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: Feb. 10.
SM bets big on Hearts2Hearts: Will the new girl group hit the right note?
SM Entertainment’s highly anticipated fifth-generation girl group, Hearts2Hearts, will debut on Feb. 24 with their single “The Chase,” marking the agency’s first girl group launch in five years. With an average member age of 17, the group aims to deliver heartfelt messages and a vibrant image, contrasting aespa’s bold concept. The debut is crucial for SM, which seeks to surpass 1 trillion won ($840 million) in annual revenue amid intense competition from YG Entertainment’s BabyMonster and HYBE’s NewJeans. Following founder Lee Soo-man’s 2023 departure, SM’s adoption of a multi-label system under co-CEOs Jang Cheol-hyuk and Tak Young-jun faces market scrutiny, as analysts question its ability to sustain competitiveness without a charismatic leader.
Naver’s record revenue fuels optimism for AI-driven future
South Korean securities firms have raised Naver’s target price, citing strong growth prospects in artificial intelligence (AI) and its robust 2024 financial performance, which made it the first Korean internet platform to surpass 10 trillion won in annual revenue. Analysts anticipate further growth in 2025, driven by AI-powered advertising efficiency and continued investments in commerce and AI capabilities. The emergence of DeepSeek is seen as a turning point for cost reduction and competitiveness, with experts optimistic about Naver’s AI technology potential to narrow the gap with global tech giants.
S. Korea’s growth set to fall, some investment banks predict as low as 1.1%
Global investment banks are slashing South Korea’s growth forecasts, citing weakened consumer sentiment and economic uncertainty following President Yoon Suk-yeol’s brief martial law declaration. Projections from firms like Capital Economics, which estimates just 1.1% growth for 2025, indicate a potential economic slowdown to nearly half the country’s 2.0% potential growth rate. Concerns are mounting over declining exports, political instability, and a dampened real estate market, prompting calls for decisive fiscal measures, including a supplementary budget and interest rate cuts. The government is seeking to reassure foreign investors through an IR event, while experts warn of rising recession risks and possible credit rating downgrades.
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