The Minute to Read (Weekdays) series provides a quick overview of significant events in Korea everyday, conveniently condensed into a one-minute read. Here’s a recap of what happened yesterday: Nov. 28.
Can familiar faces save Samsung’s chip business?
Samsung Electronics’ recent semiconductor leadership overhaul has raised eyebrows, with critics pointing out that the company has settled for familiar faces rather than seeking a leader capable of reimagining its chip strategy for the AI-driven era. The company appointed Device Solutions (DS) division Vice Chairman Jun Young-hyun as co-CEO and head of the memory unit. Jun previously oversaw the memory unit for three years, starting in 2014. Han Jin-man, a veteran of Samsung’s memory business, was appointed to lead the foundry unit.
The reshuffle is part of Samsung’s effort to revive its semiconductor business. After reporting a loss of 15 trillion won ($11.3 billion) last year, the DS division has struggled to regain its footing in a rapidly evolving market shaped by surging demand for AI-related technologies. But critics claim that Jun’s return to the memory unit after a seven-year hiatus reflects a bureaucratic tendency to romanticize past successes, drawing comparisons to Sony’s decline in the 1990s. “The appointments perpetuate a ‘revolving door’ approach, favoring memory-focused leaders over specialists in foundry or AI-related technologies,” said an industry insider.
Bank of Korea unexpectedly cuts rates to 3%
The Bank of Korea (BOK) unexpectedly lowered the benchmark interest rate by 25 basis points to 3.0% on Nov. 28, delivering its first back-to-back rate cut since 2009. The decision, surprising markets that largely expected a rate freeze, reflects mounting concerns over South Korea’s slowing economy. Korea’s gross domestic product increased just 0.1% in the third quarter, and analysts now expect the country’s annual growth rate to fall short of the BOK’s forecast of 2.4%. The International Monetary Fund (IMF) predicts growth will further weaken to 2.0% next year. External risks, such as potential tariffs under U.S. President-elect Donald Trump’s second administration, threaten Korea’s export-driven economy.
The central bank cited stable inflation, declining household debt, and downward pressure on economic growth for the rate cut. “The BOK has acted before global headwinds take a further toll on an economy that is already losing growth momentum,” said Kang Min-joo, senior economist at ING.
HD HHI partners with LIG Nex1 for Peruvian naval ship project
HD Hyundai Heavy Industries (HD HHI) has partnered with LIG Nex1 for a naval ship export project in Peru, signaling a strategic shift from its long-standing alliance with Hanwha Systems. According to sources, LIG Nex1 signed a 60 billion won ($44 million) contract with HD HHI to deliver a comprehensive suite of naval systems, including command and control systems, electronic warfare solutions, and communication equipment. These systems will be integrated into Peru’s frigates and patrol vessels, slated for completion by 2030.
One minute, that’s all it takes to know about Korea. Click here ☞ https://page.stibee.com/subscriptions/305897
