar module production capacity of approximately 40 GW, but its cell production capacity is below 10 GW. As a result, the U.S. is expected to rely heavily on imported cells to meet its module production needs. This reliance is seen as a positive signal for domestic companies establishing solar value chains in the U.S., such as Hanwha Solutions' Qcells division (Hanwha Qcells). Hanwha Qcells is anticipated to benefit significantly as it invests over 3 trillion KRW to create a "solar hub" in the U.S. The hub will include the entire solar value chain, from ingot and wafer production to cells and modules, with the project slated for completion in early 2025. Hanwha Qcells is expanding its production capabilities, targeting a total capacity of 8.4 GW by combining its upgraded Dalton plant and the newly constructed Cartersville plant. This comprehensive approach positions Hanwha Qcells as a key player in addressing the U.S. solar industry's cell production gap. OCI Holdings is also targeting long-term performance growth through the expansion of its solar value chain in the U.S. The company is reportedly working to establish a joint venture in the U.S., aiming to enhance its vertical integration. This includes leveraging OCIM's polysilicon production, MSE in Texas, and OCI Energy to build a non-China-centric solar value chain. A potential variable, however, is the shift in energy policies under the second Trump administration. While there is speculation that a return to some fossil fuels may occur, the dominant view is that the administration will intensify its stance on containing China. An industry insider noted, "If the Trump administration's measures to counter China become more aggressive, it could create significant opportunities for domestic solar companies." ChatGPT를 사용하여 번역한 기사입니다.

2025-01-02 17:18:24 메트로신문 기자
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Demand Contraction Leads to Decline in Crude Steel Production... Steel Industry Focuses on Profitability Defense This Year

The global steel industry continues to experience a decline in cumulative crude steel production due to weakening demand. This trend is largely attributed to the downturn in the construction sector and an overall slowdown in demand, prompting steel manufacturers to adjust production levels. The steel industry anticipates that a recovery in market conditions will remain challenging through 2025 and plans to focus on cost reduction and production adjustments to protect profitability. According to the World Steel Association (WSA) on January 1, global crude steel production in November reached 150 million tons, a 0.8% year-over-year increase. However, it marked a 3.5% month-over-month decline and a 1.4% decrease year-to-date compared to the previous year. China, the world’s largest steel producer, reported November production of 78.4 million tons, up 2.5% from the same month in the previous year but lower than October's 81.9 million tons. Cumulatively, China's production for the year through November stood at 930 million tons, a 2.7% year-over-year decrease. The crude steel production of Japan, the United States, Russia, and South Korea—ranked 3rd to 6th globally—continues to decline. In November, production volumes for these countries fell by 3.1%, 2.8%, 9.2%, and 3.6%, respectively, compared to the same period in the previous year. This downward trend in production is largely attributed to seasonal demand slowdowns during the winter off-season. Steelmakers have been adjusting production levels to address sluggish demand and growing steel inventories, taking measures such as reducing plant operating hours. The steel industry is expected to adopt "downsizing" strategies through 2025 to navigate the ongoing recession. With an unfavorable market outlook for the year ahead, companies are focusing on minimizing risks and implementing measures to sustain their operations and profitability. In November, POSCO ceased operations at its Pohang Wire Rod Plant No. 1 after 45 years and 9 months of operation. This marks the second shutdown at the Pohang site in 2023, following the closure of Pohang Steel Plant No. 1 in July. The decision to shut down operations was driven by a combination of factors, including the global oversupply of steel, the influx of low-cost steel imports, and aging facilities. Hyundai Steel has also reportedly adopted a plan to scale back operations at its Pohang Plant No. 2, which handles steelmaking and rolling processes. The plant will transition its workforce structure from the existing four-shift, two-team system to a two-shift, two-team system for both its steelmaking and rolling operations. This adjustment is attributed to low utilization rates caused by the downturn in the construction sector. Hyundai Steel's Pohang plant, one of South Korea's key production bases for bar and shape steel products after its main Incheon plant, primarily focuses on producing H-beams. The operational adjustments highlight the impact of weak demand and challenging market conditions on the steel industry. To make matters worse, a surge in exchange rates is adding to the challenges faced by domestic steelmakers. Most raw materials required for steel production are imported from countries like Australia and Brazil, with payments made in U.S. dollars. As the exchange rate rises, the cost of these imports increases, further straining profitability. In a report, Samjong KPMG projected that global steel demand in 2025 will be driven primarily by the United States, Europe, and India. Additionally, it noted that if domestic interest rates are lowered, a recovery in construction orders could ease inventory burdens for bar products like rebar and H-beams. However, the report also highlighted potential risks, including market saturation due to an influx of low-cost Chinese products and profitability challenges stemming from rising industrial electricity rates. These factors are expected to exacerbate the difficulties for the steel industry in the coming years. hyeon@metroseoul.co.kr

2025-01-02 13:38:54 메트로신문 기자
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[Mega Hit Product Story] Jeong Kwan Jang's Everytime: Diversifying Formats, Flavors, and Ingredients to Lead K-Health Functional Foods

In 2012, Jeong Kwan Jang introduced "Everytime," the first stick-type red ginseng product, ushering in an era of convenient health care. It quickly became a beloved essential for busy modern individuals seeking to maintain their health amidst hectic daily lives. By offering various formats such as sticks, films, and ampoules, and expanding its product lineup with diversified flavors, ingredients, and functionalities, it has established itself as a leading health functional food brand in South Korea. ◆ Convenient consumption plays a significant role in attracting 2030 customers. "Everytime" was born in 2012 as a result of listening to consumer demands for a more convenient way to consume red ginseng. Prior to the launch of "Everytime," KGC's (Korea Ginseng Corporation) sales were primarily driven by concentrate-type products. Through extensive field research, the company identified a growing demand among younger consumers for red ginseng products that were easy to carry and consume. In response, KGC began developing a stick-type red ginseng product and named it "Everytime," signifying its convenience for consumption anytime and anywhere. "Everytime" was the first product to introduce red ginseng in stick form. "Everytime" received an enthusiastic response from the outset. Its annual sales, which stood at 9 billion KRW in 2013, surged to 48 billion KRW in 2015, surpassed 100 billion KRW in 2016, and reached 190 billion KRW in 2019. Over 12 years since its launch, it achieved cumulative sales of 1.5598 trillion KRW, solidifying its position as a mega-brand. The product garnered significant attention after appearing in popular dramas such as Misaeng and Descendants of the Sun. This popularity led to "Everytime" being nicknamed "Misaeng Red Ginseng" at one point, earning explosive acclaim not only among the 20s and 30s demographic but also among 40-something office workers. ◆ Expansion of a tailored lineup for TPO (Time, Place, Occasion). Building on the success of "Everytime," Jeong Kwan Jang has consistently expanded its product lineup. Keeping pace with changing trends, the brand has introduced innovative formats beyond sticks, such as films and ampoules. Additionally, it has diversified its offerings by incorporating various ingredients and flavors tailored to TPO (Time, Place, Occasion), evolving from a "convenient red ginseng" product to a synonymous name for "convenient health." Among these innovations, the "Everytime Film," a red ginseng concentrate compressed into an oral dissolving film (ODF), has emerged as a second-generation "Everytime" product. Within just 16 months of its launch, it recorded cumulative sales of 4.8 million units. Its success is attributed to its ultra-lightweight individual packaging, making it easy to carry in a wallet or pocket, and the ability to consume it without water, offering convenience during busy workdays or workouts. "Everytime" has enhanced its accessibility by entering convenience stores and duty-free shops. With the growing demand for health products in accessible locations like convenience stores, Jeong Kwan Jang introduced two variants, "Everytime Refresh" and "Everytime Max," into these outlets. These products, designed to provide energy boosts and mood refreshment with a single stick, have gained popularity among office workers. In duty-free shops, the brand caters to the tastes of international visitors by offering delicious and enjoyable "Everytime" options. These include the "Everytime Film Fresh," featuring red ginseng with an apple-mint flavor, and the recently launched "Everytime Pear" and "Everytime Hallabong (Jeju Citrus)" flavors, inspired by Korea's representative fruits. Additionally, "Everytime Soft," enriched with licorice extract and propolis, offers a smoother red ginseng experience. It has gained significant traction online, ranking high in the health category on KakaoTalk Gift, underscoring its popularity as a convenient and thoughtful gift option. ◆ Rising as a K-Health Functional Food Leader… Annual Global Sales Reach 60 Billion KRW. "Everytime" is expanding beyond the domestic market, making significant strides in the global arena. In 2023 alone, it achieved overseas sales of approximately 60 billion KRW. This success stems from analyzing local health concerns, developing tailored products, and diversifying its distribution channels across major global markets. Notably, "Everytime" became the first Korean health functional food to be featured in Sprouts, a premium U.S. supermarket chain, receiving positive responses from consumers. Products such as "Everytime 2000mg," "Everytime Powerful Deer Antler," and "Everytime Energy Boost" have been designed specifically for the U.S. market and are available across all Sprouts locations. These offerings address the interest of American consumers in energy boosting and metabolism improvement, focusing on the blood circulation and fatigue recovery benefits of red ginseng, as recognized by Korean health authorities. Additionally, the products are formulated to reduce the bitterness of red ginseng, catering to the preferences of American consumers unaccustomed to such flavors. In Greater China, "Everytime" is credited with playing a significant role in shifting the market focus from traditional root ginseng to convenient ginseng-based products. Historically, Korean ginseng (red ginseng) was perceived as a "traditional Chinese medicine for the elderly," but since the launch of "Everytime," its convenience and ease of consumption have gained popularity, particularly among office workers in their 30s. In Taiwan, the grapefruit-flavored "Everytime You (柚)" has received widespread praise, especially among women in their 20s and 30s, highlighting the brand's appeal to younger, health-conscious consumers. A representative from KGC Ginseng Corporation commented, "Everytime has continuously evolved to become a beloved health essential in the daily lives of modern individuals. Moving forward, we aim to further enhance the global status of K-Health Functional Foods by understanding and addressing the lifestyles and health needs of people worldwide." ChatGPT를 사용하여 번역한 기사입니다.

2025-01-02 13:30:16 메트로신문 기자