Korea JoongAng Daily - Daily News from Korea

This article is by Sarah Chea and read by an artificial voice.

Samsung SDI CEO Choi Joo-sun underscored the importance of technology and described the year as a turning point for renewed growth in his New Year's message for 2026, even as battery makers face an exceptionally challenging period amid a slowdown in EV demand.

"There is nowhere to step back anymore. We must move forward now," Choi said in the message for all employees on Friday. "Ultimately, the answer lies in our essence — technology. To that end, we must move forward as one through alignment."

Choi presented his "3S" philosophy as a guiding principle for Samsung SDI's strategic direction for the new year. "Select" emphasizes focus and prioritization, "Speed" means faster responses to customers and the market and "Survival" highlights dedication to ensuring the company's continued competitiveness.

Citing what he called "pessimistic optimism," the CEO said, "Despite the complex situations we're facing, if we secure technological competitiveness and move toward a supercycle in a united direction, I believe we will soon welcome the breathtaking future."

According to Choi, pessimistic optimism refers to an attitude that acknowledges real-world risks and limitations, prepares thoroughly for the worst, but expects positive outcomes.

"Each and every day presented a new challenge, and uncertainty remained as a constant presence," Choi added. "If we continue to hold the belief that technology is hope and communicate with open hearts, the breathtaking future we envision will soon become our reality."

"I hope that our journey this year marks the starting point of our new leap forward," the CEO said as he concluded the message.

This article is by Sarah Chea and read by an artificial voice.

A Seoul court has ordered Young Poong and MBK Partners to disclose contractual documents they executed during their attempt to acquire management control of Korea Zinc, a step aimed at verifying whether the two parties engaged in an unfair transaction involving the discounted sale of Korea Zinc shares.

The Seoul Central District Court recently granted a document submission request filed by KZ Precision, a subsidiary of Korea Zinc, against Young Poong. The ruling requires advisory figures, including Young Poong's former CEO Jang Hyung-jin, to submit the original shareholder agreement with MBK and subsequent amendments.

The key to the ruling is whether the agreement facilitated Young Poong's guarantee that MBK Partners could acquire a portion of Korea Zinc shares at a specific, preferential price.

MBK Partners in September entered into a shareholders' agreement with Young Poong aides, agreeing to jointly exercise voting rights. As part of the deal, it was granted call options on certain shares owned by Young Poong and its affiliates.

However, the exercise price wasn't disclosed in public filings, sparking speculation that Young Poong may have fixed the price or linked it to MBK's public tender offer price.

Korea Zinc has filed a shareholder derivative lawsuit against Young Poong, arguing that such a call option constitutes a breach of fiduciary duty to Young Poong's shareholders.

For Young Poong, the Korea Zinc shares represent a critical asset in terms of cash flow, as the company has been receiving roughly 100 billion won ($62.3 million) annually in dividends from Korea Zinc. The dividends have served as a vital source of funding for Young Poong operations, especially during the past three consecutive years of massive losses, which has raised criticism that the deal could amount to a breach of fiduciary responsibility.

If the court decides that contractual documents verify the veracity of Korea Zinc's claims, it is widely anticipated that the lawsuit would tilt in favor of Korea Zinc.

"The market and shareholders must have a clear resolution regarding the price and terms under which Korea Zinc shares, Young Poong's most valuable asset, was transferred to MBK Partners," KZ Precision said in a statement.

"If the allegations raised in the media are substantiated, key decision-makers and executives, including Jang, are likely to face significant liability in the shareholder derivative suit and potential damages claims."

Meanwhile, Korea Zinc said Friday it has completed payment for a third-party share issuance allocated to the Crucible joint venture, in which the U.S. government participates as a major stakeholder. Korea Zinc's board on Dec. 15, 2025, approved a $7.4 billion investment to build a smelting facility in Clarksville, Tennessee.

The transaction effectively opens the door for the United States to indirectly acquire an estimated 10 percent stake in Korea Zinc, a development that gives Chairman Choi Yun-birm somewhat of an upper hand in his ongoing battle for management control against the Young Poong-MBK alliance.

The stake held by shareholders aligned with Choi is expected to rise to around 40 percent. Considering the interest of Korea's National Pension Service, which holds a 4.8 percent stake and is widely viewed as a potential swing voter, Choi's side may surpass the 42.1 percent held by Young Poong and MBK.

"With the listing date for the newly issued shares set for January 9, we plan to begin site development in 2026 and commence phased commercial production starting in 2029," Korea Zinc said.

"The facility will produce 13 categories of materials, including industrial base metals such as zinc, lead and copper, as well as antimony, indium and bismuth, and of them, 11 are included on the U.S. government's 2025 Critical Minerals List," it added. "Our goal is to process 1.1 million tons of raw materials annually and produce 540,000 tons of finished prod...

This article is by Park Young-woo, Lee Su-jeong and read by an artificial voice.

Korea's year-end corporate bonuses in 2025 are diverging sharply, with firms in semiconductors, power equipment and shipbuilding preparing record payouts while companies in petrochemicals and batteries scale back amid prolonged downturns.

Samsung Electronics announced in an internal notice that employees in its semiconductor division can expect to receive bonuses worth up to nearly half of their annual salaries in 2025 under the company's excess profit incentive system, according to business officials on Wednesday.

The Device Solutions division, which oversees the company's semiconductor operations, is expected to receive bonuses equivalent to 43 to 48 percent of individual annual salaries, approaching the highest level since the so-called overall performance incentive system was introduced.

Under the scheme, Samsung pays up to 50 percent of an employee's annual salary when a division meets performance targets, using up to 20 percent of excess profits.

The Mobile Experience division, which includes smartphones, is expected to receive 45 to 50 percent. In contrast, payout rates for the Visual Display, Digital Appliances and Network divisions were set at 9 to 12 percent.

Higher bonuses in the semiconductor unit reflect a rebound in commodity dynamic random access memory prices and rising sales of high bandwidth memory. Samsung will also pay a target achievement incentive for the second half of last year equivalent to up to 100 percent of monthly base pay.

SK hynix is also expected to deliver sharply higher bonuses. Labor and management agreed in September of last year to allocate 10 percent of operating profit to performance-sharing bonuses and to scrap the previous cap of 1,000 percent of base pay. Industry sources expect bonuses paid early next year to average more than 100 million won ($70,000) per employee.

Companies supplying power equipment, which have benefited from the AI investment cycle, are also reporting record payouts.

HD Hyundai Electric said it will pay bonuses equivalent to 1,195 percent of base pay for 2025, exceeding last year's 1,077 percent and marking a record high. The increase reflects strong demand for products such as ultra-high-voltage transformers, driven by the expansion of AI data centers and replacement demand for aging power grids in North America and Europe.

The company typically calculates bonuses at roughly 60 to 70 times its operating margin. With its 2025 operating margin expected to exceed 20 percent, employees will receive bonuses above 1,000 percent for a second consecutive year.

The shipbuilding sector has also seen improved compensation. HD Hyundai Heavy Industries, which launched as an integrated entity on Dec. 1 of last year, will pay nonsalaried employees bonuses exceeding 600 percent of base pay ahead of Korea's "Make American Shipbuilding Great Again" investment initiative in the U.S. shipbuilding sector.

Employees formerly with HD Hyundai Heavy Industries will receive 638 percent of standard wages, while those from HD Hyundai Mipo will receive 559 percent. Production workers will receive bonuses based on organizational and individual performance, with some payments to be settled later.

By contrast, petrochemical and battery makers continue to face weak market conditions, weighing heavily on year-end compensation.

Petrochemical companies are grappling with oversupply from China and slowing global demand, prompting discussions on work force redeployment and restructuring alongside bonus reductions. Some battery makers are also prioritizing cost controls over compensation as slowing EV demand pressures earnings.

"Industries such as AI semiconductors, power infrastructure and shipbuilding are directly tied to global policy and demand, allowing earnings momentum to continue," said Lee Jong-woo, a professor of business administration at Ajou University. "Sectors facing oversupply remain in an adjustment ...

This article is by Kim Ji-ye and read by an artificial voice.

There were no breakout hits like " Squid Game" (2021-25) in 2025, but the year still produced some noticeable successes, such as " The Trauma Code: Heroes Call" (2025), " When Life Gives You Tangerines" (2025) and "Bon Appétit, Your Majesty" (2025).

Looking ahead, 2026 is already shaping up to be a packed year, with some popular series making a comeback, new projects from renowned film directors on the horizon and romance series led by star-studded casts set for release.

The Korea JoongAng Daily has compiled a list of Korean films, TV dramas and streaming platform projects coming out this year that viewers may want to keep an eye on.

For streaming platforms and TVs

'Can This Love Be Translated?'

The upcoming romance series "Can This Love Be Translated?" is set to be the first project to kick off Netflix's 2026 Korean lineup. The series follows an unexpected romance between Ju Ho-jin, a multilingual translator, and Cha Mu-hee, a globally famous actor.

Actor Kim Seon-ho stars as Ho-jin and Go Youn-jung as Mu-hee. The rom-com is written by renowned screenwriters, Hong Jung-eun and Hong Mi-ran - known as the Hong Sisters - who have written numerous hit series, including "Hotel del Luna" (2019). Yoo Young-eun directs the project.

"Can This Love Be Translated?" will start airing on Netflix on Jan. 16.

'No Tail to Tell'

Actor Kim Hye-yoon is set to return as a gumiho, a nine-tailed fox from Korean folklore, in the upcoming SBS series "No Tail to Tell." A gumiho is a mythical creature that can transform into a beautiful woman. It is often depicted to lure men to eat their heart or liver to get the chance to become fully human.

The upcoming series follows Eun-ho, a gumiho who has no desire to become fully human, and Si-yeol, a world-class soccer player, as they meet and their destinies take a turn neither of them expected.

Actor Lomon from "All of Us Are Dead" (2022) is set to play soccer player Si-yeol, alongside Kim portraying Eun-ho. The series will be directed by Kim Jeong-kwon.

The series will also be actor Kim Hye-yoon's first project since the hit rom-com "Lovely Runner" (2024).

"No Tail to Tell" will air on SBS and will be available on Netflix. The first episode will debut on Jan. 16.

'Perfect Crown'

"Lovely Runner" breakout star Byeon Woo-seok is set to return to screens as a prince in an alternate Korea under a constitutional monarchy in the upcoming MBC series "Perfect Crown."

Byeon will star next to singer-actor IU. Actors Noh Sang-hyun and Gong Seung-yeon are also set to join the cast.

Set in a fictional monarchical Korea, the show will center on Seong Hee-ju, an ordinary woman from a wealthy chaebol family, and Lee Wan, the King's second son, whose royal status limits his potential. IU will play Hee-ju, while Byeon takes on the role of Lee Wan.

Directed by Park Joon-hwa, who was behind "Alchemy Souls" (2022-23), MBC's "Perfect Crown" is scheduled to be released in early 2026 on MBC. It will also be available on Disney+.

'The Remarried Empress'

One of Naver Webtoon's popular titles, "The Remarried Empress" (2019-), is set to come to life as a Disney+ original series of the same name. The original webtoon has garnered more than 2.6 billion views worldwide as of December 2024.

The series features a star-studded cast, including Shin Min-a, Ju Ji-hoon, Lee Jong-suk and Lee Se-young.

The story revolves around Navier, empress of the East Empire, whose husband Sovieshu demands a divorce after falling for a young runaway slave named Rashta. Things take a quick turn when Navier, instead of despairing, immediately asks to be remarried to Heinrey, the West Empire prince.

It will be directed by Jo Su-won, known for the SBS series "I Can Hear Your Voice" (2013) and "Pinocchio" (2014-15). Shin will portray Empress Navier and Ju will play her husband, Sovieshu. Lee Jong-suk will take on the role of Heinrey and Rashta will be played by Lee Se-young.

The series will debu...

This article is by Shin Ha-nee and read by an artificial voice.

At nearly every K-pop concert, a familiar ritual unfolds - one that resembles the handwritten confession of love in the 2003 romantic comedy "Love Actually."

Thousands of hands rise in unison, each holding a heartfelt message for the idols onstage. Organized in secret and typically funded online by fans, these events aim to catch artists off guard and create a moment of shared emotion.

While concerts, by definition, are public performances given by artists, K-pop turns them into something more: a two-way exchange, or even a three-way engagement with the agencies deeply involved, as what began as a fan-driven gesture in the early 2010s has since evolved into a defining form of interaction between K-pop artists and audiences.

As K-pop concerts have grown in scale and spectacle, so too has the culture surrounding them - where fans are no longer passive spectators but active participants shaping the emotional narrative of a show. The creative possibilities seem endless, as fans organize tribute videos to be screened during shows or orchestrate surprise chants of "Thank you" or "We love you," always finding new ways to make each moment feel more personal.

Idols serenaded by fans

On Dec. 19, the first night of K-pop rock band N.Flying's three-day encore shows in Seoul, thousands of N.Fia - the boy band's official fandom - lifted paper signs on cue. Together, a message read: "We've received precious happiness; we want to give back everlasting happiness," a phrase adapted from the band's track "Everlasting," released in May.

Behind the coordinated moment was a fan who goes by the nickname Daramjinee.

Working alongside 14 fellow fans, she helped organize the event, beginning with outreach to the band's agency, FNC Entertainment, to coordinate what fans call a "slogan event," all while keeping it a surprise from the group.

The fans designed paper slogans for all three Seoul shows that, when put together, formed an image of two hands connected by a red thread, a reference to the Chinese folktale where destiny binds two people together.

The symbolism did not go unnoticed, as drummer Kim Jae-hyun pointed it out onstage, a moment Daramjinee recalled with a particular fondness.

"For the N.Flying members who worked harder than anyone over the year, we wanted to show that N.Fia will always be with them and love them," she said. "That's why we planned this for the final Seoul shows of the tour."

While similar moments take place at nearly every K-pop concert - and even at non-K-pop shows in Korea - such events tend to be shaped by their own narrative, format and behind-the-scenes planning. During boy band Riize's July concert in Seoul, for instance, a sharp whistle cut through the venue three times in the middle of a group photo session, followed by a thunderous chant of "Riize, we love you!" from the crowd.

The echo lingered across the arena, prompting the members to respond, "We love you too!" and "Why have you prepared so much?" - the latter because the "cheering event" was arranged alongside a few other surprises that day, such as a huge message appearing across the higher tiers of the venue reading, "Always, forever, here."

Concerts as not only spectacles, but experiences

Such scenes have become nearly routine at K-pop concerts today, much like how encores have become practically a standard in every concert.

The ritual is widely believed to become popularized after Girls' Generation's 2011 concert, where fans held up paper signs that read "We missed you," prompting emotional responses from the girl group members who shed tears on stage.

Since then, slogan events, often unique to each concert stop, have become souvenirs, with fans exchanging or collecting them to complete sets from a tour stop.

Fan events now take many forms, from paper planes launched toward the stage to synchronized phone flashlights. Though typically fan-led, these moments must be coordinated in advan...

The author is a music critic and director of the classical music brand Poongwoldang.

The story of Orpheus, who loses his wife Eurydice, has long been one of the most frequently revisited subjects in the early history of opera. From Claudio Monteverdi's "Orfeo" (1607), often described as the genre's point of origin, to countless later works, composers have repeatedly returned to the same myth. Even in the film "Farinelli" (1994), which depicts the life of the legendary castrato Carlo Broschi, the opera his brother Riccardo is shown composing is none other than "Orfeo."

Why did Orpheus exert such a hold on early opera? The answer lies in the way his story captures the essence of the art form. Orpheus was the son of Calliope, the muse of epic poetry. From her, he learned verse and song. From Apollo, god of music, healing and the sun, he learned to play the lyre. He became a master musician, capable of calming wild beasts, fierce dragons and even the raging sea. These images symbolically express the lyrical power of art to tame what is violent and chaotic.

Tragedy, however, defines Orpheus's legend. One day, his wife Eurydice wandered into the forest and was bitten by a venomous snake, dying suddenly. Overcome with grief, Orpheus sang. His song was not one of accusation or protest. It carried instead the sorrow of loss, love that remained intact and an intense, complete immersion in feeling. It was the honest and unadorned expression of a human heart laid bare.

According to the myth, Orpheus's song moved not only animals and people in the forest but also the twelve Olympian gods and even Hades, ruler of the underworld, who wept upon hearing it. The episode suggests that genuine human emotion holds extraordinary power. Orpheus's song thus became a symbol of all music grounded in sincerity rather than display.

At its core, music is not about technique or ornamentation. It begins with truth drawn from close to the heart. The lyre Orpheus held near his chest gave rise, linguistically and conceptually, to lyric poetry and to the German art song, or Lied. Perhaps this year calls for reading more poetry and singing more songs, even if only to oneself. After all, the reason we return to poetry and music may be a shared desire to recover emotions that are honest and pure.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.

Th e author is an editorial writer at the JoongAng Ilbo.

"The Moon Jae-in administration sought a major energy transition but ended up spending five years mired in debates over nuclear power. That was deeply regrettable."

Those words, delivered at a policy forum titled "Carbon Neutrality and a Desirable Energy Mix" held at the National Assembly Members' Office Building on Dec. 30 last year, stood out in the opening remarks by Climate, Energy and Environment Minister Kim Sung-hwan. What made them striking was the minister's frank acknowledgment of what he described as the Moon government's failure. On the same day, the Nuclear Safety and Security Commission approved the operation of Saeul Unit 3, a nuclear reactor whose construction had been suspended during the Moon administration. With electricity demand set to surge amid the rapid expansion of AI, the decision felt like a rare moment of relief.

The Moon government's nuclear phaseout policy has formally been replaced under the Lee Jae Myung administration with the language of an "energy mix." Yet it remains unclear whether the shadow of the previous approach has truly lifted. The most contentious issue is new nuclear power plants. The Climate Ministry has effectively sent two reactors included in the 11th Basic Plan for Long-term Electricity Supply and Demand back to square one for reconsideration. The policy forum itself marked the beginning of what officials call "public deliberation" on the issue. While such processes are often framed as tools for managing social conflict, they have also served as a way to postpone difficult decisions. That pattern was common under the Moon administration, and similar doubts surfaced at the forum. One business executive appealed to policymakers, saying that while energy mix debates matter, they should also consider how to secure competitive energy when core industries such as steel are faltering and, ultimately, how the country will make a living.

From the outset, the current administration has been acutely conscious of its predecessor and eager to draw distinctions. Shortly after the presidential election, a senior economic official said bluntly, "We are different from the Moon government. There is no place here for amateurs or half-baked theorists." Within the administration, there was a shared assessment that the Moon government had failed, particularly on the economy. That failure, especially in addressing bread-and-butter issues, was seen as a decisive factor in losing power after a single term. Officials often traced the root cause to amateur governance trapped in ideological dogma. This helps explain why the current government stresses pragmatism and competence. President Lee has summed it up by saying that solving people's livelihoods should be the only ideology.

Six months into the new administration, the question is whether that promised differentiation is taking hold. The makeup of key economic posts suggests both continuity and change. As before, figures with Keynesian leanings who emphasize an active role for government and fiscal policy are prominent. But unlike the past, there has been no return to theories such as "income-led growth," concepts with little grounding that once dominated policy discourse. Several Cabinet members, including Deputy Prime Minister for Science and Technology Bae Kyung-hoon and Industry Minister Kim Jung-kwan, bring experience from the corporate sector.

Still, as the nuclear debate shows, it is hard to say the government has fully embraced pragmatism. At crucial moments, it often hesitates. Business leaders who have attended meetings with the president say Lee understands corporate realities in greater detail than expected and approaches problems in a practical way. At the same time, they note the existence of clear red lines. Chief among them are the interests of labor unions, a core support base. As a result, despite pleas from the semiconductor industry facing intense global competition, e...

With five months to go before the June 3 local elections, a New Year opinion poll suggests the People Power Party (PPP) is losing momentum in key battleground races. In a simulated matchup survey commissioned by JoongAng Ilbo and conducted by CaseStat Research, Oh Se-hoon, Seoul mayor and PPP member, was locked in a tight race within the margin of error against Jung Won-oh, a first-term figure from the Democratic Party (DP). In hypothetical races for Gyeonggi governor and Busan mayor, DP candidates Kim Dong-yeon and Chun Jae-soo led PPP contenders by margins exceeding the error range.

Analysts largely attribute the party's weakness to its failure, more than a year after the imposition of martial law, to clearly distance itself from former president Yoon Suk Yeol, while continuing to cater to its hard-line base. That reading helps explain why Oh warned on Wednesday that the party was "standing at the edge of a cliff," urging its leadership to apologize and reflect. The warning suggests the party's own leaders sense that public sentiment is moving in an unfavorable direction.

The results are especially damaging for the PPP because Chun topped the Busan matchup despite being under investigation for allegedly receiving illicit funds from the Unification Church. For the main opposition party, this underscores a failure to demonstrate relevance to voters. Among centrist voters, Oh trailed Jung 32 percent to 38 percent, while Busan Mayor Park Hyung-joon lagged far behind Chun at 24 percent to 49 percent. The numbers point to a party struggling to broaden its appeal beyond its core supporters.

PPP leadership should take seriously a survey that shows a complete failure to expand its base. Much of the responsibility falls on party chairman Jang Dong-hyeok, who has spoken of change but failed to break with the party's old patterns. Even so, Jang has projected confidence, saying that electoral victory would naturally follow if the party sincerely focused on people's livelihoods. That optimism rings hollow given that the poll already reflected major setbacks for the ruling party, including controversies involving DP floor leader Kim Byung-kee and allegations tied to lawmaker Kang Sun-woo. Despite favorable conditions, the opposition failed to gain ground.

Instead, internal discord deepened as the party became mired in disputes over its online message board, fueling factional conflict. By refusing to fully acknowledge Yoon's missteps and continuing to look only to hard-line supporters, the leadership alienated centrist voters. That frustration was evident in remarks from sitting mayors. Oh said he hoped there would be no more statements defending martial law, while Park warned that elections cannot be won by relying solely on a hard core base.

One silver lining for the PPP is that nearly 30 percent of respondents chose "no candidate," "don't know" or declined to answer. The sizable bloc of undecided voters suggests widespread disappointment with both camps. If the main opposition can present constructive alternatives and serve as a meaningful counterweight to the ruling party, it may yet recover relevance and create an opening for a turnaround. That is why Jang's pledge, in the Year of the Horse, to move forward with "bone-crushing resolve" will be closely watched.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.

This article is by Sarah Chea and read by an artificial voice.

SK Group Chairman Chey Tae-won urged the group to ride the powerful "winds of AI-driven transformation" as it navigates the turbulent waves of the global market in his New Year's address for 2026.

"As the global industrial landscape and business structures are being reshaped around AI, we are living through a period of profound transformation and AI has already become deeply embedded in our daily lives," Chey said in an email sent to all SK Group employees on Thursday.

"From memory and ICT to energy solutions, batteries and the services that connect them, the path SK has steadily pursued over decades has ultimately been a journey of preparing for today's AI era," he said. "The AI era is only just beginning, and the market ahead will be far larger than anything we see today, with limitless opportunities. With pride and confidence in our capabilities, let us move forward onto an even greater global stage."

Mentioning "seungpungparang," a classical Chinese four-character idiom that literally means riding the wind and breaking the waves - boldly advancing with strong momentum and courage in the face of challenges and adversity, Chey emphasized how SK's capabilities position the company to ride the AI boom and achieve global growth.

Chairman Chey pointed to an "integrated AI solution" driven by the collective capabilities of SK's member companies as a key growth engine.

Emphasizing that the massive innovation brought about by AI is not a challenge limited to semiconductors alone, he said, "The business capabilities that SK's member companies have built over many years across energy, telecommunications, construction and biotechnology will serve as a strong foundation underpinning the AI era."

"I will work to ensure that all members are supported so they can creatively challenge themselves and grow on the basis of AI, and that the achievements made along the way lead to each individual's happiness," Chey said in a closing comment. "Let us work together to make 2026 a year in which our challenges bear fruit and translate into even greater pride for all our members."

This article is by Kim Su-min and read by an artificial voice.

As Korean companies have steadily reduced their business footprint in China, attention is turning to whether President Lee Jae Myung's upcoming state visit to Beijing - accompanied by the heads of Korea's four largest conglomerates and other top business leaders - could help revive bilateral economic cooperation.

According to an analysis commissioned by the JoongAng Ilbo to corporate data firm Korea CXO Institute, the number of Chinese subsidiaries operated by Korea's top 10 conglomerates fell by 127, or 17 percent, from 435 in 2021 to 308 in 2025. Across all large business groups, the figure declined from 874 to 808 over the same period.

By contrast, the number of U.S. subsidiaries held by the large Korean companies nearly doubled, rising from 885 to 1,673, highlighting a clear shift in global resource allocation away from China and toward the United States.

"China is no longer a market where companies can grow simply by entering it," said Oh Il-seon, head of the Korea CXO Institute.

Hyundai Motor and Kia illustrate the trend. The two automakers sold more than 1.14 million vehicles in China in 2016, but sales fell sharply to 204,573 units last year following the dispute over the Terminal High Altitude Area Defense, or Thaad, system, which triggered unofficial Chinese restrictions on Korean businesses and intensified price competition from local automakers.

As demand weakened, Hyundai Motor shut down two of its five Chinese plants - its first Beijing factory in 2021 and its Chongqing facility in 2024 - and is in the process of selling its Changzhou plant in Jiangsu Province, which began operations in 2016.

Geopolitical rivalry between the United States and China has further complicated corporate decision-making. While companies still need China as a production base, rising political and strategic risks have left Korean firms walking a tightrope.

Chinese President Xi Jinping's meeting last March with Samsung Electronics Executive Chairman Lee Jae-yong and SK hynix CEO Kwak Noh-jung reflected the same tensions.

Semiconductors are a particularly sensitive area. Under U.S. export controls, the shipment of U.S.-made equipment to Chinese semiconductor plants requires annual approval. Samsung produces NAND flash memory at its Xi'an facility, while SK hynix manufactures DRAM at its Wuxi plant, operating in a way designed to absorb supply-chain risks.

At the same time, Chinese investment in Korea has been rising, driven in part by Korea's growing strategic importance amid intensifying U.S.-China technological competition. According to the Korea Institute for International Economic Policy, China's reported investment in Korea surged 147.4 percent year on year in 2024 to a record $6.79 billion.

Xiamen Tungsten, a Chinese battery materials company, added $15 million to its existing $13 million investment in its Saemangeum plant in North Jeolla in 2024, while China's Ningbo Shanshan acquired LG Chem's liquid crystal display polarizer business for $1.1 billion in 2020 - one of China's largest investments in Korea in recent years.

Against this backdrop, more than 200 business leaders - including Samsung's Lee, SK Group Chairman Chey Tae-won, Hyundai Motor Group Executive Chair Euisun Chung and LG Group Chairman Koo Kwang-mo - are set to accompany President Lee on his visit to China from Sunday to Jan. 7.

Business circles say the trip could help reopen stalled channels of economic cooperation. It will be the first large-scale Korean economic delegation to visit China since the 2019 Korea-China-Japan trilateral summit.

"China remains one of the world's most important manufacturing bases and markets," said one business executive, speaking on condition of anonymity. "But political uncertainty has grown so much that it's difficult to make bold decisions the way companies once did."

Jee Man-soo, a senior research fellow at the Korea Institute of Finance, warned in a recent report ...