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- Kim Taek-jin’s Bold Global Bet: Aion 2 and LLL Return
- “NCSoft’s top priority right now is making a strong leap toward becoming a global game company.”
This is the goal announced by Kim Taek-jin, CEO of NCSoft, during the company’s 2022 general shareholders' meeting.
Kim's ambition to turn NCSoft into a global company is nothing new. Since the company’s early days, he has continuously sought to enter the global gaming market, particularly targeting North America and Europe—the heartlands of the industry.
Kim established NC West, a local North American subsidiary, and entrusted its leadership to his most trusted associate, his wife Yoon Song-yee, the former chairperson of the NC Cultural Foundation. He also actively pursued overseas expansion through NCSoft’s flagship IPs such as Lineage and Aion.
This effort yielded some success with titles like Guild Wars 2, and in 2023, NCSoft established a new North American entity called NC America to further strengthen its global business foundation.
At one point, Kim even explored acquiring Electronic Arts, the world’s largest game publisher, alongside the late Kim Jung-ju, founder of Nexon. Though the deal ultimately fell through, it remains a notable example of Kim’s genuine commitment to the North American and European markets.
NCSoft has experienced multiple setbacks in its attempts to expand into these markets.
Lineage, NCSoft’s flagship IP, failed to gain traction in the West, while Blade & Soul was seen as too heavily influenced by Eastern aesthetics to appeal broadly in North America and Europe. Aion achieved some popularity, but its momentum faded over time.
Still, Kim remains committed to his vision of “Global NCSoft.” Two key titles seen as the twin engines to realize that vision are Aion 2 and LLL.
△ Will Aion 2 Succeed Again in North America and Europe?
Aion is one of NCSoft’s representative MMORPGs and, apart from Guild Wars 2, the IP that received the highest acclaim in Western markets.
When it launched in 2009, Aion achieved pre-orders of 450,000 and surpassed 1 million units sold in North America and Europe, making it the first Korean-made game to sell over a million copies in the West.
The game also earned strong praise at major gaming events, winning “Best Online Game” at Germany’s Gamescom and being named “Best MMO” at PAX (Penny Arcade Expo), the largest game show in North America.
In terms of revenue, Aion generated more than KRW 100 billion (US$ 69.6 million) in North America and Europe, proving that Korean games could achieve meaningful profits overseas.
Ahead of the game’s release in 2008, Kim Taek-jin said, “Aion was developed with the global market in mind from the planning stage,” adding, “Next year will mark the beginning of Aion’s global expansion.”
The newly developed game Aion 2 builds on this successful IP. NCSoft is finally bringing out its most globally viable franchise.
The company plans to launch Aion 2 first in Korea and Taiwan during the fourth quarter of this year, followed by expansion into major global markets, including North America and Europe, by the third quarter of next year.
NCSoft is also preparing a localization strategy that includes multilingual support and region-specific content optimization to enhance the user experience in each market.
Industry insiders expect that if Aion 2 succeeds, it could not only boost NCSoft’s global revenue but also enhance the overall image of the Korean gaming industry abroad.
△ LLL: A Post-Apocalyptic Shooter Targeting Western Gamers
LLL is a AAA third-person shooter game that NCSoft aims to release in the second half of this year.
It marks a significant shift for NCSoft, which has historically focused on MMORPGs, and has generated high expectations internally as a sign of transformation.
The looter-shooter genre to which LLL belongs is particularly popular in North America and Europe. The genre includes global mega-hits like Destiny 2, the Borderlands series, The Division, and Warframe.
Because the genre appeals to male gamers in their teens to 30s, LLL could help NCSoft broaden its user base beyond the older demographic that dominated its previous titles.
LLL’s post-apocalyptic setting is another point of interest.
The game features a unique world where a ruined Seoul, 10th-century Byzantium, and a 23rd-century future coexist. It incorporates classic post-apocalyptic elements like ruined cities, mutants, and advanced weaponry.
This theme has proven globally popular in hits like The Last of Us and Fallout, establishing itself as a strong formula for success.
By reflecting these trends, LLL could help NCSoft move beyond its image as a developer of only fantasy MMORPGs and establish a new identity in the North American and European markets.
However, some experts caution that the competition in this genre is fierce.
The looter-shooter market is dominated by major global titles mentioned above. If the definition is broadened to include hero shooters, the competition becomes even more intense, with titles like Blizzard Entertainment’s Overwatch 2 and Riot Games’ Valorant leading the charge.
In July of last year, Nexon also entered this market with The First Descendant. Despite strong initial interest, it ultimately struggled to overcome the dominance of existing competitors.
△ Kim Taek-jin and NCSoft Take Another Global Gamble with Aion 2 and LLL
Since Guild Wars 2, NCSoft has not released a major hit in the North American and European markets. Now, with Aion 2 and LLL as twin pillars of its strategy, the company is aiming for a new leap forward in the global arena—a challenge that embodies both CEO Kim Taek-jin’s long-held dream and the company’s future direction.
NCSoft is taking a comprehensive localization approach, adapting scenarios, UI, and character design to Western tastes, and expanding into new genres in an effort to move beyond its “Lineage-like” legacy and tap into new markets.
An industry insider commented, “Compared to competitors like Nexon, Netmarble, and Krafton, NCSoft still has a relatively low share of global revenue,” adding, “While Throne and Liberty received a decent reception from global gamers recently, we’ll have to see whether Aion 2 and LLL can follow suit.”
#NCSoft #KimTaekjin #Aion2 #LLL #MMORPG #GlobalGaming #ShooterGame #GuildWars2 #Gamescom #PostApocalypticGaming
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- Yang Leads KB Toward KRW 6 Trillion Profit, Rewriting Value Strategy Ask ChatGPT
- Yang Jong-hee, Chairman of KB Financial Group, is expected to continue leading the financial group to record-breaking earnings this year.
KB Financial Group posted a net profit of KRW 3.44 trillion (US$ 2.4 billion) in the first half of the year, setting a new semiannual record. Following its achievement last year as the first Korean financial holding company to surpass KRW 5 trillion (US$ 3.5 billion) in annual net profit, analysts now expect it will soon break the KRW 6 trillion (US$ 4.2 billion) mark.
Given the scale of its share buyback and cancellation plan in the second half, the company’s total shareholder return ratio for the year is also expected to exceed 50%, possibly setting an all-time high for Korean banking stocks.
According to KB Financial on July 24, its consolidated net profit attributable to controlling shareholders reached KRW 1.74 trillion (US$ 1.2 billion) in the second quarter of 2025.
This represents a 0.3% increase from the same period last year (KRW 1.73 trillion), which had already marked the highest quarterly earnings on record. The result surprised market watchers, who had predicted a slight decline due to base effects from last year.
This quarter’s performance is even more meaningful considering it includes a KRW 130 billion (US$ 90.4 million) reversal of provisions related to compensation for losses on Hong Kong H Index equity-linked securities (ELS), and came amid a difficult business environment due to interest rate cuts.
KB Financial also saw its group’s net fee and commission income rise 12.2% year-on-year, surpassing KRW 1 trillion (US$ 695 million) for the first time in a quarter. This helped offset a 3.7% drop in net interest income.
Beyond traditional interest income, growth in bancassurance sales commissions, securities brokerage fees, and asset management fees contributed to the strong results.
As a result, KB Financial’s consolidated net profit for the first half of 2025 reached KRW 3.44 trillion (US$ 2.4 billion), up 23.8% from KRW 2.77 trillion (US$ 1.9 billion) a year earlier.
Barring major disruptions in the second half, the company’s annual net profit is expected to reach between KRW 5.7 trillion and 5.8 trillion (US$ 4.0–4.1 billion). According to FnGuide, prior to the earnings release, analysts had estimated KB Financial’s 2025 net profit at around KRW 5.6 trillion (US$ 3.9 billion), but the second-quarter result already beat that by about KRW 100 billion (US$ 69.5 million).
Expectations are rising even higher considering that KB Financial had absorbed more than KRW 600 billion (US$ 417.3 million) in one-off expenses last year due to ELS compensation.
In his first year as chairman, Yang achieved the unprecedented milestone of KRW 5 trillion in net profit, and now the company appears on track to reach KRW 6 trillion much sooner than anticipated.
If KB Financial reaches KRW 6 trillion in annual net profit, it will set yet another record in the history of Korean financial holding companies.
Ten years ago, in 2015, the combined annual net profit of the four major financial groups—KB, Shinhan, Hana, and Woori—first surpassed KRW 6 trillion, reaching KRW 6.1 trillion (US$ 4.2 billion). Now, KB Financial alone is on the verge of achieving that figure.
Under Chairman Yang's leadership, KB Financial is solidifying its position as Korea’s leading financial group.
In 2015, KB posted annual net profit of KRW 1.73 trillion (US$ 1.2 billion), trailing Shinhan Financial Group’s KRW 2.37 trillion (US$ 1.7 billion). The two groups have since competed closely for the top spot in net earnings. However, since Yang’s appointment, KB is expected to retain its lead over Shinhan for a second consecutive year.
Chairman Yang is also making steady progress with value enhancement strategies such as shareholder returns, supported by stable earnings and capital ratios.
Alongside the earnings announcement, KB Financial revealed a KRW 850 billion (US$ 591.2 million) share buyback and cancellation plan for the second half of the year. This would push the company’s total shareholder return ratio for 2025 above 50%.
That marks a significant increase from the 39.8% return ratio in 2024.
NH Investment & Securities analyst Jung Joon-seop noted in a prior report, “Assuming the buyback in the second half reaches KRW 700–800 billion, KB Financial’s total shareholder return ratio will likely hit 54% in 2025.” He added, “A 54% return ratio is the highest ever among Korean bank stocks and breaks through the psychological barrier of 50%, which is highly meaningful.”
KB Financial CFO Na Sang-rok also commented during the earnings conference call, “With the additional KRW 850 billion buyback, our total shareholder return this year will expand significantly to KRW 3.01 trillion (US$ 2.1 billion),” adding, “Depending on the final net profit, we expect to achieve a record-high shareholder return ratio.”
None of the four major financial groups has yet exceeded the 50% mark in shareholder return ratio. Chairman Yang is being recognized for not just meeting value enhancement goals but setting new standards.
Interest in KB Financial’s shareholder return strategy dominated the day’s conference call, with securities analysts asking multiple questions about future plans and outlook.
In response, KB Financial’s executives expressed confidence in the company’s fundamentals and capital management capabilities. They emphasized that any excess capital above the common equity tier 1 (CET1) ratio of 13% would be used for shareholder returns, and pledged to continue expanding returns. They also said they are considering reducing dividends per share.
As of the end of the first half of 2025, KB Financial’s CET1 ratio stood at 13.74%.
At the regular general shareholders’ meeting in March, Chairman Yang stated, “We will lead innovation and change half a step ahead of others,” adding, “KB Financial will work to solidify its standing as Korea’s leading financial group, not just in financial results but in enhancing corporate value.”
#KBFinancial #YangJonghee #netprofit #Koreanbanking #recordearnings #shareholderreturn #financialgroup #CET1 #valueupstrategy #financialresults2025
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- SK Hynix CEO Vows to Lead HBM4 Amid Fierce Rivalry
- SK Hynix Confirms Market Dominance with Record Quarterly Earnings from AI Memory
SK Hynix has proven its dominance in the high-bandwidth memory (HBM) market for artificial intelligence (AI) applications by posting its highest-ever quarterly earnings in the second quarter of 2025.
While some market watchers predict that the competition will intensify with the sixth-generation HBM4, making it difficult to maintain the current high profitability, SK Hynix remains confident in its ability to boost earnings through its competitive edge in the HBM business not only in the second half of this year but into 2026 as well.
The company pointed out that its accumulated technological prowess and customer-centric corporate culture cannot be easily replicated by competitors.
On July 24, SK Hynix announced that its consolidated operating profit for the second quarter of 2025 reached KRW 9.21 trillion (US$ 6.4 billion), with an operating margin of 41%, setting a new record for quarterly profit.
This represents a 68% increase from Q2 2024 and slightly exceeds the market consensus of KRW 9.06 trillion (US$ 6.3 billion). The figure is more than double the Q2 operating profit of rival Samsung Electronics, which posted KRW 4.6 trillion (US$ 3.2 billion), solidifying SK Hynix’s leadership in AI memory.
During the earnings conference call, an SK Hynix official explained, “In Q1, customers were cautious with their inventory levels, but rising uncertainties related to U.S. tariff policies led them to shift strategies to secure adequate stock. As a result, we saw a significant increase in orders from key customers who had previously held low inventories.”
The company also expressed confidence in its performance for the second half of the year.
While some have raised concerns about a potential oversupply of HBM, SK Hynix believes a sharp decline in demand is unlikely, given that major customers are preparing to launch new products.
The company reaffirmed its goal of doubling HBM sales revenue this year compared to the previous year.
NVIDIA is set to release its AI chip “Blackwell Ultra” in the second half of 2025, and SK Hynix’s 12-layer HBM3E will be used in the chip.
U.S. tech giants are also ramping up AI investments.
On July 23 (local time), Google announced during its Q2 earnings report that it had raised its capital expenditure forecast for the year from US$ 75 billion to US$ 85 billion, driven by strong demand for its cloud and AI services, necessitating further investment.
As a result, shares of major U.S. semiconductor firms, including NVIDIA, AMD, and Broadcom, surged in after-hours trading on July 23 (local time).
In response to rising AI semiconductor demand, SK Hynix also announced plans to increase its capital expenditures this year, particularly for HBM, beyond its original plans. With visibility into HBM supply secured through 2026, the company determined that preemptive investment in production facilities is necessary.
Kwak Noh-jung, CEO of SK Hynix, recently met with OpenAI CEO Sam Altman in San Francisco alongside SK Group Chairman Chey Tae-won to discuss cooperation on AI infrastructure investment and semiconductor supply.
SK Hynix is also focusing on maintaining its competitive edge in HBM4 next year.
A company representative stated, “We will prepare HBM4 production according to the timing required by our customers. The reason we've been successful with HBM so far is because we take a customer-oriented approach from product development to mass production—a corporate culture that is not easily copied.”
SK Hynix provided HBM4 samples to customers for the first time in March this year and expects to begin mass production by the end of the year as planned. Samsung Electronics is reported to have delivered its HBM4 samples to customers in Q3 of this year, with mass production likely starting in Q1 2026.
SK Hynix also expressed confidence in maintaining profitability with HBM4.
A recent report by Goldman Sachs projected that the price premium for HBM4 would be around 45% of that of previous generations.
In response, an SK Hynix official said, “We are negotiating to offer HBM4 at the optimal price for our customers while maintaining our current profitability. In the HBM market, the leading supplier has significant negotiating power, and the advantages of early market entry have grown much greater than in the past.”
#SKHynix #AI #HBM #HBM4 #semiconductor #earnings #NVIDIA #Google #OpenAI #memorymarket
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- Galaxy Z7 Aims for 7M Units Before Apple Enters Foldables
- Samsung Electronics' newly launched Galaxy Z Fold7 and Flip7 (Galaxy Z7 series) are expected to set a new record for pre-orders in the history of the company’s foldable lineup, with projections pointing to over 7 million units shipped this year. This significantly exceeds the early sales volume of previous foldable models.
Acting Head of Samsung Electronics’ DX Division, Roh Tae-moon, is expected to use the Galaxy Z7 series to fend off rising Chinese competitors and solidify Samsung's dominance in the global foldable smartphone market ahead of Apple’s anticipated entry with a foldable iPhone in the second half of next year.
According to multiple industry sources on July 22, the Galaxy Z7 series, unveiled on July 9, is projected to post record-breaking sales.
Ming-Chi Kuo, an analyst at Taiwan's TF International, recently estimated that about 7 million units of the Galaxy Z Fold7 and Flip7 will be shipped over the six months ending in December. This represents a 40% increase compared to the shipment volume of last year's Galaxy Z6 series.
Hana Securities estimated that the Galaxy Z6 series sold 5.21 million units in the six months following its release on July 12, 2023. The Galaxy Z5 series, launched in July 2023, posted sales of 5.76 million units in the same period.
Although shipment volume, which includes inventory, cannot be directly compared to actual sales, the industry consensus is that high-end flagship smartphones like these are usually produced with minimal inventory. As a result, most of the 7 million units shipped are likely to translate into real sales.
In South Korea, the Galaxy Z Fold7 and Flip7 recorded 1.04 million units in pre-orders within just one week—marking the highest pre-order volume since Samsung first launched a foldable smartphone in 2019. The previous record was 1.02 million units for the Galaxy Z Fold5 and Flip5 in 2023.
In India, pre-orders are also surging. According to U.S.-based tech media outlet PhoneArena, 210,000 units of the Galaxy Z Fold7 and Flip7 were sold in just two days of pre-orders, and the total is expected to exceed 400,000 units during the entire pre-order period.
Samsung’s advanced manufacturing technology for ultra-thin foldable phones is considered a key factor behind this spike in pre-orders. The Galaxy Z Fold7 is 26% thinner than the Z Fold6 and weighs only 215 grams. Its performance is comparable to that of the Galaxy S25 Ultra, attracting significant consumer interest.
For Roh Tae-moon, the success of the Galaxy Z7 series carries major significance. Chinese companies are closing in fast in the global foldable smartphone market, and Apple is expected to launch its first foldable device in the second half of next year.
According to market research firm IDC, Samsung held a 32.9% share of the global foldable smartphone market last year, a steep decline from 83.6% in 2021, 79.2% in 2022, and 55.1% in 2023.
This decline reflects the rapid rise of Chinese manufacturers in the foldable sector.
Huawei, which has consistently ranked second since 2020, increased its market share from 9.3% in 2021 to 23.1% in 2024. Meanwhile, Lenovo and Honor posted market shares of 17.0% and 10.4%, respectively, last year, intensifying competition.
Apple is expected to enter the foldable race in the second half of 2026. Given Apple’s dominant brand power in the flagship smartphone market, its debut foldable device is likely to bring significant disruption to the current market landscape.
Kang Min-goo, an analyst at IBK Investment & Securities, projects that Apple will ship between 8 million and 10 million foldable iPhones in 2026, citing Apple’s brand strength, low market penetration of foldables, and hardware differentiation. This would surpass the 7 million units estimated for Samsung’s Galaxy Z7 series this year.
Currently, foldable smartphones account for just 1.4% of total global smartphone sales. Apple’s entry into this niche market is expected to rapidly expand its share. Apple is also expected to differentiate itself by launching a device with a completely crease-free display, unlike current models.
As such, the growing sales of the Galaxy Z Fold7 and Flip7 are seen as crucial for Roh Tae-moon—not only to block the pursuit of Chinese rivals but also to preemptively counter Apple’s market entry.
Some analysts suggest that Apple’s participation could actually expand the entire foldable market, benefiting Samsung as well.
Brian Ma, Vice President at IDC, stated, “Apple’s entry into the foldable market is expected to positively influence growth in this sector,” projecting that global foldable smartphone shipments will increase from 20 million units last year to 45.7 million by 2028.
#Samsung #GalaxyZ7 #foldablephone #RohTaeMoon #Applefoldable #smartphonesales #IDC #Huawei #Flip7 #Fold7
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- Revised Law Pressures DN Solutions IPO, Kim Sang-hun Faces Listing Dilemma
- Kim Sang-hun, chairman of DN Group, pushed for the initial public offering (IPO) of DN Solutions in the first half of 2025 with the goal of listing the company on the Korea Composite Stock Price Index (KOSPI).
DN Solutions is a second-tier subsidiary under the group’s holding company, DN Automotive.
However, the listing was withdrawn after the company failed to receive a satisfactory valuation during the institutional demand forecast. DN Group now plans to revisit the IPO when market conditions improve.
At the time of the IPO attempt, DN Solutions faced controversy over alleged “duplicate listing.” Although the company dismissed the claim, arguing it did not constitute a duplicate listing, the issue has resurfaced following the passage of a revised Commercial Act in July 2025.
The amendment expands the fiduciary duty of corporate directors from “the company” to “the company and its shareholders.” This provision took effect immediately without a grace period.
Industry and securities market experts note that this amendment lays the legal groundwork for shareholders to take action—including legal claims—against companies pursuing duplicate or split listings that are seen to damage shareholder value.
This puts additional pressure on Chairman Kim regarding DN Solutions’ potential re-listing. Experts argue that even if the IPO is revived, the group must conduct a thorough assessment of how the move could impact DN Automotive’s share price.
A DN Group spokesperson told C Journal, “DN Solutions was a company already available on the market, and since the businesses of the parent (DN Automotive) and the subsidiary (DN Solutions) do not overlap at all, our stance remains unchanged that this is not a duplicate listing.”
◆ What is Duplicate Listing?
A duplicate listing refers to a situation in which both a parent company and its subsidiary—operating in the same or closely related business sectors—are listed on the stock market. This differs from a “split-off listing,” where a company spins off a division into a new entity and lists that new company separately.
The term “duplicate listing” is commonly used in the industry but is not defined by law. The Korea Exchange (KRX) has yet to establish clear standards for determining such cases.
From a corporate standpoint, a duplicate listing can help maximize the valuation of a specific business segment. However, critics argue that it may harm the parent company’s shareholders, who might not benefit from the subsidiary’s growth and may instead bear the brunt of a decline in the parent company’s value.
Duplicate listings have long been cited as a factor contributing to the undervaluation of Korean stocks.
Until now, the Korea Exchange has not strictly blocked such listings. DN Solutions had successfully passed the preliminary screening for listing.
However, in response to the controversy surrounding the listing of LG Energy Solution, the Korea Exchange introduced a regulation limiting the listing of companies spun off via physical division within five years. But this rule only applies to split-off listings, not duplicate listings.
Since 2024, the Korea Exchange has rejected only one duplicate listing case. In April 2025, Oscotec’s attempt to list its subsidiary Genosco was blocked after fierce opposition from Oscotec shareholders, which reportedly influenced the regulator’s decision.
◆ In the Case of DN Solutions
In the stock market, DN Group faced criticism that its 2024 push to list DN Solutions would dilute DN Automotive’s value, leading to a potential drop in its stock price. Critics labeled the move as a duplicate listing.
Indeed, during the last two days of DN Solutions’ demand forecast period (April 22–28), DN Automotive’s stock price fell by 11.34%.
DN Group strongly denied the criticism, arguing that the two companies operate in completely different business sectors and that DN Solutions was not formed through a physical spin-off.
At a press conference on April 25 in Yeouido, DN Solutions CEO Kim Won-jong stated, “DN Automotive’s acquisition of DN Solutions was not intended for merger or synergy purposes, but to pursue a separate growth engine.” He added, “The business domains, strategies, and customers are all completely independent from DN Automotive.”
He also emphasized, “Even during DN Automotive’s investor relations sessions where the IPO of DN Solutions was explained, there were no shareholders of DN Automotive who opposed the plan.”
◆ What Kind of Company Is DN Solutions?
DN Solutions is the rebranded name of the former Doosan Machine Tools. The company was originally founded in 1976 as Daewoo Heavy Industries and later became Daewoo Machinery and then Doosan Infracore. In 2016, MBK Partners acquired the machine tools division from Doosan Infracore and rebranded it as Doosan Machine Tools.
In August 2021, DN Group signed a share purchase agreement with MBK Partners to acquire 100% of Doosan Machine Tools’ shares and completed the acquisition in January 2022.
Through the acquisition, DN Group’s total assets surpassed KRW 5 trillion (US$ 3.5 billion) in 2023, making it subject to public disclosure regulations. As of 2025, DN Group’s total assets stand at KRW 5.623 trillion (US$ 3.9 billion), ranking it 80th among Korea’s business groups.
Within DN Group’s governance structure, DN Solutions is a second-tier subsidiary of DN Automotive. GMT Holdings, a special purpose company established in 2021 to acquire DN Solutions, owns 84.83% of DN Solutions and is in turn a wholly owned subsidiary of DN Automotive.
Chairman Kim Sang-hun had aimed for a May 2025 IPO of DN Solutions. However, after receiving lower-than-expected valuations during the demand forecast, the plan was scrapped.
A DN Group representative told C Journal, “Our plan to revisit the IPO when the global and domestic political environment improves has not changed.”
#DNGroup #DNSolutions #IPO #KOSPI #duplicatelisting #CommercialAct #DNAutomotive #stockmarket #corporategovernance #shareholderrights
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- LG Display Poised to Gain from Apple's Foldable iPhone Launch Ask ChatGPT
- LG Display is expected to benefit from Apple’s upcoming “foldable iPhone,” set to launch in the second half of next year. While the company is unlikely to be selected as an initial supplier of foldable panels, it is projected to see an increase in conventional OLED display orders for iPhones as Apple seeks to diversify its OLED supply chain.
LG Display is anticipated to report a temporary earnings slump in the second quarter of this year due to a decline in the exchange rate and the completion of its LCD factory sale in China. However, CEO Jeong Chul-dong is preparing for future growth by accelerating investments in OLED displays for IT devices.
According to a recent report by UBS, a European financial securities firm, even if LG Display does not directly supply displays for the foldable iPhone expected in the second half of 2026, the company is still likely to enjoy indirect benefits.
Jimmy Yoon, an analyst at UBS, said, “LG Display is unlikely to see direct gains from the initial launch of the foldable iPhone,” but added, “Apple is expected to diversify its supply chain to retain bargaining power, which could lead to LG Display increasing its share of bar-type (conventional iPhone) panel supply.”
Jeff Pu, an analyst at Hong Kong-based GF Securities, identified Samsung Display and LG Display as the main suppliers for the foldable iPhone in a report last month. He also suggested that LG Display could become the sole supplier of OLED panels for a foldable iPad with a screen size of 18.8 inches, projected for release around 2028.
However, many domestic and international securities firms currently expect Samsung Display to be the exclusive supplier of initial display quantities for the foldable iPhone.
An industry source said, “Samsung Display has been producing foldable panels since 2019 and has built up know-how and performance. Based on this, it is expected to retain exclusive supplier status for a few more years until Apple begins diversifying its supply chain.”
While LG Display may not supply panels directly for Apple’s foldable phone, the company still stands to benefit significantly from indirect effects. Furthermore, there appears to be ample possibility that LG Display could become a display supplier for future generations of foldable iPhones.
Yoon noted, “As part of supply chain diversification, Apple may allocate more bar-type display panel orders to LG Display, offering indirect benefits. Over the mid to long term, LG Display is expected to actively invest in R&D for foldable OLED panels for smartphones and IT devices to secure future revenue growth engines.”
CEO Jeong is also investing in production facilities to meet future demand for OLEDs used in IT devices.
LG Display recently announced plans to invest about KRW 1.3 trillion (US$ 903.9 million) in new OLED technology equipment at its Paju plant. The investment period runs through June 30, 2027. Some observers speculate the investment is intended to support production of the foldable iPad expected in 2028, as well as the next generation of foldable iPhones.
Currently, LG Display's sixth-generation small and mid-size OLED panel production lines are operating near their full capacity, reportedly producing nearly 80 million units annually. With demand for IT OLEDs on the rise, the company needs to secure additional production capacity.
Since 2022, CEO Jeong has been pursuing a dual strategy of resolving ongoing deficits to strengthen the company’s financial health while simultaneously investing in future businesses to secure new growth drivers.
Last year, LG Display sold its Guangzhou LCD plant in China to TCL for KRW 2 trillion (US$ 1.39 billion) and carried out a voluntary retirement program to stabilize finances. In March of this year, the company secured KRW 1 trillion (US$ 695.4 million) in loans from LG Electronics to support OLED investment and operational funding.
As a result of these financial restructuring efforts, LG Display’s losses, which reached KRW 2.5 trillion (US$ 1.74 billion) in 2023, were reduced to KRW 560 billion (US$ 389.3 million) last year. The securities industry forecasts LG Display will post an operating profit of KRW 740 billion (US$ 514.8 million) this year.
However, the company’s second-quarter performance is expected to be temporarily weak. A stronger Korean won has negatively affected profitability, and one-time costs are expected to arise from the finalization of the Guangzhou plant sale.
Jeong Won-seok, an analyst at iM Investment & Securities, predicted LG Display will post second-quarter revenue of KRW 5.6 trillion (US$ 3.89 billion) and an operating loss of KRW 117 billion (US$ 81.4 million). This falls slightly below market expectations of KRW 5.7 trillion (US$ 3.96 billion) in revenue and a KRW 69.4 billion (US$ 48.3 million) operating loss.
#LGDisplay #Apple #foldableiPhone #OLED #JeongChuldong #ITdevices #SamsungDisplay #supplychain #investment #R&D
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- HD Hyundai Bets on Indonesia Boom as Choi Builds Local Business Ecosystem
- HD Hyundai Construction Equipment Targets Indonesian Market as Profitability Outlook Improves
HD Hyundai Construction Equipment is ramping up efforts to capture the Indonesian market, amid expectations for improved profitability in the second half of the year.
CEO Choi Cheol-gon of HD Hyundai Construction Equipment appears to be focused on strengthening global competitiveness by building a local business ecosystem in Indonesia.
According to the securities industry on July 20, HD Hyundai Construction Equipment is expected to begin a clear path toward profitability improvement in the latter half of 2025.
Financial information provider FnGuide forecasts that the company will post an operating profit of KRW 38.4 billion (US\$ 26.7 million) on a consolidated basis for the second quarter. This represents a 34% decrease from the same period last year.
However, operating profit is projected to rise to the low KRW 40 billion (US\$ 27.8 million) range in the third and fourth quarters. The forecast for the fourth quarter stands at KRW 40.6 billion (US\$ 28.2 million), which marks a 15% year-on-year increase, ending the previous downward trend.
Analysts attribute this expected turnaround to the global trend toward interest rate cuts in the second half, which could revive previously stagnant demand for construction equipment.
Lee Dong-heon, a research analyst at Shinhan Investment Corp., noted, “Construction equipment companies will likely show a slow recovery in Q2 due to the delay in U.S. interest rate cuts and the ongoing inventory adjustment phase.”
He added, “But in the long run, as inventory clearance wraps up and the interest rate cut cycle begins, domestic companies with strengths in lineup expansion, productivity improvement, and regional diversification will see an upward revaluation of their corporate value.”
Amid these positive projections for the second half, CEO Choi has been steadily refining the strengths of domestic construction equipment makers.
In April this year, HD Hyundai Construction Equipment unveiled its flagship 40-ton class excavator (HX400), a smart construction machine, to bolster its competitiveness in the large equipment segment.
In May, the company upgraded its Ulsan factory in Dong-gu into a smart factory, increasing its annual production capacity of excavators and wheel loaders—from medium to ultra-large—from 9,600 units to 15,000 units, a 56% expansion.
Choi is also placing strategic emphasis on diversifying regional markets, particularly focusing on Indonesia. He aims to extend operations beyond parts supply to include sales and aftermarket services.
HD Hyundai Construction Equipment established a parts supply center not only in Jakarta, the current capital of Indonesia, but also in Kalimantan, the site of the new capital under construction on Borneo Island.
This logistics hub is designed to supply components for excavators and wheel loaders, aiming to facilitate faster delivery and reduce costs.
The company plans to turn Balikpapan, near the new capital in Kalimantan, into a key hub for strengthening its competitiveness in the Indonesian market.
A training center will be established to educate technicians to global standards, who will then be deployed across Indonesia to provide customer support. This reflects the company’s intention to expand into the aftermarket business.
Such moves are aimed at minimizing lifecycle cost (LCC) and total cost of ownership (TCO)—key considerations for customers. LCC refers to the total cost from production to disposal of a product, while TCO includes purchase price, maintenance costs, and residual value.
Recognizing Indonesia’s abundant mineral resources, including one of the world’s largest nickel reserves, Choi is also laying the groundwork to meet the rising demand for mining equipment.
HD Hyundai Construction Equipment has signed a strategic partnership with Indonesian mining firm Hasnur Group, aiming to secure a strong foothold in the local mining market.
The strategy goes beyond merely supplying equipment. Starting with large wheel loaders, the company plans to provide products in phases to Hasnur Group, and based on the accumulated data, develop “mining solutions” that offer proposals for operational efficiency and maintenance.
The company also envisions establishing an electrification ecosystem by testing electric excavators at Hasnur Group’s mining sites.
At the MOU signing ceremony with Hasnur Group held at the Ulsan Campus the previous day, Choi stated, “This partnership goes beyond simple equipment supply. It will be a turning point for securing operational solutions and electrification capabilities in mining, and will serve as a launchpad for evolving into a digital-based total solutions provider in the global mining market.”
In February, Choi visited Jakarta, home to the company’s Indonesian subsidiary, to personally assess the market. He also met with executives of UNIQUIP (PT United Equipment Indonesia), the company’s official local dealer, to discuss ways to meet customer demands.
According to global market research firm Mordor Intelligence, the Indonesian construction equipment market is projected to grow at an average annual rate of 7.3%, expanding from US\$ 4.24 billion (KRW 5.8 trillion) in 2025 to US\$ 6.04 billion (KRW 8.3 trillion) by 2030.
In its 2025–2030 Indonesia construction equipment market report, Mordor Intelligence stated, “As infrastructure investments surge in Indonesia, demand for construction machinery will undoubtedly grow. Furthermore, the rising focus on decarbonization will accelerate the adoption of electrified equipment.”
\#HDHyundai #constructionequipment #Indonesia #ChoiCheolgon #excavator #smartfactory #HasnurGroup #miningequipment #electrification #globalstrategy
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- GM Korea's Exit Denial Rings Hollow Again
- Concerns are once again mounting within the South Korean auto industry that GM Korea may withdraw from the country.
GM Korea's management has strongly denied such speculation, calling it nothing more than a “rumor.” CEO Hector Villarreal has been actively engaging in on-site management, visiting various business locations to reassure employees.
Nevertheless, confusion grew after GM Korea announced on May 28 that it would gradually sell off nine directly operated service centers and portions of the Bupyeong plant's land and assets.
GM has a history of denying withdrawal plans in other countries, only to accept government support based on employment assurances before ultimately exiting. In South Korea as well, GM used the threat of withdrawal or court receivership in 2018 to pressure the government into providing financial support. Such precedents have led to widespread distrust toward GM.
GM Korea’s business structure prioritizes the interests of its U.S. headquarters over strengthening domestic operations. For instance, around 5% of its annual revenue is paid to the U.S. headquarters as royalties and R&D expenses. In 2024 alone, GM Korea paid KRW 563.6 billion (US$ 392 million) in royalties.
As a result, many argue that to put the withdrawal rumors to rest and regain public trust, GM Korea must expand new car lineups at its domestic plants and strengthen its presence in the domestic market to dispel fears of plant closures.
Villarreal’s future actions are drawing attention in this context.
A native of Mexico, Hector Villarreal is seen as a seasoned strategy and planning expert with rich global experience within GM. He previously served as GM Korea’s VP of Planning and Program Management from 2012 to 2015 and returned in August 2023 as the company’s CEO.
△ Background Behind Resurfacing GM Korea Exit Rumors
Former U.S. President Donald Trump imposed a 25% tariff on imported automobiles in April 2025. As of May 2025, Korean-made vehicles exported to the U.S. are subject to this 25% tariff.
Ironically, GM Korea, which is headquartered in the U.S., has suffered the biggest blow among Korean automakers due to this policy. If the tariff remains in place, GM Korea would need to spend several trillion KRW more annually. With a net profit of KRW 2.2 trillion (US$ 1.5 billion) in 2024, the company could quickly fall into the red.
This is due to GM Korea's deep dependence on its U.S. headquarters. In 2024, 95% of its production was exported, and 88.5% of those exports (equivalent to 84% of total production) were sold in the U.S. GM Korea's performance is not based on independent sales but rather on production volume allocations from the GM headquarters.
In contrast, its domestic market presence continues to decline. Less than 5% of production is sold domestically, and in 2024, domestic sales revenue fell below KRW 1 trillion (US$ 695 million) for the first time. Its domestic market share is just 1.8% (2024).
Moreover, GM Korea currently produces only two distinct models in South Korea. The company manufactures four models domestically—Trailblazer, Trax Crossover, Buick Envista, and Buick Encore—but the latter two share platforms with the Trax and Trailblazer, respectively.
These models are popular in the U.S. due to their relatively low prices. However, if their prices increase due to tariffs, sales may drop.
All these factors fuel persistent doubts about GM Korea’s viability as an independent operation.
△ GM Denies Exit Plans, but Trust Remains Broken
CEO Hector Villarreal and other GM Korea executives continue to deny any plans to exit the Korean market. On May 15, Villarreal visited the Changwon plant, where he comforted employees and announced plans to increase production by 21,000 units this year.
Previously, on April 16, at the launch of the new Cadillac Escalade, Villarreal said, “We will continue to introduce new models and invest in our network,” emphasizing that “the withdrawal rumors are nothing more than unfounded speculation.”
At the same event, Vice President Gustavo Colossi also promised to continue launching new products and sharing release plans with the media.
Despite these assurances, mistrust among the Korean government, citizens, and GM Korea employees continues to linger. This is due to GM’s track record of betrayal in other countries.
GM has similarly pulled out of Belgium, Germany, Australia, and Sweden after denying withdrawal plans and collecting government support. The company also exited India, Indonesia, and Thailand, citing declining profitability.
In Korea, GM used large-scale losses from 2014 to 2017 to pressure the government into providing support, ultimately securing aid from the Korea Development Bank (KDB). Nevertheless, GM shut down its Gunsan plant in 2018 and halted operations at its Bupyeong Plant 2 in 2022.
If GM decides to withdraw from Korea, around 11,000 employees at the Bupyeong and Changwon plants would lose their jobs. Furthermore, around 3,000 partner companies—including 276 Tier-1 suppliers—would face existential threats. It is estimated that GM Korea supports around 150,000 direct and indirect jobs.
Back in 2018, GM signed a “10-year commitment” with KDB to maintain its production facilities in Korea through 2028. Only three years now remain in that agreement.
△ Union Demands New Vehicle Allocations
To restore public and employee trust, many say GM Korea must clearly demonstrate its commitment to continuing operations in Korea.
The GM Korea labor union, in particular, insists that beyond simply maintaining production volume, the company must present detailed plans for future vehicle models to be manufactured at the Bupyeong and Changwon plants. The union also demands a roadmap for transitioning to electric and future mobility vehicles.
In the upcoming 2025 collective bargaining talks, the union plans to push for:
Resumption of plug-in hybrid (PHEV) development,
Production of new models,
Domestic production of internal combustion engines, and
Introduction of the Buick brand in the Korean market.
The issue, however, lies in GM Korea’s lack of autonomy in decision-making, as key decisions such as plant closures are made based on the global strategy of GM headquarters.
Nevertheless, GM is lobbying the Trump administration to exempt its domestic-brand vehicles from tariffs and offer protective measures. In March 2025, GM, Ford, and Stellantis vehicles produced in Canada and Mexico were granted a one-month tariff exemption starting March 5.
GM Korea could receive similar treatment.
#GMKorea #GMwithdrawal #automotiveindustry #tariffs #SouthKorea #USautoimports #laborunion #HectorVillarreal #Buick #GMtariffimpact
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- Korea’s First ‘Climate President’ Lee Launches Race to Recover Lost Time
- For the first time in Korean history, a presidential administration has come to power with climate policy as a core national agenda.
As South Korea has long been regarded as one of the world's laggards in the global energy transition, the new administration is expected to launch a high-speed campaign to recover lost time.
President Lee Jae-myung officially began his duties on the morning of June 4 by taking the oath of office at the National Assembly.
In his inaugural address, President Lee emphasized, "The climate crisis threatens humanity and is forcing a massive industrial transformation. The rapid changes in the global order, including rising protectionism and the reorganization of supply chains, are directly threatening our very survival."
This appears to reflect the current global context, where the European Union is leading in energy transition and countries like the United States are implementing carbon tariffs and clean competition legislation, raising “green tariff barriers.”
President Lee continued, “Unfortunately, at this critical juncture, we face a complex web of overlapping crises in every sector—from the economy and people’s livelihoods to diplomacy, security, and democracy. The present and future of Korea are simultaneously under threat.”
During the presidential campaign, Lee pledged concrete and essential actions to tackle the climate crisis, including achieving the 2030 Nationally Determined Contributions (NDC) target, hosting the 33rd UN Climate Change Conference (COP33), and strengthening carbon reduction incentives.
Lee is the first Korean president to directly highlight climate issues in an inaugural address and express strong commitment to addressing them. By contrast, former President Moon Jae-in in 2017 promised inter-Korean forest cooperation to reduce greenhouse gases, but did not treat it as a core agenda.
President Lee also vowed to fully implement the RE100 (100% renewable energy) initiative, seen as a crucial step for South Korea’s industrial climate response.
As of 2024, data from the OECD shows that South Korea’s share of renewable energy remains at about 10%, the lowest among major economies. The OECD average exceeds 35%.
Despite this, the previous Yoon Suk-yeol administration faced strong criticism for setting a modest target of just 29.2% renewable energy by 2038 in the 11th Basic Plan for Long-Term Electricity Supply and Demand. Many in politics, industry, and environmental circles have labeled the Yoon era as “three lost years.”
In contrast, President Lee has announced plans to establish a dedicated Ministry of Climate and Energy and rapidly expand renewable energy use.
In his inaugural speech, Lee said, “We will swiftly transition to a renewable energy-centered economy in line with global climate response trends. This will help reduce energy imports, enhance corporate competitiveness through RE100, and revitalize declining local areas by building a dense renewable energy grid so that anyone, anywhere, can generate clean energy.”
His government plans to install more solar panels on general buildings, parking lots, and industrial complexes, and increase support for improving solar technology efficiency. A plan to create a RE100 industrial complex to supply power to the semiconductor cluster in Yongin has also been announced.
Environmental groups both in Korea and abroad, which had long criticized the lack of progress under the Yoon administration, welcomed Lee’s policy direction. However, they also expressed concern that the announced measures fall short of fully delivering on his promises.
One of the key criticisms is the lack of a detailed roadmap for phasing out fossil fuels other than coal. Although Lee pledged to close all domestic coal power plants by 2040, no clear plan was presented for reducing the use of liquefied natural gas (LNG).
A Greenpeace representative noted, “President Lee’s platform still lacks a clear roadmap for reducing LNG use, and there is no plan for managing rising methane emissions. The construction of six new LNG power plants to meet power demands for the Yongin semiconductor cluster directly contradicts the climate agenda and must be canceled.”
In a joint report with Greenpeace, the Korea-based group Climate Solution analyzed alternatives to supply the 3-gigawatt electricity demand of the Yongin national industrial complex with nearby renewable energy instead of LNG. Their analysis found that doing so could save up to KRW 30 trillion (US$ 20.9 billion) in electricity costs by 2050. Considering the avoided social costs of LNG construction, the economic impact of renewable procurement would be even greater.
Beyond LNG issues, Greenpeace pointed out the need for stronger policies on plastic reduction, expansion of domestic environmental protection zones, and improved response systems for climate disasters.
The Green Transition Institute, a Korean climate policy think tank, also issued a similar policy recommendation, emphasizing that the government’s current plans lack specific financial strategies for the energy transition.
President Lee has stated that the necessary funding will come from a supplementary budget this year and from increases in total government revenue starting next year.
The Green Transition Institute stressed, “President Lee’s term may be Korea’s last golden window for serious climate action. We must not waste this precious opportunity and must escape our status as a climate laggard.”
#LeeJaeMyung #KoreaClimatePolicy #RE100 #EnergyTransition #GreenNewDeal #Renewables #Inauguration #CarbonNeutrality #ClimateCrisis #Sustainability
