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Korean Industrial Insight No. 17 of AI, Semiconductors, Batteries, Electric vehicles, and Bio

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KH

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2025-10-01

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Ⅰ. AI INDUSTRY TRENDS

1. President Lee, BlackRock Forge AI & Energy Strategic Partnership

- Joint task force with BlackRock to expedite investment and cooperation; CEO Fink invited to visit Korea.
- BlackRock CEO, overseeing USD 12.5 trillion, express vision for Korea as ‘Asia-Pacific’s AI Capital’.
President Lee Jae-myung held discussions with Larry Fink, Chairman of the World Economic Forum and CEO of BlackRock, as his initial engagement during a five-day visit to the U.S. for the UN General Assembly.
The South Korean government and BlackRock, the world's largest asset manager with USD 12.5 trillion under management, have signed a Memorandum of Understanding (MOU) for cooperation in Artificial Intelligence (AI) and renewable energy. This partnership aims to develop South Korea into a global hub for AI and energy within the Asia-Pacific region.
In a briefing following President Lee's meeting with BlackRock CEO Larry Fink, Lee’s Senior Secretary for AI, Ha Jung-woo, stated that "major topics such as artificial intelligence, energy transition, and demographic changes were discussed, and it also served as an occasion to confirm a consensus for strategic cooperation between South Korea and global investment firms."
CEO Larry Fink emphasized, "It is crucial for AI and decarbonization transitioning in conjunction. This is an issue the entire world must address collaboratively." He further expressed his intention to "actively cooperate by linking global capital to enable South Korea to become Asia's AI capital."
In response, President Lee emphasized, "We welcome the opportunity to collaborate on realizing Korea as the AI capital of the Asia-Pacific. Through close and continuous discussions, let us ensure this partnership leads to tangible outcomes.” The MOU signed between the Korean government and BlackRock focuses on three key areas: △first, discussing cooperation on domestic AI and renewable energy infrastructure; △second, establishing an Asia-Pacific AI hub within Korea; and △ third, developing a framework for global cooperation.
Senior Secretary Ha assessed the agreement’s potential, stating, "We have agreed to jointly prepare a comprehensive large-scale investment plan to facilitate the AI and renewable energy transition in the Asia-Pacific region over the next five years." He further remarked, "The anticipated benefits of this agreement are evident. Through these discussions, Korea has taken a leading role in establishing an Asia-Pacific AI infrastructure hub, solidifying its position as a trusted strategic location for global capital enterprises."
The MOU between our government and BlackRock was formalized through a signing ceremony between the Ministry of Science and ICT, representing the Korean government, and CEO Larry Fink, conducted in the presence of President Lee.
However, it has been noted that close follow-up discussions are essential for the future cooperation between our government and BlackRock to materialize, given the non-binding nature of the MOU. It is reported that President Lee conveyed an invitation to CEO Larry Fink to visit South Korea at an early date.
2. LG AI Research Partners with Longdon Stock Exchange Group (LSEG) to Launch Financial AI Agent

- LG EXAONE breaks into UK financial sector: “New era for AI revenue generation”
- LG unveils its first ‘financial AI agent’
- Plans to market EXAONE BI-powered products
- LG’s AI technology proves global market prowess
LG AI Research, which leads the artificial intelligence (AI) initiatives within LG Group, has successfully commercialized a financial AI agent in collaboration with the London Stock Exchange Group (LSEG), a prominent UK financial institution. This marks a significant milestone as the first AI cooperation in the financial sector between Korea and the UK, with LG anticipating that this partnership will serve as a crucial opportunity for Korean AI technology to gain global recognition and expand its presence in the international market.
On the 19th (local time), LG AI Research and LSEG hosted an event at the London Stock Exchange to announce the launch of their commercial service, 'EXAONE Business Intelligence (BI)'.
EXAONE BI represents LSEG's integrated platform, which is built upon ‘EXAONE,' the large-scale AI foundation model developed by LG AI Research. This collaboration gains additional significance from the fact that the UK, a leader in global financial infrastructure, chose LG as its AI partner. Prior to this, on the 1st, Douglas Alexander, the UK Minister of State for Trade Policy and Economic Security, visited the LG AI Research headquarters in Gangseo, Seoul, to review the project's progress and expressed his strong commitment to the collaboration.
Exaone BI has significantly elevated the standard of existing financial AI services, which previously remained largely assistive, often limited to tasks such as report summarization. This advanced system is capable of performing the entire process, from data analysis and future prediction to report generation, autonomously without human intervention.
LG AI Research designed EXAONE BI with a sophisticated architecture wherein four AI agents, each assuming an expert role, collaborate seamlessly. Specifically: △The AI Journalist collects extensive external data, including news and corporate disclosures; △The AI Economist then forecasts future market trends and economic prospects using this collected data. △Following this, the AI Analyst synthesizes these predictive outcomes with internal indicator analyses to identify crucial factors and unusual signals that could impact specific stocks. △Finally, the AI Decision-maker assesses and compares various scenarios, leveraging the reports generated by the AI Analyst, to derive comprehensive scores.
LSEG plans to offer 'AEFS (AI-Powered Equity Forecast Score),' a data product derived from the scores and reports predicted by EXAONE BI, to investors worldwide. Woohyung Lim, Co-Director of LG AI Research, stated, "Our collaboration with LSEG proves the value and competitiveness of LG's vertical AI technology in the global market. This partnership will mark the true starting point for revenue generation through AI."

3. 53,000 Young Koreans to Receive AI and Semiconductor Training; Samsung, SK Participate

- 43,000 to gain work experience; SK, Hyundai Motor, LG join efforts
- 10,000 to receive advanced training in AI, semiconductors, robotics
The Korea Chamber of Commerce and Industry (KCCI) is set to expand its youth vocational training programs in future industry sectors, such as semiconductors and artificial intelligence (AI).
On the 21st, the KCCI announced that it will provide enhanced work experience opportunities for 53,000 young people and broaden vocational training in future-oriented fields such as semiconductors and AI, collaborating with its 200,000 member companies to support youth employment and career development.
This year, the KCCI’s Integrated Work Experience Support Center will facilitate work experience for 43,000 young individuals, an increase of 10,000 from the previous year.
Fourteen regional Chambers of Commerce, including those in Seoul and Cheongju, are actively participating as operating bodies, offering work experience to 2,350 young people in partnership with local businesses. Major corporations such as SK, Hyundai Motor, LG, POSCO, Doosan, and Hanwha are also taking part in these programs.
Education and training are also provided in future growth industries such as AI, semiconductors, and robotics. A total of 10,000 young talents in these advanced fields are slated to be cultivated through the collaboration of seven national human resource development centers and 36 leading corporate academies.
The seven national human resource development centers aim to nurture 1,974 professionals in advanced industries, specifically targeting 516 in semiconductors, 464 in AI, 397 in robotics, and 142 in information security. In the first half of the year alone, 1,021 individuals completed training, and an additional 953 are being recruited for the second half.
Participating leading corporate academies are currently operating vocational training programs for 7,000 individuals across sectors including semiconductors, AI, and big data.


Ⅱ. SEMICONDUCTOR INDUSTRY TRENDS

1. Hanmi Semiconductor Launches ‘Big Die FC Bonder’ for AI Semiconductors

Hanmi Semiconductor announced on the 22nd that it has launched the 'Big Die FC Bonder,' a new equipment for artificial intelligence (AI) semiconductors, and will supply it to global customers.
This new product is particularly significant as it marks Hanmi Semiconductor's strategic expansion into the 2.5D packaging market for system semiconductors, moving beyond its established dominance in High Bandwidth Memory (HBM) for the AI semiconductor market.
The 'Big Die FC Bonder' from Hanmi Semiconductor is distinguished by its capability to support large interposer packaging up to 75mm x 75mm. This enables it to process a wider area than the conventional general-purpose semiconductor packaging size of 20mm x 20mm, facilitating the integration of ultra-large dies and multi-chips required for next-generation AI semiconductors.
Currently, the system semiconductor industry is witnessing an increased adoption of 2.5D packaging due to the proliferation of chiplet technology. 2.5D packaging is an advanced technique that integrates multiple chips, such as Graphics Processing Units (GPUs), Central Processing Units (CPUs), and HBMs, into a single package on a silicon interposer. This technology simultaneously achieves expanded bandwidth between chips, enhanced data transfer speeds, and improved power efficiency.
TSMC's CoWoS (Chip on Wafer on Substrate) is a prime example of 2.5D packaging technology, having become a core technology in AI semiconductors and High-Performance Computing (HPC) fields. Global AI semiconductor companies like Nvidia and AMD are actively adopting this technology.
Hanmi Semiconductor also plans to launch another new device supporting 2.5D packaging, the '2.5D Big Die TC Bonder,' in the first half of next year, aiming to further strengthen its competitiveness in the advanced packaging market.
According to a Yole Intelligence report, the advanced semiconductor packaging market is projected to grow from USD 46 billion (KRW 64 trillion) in 2024 to USD 79.4 billion (KRW 110 trillion) in 2030, with an annual growth rate of 9.5%.
The Chairman of Hanmi Semiconductor stated, "The Big Die FC Bonder will be immediately integrated into the mass production lines of our global customers upon its launch. With the release of this new product, our 2.5D packaging bonder lineup has been strengthened, allowing us to provide a diverse range of equipment suitable for the AI era not only to memory customers but also to IDM (Integrated Device Manufacturer) and OSAT (Outsourced Semiconductor Assembly and Test) customers."

2. Samsung and SK to Recruit Large Numbers of Young Professionals in Semiconductors and AI

Samsung has announced plans to recruit a total of 60,000 new employees over the next five years, with an annual hiring target of 12,000 individuals.
The Samsung Group intends to significantly increase its youth recruitment by focusing on new growth industries identified as future growth engines, including semiconductors, AI, and biotechnology.
This strategic initiative aims to achieve two key objectives of securing future talent and creating employment opportunities for young people.
Samsung has identified AI, bio, automotive electronics, and 5G as its four key future growth areas.
Notably, Samsung Electronics has made significant investments in robotics, healthcare, and automotive electronics companies this year.
The company's goal is to proactively recruit talent in these sectors to serve as new growth drivers.
Samsung Electronics Chairman Lee Jae-yong stated in June, "It is crucial to prepare for the next generation's growth drivers 20 to 30 years from now," adding, "We will faithfully execute our planned domestic investments and employment."
SK Group is also set to hire approximately 8,000 new employees this year.
Having already hired around 4,000 in the first half, SK plans to recruit additional young professionals in R&D and AI fields in the second half of the year.
SK Hynix, a leader in the HBM sector, intends to significantly bolster its engineering workforce in line with its expanding semiconductor business.
Thousands of new hires are anticipated for the Yongin Semiconductor Cluster alone, which is scheduled to commence operations in the first half of 2027.
Furthermore, SK affiliates are actively recruiting young talent across various business areas, aligning with the expansion of future strategic projects such as the 'SK AI Data Center Ulsan,' for which ground was broken last month.
SK also plans to actively invest in educational programs for young professionals in the semiconductor and AI sectors.


3. Morgan Stanley Upgrades South Korean Semiconductor Sector to ‘Attractive’, Forecasts ‘AI Supercycle’ Peak in 2027

U.S. investment bank Morgan Stanley has substantially raised its outlook for the South Korean semiconductor industry. This upward revision is driven by the firm's assessment that the memory semiconductor market has entered a “supercycle.”
In its "Memory Supercycle" report, released on the 21st (local time), Morgan Stanley elevated its investment rating for the South Korean semiconductor sector from 'in-line' to 'attractive.' Concurrently, SK Hynix's rating was upgraded from 'Equal-Weight' (EW) to 'Overweight' (OW).
The report analyzed that "opportunities centered on High Bandwidth Memory (HBM) are outpacing the overall industry's growth rate." It further noted, “As demand for AI servers and mobile DRAM expands concurrently, the volatility of general memory price is accelerating once again.” Morgan Stanley projects that "the memory industry will emerge from its short-term downturn and reach its peak in 2027," adding that "supply shortages are becoming widespread across the sector."
Regarding SK Hynix, the report indicated that "downside risks related to HBM have already been sufficiently reflected in the market," and forecast that "the general memory market will enter a full-fledged upturn next year."
Samsung Electronics, Japan's Kioxia, and U.S.-based SanDisk were also identified as key beneficiaries of the booming NAND flash and DRAM markets. Morgan Stanley predicted that "the recovery phase, sparked by tariff issues, will accelerate further next year." The firm anticipates that "DRAM oversupply will be resolved, and NAND will face supply shortages as demand for AI eSSD (enterprise SSD) more than doubles."





Ⅲ. BATTERY INDUSTRY TREND

1. Battery Korea 2025 Kicks Off

The ‘BATTERY KOREA 2025’ conference, a key event for sharing trends and future strategies within the domestic and international battery industry, commenced on the 22nd at the Grand Ballroom, 1st floor of COEX, Seoul.
This conference focuses on "Secondary Battery Materials, Components, Equipment, and Recycling," addressing the latest technologies and market outlooks across the entire battery sector. Notably, its program is comprehensively structured to encompass the full battery ecosystem, from electric vehicle batteries and Energy Storage Systems (ESS) to cutting-edge recycling technologies.
The conference agenda is divided into three distinct tracks, featuring expert presentations in each specialized area: Track A for Battery Manufacturing and Material Technologies, Track B for Battery Management and Safety Technologies, and Track C for Battery Recycling and Reuse Technologies.
Track A discussions covered a broad spectrum of manufacturing techniques, ranging from thermal and electrochemical analysis within lithium-ion battery cells to advanced next-generation battery technologies. Track B concentrated on Battery Management Systems (BMS) and advancements in safety technologies, while Track C extensively debated strategies for end-of-life battery recycling and establishing a robust circular economy.
A particularly salient session was the presentation on global ESS market trends. A key speaker emphasized the need for diversified business strategies utilizing ESS, beyond mere integration with renewable energy, to include critical applications such as peak power reduction, demand response management, and emergency backup solutions.
According to the presentation materials, ESS business models are expanding through applications like power demand management, energy arbitrage, and emergency backup functions. Analysis indicates significant growth potential, particularly within grid stabilization and renewable energy interconnection sectors.
The conference attracted a wide array of professionals, including battery manufacturers, material and component suppliers, research institutions, and government officials, fostering vigorous networking and technological exchange. To enhance attendee convenience, a QR code-based system for sharing presentation materials was implemented.
An interactive session for participants, scheduled to begin at 5:00 PM, is expected to facilitate deeper discussions among industry stakeholders.
As the battery industry continues its rapid expansion, driven by the growth of the electric vehicle market and the widespread adoption of renewable energy, this conference is positioned as a critical forum for shaping the developmental trajectory of South Korea's battery ecosystem.

2. K-Battery Sector Bolstered by ESS Orders, Signaling Potential Reversal from EV ‘Chasm’

South Korea's secondary battery industry is showing early signs of a turnaround, with exports of key materials resuming an upward trend this month. This shift ignites hopes of reversing a more than two-year period of negative growth.
For the period of the 1st–20th this month, the combined export value of South Korean cathode, anode, and separator materials reached USD 467.68 million (approximately KRW 654 billion). This marks a 3.4% increase compared to USD 452.48 million during the same period last year, signifying the first positive growth recorded in 25 months since August 2023 (6.2% increase).
Market research firms analyze that the exponential growth in global demand for Energy Storage Systems (ESS) is effectively compensating for the slowdown in electric vehicle (EV) demand. ESS are systems designed to store surplus electricity during periods of low power consumption and supply it when required.
Analysis further suggests that the "de-Sinicization" initiatives by U.S. energy companies are opening new opportunities for the Korean battery industry. Domestic companies are converting some of their production lines to manufacture lithium iron phosphate (LFP)-based cells and materials, driven by increasing demand from ESS clients.
L&F, which issued KRW 300 billion worth of Bond with Warrants (BW) on the 9th for the mass production of LFP cathode materials, explicitly stated its objective: "Our goal is to proactively address customers' supply chain diversification strategies and enhance our market share in both the EV and ESS sectors over the medium to long term."
Secondary Battery Material Exports Rebound After 25 Months
U.S. ESS Market Grows 57% This Year; Goldman Cautions on ESS-Only Rebound
The global Energy Storage System (ESS) market's explosive growth is reinvigorating the domestic battery industry. Market researchers anticipate that the influx of orders from the ESS sector will provide significant relief to the industry currently navigating a challenging period due to sluggish electric vehicle (EV) sales.
Anticipating Accelerated ESS Order Growth
"We anticipate a full-fledged increase in orders from the North American ESS market." Mirae Asset Securities, on the 16th, projected an operating profit of KRW 9 billion for L&F, a producer of cathode materials for secondary batteries, in the third quarter. This forecast suggests an end to a seven-quarter-long deficit streak that began in Q4 2023. For the upcoming year, the firm expects an operating profit of KRW 90 billion, signaling a return to annual profitability for the first time in four years since 2022.
A key driver for this optimistic performance outlook is the increasing order volume from ESS clients. LG Energy Solution, South Korea's largest secondary battery cell manufacturer, secured a USD 4.309 billion (approximately KRW 6 trillion) contract in July to supply LFP batteries for ESS. Similarly, Samsung SDI signed a KRW 434.7 billion ESS battery supply agreement with NextEra Energy in March. These order achievements by domestic cell manufacturers directly influence the performance of material producers, including POSCO Future M, EcoPro BM, and L&F.
According to Bernstein Research, the U.S. ESS market expanded by 57% year on year, reaching 23.7 GWh from January to September of this year. The global market is projected to grow by 68% to 348 GWh this year. This growth is primarily driven by the surging power demand linked to artificial intelligence (AI) and the growing need for stable grid operations amid the expansion of solar and wind renewable energy sources.
The U.S.'s "de-Sinicization" initiatives also present a beneficial ripple effect for the South Korean battery industry. The U.S. plans to raise tariffs on Chinese LFP batteries for ESS by 18% to 58%, effective next year, to reduce its reliance on Chinese products. Kim Hyun-soo, an analyst at Hana Financial Investment, commented, "The imposition of tariffs on Chinese LFP ESS battery cells will inevitably degrade their price competitiveness. It is expected that most of the local battery supply required for ESS market growth will be fulfilled by South Korean companies."
"Limited Prospects for Full-Scale Corporate Value Rebound"
Expectations that the domestic battery industry would navigate through its challenging period have recently spurred a rally in related stock prices. According to the Korea Exchange, L&F surged by 52.2% over the past three months, while EcoPro BM rose by 30.69%. Cell manufacturers Samsung SDI and LG Energy Solution also experienced increases of 20.7% and 20.1% respectively, significantly outperforming the KOSPI index's 15.7% gain during the same period.
However, the prevailing analysis suggests that it is premature to anticipate a full-scale recovery in corporate valuations. Goldman Sachs, in a recent report analyzing the Korean battery industry, cautioned, "Should the U.S. ease emission regulations following the cessation of EV purchase subsidies, it would create additional headwinds for EV demand." The firm also pointed out, "While the ESS market is experiencing high growth, its scale remains insufficient to fully reverse the current oversupply situation in the EV market."
According to market research firm EV Tank, total global secondary battery shipments last year amounted to 1,545 GWh. Of this, EV batteries constituted 68.0%, while ESS products accounted for 23.9%.
The enduring dominance of Chinese players in the European EV market is also cited as a factor that tempers optimism regarding stock price recovery. European automakers such as Volkswagen, Stellantis, and Renault are increasingly transitioning to more affordable LFP-based batteries for entry-level EVs. These LFP batteries, predominantly controlled by Chinese firms, have leveraged their cost competitiveness to encroach upon the high-density Nickel-Cobalt-Manganese (NCM) battery market, which has been a primary focus for the South Korean industry. Jeong Jin-soo, an analyst at Heungkuk Securities, observed, "The recent preference for entry-level EVs in Europe is strengthening the market dominance of Chinese battery manufacturers."

3. SK On Targets 2029 Commercialization for ‘Dream Battery’

- New Pilot Plant in Daejeon
- A year ahead of its initial plan
SK On has successfully completed its pilot plant dedicated to verifying the quality of all-solid-state batteries, widely regarded as the 'dream battery,' thereby significantly accelerating its development initiatives. The company's revised strategy aims to commercialize solid-state batteries by 2029, advancing its original target of 2030 by one year.
SK On officially announced on the 16th that it hosted an inauguration ceremony for its all-solid-state battery pilot plant on the 15th, located at the Future Technology Institute in Yuseong-gu, Daejeon. This pilot line serves as a critical facility for producing prototypes for prospective customers and for rigorously evaluating and verifying product quality and performance. The ceremony was attended by key executives, including SK On President Lee Seok-hee, Future Technology Institute Head Park Ki-soo, and Andreas Meier, Korea Country Manager for Solid Power. SK On has been engaged in joint research on solid-state batteries with Solid Power since establishing a strategic partnership last year.
Overview of Domestic Solid-State Battery Development
LG Energy Solution End of 2025, Establishing Ochang Plant pilot line
2030, Sulfide-based solid-state batteries
SK On Building Daejeon Future Technology Institute
2029, Sulfide-based solid-state batteries
Samsung SDI 2023, Established Suwon Research Institute pilot line
2027, Sulfide-based solid-state batteries

The newly completed plant encompasses an area of approximately 4,628 square meters (about 1,400 pyeong). At this new pilot line, SK On intends to primarily develop sulfide-based all-solid-state batteries. Some sections of the line will also focus on lithium-metal batteries, a type of solid-state battery. This technology seeks to reduce the weight and volume of the anode material and enhance energy density by replacing the graphite anode, a fundamental component of conventional lithium-ion batteries, with lithium metal.
SK On is committed to commercializing all-solid-state batteries by 2029, advancing its previous target of 2030 by one year. Initially, the development will target an energy density of 800 Wh per liter, with a long-term objective of achieving 1,000 Wh per liter.
For the first time in Korea, SK On has applied its proprietary 'Warm Isostatic Pressing (WIP)-Free Technology,' developed through years of intensive research and development, within this pilot plant. WIP technology is an advanced pressing process that applies uniform pressure to electrodes at temperatures higher than ambient conditions (25–100℃) to improve material density and overall performance. While this technique minimizes thermal reactions within the battery and extends its lifespan, it traditionally faces challenges related to productivity due to the complex cell sealing process and difficulties in implementing continuous automated production.
However, SK On has successfully mitigated these drawbacks by adopting the advantages of the WIP process through its unique cell design methodology and the strategic use of conventional pressing techniques. To achieve this, the company developed optimal conditions for mixing active materials (materials that store and supply energy during charging/discharging) and conductive agents (materials that facilitate electrical flow in batteries), as well as electrode composition, thereby reducing internal electrode resistance. Lower internal electrode resistance effectively minimizes the battery's exothermic reactions.
SK On further improved interfacial resistance by optimizing the bonding between the electrode and solid electrolyte and fine-tuning conventional press process conditions. Reduced interfacial resistance ensures smoother electrical flow, leading to stable charging/discharging and an extended battery lifespan.

Meanwhile, at the inauguration ceremony, Kim Pil-seok, Head of SK Innovation's Environment Science & Technology Institute, stated, "SK Innovation's innovative lithium recovery technology can sufficiently achieve the mandatory recycling rates of the EU Battery Regulation, and the performance of batteries produced from recycled lithium has already been verified." He added, "We will lead battery recycling technology in the global market based on our eco-friendliness and capacity to meet global regulations."
Earlier, during his keynote address on the first day of the 'Fast Market Conference,' Kim emphasized the resource acquisition constraints and environmental regulations arising from the growth of the global EV and battery industries, highlighting SK Innovation's developed Battery Metal Recycling (BMR) technology as a potential solution.


Ⅵ. ELECTRIC VEHICLE INDUSTRY TRENDS

1. China’s Xpeng Completes Korean Subsidiary Registration, Intensifying EV Market Competition

- Xpeng Motors Korea registers in June, accelerates appointment of local representative
- Following BYD and Zeekr, Xpeng’s entry escalates Chinese EV influx, posing challenge to Korean ecosystem
Xpeng, frequently referred to as "China's Tesla," has successfully completed the establishment of its South Korean subsidiary, becoming the third major Chinese electric vehicle (EV) manufacturer to set up a local entity, following BYD and Zeekr. This development will further intensify Chinese EV manufacturers' market penetration efforts in Korea and elevate competition within the domestic EV sector.
Xpeng Accelerates Korean Market Entry with 'XPeng Motors Korea' Establishment
According to automotive industry sources on the 23rd, Xpeng finalized the registration of its Korean subsidiary, "XPeng Motors Korea," on June 23rd.
Industry observers anticipate that with the completion of its Korean subsidiary registration, Xpeng will expediently seek and appoint a representative for its passenger vehicle division to oversee its domestic business operations.
Typically, Chinese enterprises expanding internationally tend to appoint a Chinese national as the corporate head while recruiting local talent for specific business division leadership roles.
BYD serves as a prime example, having appointed Jo In-cheol, a former BMW Group Korea executive, as its head of passenger vehicle operations while maintaining Ding Hai-miao as the corporate leader upon its entry into the domestic EV market. Zeekr, an EV brand under Geely Group, adopted a similar approach, establishing "Zeekr Intelligent Technology Korea" in February of this year and appointing Lim Hyun-ki, former head of Audi Korea, as its General Manager for Korean operations.
An industry official stated, " Talk of Xpeng recruiting personnel has been circulating since early this year and they seem to be more actively pursuing candidates recently. With the Korean entity established, they are expected to expedite the appointment of a country head and build a local dealer network to accelerate their market entry."
"Cost-Effective" Chinese EVs Enter Korea: Expanding Consumer Choice, Posing Ecosystem Challenges
Xpeng is a rising Chinese EV manufacturer, often referred to as "Tesla of China." It positions itself as a comprehensive mobility solutions provider, extending beyond EV sales to encompass areas such as autonomous driving, advanced air mobility (AAM), humanoids, and artificial intelligence (AI).
Earlier this month, during IAA Mobility 2025, Europe's largest motor show held in Munich, Germany, Xpeng openly discussed its plans for the Korean market.
On the 8th (local time), Jacky Gu, Chairman of Xpeng's Technology Committee, met with Korean media at the event, stating, "We have a strong interest in the Korean market and are developing concrete (entry) plans." While rumors of Xpeng's Korean entry circulated after BYD's arrival, this was the first official confirmation from a high-ranking executive.
Xpeng also attracted attention at its IAA exhibition booth by displaying a Korean message on its LED screen, reading: "Welcome to the world of AI mobility."
Industry observrs predict that the successive entry of Chinese manufacturers like BYD, Zeekr, and now Xpeng into the Korean EV market will not only intensify the market offensive from China but also significantly escalate market competition. The expansion of "cost-effective" Chinese EV manufacturers, offering advanced technology at reasonable prices, is expected to simultaneously broaden consumer choices and pose risks to the domestic industrial ecosystem.
BYD, which launched its electric passenger vehicles in January, has sold 1,947 units this year. Following the delivery of its first model, the Atto 3, in April, BYD subsequently launched models such as the Seal and Sealion 7, securing the third position in the imported EV market and firmly establishing its presence in Korea.
An industry source commented, "The automotive industry forms a vast ecosystem, from finished car manufacturers to component suppliers. Unlike other global players, Chinese companies' ecosystems are largely composed of their own domestic firms." The source concluded, "Therefore, the expanded entry of Chinese companies into the Korean market could ultimately narrow the ground for domestic companies in terms of the industrial ecosystem."

2. Hyundai Introduces New IONIQ 5 N ‘Essential’ Trim, a High-Performance EV

- Hyundai repackages IONIQ 5 N Essential trim, priced at KRW 74.9 million
Hyundai Motor Company officially launched the "Essential" trim for its high-performance electric vehicle, the IONIQ 5 N, on the 22nd.
This new trim integrates advanced electrification technologies and is designed to make the vehicle's exhilarating driving performance more accessible to a broader range of customers.
The IONIQ 5 N Essential is characterized by optimized specifications that reduce the entry barrier, allowing consumers to experience the powerful performance of the IONIQ 5 N at a more reasonable price point. Hyundai confirmed that the Essential trim retains the high-output motor, battery, and N-specific functions of the existing IONIQ 5 N, while reconfiguring other specifications to focus on core convenience features.
Key advanced driver-assistance systems (ADAS) equipped in the IONIQ 5 N Essential include: △Forward Collision-avoidance Assist (covering vehicles, pedestrians, cyclists, junction turning, and oncoming vehicles); △Rear Cross-Traffic Collision-avoidance Assist (when exiting); △Blind-Spot Collision-avoidance Warning (during driving); △Rear Parking Collision-avoidance Assist; and △Intelligent Speed Limit Assist
Additionally, major ADAS features such as Smart Cruise Control with Stop & Go, Lane Keeping Assist, Highway Driving Assist, and Navigation-based Smart Cruise Control (for safe zones and curves) are also integrated.
Hyundai has also introduced a new 'Parking Assist Lite' package, comprised of essential safety and convenience features for parking.
This package, available exclusively on the Essential trim, includes the Surround View Monitor, Blind-Spot View Monitor, Rear Parking Collision-avoidance Assist, and Parking Distance Warning (Side), all frequently utilized by customers.
To further enhance product competitiveness, Hyundai has added 2nd-row remote folding to the Comfort Plus package (available on all trims).
The Essential trim boasts improved price competitiveness, with its sales price set approximately 2 million won lower than existing models. The IONIQ 5 N Essential is priced at 74.9 million won based on eco-friendly vehicle tax benefits. The actual purchase price may be lower further depending on government and local subsidies.
A Hyundai Motor Company official stated, "The Essential trim of the IONIQ 5 N is a new offering designed to enhance cost-effectiveness and lower the entry barrier for high-performance EVs. Hyundai Motor will continue its efforts to provide vehicles with outstanding product competitiveness, enabling more customers to easily access high-performance EVs."

3. Posco International Expands EV Component Business

- Strengthening traction motor core production capacity
- Poland and Mexico plants to be completed this year
- Targeting European automakers beyond Hyundai
- Achieving profit for three consecutive quarters
Posco International, traditionally a general trading company, is aggressively reinforcing its electric vehicle (EV) core component manufacturing division. Recognizing the limitations of relying solely on trading for growth, the company is rapidly expanding its global production footprint for traction motor cores, a business segment it entered strategically. The ambition is to elevate its annual traction motor core production capacity from 4 million units to 7.5 million units by 2029, positioning it as a key future growth engine.
Posco International is set to inaugurate a new motor core plant in Brzeg, Poland, next month, followed by the completion and full-scale operation of its second plant in Mexico within the year. The Polish facility, its first European production base, has already secured orders for 1.68 million units from Hyundai Motor Company and Kia. It is strategically poised to aggressively target European automakers, including Mercedes-Benz and BMW. The second Mexican plant, in conjunction with the existing first plant, will boast an annual production capacity of 2.5 million motor cores, aiming to supply North American automakers in the U.S. and Mexico.
Upon the completion of these two plants, Posco International's global motor core production capacity will expand from 4 million units (as of last year) to 6.2 million units annually. The company currently operates production facilities in two domestic locations (Pohang, Cheonan) as well as in Mexico and India. Traction motor cores are vital components in EVs and hybrid vehicles, converting electrical power into the rotational force that drives the wheels. They are considered critical for determining driving range, noise levels, and fuel efficiency.
Posco International ventured into this business in 2017, after acquiring Posco P&S, which had initiated motor core production for Hyundai's hybrid vehicles in 2010. The company began scaling its operations, betting on the growth of the EV market. After nearly eight years of increasing investments and enduring losses, it achieved economies of scale, marking its first profit turnaround in Q4 of last year since entering the business, and has since maintained profitability for three consecutive quarters. An industry official remarked, "This is evidence that the results of long-term investments are gradually materializing. As the era of EVs fully arrives, following the popularity of hybrid cars, performance is expected to significantly improve."
In addition to achieving economies of scale, Posco International's global network as a general trading company is also identified as a key driver for business growth. Despite the high dependence on China for rare earth metals, a crucial material for motor cores, Posco International has leveraged its extensive trading network to secure supply sources in countries such as the United States, Australia, and Vietnam. The recent signing of a long-term supply agreement for 3 million units with a North American automaker earlier this month is attributed to its diversified supply chain efforts. Posco International is also actively pursuing the establishment of an integrated rare earth and permanent magnet production complex in the U.S. with U.S.-based ReElement Technologies.
Posco International has set a target to establish a global annual capacity of 7.5 million units by 2030, aiming to achieve a market share exceeding 10% in the traction motor core sector. A company official stated, "We are in the process of transforming from a trading-centric company to a manufacturing-based electrification enterprise. The completion of these new plants will serve as an inflection point for expanding our global orders."


Ⅴ. BIO INDUSTRY TRENDS

1. Korean Bio and Pharmaceuticals Seek Opportunities in Japan, from Biosimilars to Novel Drugs

South Korean bio and pharmaceutical companies are increasingly targeting Japan as a key global market, accelerating their expansion into the overseas healthcare sector.
According to industry sources on the 22nd, Celltrion is expanding its new product pipeline and is rapidly positioning itself as a "first-mover" in the Japanese biosimilar market.
Celltrion has secured marketing authorization from Japan’s Ministry of Health, Labour and Welfare for Avtozma (ingredient: tocilizumab), a biosimilar of Actemra, an autoimmune disease treatment. This authorization covers the major indications of the original drug, including rheumatoid arthritis, juvenile idiopathic arthritis, Castleman disease, and cytokine release syndrome.
Avtozma is the first tocilizumab biosimilar to receive marketing authorization in Japan. Celltrion plans to expand its corporate footprint in Japan, leveraging its established strength in autoimmune disease treatments within the global pharmaceutical market.
Celltrion’s flagship autoimmune disease treatment, Remsima (ingredient: infliximab), recorded a 41% market share in the infliximab biosimilar segment in April of this year, securing the top prescription ranking. During the same period, Yuflyma (ingredient: adalimumab) achieved a 12% market share, growing 1.5 times from 8% in just four months.
Celltrion is sequentially launching new products, including Avtozma, the chronic idiopathic urticaria treatment Omlyclo, the ocular disease treatment Eydenzelt, and the bone disease treatments Stoboclo and Osenvelt, in major global markets during the second half of this year. The company aims to further secure growth drivers by building a new product portfolio focused on high-margin products. Celltrion projects that new products will account for approximately 60% of its annual sales this year.
Beyond biosimilars, domestically developed new drugs are also raising expectations for entry into the Japanese market.
On the 15th, Vivozon Pharmaceutical signed a joint sales agreement with the Korean subsidiary of Daiichi Sankyo, a global healthcare company, for its 'Opiranserin,' Korea’s 38th domestically developed new drug. Under the agreement, Vivozon Pharmaceutical will supply Opiranserin in finished product form to Daiichi Sankyo Korea, and the two companies will collaborate on domestic distribution and marketing.
Opiranserin is a non-narcotic pain reliever developed by Vivozon Pharmaceutical, which received marketing authorization from Korea’s Ministry of Food and Drug Safety in December last year. This partnership with a foreign company for a domestically developed new drug, prior to its initial launch, is considered an exceptional case.
Vivozon Pharmaceutical stated, "As the side effects and misuse of narcotic pain relievers have become a significant social issue in both domestic and international medical fields, and demand for non-narcotic pain relievers is growing from a public health perspective, we anticipate additional growth opportunities for Opiranserin, the first commercially successful non-narcotic pain reliever in Korea."
SK Biopharm is laying the groundwork for entry into the East Asian market, including Korea, China, and Japan, with a follow-up strategy for its self-developed new drug, Cenobamate.
Cenobamate is an epilepsy treatment that SK Biopharm successfully developed independently, from new drug candidate discovery to product launch. SK Biopharm previously signed a technology export agreement with Japan's Ono Pharmaceutical in 2020 for the commercialization of Cenobamate in Japan.
Subsequently, global Phase 3 clinical trials conducted in Korea, China, and Japan concluded in December last year. SK Biopharm is currently aiming to submit an application for marketing authorization in Japan. Prior to this, applications for marketing authorization were submitted in China and Korea last year and this year, respectively, and are undergoing review as commercialization preparations continue.
An official from the domestic pharmaceutical industry commented, "Japan has historically been a traditional pharmaceutical powerhouse, and its regulatory bodies are known for their stringent standards. However, the atmosphere indicates that not only market entry by Korean companies, but also clinical and academic exchanges are becoming increasingly active."

2. “Beyond Korea, Towards the World”: Gyeonggi Province Launches Global Bio-AI Ecosystem

- Standford, international partners, and domestic/international enterprises participate. Presenting future vision for Bio-AI.
Gyeonggi Province has announced its global ambition to emerge as a 'global innovation hub,' integrating biotechnology (bio) and artificial intelligence (AI) to project its vision across the world.
The province articulated this future strategy during the 'G-BIO WEEK X AI CONNECT with G-FAIR 2025' event, held for three days from the 22nd to 24th at the Suwon Convention Center. This initiative underscores Gyeonggi Province's commitment to spearheading growth through the convergence of bio and AI, two critical strategic industries.
Jointly hosted by Gyeonggi Province and Suwon Special City, and organized by the Gyeonggi Province Economic and Scientific Promotion Agency (GBSA) and the Suwon Convention Center, the event brought together key innovators from industry, academia, research institutions, the medical sector, and government. Its primary focus was on establishing global collaborative partnerships and expanding technological exchanges and investment linkages.
The opening ceremony was attended by over 500 participants of dignitaries and domestic and international stakeholders, including Gyeonggi Province's Vice Governor for Economy Go Young-in, Gyeonggi Provincial Council's Future Science Cooperation Committee Vice Chairman Jeon Seok-hoon, and GBSA President Kim Hyun-gon. Attendees collectively inaugurated "The Dawn of Future Innovation" with a graphic recording ceremony symbolizing bio, AI, and quantum technologies.
The keynote speech was delivered by Andrew Radin, head of Stanford University's startup accelerator StartX and co-founder of AI-driven drug development startup twoXAR, who presented on the current state and future of AI-based life science innovation. The Global Innovation Summit facilitated discussions among leading global companies and experts on next-generation AI technologies and strategies for their application in the bio industry. The significant participation of international partners, including delegations from BioCOM California (USA), Sacramento, and the World Federation of United Nations Associations, further validated the event's success in expanding global networks.
The '1st Gwanggyo Quantum Bio Summit' also garnered substantial attention. This international conference, hosted by Suwon Special City and the Suwon Convention Center and selected as a global K-Convention fostering project by the Korea Tourism Organization, featured world-renowned scholars and researchers who presented visions for next-generation innovative technologies such as quantum bio and digital healthcare.
Additionally, the 'G-FAIR AI Export Exhibition' was held to facilitate overseas expansion for companies within the province. 25 AI companies engaged in export consultations with 35 overseas buyers from countries including the U.S., China, and Russia, showcasing cutting-edge technologies like smart factory solutions and AI healthcare platforms.
The second and third days of the event featured a rich array of programs, including the '7th Gwanggyo Bio-Health Forum,' 'AI Forum,' 'G-Bio Open Innovation Meetup,' 'Regulatory Science Conference,' 'Legal Strategy Seminar,' and a 'Bio-Health Corporate Recruitment Fair.' The Gwanggyo Bio-Health Forum facilitated the sharing of bio industry policies and future technologies, providing comprehensive lifecycle support for growth through R&D consulting, investment advisory, and IPO consultations for businesses.
Notably, the AI Forum featured programming YouTuber JoCoding and other experts who simplified the applications of AI in daily life, employment, and industry. Interactive booths were also operated, allowing citizens to experience AI technologies firsthand.
Go Young-in, Gyeonggi Province's Vice Governor for Economy, stated, "This event serves as a global innovation platform where the two future strategic industries of bio and AI converge. We anticipate Gyeonggi Province to use this as a launchpad to leap beyond Korea and into the global arena."
Kim Hyun-gon, President of GBSA, emphasized, "We will create opportunities for bio and AI to lead the global market, and together with companies and research institutions, we will build an innovative ecosystem."

3. Celltrion Acquires Eli Lilly’s U.S. Biopharmaceutical Plant for KRW 460 Billion

- Total investment of KRW 1.4 trillion for acquisition and expansion
- “Anticipates elimination of U.S. tariff risks”
Celltrion is to acquire a biopharmaceutical production plant from global pharmaceutical company Eli Lilly.
Celltrion announced on the 23rd that it has finalized an agreement with Eli Lilly to acquire its biopharmaceutical production facility in Branchburg, New Jersey, for KRW 460 billion (approximately USD 330 million).
Celltrion plans to invest a total of KRW 700 billion for the plant's acquisition and initial operating costs. Subsequently, an additional investment of at least KRW 700 billion will be directed towards expanding production facilities on vacant land within the acquired plant. This brings the total investment for the acquisition and expansion to a minimum of KRW 1.4 trillion.
A Celltrion official expressed expectations that the company "will be free from all potential tariff risks that may arise in the future"

　

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Korean Industrial Insight No.19 of AI, Semiconductors, Batteries, Electric vehicles, and Bio in chinese