The Minute to Read (Weekend) series provides a quick overview of significant events in Korea from the week, conveniently condensed into a one-minute read. Here’s a recap of what happened this week: Mar. 10-14.
Korean shipyard completes 1st MRO of U.S. Navy vessel
The U.S. Navy’s Lewis and Clark-class dry cargo ship USNS Wally Schirra set sail from Hanwha Ocean’s shipyard in Geoje, South Korea on March 13 after completing six months of maintenance, repair, and overhaul (MRO) work. This marks the first time a U.S. military vessel has undergone repairs in South Korea and been relaunched.
Originally constructed in 2005 and launched in 2009, the Wally Schirra has been deployed in operations primarily in the Middle East. It entered a South Korean shipyard in September last year for MRO and has now returned to service after being fully refurbished. Industry experts view the successful overhaul of the vessel as a significant milestone in strengthening South Korea-U.S. maritime and defense cooperation.
Kakao founder steps down from leadership council
Kakao founder Kim Beom-su is stepping down from his role as co-chair of the Corporate Alignment (CA) Council, which serves as the company’s control tower. This decision comes after he was diagnosed with early-stage bladder cancer, and he requires intensive treatment due to his deteriorating health. CEO Chung Shin-a will take over Kim’s position, but disruptions to the ongoing management restructuring efforts led by Kim are expected. Kim had spearheaded Kakao’s business restructuring since 2023 following criticism of the company’s aggressive expansion strategy. He is currently facing trial for alleged stock price manipulation in the acquisition of SM Entertainment.
S. Korean defense firms see profits soar as military spending rises
South Korea’s small and mid-sized defense companies are poised to benefit from global defense spending growth, as U.S. President Donald Trump’s call for countries to increase their military budgets creates new opportunities.
SNT Motiv, a key Korean firearms maker producing K-series weapons like the K2 rifle and K15 machine gun, saw its stock jump 20% from 21,175 won on Jan. 2 to 24,250 won on March 12. The company, which exports to the Middle East and Southeast Asia, is now aiming for the U.S. market as Trump’s policies reshape global defense spending. The combined sales of 65 small and mid-sized defense companies in South Korea grew 24% from 5.4 trillion won ($3.7 billion) in 2021 to 6.72 trillion won ($4.6 billion) in 2023, while operating profit surged 89% from 272 billion won to 515.4 billion won last year.
S. Korean steelmakers face risks, opportunities with U.S. tariff
South Korea’s steel industry is facing a new challenge with the implementation of U.S. President Donald Trump’s 25% tariff on steel and aluminum, which went into effect on March 12, Korea time. The move eliminates all exemptions, including South Korea’s annual 2.63 million-ton duty-free quota for steel exports to the U.S.
While the tariffs immediately hurt price competitiveness, major steel companies like POSCO Holdings, SeAh Steel Holdings, Dongkuk Steel, and Hyundai Steel saw their stock prices rise, suggesting investors view the tariffs as potentially beneficial. Industry insiders note that with all competitors now facing the same 25% tariff, Korean companies may find new opportunities.
U.S. diplomat calls for S. Korea to align with U.S. on China policy
Joseph Yun, acting U.S. ambassador to South Korea, emphasized that South Korea’s stance on China-related trade and security issues must fully align with the U.S. Speaking at the launch of the South Korea-U.S. Congressional Alliance on March 10, Yun said, “China is America’s greatest competitor, and South Korea’s stance on trade and security must be in complete agreement with the U.S.” Yun, who replaced Philip Goldberg after his term ended in January, reaffirmed the Trump administration’s hardline approach to China and called for South Korea’s active participation.
Constitutional Court rejects impeachment of audit chief
The South Korean Constitutional Court unanimously rejected the impeachment motion against Choe Jae-hae, head of the Board of Audit and Inspection, and three prosecutors, including Lee Chang-soo, chief of the Seoul Central District Prosecutors' Office, on March 13. The court ruled that Choe’s legal violations were not serious enough to warrant removal and found no evidence that the prosecutors had violated the law in their investigation into first lady Kim Keon-hee’s alleged stock manipulation. All officials returned to work after being suspended for 98 days.
The impeachment motions, introduced by the Democratic Party, were passed in the National Assembly on Dec. 5 last year. The party accused Choe of conducting politically motivated audits targeting the Moon Jae-in administration while failing to properly investigate Kim Keon-hee’s role in the relocation of the presidential office. They also claimed that Choe weakened the Board’s independence by amending a rule that granted the Prime Minister more power over public interest audits.
Retailers grapple with Kim Soo-hyun’s dating scandal
South Korean retail brands with endorsement deals with actor Kim Soo-hyun are reconsidering their partnerships following allegations about his past relationship with the late actress Kim Sae-ron when she was a minor. His agency has denied the claims, stating their relationship began only after she became an adult. Despite this, public backlash is growing, and some brands are distancing themselves. Even before the agency’s statement, Tous Les Jours ended its contract with Kim, while Homeplus removed his advertisements from stores.
Earlier, the YouTube channel Hoverlab alleged that Kim Soo-hyun had been in a six-year relationship with Kim Sae-ron, starting when she was 15, and released photos purportedly showing him kissing her on the cheek, further fueling the controversy. As public sentiment worsens, calls for his removal from the MBC variety show “Good Day” are increasing, and his official fan club has restricted access.
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