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Korean Industrial Insight No. 15 of AI, Semiconductors, Batteries, Electric vehicles, and Bio |
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2025-08-01 |
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Ⅰ. AI INDUSTRY TRENDS
1. FSC Expands AI Public Financial Data Access. Unveiling More Corporate and Capital Market Information
- New disclosure includes corporate governance and ESG products.
- “Over 94% satisfaction” reported after 5 years of data disclosure
The Financial Services Commission (FSC) announced on the 24th that it will expand the disclosure of detailed corporate basic information and governance information within its public financial data service. Additionally, new capital market-related data will be made available, including ESG (Environmental, Social, and Governance) indices, product information, and fund sales performance.
The data newly released this year is highly optimized for Artificial Intelligence (AI) applications and is being widely leveraged for corporate credit analysis and investment algorithms. Furthermore, affiliated financial institutions are planning to conduct AI and public data utilization contests, thereby advancing an AI-friendly approach to public financial data disclosure.
Since June 2020, the FSC has been interlinking and standardizing public financial data from its affiliated institutions to make it available in Open API format on the public data portal.
Since its inception, over 3.3 billion data have been provided. The platform has recorded 29,011 cumulative applications for Open API utilization and 615.05 million data accesses.
Data was utilized the most for website and application development, accounting for 48.5% of its usage. Significant utilization was also observed across various other sectors, including reference materials (16.2%) and research (12.1%). Among the most frequently accessed APIs, stock price information ranked highest at 17.2%, followed by corporate financial data at 9.9%, and basic corporate information at 8.1%.
According to the satisfaction survey conducted by the FSC last May, 94.1% of the respondents expressed satisfaction with the service. The primary factors contributing to this satisfaction were identified as convenience (17.6%), free usage (16.5%), and the utility of the information (15.3%).
38.2% of users were utilizing data in the artificial intelligence (AI) sector. The most utilized data types were corporate information (44.1%), stock price information (17.6%), and stock dividend information (12.4%). This data can serve as foundational information for AI-driven development of corporate credit rating and stock market prediction, business risk analysis models, and investment algorithm models, among others.
An official from the FSC stated, “We will continuously improve the service by enhancing data reliability and strengthening user convenience, thereby making data easily accessible for all citizens.”
2. Korean Tech Giants Vie for ‘National AI’ Title: Naver and LG Emerge as Frontrunners
- 15 companies compete in government-led ‘Sovereign AI Project’
- Naver Cloud and LG AI Research boast strong development expertise
- Upstage, a startup, closely follows with advanced technology
- SKT and KT also leverage extensive service delivery experience
- Beyond technology, business strategy and practical application are crucial
Both large corporations and startups have eagerly joined the government-initiated ‘Sovereign Artificial Intelligence (AI) Foundation Model Project.' Intense competition is anticipated, as the government is providing substantial support, including Graphics Processing Units (GPUs) and human resources, and participants will be able to leverage titles such as 'K-AI Company.'
Industry experts evaluate that Naver Cloud and LG AI Research are leading the sector, given their superior history in core technology development and experience in providing AI services.
15 Major Corporations & Startups Submit Bids. Government to Inject KRW 200 Billion This Year.
According to industry sources on the 24th, 15 consortiums have applied for the Sovereign AI Foundation Model Project' led by the Ministry of Science and ICT. Major corporations including SK Telecom, LG, KT, Naver Cloud, and NC AI, along with AI startups such as Upstage and Konan Technology, have all submitted their bids.
This project aims to develop domestic Large Language Models (LLMs), and based on these, establish 'Sovereign AI.' The purpose of this initiative is to secure the nation's digital sovereignty amidst intensifying competition for dominance among global AI companies. The government plans to allocate a budget of 193.6 billion won to this project this year alone, and the finally selected entities will receive support from the government, including GPUs, large-scale data, and specialized personnel.
The evaluation criteria include: △Technology and Development Experience (40 points), △Development Goals and Strategy/Technology (30 points), and △Impact and Contribution Plan (30 points). The government will shortlist 10 out of the 15 applicant companies through a written evaluation, and then select the final 5 entities based on a presentation evaluation. The chosen entities must achieve a performance level of 95% or higher compared to the latest global AI models.
Naver Cloud & LG AI Research Have Strengths in Technology and Development Experience
The industry view Naver Cloud and LG AI Research as being in a relatively advantageous position among the 15 contenders. They are assessed to be strong in 'Technology and Development Experience,' which carries the highest weight in the evaluation criteria. Within this category, both companies, along with AI startup Upstage, are widely seen as possessing superior technological skills. However, Naver Cloud and LG AI Research are considered to have an edge in terms of development experience.
Naver Cloud's strength lies in its early adoption, having applied AI models to Naver Search and shopping services since 2021, and receiving long-term user feedback. While some competitors also have experience providing services to a large user base, Naver Cloud is assessed to have integrated AI comparatively earlier.
LG AI Research is also observed to be a frontrunner, having independently developed its EXAONE series over a long period. It is also expanding its ecosystem, primarily through its affiliates LG Uplus and LG CNS, focusing on B2B initiatives. Its high technological prowess has been widely acknowledged.
EXAONE has been listed among the 'Notable AI Models' by Epoch AI, a U.S. non-profit AI research institution. Epoch AI's notable AI model list is known as a resource cited by Stanford University's Human-Centered AI Institute (HAI) when it compiles its annual list of outstanding AI models.
Upstage Closely Pursues with Technology. SKT & KT Also Noteworthy.
Following closely is Upstage, which leads with its technological capabilities. Upstage's next-generation inference LLM, 'Solar Pro2,' was recognized as one of the top 10 frontier model developers in the intelligence index published by 'Artificial Analysis,' a global AI performance evaluation organization. This marks the only achievement by a South Korean company.
Upstage owning key manpower with LLM development experience is also a significant advantage. A representative from a company participating in this project explained, “Despite being a startup, Upstage possesses high technological capabilities. This indicates a strong pool of core talent and is likely to be a positive factor in the evaluation.” However, as a startup, the lack of extensive AI service delivery experience compared to Naver Cloud and LG AI Research is considered a relative weakness.
Furthermore, SKT and KT are also identified as noteworthy companies. Both companies have extensive experience in providing AI services based on mobile telecommunications, which could give them an advantage in the evaluation criteria for: △Development Goals and Strategy/Technology (30 points) and △Impact and Contribution Plan (30 points).
SKT is advancing with its independently developed LLM, the A. series. SKT began developing Korean-based AI models in 2018, leading to the A. series, and plans to open-source its 'A.X 3.1 34B' model this month. Its consortium with various AI startups, including Krafton and Rebellions, also serves as an added advantage for scalability.
KT also submitted its bid with 'Mi:dm,' an LLM developed in-house in 2023. Notably, KT's consortium includes not only technology companies like Saltlux but also diverse institutions such as the National Police Agency and Korea University Medical Center. This strategy leverages its existing business experience to secure future AI demand in the public and healthcare sectors.
3. New MSIT Minister Kyunghoon Bae to Review AI Data Center Deregulation, Tax Benefits
The Ministry of Science and ICT (MSIT) is set to undertake legal and institutional reforms to expand data centers, a critical infrastructure for the advancement of the artificial intelligence (AI) industry.
Considering that establishing a new data center typically takes an average of two to three years, the simplification of administrative procedures, including construction permits and approvals, along with power grid impact assessments, is under review. Additionally, tax incentives for data center establishment are being considered.
On the 24th, during an 'AI Data Center Site Meeting' held at Naver's Sejong Data Center, the Minister of MSIT stated, “Sovereign AI entails building the capability to create globally competitive AI services with our domestic technology. We are committed to fully supporting the activation of domestic AI data centers for the advancement of AI, especially in industry-specific applications, national defense, and security.”
This signifies the commitment to realizing Sovereign AI by securing ample domestic data center infrastructure, with the aim of elevating Korea to a top three AI power nation and strengthening global competitiveness.
Related officials from participating companies at the event requested institutional support, including regulatory easing for data center expansion. They unanimously emphasized that to densely build maximum-scale Graphics Processing Units (GPUs) on limited land, it is essential to shorten construction periods and resolve construction-related permit regulations, such as those pertaining to parking facilities and structural installations.
The CEO of KT Cloud explained, “Global companies are requesting us to increase infrastructure, including GPUs, by approximately three times next year.” He added, “To accommodate design changes due to expanded cooling equipment and increased power consumption, we must file reports with local governments, which will take time.” This statement implicitly requests a review for the simplification of related administrative procedures.
The CEO of Samsung SDS stated, “To enhance data center competitiveness, it is imperative to review and deliberate on existing regulations. Furthermore, a national-level review (of deregulation) concerning power supply for data centers, including the power grid impact assessment, is necessary.”
The CEO of Naver Cloud stated, “Elevating global AI capabilities is akin to an all-out national effort. It is also crucial for our companies to unite and enhance competitiveness when expanding globally.”
Minister Bae emphasized, “We will approach issues and pending matters related to AI flexibly and swiftly. Recognizing that the success of data centers forms the foundation for Korea's AI success, we will deliberate various methods concerning data center tax policies and resolve regulations that need to be lifted.”
Minister Bae also mentioned plans for the 'National AI Computing Center,' aimed at building a Korean-style AI highway, and the 'Proprietary AI Foundation Model,' designed to secure leading national AI capabilities.
Minister Bae also mentioned plans for a 'National AI Computing Center' — an AI infrastructure established by the government to support the essential learning and performance enhancement of AI models, as well as the research and development of sophisticated AI algorithms — aimed at constructing a Korean-style AI highway, and a 'Proprietary AI Foundation Model' initiative to secure national leading AI capabilities.
Ⅱ. SEMICONDUCTOR INDUSTRY TRENDS
1. SK Hynix Reaches All-time High Performance. Records Q2 Profit of KRW 9.2129 Trillion
Driven by the global AI investment boom, SK Hynix has posted a record-breaking quarterly performance.
On the 24th, SK Hynix announced that it recorded a revenue of 22.232 trillion won and an operating profit of 9.2129 trillion won for the second quarter of this year. Its operating profit margin reached 41%. The company's net income also totaled 6.9962 trillion won.
Both Q2 revenue and operating profit marks a new all-time high, surpassing the previous record set in the fourth quarter of last year (revenue 19.767 trillion won, operating profit 8.0828 trillion won).
The primary reason SK Hynix was able to achieve such results is its possession of advanced technology in the High Bandwidth Memory (HBM) sector, which is utilized for AI chips and servers, putting it ahead of its competitors.
SK Hynix stated, “As global big tech companies actively invest in AI, the demand for AI memory has consistently increased,” adding, “Both DRAM and NAND flash recorded higher-than-expected shipments, achieving record-high performance.” The company further elaborated, “We significantly expanded sales of HBM3E 12-layer DRAM, and NAND sales increased across all applications. We have maintained this strong performance momentum based on industry-leading AI memory competitiveness and profitability-focused management.”
SK Hynix observed that as customers increased memory purchases in Q2, the production of finished products also rose, which helped maintain stable inventory levels. The company anticipates that the growth trend in memory demand will continue into the second half of the year, driven by upcoming new product launches from its customers.
The competition among big tech companies to enhance AI model inference capabilities is also projected to drive up the demand for high-performance, high-capacity memory. Additionally, investments by various nations in establishing Sovereign AI are anticipated to become a new long-term growth engine for increasing memory demand.
In preparation for these market changes, SK Hynix plans to leverage the product performance and mass production capabilities of HBM3E to approximately double its HBM business growth year on year, thereby generating stable earnings. The company also intends to continuously enhance its industry-leading competitiveness by ensuring the timely supply of the even higher-performing HBM4 to meet customer requirements.
Additionally, SK Hynix plans to commence the supply of LPDDR-based modules for servers within the year, and will also prepare a 24Gb (gigabit) version of GDDR7 for AI GPUs, expanding from the current 16Gb capacity. An official from SK Hynix stated, “The diversification of our AI memory product portfolio is expected to further solidify our leading position in the AI market.”
For NAND, the company will continue its prudent investment strategy aligned with demand and profitability-driven operations, while also pursuing product development in anticipation of future market improvements. Specifically, it plans to strengthen its market competitiveness by expanding sales of QLC-based high-capacity enterprise SSDs (eSSD) and building a product portfolio based on 321-layer NAND.
2. Hanmi Semiconductor to Invest KRW 100 Billion in ‘Hybrid Bonder’ Development
- New factory slated for H2 next year completion. Aims for next-gen equipment production and tech development
Hanmi Semiconductor announced its plan to invest 100 billion won in hybrid bonding technology and to launch hybrid bonder equipment by the end of 2027.
The company is currently constructing a two-story hybrid bonder factory with a total floor area of 14,570 square meters (approximately 4,415 pyeong) in the Juan National Industrial Complex in Seo-gu, Incheon, with a total investment of 100 billion won, targeting completion in the second half of next year.
With this investment, Hanmi Semiconductor will establish a comprehensive production line spanning a total of 89,530 square meters (approximately 27,083 pyeong).
At this new facility, Hanmi Semiconductor plans to produce next-generation equipment, including TC bonders for high-specification High Bandwidth Memory (HBM), fluxless bonders, big die TC bonders for Artificial Intelligence (AI) 2.5D packages, as well as hybrid bonders used for HBM and logic semiconductor XPUs.
The company will also intensify its development of hybrid bonding technology.
Hybrid bonding is a next-generation packaging technology that, unlike traditional bumping methods, maximizes input/output (I/O) performance through direct copper-to-copper (Cu-Cu) connections, enhances bandwidth, and supports high-stacking of 20 layers or more.
Hanmi Semiconductor recently signed a technology cooperation agreement with semiconductor equipment company TES for hybrid bonders, agreeing to combine TES’s plasma, thin-film deposition, and cleaning technologies with Hanmi's HBM bonder technology.
Furthermore, the company plans to accelerate the pace of technological development by strengthening its research and development (R&D) specialized workforce for hybrid bonders.
Additionally, Hanmi Semiconductor will supply its HBM TC bonder equipment, which holds the top market share, according to its roadmap.
The company began production this month of the 'TC Bonder 4,' an exclusive machine for HBM4 (6th generation) launched in May, and plans to release fluxless bonder equipment within the year.
An official from Hanmi Semiconductor stated, “Hybrid bonding technology is required for enhancing the performance of next-generation high-stack HBM.” He added, “Through this proactive investment, we aim to maintain our market leadership by providing critical equipment necessary for global memory companies’ next-generation HBM development in a timely manner.”
3. Ex-Samsung Employee Sentenced to 6 Years in Prison in 2nd Trial for Semiconductor Tech Leak to China
A former Samsung Electronics employee and a staff member from a partner company, who were indicted on charges of leaking Samsung Electronics' core semiconductor technology to a Chinese firm, have again received heavy sentences in their appeals trial.
On the 23rd, the Seoul High Court's Criminal Division 8 sentenced former Samsung Electronics manager Kim to 6 years in prison and a fine of 200 million won for violating the Industrial Technology Protection Act and other charges. This sentence is a reduction from the 7 years in prison and 200 million won fine imposed in the first trial. Bang, an employee of partner company A, received a sentence of 2 years and 6 months in prison, consistent with the first trial's ruling.
The court stated, 'The defendants committed a serious crime that inevitably caused immense damage to the victim companies and had a negative impact on the nation, and they led the criminal act.” It further noted, “Since there is no possibility of recovering the damage, a severe punishment commensurate with the offense is necessary.”
However, the court explained, “The defendant has no prior criminal record, and after being fired from his previous company, it became difficult for him to find re-employment in Korea, leading him to inevitably take a job at a Chinese company, during which this crime appears to have occurred.” The court added, “Considering that he was not involved in the leakage of core technology, a lighter sentence than the original judgment is imposed.”
Kim is accused of illegally leaking Samsung Electronics' 18nm D-RAM semiconductor process information, a national core technology, to the Chinese company CXMT, which allegedly used it for product development.
Previously, the National Intelligence Service (NIS) detected indications of this technology leak and requested a prosecutor's investigation in May 2023. Prosecutors believe that when Kim transferred to the new firm CXMT in 2016, he leaked seven core process technologies, including 'deposition'-related materials, and received tens of billions of won in illicit gains. Furthermore, evidence confirmed that Kim had lured over 20 technical personnel from Samsung Electronics and its partner companies by offering a minimum of 500 million won (after tax).
Bang is accused of conspiring with Kim to leak design technical data from Company A, a semiconductor equipment supplier, to China's CXMT.
Ⅲ. BATTERY INDUSTRY TREND
1. LG and SK End Rivalry; Forge Multi-Trillion Won ‘Battery Alliance’
- Landmark agreement aims to conquer U.S. market
- SK Nexilis to supply copper foil for up to 5 million EVs to LG Energy Solution Plants
SK Nexilis is to supply multi-trillion won worth of copper foil for secondary batteries to LG Energy Solution. This marks a significant reunion after five years, as the two Korean giants had severed new transactions related to battery materials in the aftermath of a protracted technology leakage lawsuit between LG and SK.
According to battery industry on the 24th, SK Nexilis, South Korea's largest copper foil producer, is in discussions to supply tens of thousands of tons of copper foil to LG Energy Solution, the nation's leading battery manufacturer. The two parties are reported to have reached an agreement for a supply volume ranging from 50,000 to 100,000 tons, which is sufficient for 2.5 million to 5 million electric vehicles. The contract does not include mandatory purchase volumes from LG Energy Solution, allowing for flexibility in supply based on future market conditions. Industry estimates suggest this deal could be valued between 1 trillion won and 3 trillion won. SK anticipates that supply volumes could increase further once the battery industry enters a full-fledged recovery phase.
Copper foil, a thin layer of copper laid at the base of the battery cell's anode, accounts for approximately 10% of the battery cell's cost. SK Nexilis plans to produce the material at its plants in Malaysia and Jeongeup, North Jeolla Province in Korea.
The reconciliation and alliance between the two companies, burying five years of animosity, is driven by a strategic move to penetrate the U.S. market. Considering that U.S. automakers, including General Motors (GM), are reducing their reliance on Chinese components and materials in line with the Donald Trump administration's policy direction, LG Energy Solution reportedly abandoned its plans to use Chinese copper foil, such as that from DeFu Technology, in its U.S. factories and instead opted to source from SK. SK's annual copper foil production capacity, reaching 100,000 to 110,000 tons, coupled with its high-quality products, also played a crucial role. This agreement offers SK Nexilis a turnaround opportunity, as the company had been facing losses since 2023 after severing new deals with LG.
Analysts suggest that an atmosphere of reconciliation has emerged between the two groups, which had been in a standoff for over five years due to a battery trade secret lawsuit. An industry official stated, “While the relationship between LG and SK was severely tense immediately after the past lawsuit, the change in management has reset their dynamic.” They added, “This, coupled with the Trump administration's 'de-risking from China supply chain' policy, has reactivated the battery alliance between the two groups.”
An SK Nexilis official confirmed that negotiations took place but stated that the details of contract progression with customers cannot be disclosed. The official added, “Specifics regarding volume, duration, etc., cannot be confirmed as they are business secrets.”
An LG Energy Solution official also commented, “Discussions for a medium-to-long-term supply resumption are ongoing, but the content cannot be confirmed.”
2. LG Energy Solution Scores Third Patent Win in Battery Dispute; China’s Sunwoda Faces German Sales Ban
LG Energy Solution has won a patent infringement lawsuit against Chinese battery manufacturer Sunwoda, concerning battery structure.
According to Tulip Innovation, a patent management firm, a German court ruled in favor of LG Energy Solution on the 17th in a lawsuit related to battery electrode and separator technology conducted in Germany, as announced on the 24th.
The German court determined that Sunwoda's prismatic batteries, incorporated in the Dacia Spring electric vehicle, infringed upon LG Energy Solution's patents related to core lithium-ion battery technology.
The patent in question is the 'electrode assembly structure patent,' which describes LG Energy Solution's technology for forming an integrated electrode assembly using coated separators to ensure that stacked electrode layers remain stable and do not separate.
This technology is widely known to be used in the prismatic battery sector, where Chinese companies are heavily focused, and is broadly applied in the development of high-power, high-capacity batteries for electric vehicles (EVs) and Energy Storage Systems (ESS).
The German court ordered Sunwoda to cease sales of batteries utilizing the infringing technology within Germany, recall and dispose of remaining batteries, provide relevant accounting documents, and take measures for damages. The ruling is immediately enforceable, although it can be appealed.
This judgment marks LG Energy Solution's third consecutive victory against Sunwoda in patent litigation.
LG Energy Solution and Tulip had previously won two patent infringement lawsuits in May regarding separator SRS coating technology. Those lawsuits resulted in the first sales ban ruling within Germany's EV battery industry.
Sunwoda, established in 1997, is a Chinese lithium-ion battery company that ranked 10th in the global EV battery market share last year, according to SNE Research. Sunwoda supplies batteries to companies such as Geely Automobile, Renault-Nissan, and Dongfeng Motor.
LG Energy Solution's strategy is to resolutely counter 'patent free riding' practices within the battery industry, combining legal action and warnings against technology infringing companies, while also leading the global patent licensing market to foster a fair competitive environment.
LG Energy Solution emphasized, “Numerous cases of commercialized competitor products infringing upon LG Energy Solution's unique technology have been identified.” The company added, “As an industry rule-setter, we will protect our technology and lead in creating a fair competitive environment by fostering a global battery patent licensing market.”
3. Global Waste Battery Market Expected to Grow 17% Annually
- Global waste battery market projected to hit $208.9 billion by 2040
- Major nations like the U.S., EU, and Japan actively pursue recycling; Korea needs more governmental support
As electric vehicle (EV) batteries, which began commercialization in 2013, are anticipated to reach the end of their lifespan more significantly starting in 2030, a claim has been put forth that the internalization of the rare earth supply chain through waste battery resource recycling will be critical for future national and industrial competitiveness.
The Federation of Korean Industries (FKI) revealed this in its 'New Industry Proposal Series⑦—Waste Battery' report on the 24th.
Globally, the number of mobility devices reaching end-of-life batteries is projected to rise from 170,000 units in 2023 to 4.11 million in 2030 and 42.27 million in 2040. Consequently, the global waste battery market is forecast to grow from an estimated $10.8 billion in 2023 to approximately $208.9 billion by 2040, expanding at an average annual rate of 17%.
Among the minerals used in EV batteries, such as lithium, cobalt, nickel, and graphite, production and refining are primarily handled by a few countries including Australia, China, Congo, and Indonesia. These minerals face increased supply-demand uncertainty in the event of geopolitical risks, such as the U.S.-China hegemonic competition.
Waste battery recycling policies are significant as they not only reduce the production costs of key minerals but also mitigate supply chain risks by lowering import dependence.
Major countries, such as the United States and Europe, are actively promoting waste battery recycling policies.
The U.S. has embarked on strengthening battery recycling and related supply chains through tax incentives under the 'Inflation Reduction Act (IRA)' and subsidies from the 'Infrastructure Investment and Jobs Act (IIJA)'. Its long-term goal is to collect and recycle 90% of discarded or end-of-life lithium-ion batteries within the U.S. to reintroduce core materials into the supply chain.
The EU's 'Battery Regulation Act,' adopted in 2023, mandates the use of recycled materials starting in 2031. The Japanese government supports battery recycling and circular economy transition projects for major automotive companies through its 2 trillion yen 'Green Innovation Fund.'
China classifies EV waste batteries as strategic resources for urban mining and prioritizes improving the recovery rate of recyclable resources and enhancing industrialization levels .
The KFI proposed three key policy tasks for enhancing competitiveness in the waste battery market: ▲support for public procurement, ▲establishment of a dedicated HS code, and ▲reorganization of the management system for used batteries.
Ⅵ. ELECTRIC VEHICLE INDUSTRY TRENDS
1. BYD, “SEAL EV for Korea Is Not an Old Model. Tailored for Korean Market.”
BYD Korea on the 24th issued a statement addressing recent concerns raised by some media outlets and online communities suggesting that the BYD SEAL electric vehicle sold in South Korea might be an outdated model.
In its official statement, BYD explained, “We strictly separate the development and production of vehicles for China's domestic market from those for export. This approach is to reflect the legal regulations, certification requirements, road environments, and consumer needs of each country.”
BYD emphasized that its product launch and model lifecycle differ from those of conventional global automakers.
While traditional car brands typically supply the same new models to global markets within a few months to a year after their launch, BYD strictly differentiates its product strategy between its domestic and export markets.
BYD clarified that the BYD SEAL model being launched in the Korean market is not merely an older model or unsold inventory. Instead, it is a model specifically designed for the Korean market, with specifications configured to meet domestic certification standards and customer demands.
All BYD SEAL models sold in the Korean market are 2026 model year vehicles, produced entirely at BYD's headquarters factory in 2025, and will be delivered to Korean consumers.
In contrast, the SEAL model currently sold in China is developed exclusively for the Chinese domestic market and is not sold in other regions, including Korea.
As of now, the decision regarding its sale in markets outside China also remains undetermined.
Future models to be introduced to the global market will be released sequentially after products are developed to meet the specific requirements and certification standards of each country.
Espically, the 'God's Eye' driving assistance system, integrated into Chinese models, requires time for optimized model development for individual markets. This is due to the necessity of meeting various conditions such as local regulations, certification requirements, and operating environments for international release.
2. Minister of Environment Visits Hyundai, Pledges to Boost EV Subsidies Efficiency
- Minister of Environment gathers on-site feedback at Hyundai Motor’s Jeonju plant
- Discussions on boosting EV adoption to meet transport sector NDC goals
Newly appointed Minister of Environment Kim Sung-whan announced on the 24th that he would actively promote the wider adoption of domestically produced electric commercial vehicles, including enhancing the efficiency of EV subsidy policies.
That afternoon, Minister Kim visited Hyundai Motor's Jeonju plant in Wanju County, North Jeolla Province, to inspect the production and distribution sites of electric commercial vehicles and discuss strategies with relevant officials to invigorate the supply of domestically manufactured electric commercial vehicles.
Hyundai Motor's Jeonju plant is the world's largest single-site electric commercial vehicle factory, producing a total of 17 types of commercial vehicles, including electric and internal combustion engine buses and trucks. Since launching its first electric bus, the Elec City, in 2017, the plant has strengthened its electric commercial vehicle production capabilities, including improving production lines in May last year to increase annual electric bus output by approximately 2.5 times, from 1,450 to 3,600 units.
This site visit was organized to gather feedback from the field and discuss obstacles and solutions for promoting domestically produced electric commercial vehicles, with the aim of smoothly achieving the goal of supplying electric and hydrogen vehicles by 2030.
The Ministry of Environment is pursuing a goal of supplying 4.5 million zero-emission vehicles (electric and hydrogen vehicles) by 2030 to achieve the Nationally Determined Contribution (NDC) for the transportation sector. As of June this year, a cumulative 845,000 zero-emission vehicles have been deployed. To meet the goal, an additional 3.65 million units must be supplied by 2030.
However, the 'chasm' phenomenon in EV adoption (a break in demand occurring when a new technology transitions from early adopters to mainstream consumers), which began in 2023, has prolonged. Consumer demand was also dampened by an EV fire incident in August last year and other factors.
Nevertheless, demand appears to be recovering, with 95,000 electric and hydrogen vehicles supplied by June this year, marking an approximate 44% increase compared to the same period last year (66,000 units).
The Minister of Environment stated, “The EV industry is not only a next-generation growth engine driving the national economy but also serves as a crucial catalyst for achieving carbon neutrality in the transportation sector.” He further announced, “We will actively promote the widespread adoption of domestically produced electric commercial vehicles, including enhancing the efficiency of our subsidy policies, to strengthen the competitiveness of the domestic electric commercial vehicle industry.”
3. Hyundai Motor Group’s EV Exports to U.S. Plummet 88%
- 7,156 units exported from Jan-May this year
- Marked 88.0% decrease year-on-year
- Combined impact of expanded local production & sales decline
- US EV tax credit expiry in September poses major risk
Hyundai Motor Group's electric vehicle (EV) exports to the United States have reportedly decreased by over 80% compared to the previous year. This decline is attributed to a combination of expanded local production and sluggish sales. Furthermore, a challenging outlook for the second half of the year looms, as EV tax credits in the U.S. are set to expire in September as planned.
According to the Korea Automobile & Mobility Association (KAMA) on the 22th, Hyundai Motor and Kia exported 7,156 EVs to the U.S. from January to May this year. This represents an 88.0% decrease compared to the 59,705 units exported during the same period last year.
Hyundai Motor, including Genesis, saw an 87.0% decline with 3,906 units, while Kia's exports fell by 89.1% to 3,250 units. This export volume to the U.S. for Jan-May marks the lowest record since 2021, when Hyundai Motor Group's electrification strategy began in earnest, with 4,441 units. Exports had steadily grown from over 28,000 units in 2022 to approximately 46,000 in 2023, and nearly 60,000 in 2024, before this recent sharp reduction.
Industry analysts suggest that while the decline in exports is partly due to Hyundai Motor Group establishing a local production base in the U.S., particularly with 'Metaplant America' (HMGMA), the primary diagnosis points to sluggish local EV sales.
Hyundai Motor Group's sales in the U.S. pure EV market decreased by 28% to 44,533 units in the first half of this year (Jan-June) compared to 61,883 units in the same period last year. The group's market share in this segment fell by 3.4% to 7.6%, causing it to drop one rank to third place, ceding its second position to General Motors (GM).
In this context, the potential early termination of U.S. EV tax incentives is being cited as a major risk for the South Korean EV industry. The recently enacted 'One Big Beautiful Bill Act (OBBBA)’ in the U.S. includes provisions to end the $7,500 tax credit for new EV purchases by the end of September.
According to recent forecasts from the Federation of Korean Industries (FKI), if the 'tax credit expiry in September' materializes, Hyundai Motor Group's EV sales in the U.S. market could decrease by up to 45,828 units annually. This reduction is estimated to be a combined revenue loss of $1.955 billion, or approximately 2.72 trillion won.
Ⅴ. BIO INDUSTRY TRENDS
1. Samsung Biologics Records KRW 2.58 Trillion in H1 Revenue, Annual Sales Near KRW 6 Trillion
- Operating profit reaches 962.3 billion won driven by plant 4 ramp-up
- Q2 revenue reaches 1.142 trillion won and operating profit 477 billion won
- Full-year revenue growth forecast raised to 25-30%
Samsung Biologics announced on the 23, through a public announcement, that its consolidated revenue for the first half of this year reached 2.5882 trillion won, with an operating profit of 962.3 billion won. This performance was primarily driven by the increased revenue contribution from Plant 4 and strong biosimilar sales.
Compared to the same period last year, sales grew by 23% and operating profit surged by 46.7%.
For the second quarter, Samsung Biologics reported consolidated revenue of 1.2899 trillion won and an operating profit of 475.6 billion won, representing increases of 11.5% and 9.4% respectively, compared to the previous year.
On the same day, Samsung Biologics, through a fair disclosure, upgraded its consolidated full-year revenue growth forecast for this year from the previous 20-25% to 25-30%. The anticipated annual revenue was consequently revised upward from 5.5705 trillion won to 5.7978 trillion won.
This adjustment reflects the impact of improved operational efficiency across Plants 1-3 and the ongoing ramp-up of Plant 4.
2. China’s ‘BIOCHINA’ Global Forum to Be Held in Seoul This September
- ABL Bio, Kolon TissueGene, and Genexine among attendees
The Chinese biotech convention 'BIOCHINA' will host the 'BIOCHINA Global Forum' at the Magok Industrial Complex in Seoul on September 12.
According to Enmore Bio, the organizer of BIOCHINA, the forum, themed 'Innovation Together,' was established to strengthen cooperation in the China-Korea bio and pharmaceutical sectors, as announced on the 24th.
BIOCHINA is China's largest biotech partnering and innovation convention, supporting the growth of the biotech ecosystem with participation from scientific research institutions, biotech and pharmaceutical companies, government regulatory bodies, clinical organizations, CDMOs (Contract Development and Manufacturing Organizations), and CROs (Contract Research Organizations).
The main BIOCHINA event held at the Suzhou International Expo Center in March featured five specialized exhibition halls, 850 speakers, and 204 forums. A total of over 30,000 people attended, with more than 500 international participants from 28 countries.
The upcoming forum in Seoul marks the global forum to be held in Asia, following events in Boston and San Diego. It serves as an opportunity to expand BIOCHINA's pursuit of global cooperation and innovation networks within Korea.
More than 300 attendees, over 30 speakers, and more than 100 institutions will participate in keynote presentations, panel discussions, and networking sessions. The forum will focus on industrial innovation, global cooperation strategies, and the development of the bio-ecosystem, with a particular emphasis on antibodies, Cell and Gene Therapy (CGT), and Antibody-Drug Conjugates (ADC).
Major Korean biotech companies, including ABL Bio, Kolon TissueGene, and Genexine, will attend. From China, major pharmaceutical and biotech companies such as Livzon Pharmaceutical Group and CSPC Pharmaceutical Group are expected to participate.
The organizer, Enmore Bio, stated, “The participation of large Chinese pharmaceutical companies demonstrates China's strong drive to expand China-Korea biotech cooperation,” and expressed, “We expect this Seoul forum to further strengthen the partnership between the two countries.”
3. Why K-bio Is Eyeing Japan’s Biosimilar Market
- Japan's aging society worsens medical finances, fuel biosimilar
- Celltrion, a pioneer 11 years ago, leads; LG Chem & Samsung Bioepis give chase
As Japan rapidly enters a super-aged society, facing a healthcare financial crisis and simultaneously implementing biosimilar-friendly policies, South Korean biosimilar developers are accelerating their push into the Japanese market. Major companies like Celltrion, LG Chem, and Samsung Bioepis are actively expanding their market share through localized strategies.
According to the bio・pharmaceutical industry on the 26th, biosimilar developers have been successively entering the Japanese market recently. Their focus on Japan stems from the 'Diagnosis Procedure Combination (DPC) system' operated by the Japanese government.
Japan's super-aging society drives biosimilar-friendly policies
The DPC system is a method where the Japanese government pre-determines a cap on treatment costs for inpatients by disease, paying hospitals a fixed amount. Regardless of which medicines a hospital uses, they receive only the pre-set amount. Therefore, using lower-priced medicines allows hospitals to reduce costs and secure more profit.
Within this structure, biosimilars gain a competitive edge because they maintain the quality of original biopharmaceuticals while offering lower prices. Consequently, this creates a triple-win scenario: the Japanese government saves on health insurance finances, hospitals increase their profits, and patients reduce their medication expenses.
Japan, which operates a government-led national health insurance system like South Korea, is experiencing a deepening medical financial crisis as it enters a super-aged society, making its resolution a pressing national issue. The Japanese government's interest in biosimilars is closely connected to this context. Analysis suggests that the defensive strategies, maintained by local bio・pharmaceutical companies for decades to keep foreign pharmaceutical firms in check, have also reached a point where they are no longer sustainable.
Accordingly, the Japanese government is moving to ease regulations to lower entry barriers for the biosimilar industry. For example, in January last year, Japan's Ministry of Health, Labour and Welfare (MHLW) revised its standards to allow for approval applications based on global clinical data without a separate clinical trial in Japan, provided that no significant ethnic differences exist between biosimilars and original drugs in global clinical trials.
Celltrion leads Japan’s biosimilar market share
Celltrion is at the forefront of the Japanese market. Specifically, beginning with the launch of the autoimmune disease biosimilar 'Remsima' (ingredient name infliximab) in Japan in 2014, Celltrion successively introduced 'Herzuma' (ingredient name trastuzumab), a breast cancer treatment, in 2019, followed by the anti-cancer drug 'Vegzelma' (ingredient name bevacizumab) and the rheumatoid arthritis treatment 'Yuflyma' (ingredient name adalimumab) in 2023. Recently, 'Stelkimab' (ingredient name ustekinumab) was launched, further strengthening its autoimmune disease portfolio.
Celltrion also holds an overwhelming market share. According to IQVIA, a pharmaceutical market research firm, Herzuma achieved a 75% market share in Japan as of April this year, ranking first among five trastuzumab-based products. Despite Vegzelma entering the market in 2023, the latest among six competing treatments, it achieved a 29% market share, narrowing the gap with the leading product to just 2%.
Performance in the autoimmune disease sector is also significant. Remsima recorded a 41% market share in Japan during the same period, while Yuflyma showed a 12% share. Notably, Yuflyma grew more than 1.5 times within just four months of its launch.
A Celltrion official stated, “Our achievements are becoming visible due to the synergy of tailored sales activities by our local subsidiary and partners, which consider the unique characteristics of the Japanese pharmaceutical market, and the Japanese government's biosimilar-friendly policies.” The official added, “As Japan is a key market in Asia, we plan to strengthen our sales strategies and commit further to sales activities to maximize product sales.”
LG Chem solidifies foothold in Japan's etanercept market; Potential competition with Samsung Bioepis
LG Chem has also entered the Japanese biosimilar market. It gained entry in 2018 with the launch of the autoimmune disease treatment 'Eucept' (ingredient name etanercept), and the industry estimates it secured approximately 60% market share. Subsequently, in March 2021, it expanded its product portfolio with the additional introduction of 'Zelenka' (ingredient name adalimumab), a rheumatism treatment.
Eucept's Japanese distribution rights are held by LG Chem's partner, Mochida Pharmaceutical, and it is currently being distributed through a co-promotion arrangement with Ayumi Pharmaceutical, which specializes in the distribution of rheumatism treatments. Through this strategy, Eucept has stably established itself in the market and has secured a consistent customer base.
Samsung Bioepis recently entered into a partnership agreement with NIPRO Corporation of Japan for the local commercialization of the autoimmune disease treatment 'Pizchiva' (ingredient name ustekinumab). Under the agreement, Samsung Bioepis will handle product development, production, and supply, while NIPRO will be responsible for local distribution.
Notably, Samsung Bioepis is the only South Korean company with experience launching an etanercept biosimilar in Europe. This suggests potential competition with LG Chem, which has a product for the same indication in the Japanese market, whereas Celltrion does not have a product in this category.
Samsung Bioepis's performance in Japan is expected to depend on the sales capabilities of its partner. NIPRO, established in 1954, is a medical device specialist company boasting annual revenues of approximately 5.6 trillion won and a market capitalization of 2 trillion won. A Samsung Bioepis official explained, “NIPRO has extensive experience not only in medical devices but also in pharmaceutical distribution, including generics, making it an ideal partner for entering the Japanese market.
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Korean Industrial Insight No.17 of AI, Semiconductors, Batteries, Electric vehicles, and Bio in chinese
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