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Korean Industrial Insight No. 18 of AI, Semiconductors, Batteries, Electric vehicles, and Bio |
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2025-11-03 |
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Ⅰ. AI INDUSTRY TRENDS
1. 80% of Smart Factory-Equipped SMEs See Need for Manufacturing AI Adoption
- KBIZ conducts survey of 502 companies
A recent survey indicates that eight out of ten small and medium-sized manufacturers (SMEs) that have implemented smart factories hold a positive view regarding the integration of artificial intelligence (AI) into their manufacturing processes.
According to the 'Survey on SMEs' Opinions Regarding AI Adoption in Smart Factories,' released by the Korea Federation of SMEs (KBIZ), 47.4% of smart factory-equipped SMEs responded that "the introduction of AI in manufacturing processes is (highly) necessary." When including responses indicating 'somewhat necessary,' the perception of the need for manufacturing AI adoption rises to 78.5%.
Notably, the demand for AI adoption increased with the advancement level of smart factory implementation, from basic (38.8%) to advanced (58.4%).
The survey involved 502 SMEs that have participated in the large-enterprise-SME collaborative smart factory project over the past five years.
The areas identified as most requiring AI adoption were quality control (33.9%), followed by production optimization (32.3%), and process automation (31.9%). Major challenges cited for AI implementation included the burden of initial costs (44.2%) and a lack of specialized personnel (20.5%). For those willing to invest in advanced smart factories through AI, an investment intention of 100 million won or less was the highest reply with 68.9%.
A substantial 54.6% of respondents expressed willingness to (actively) participate if the government establishes new AI-based smart factory support programs (AI Factory). The most requested forms of support for AI adoption in small and medium-sized manufacturing were direct funding (72.3%) and AI-specific consulting (21.9%).
Furthermore, 77.1% of surveyed companies reported effective utilization of their smart factories. The highest satisfaction levels were observed in productivity gains (42.0%), improved working environment and industrial safety (36.1%), efficiency in supply chain and inventory management (25.5%), enhanced quality (25.3%), and cost reduction (14.9%). Conversely, key difficulties noted were the shortage of specialized operating personnel (43.8%) and high maintenance costs (25.9%).
2. MOTIR to Expand Cooperation with China’s Biggest Economic Power Guangdong in Hydrogen, AI, and BIO
- Deputy Minister for Trade attends 10th Korea-Guangdong Development Forum
- Discussions cover support for businesses and supply chain stabilization
South Korea's Ministry of Trade, Industry and Resources (MOTIR) is set to discuss expanded cooperation in high-tech new industries with Guangdong Province, China's largest economic power province.
Deputy Minister for Trade Park Jong-won announced his attendance at the 10th Korea-Guangdong Development Forum, held over two days from October 20 (local time) in Guangdong, China.
Marking its tenth anniversary, the Korea-Guangdong Development Forum is recognized as the first high-level cooperation channel established between Korean and Chinese provincial governments.
The forum convened officials from both the Korean and Guangdong provincial governments, association officials, and business leaders. Participants shared investment policies and engaged in discussions aimed at expanding cooperation in emerging industrial sectors such as hydrogen, artificial intelligence (AI), and biotechnology, alongside strategies for Korean companies to enhance their participation in the Chinese domestic market.
Deputy Minister Park emphasized MOTIR's commitment to supporting the creation of business opportunities for Korean firms by strengthening collaboration with Chinese provincial governments, particularly amid global trade uncertainties and the diversifying industrial relationship between Korea and China.
He is also to propose the continuous development of cooperative ties with Guangdong to boost investment and trade in advanced new industries.
In a separate meeting with Zhang Guozhi, Deputy Governor of China’s Guangdong province, Deputy Minister Park explored mechanisms to enhance support for Korean companies operating in Guangdong, stabilizing supply chains, and broadening cooperation in new industrial sectors.
He expressed appreciation for Guangdong's cooperation amidst the recent tightening of export controls, highlighting the importance of sustained collaboration for fostering stable trade relations between the two regions.
An official from MOTIR stated, "We plan to continuously strengthen cooperation with major Chinese provincial governments to pursue practical partnerships that effectively contribute to Korean companies' business activities in China."
3. LG Uplus Unveils ‘ixi-O 2.0’ AI Call App with Enhanced Search and Summary Features
- Features voice phishing detection, dangerous URL blocking, and dual number functionality
LG Uplus [032640] announced on the 20th, the launch of 'ixi-O 2.0,' an advanced artificial intelligence (AI) call application featuring enhanced personalized functions.
ixi-O provides real-time voice phishing detection, call recording and summarization, and visible call features, all operating within an on-device environment.
The new 2.0 version introduces significant upgrades, including AI conversation search, which allows AI to find answers based on call content, and improved call summarization. Additionally, 'Discover 2.0,' a new guide page, recommends relevant AI features by analyzing the user's call and text message data.
Through 'Discover 2.0,' users can access AI-recommended information such as schedule management derived from text message analysis and searches for locations mentioned during calls.
For Android users, 'Dangerous URL Detection' has been newly implemented, sending warning alerts when a phishing-risk URL embedded in text or KakaoTalk messages is accessed. Another new feature, 'AI Text Reminder,' automatically identifies coupons or reservation schedules received via text and provides timely notifications as the date approaches.
The iOS version of ixi-O 2.0 now incorporates a 'Dual Number' function, enabling users to manage two separate phone numbers on a single device.
LG Uplus further stated its ambition to evolve ixi-O beyond an AI call application, aiming to transform it into a hyper-personalized AI assistant application.
Ⅱ. SEMICONDUCTOR INDUSTRY TRENDS
1. Breakthrough Achieved in High-Performance, Long-Lifespan Next-Generation Ultra-Thin-Film Semiconductor Technology
The National Research Foundation of Korea (NRF) announced on the 20th that a research team led by Professors Hui-joon Park and Kyeounghak Kim of Hanyang University has successfully developed high-performance, long-lifespan thin-film transistors (TFTs). This achievement follows their discovery of identifying a novel method to simultaneously maximize the performance and stability of perovskite, a material drawing significant attention as a next-generation semiconductor.
P-type and N-type semiconductors represent the fundamental material forms utilized in the construction of semiconductor devices. These devices are constructed by combining and processing these P-type and N-type semiconductors in specific configurations.
While both N-type and P-type devices are crucial for the development of low-power electronics and integrated circuits, achieving high performance in P-type devices has remained a persistent and significant challenge within the semiconductor industry, particularly when compared to their high-performing N-type devices.
The research team recognized the electrical transport advantages of eco-friendly tin (Sn)-based perovskites, including their small effective mass and low scattering characteristics. They hypothesized that if the material's chronic limitations—specifically oxidation and thin-film quality degradation—could be resolved, it would be possible to achieve performance superior to any existing commercialized material.
The team successfully addressed the issues of oxidation and thin-film degradation by minimizing defect density and overcoming structural instability via the substitution of specific cations and anions in the perovskite structure using methylammonium chloride (MACl). Building on this breakthrough, the research team successfully developed P-type thin-film transistors demonstrating world-class performance.
Furthermore, accelerated lifetime testing projects that these devices will maintain over 70% of their initial performance for approximately 10 years at room temperature. This longevity suggests immediate applicability in industrial settings, particularly when combined with encapsulation technologies currently employed in commercial organic light-emitting diodes (OLEDs).
Professor Hui-joon Park stated, "This represents the first successful instance of simultaneously achieving top-tier electrical performance and long-term stability with tin-based perovskites. We anticipate its expansion into various fields, including next-generation displays, optical sensors, and low-power logic devices."
Samsung Electronics' SAIT collaboratively participated in this research, and the findings were published online on the 17th in 'Nature Electronics,' a premier international journal in the field of electrical and electronic engineering.
2. Shinsung E&G to Unveil Integrated Dehumidification and Purification Solutions at ‘SEDEX 2025’
Shinsung E&G announced on the 20th, its participation in 'Semiconductor Exhibition (SEDEX 2025),' held from October 22 to 24 at COEX in Seoul. The company will unveil an advanced cleanroom solution that integrates dehumidification functions into existing purification equipment.
This specialized equipment, designed for highly advanced semiconductor manufacturing processes, maintains consistent humidity levels by removing airborne moisture within the fab using humidity sensors and an automatic control system. This innovation is expected to contribute to improved yield by preventing wafer corrosion and circuit malfunctions.
Shinsung E&G will also feature its High Performance Lift (HPL). This system significantly enhances safety during cleanroom ceiling construction by shifting high-altitude work to a ground-level modular approach. The HPL expands the working platform area and allows for simultaneous installation of overhead facilities, thereby shortening construction process. This leads to reduced fab construction periods and costs for clients, while also reinforcing ESG management through enhanced safety.
In addition to these innovations, the exhibition will display a range of other advanced equipment, including: △ Particle Visualization System: Real-time visualization of microscopic particles using lasers and high-sensitivity cameras. △ Outdoor Air Control Unit (OAC): Purifies external air to create a stable cleanroom environment. △ Internal Chemical Filter FFU (ICF): Enhances harmful gas removal and purification while conserving energy.
An official from Shinsung E&G stated, "This exhibition offers a direct opportunity to experience our 'super-gap technology' in cleanrooms. We are actively expanding our business beyond advanced semiconductor cleanroom projects into the HVAC (Heating, Ventilation, and Air Conditioning) sector, including data centers, and are growing into a leading solution provider in the global market."
3. Semiconductor ‘Supercycle’ Visualized, Igniting Fierce Talent Competition
- Micron, world's third largest, expands capacity
- Korea actively seeks HBM & packaging talent
- Samsung, SK Hynix also recruit experienced professionals
The semiconductor industry is experiencing the full swing of a "supercycle (long-term boom)," driven by soaring demand for artificial intelligence (AI) chips, leading to an intense global competition for talent. Companies are aggressively widening their recruitment efforts, seeking to attract key personnel even from competing nations and rival firms known for their advanced technological expertise.
According to industry sources on the 19th, Micron, the world's third-largest memory semiconductor company, is currently recruiting global engineers via LinkedIn for positions in Taiwan. The Taiwan facility serves as Micron's production hub for High Bandwidth Memory (HBM). This recruitment drive is interpreted as a strategic move to secure a leading position in the HBM development race, as Samsung Electronics, SK Hynix, and Micron intensify their focus on developing HBM4 for next-generation AI accelerators. Micron is reportedly concentrating its recruitment on roles related to HBM and packaging.
Micron's efforts to expand HBM production capacity involve not only significant investments in new overseas fabrication plants (fabs) but also a strong focus on talent acquisition. This struggle for talent acquisition is unfolding across borders and among competing nations. Late last year, Micron conducted interviews with experienced Korean semiconductor engineers in Pangyo, Gyeonggi Province, and hosted recruitment briefings at major Korean universities. Earlier this year, the company recruited Korean engineers for its Hiroshima plant in Japan and has also reportedly hired staff for its Singapore plant, slated to commence operations next year.
Korean companies are also actively pursuing talent both domestically and internationally. Samsung Electronics recruited memory semiconductor engineers with over two years of experience in Taiwan during the first half of the year, targeting roles in memory business development, sales, and supply chain management. The company is currently undergoing its second-half recruitment, who are expected to join various business units in the first half of next year.
SK Hynix has launched a recruitment campaign for experienced professionals through its "October Monthly Hynix Talent" program. The company is reportedly seeking double-digit hires across 10 job functions, including HBM circuit design, verification, and solution design. SK Hynix is also conducting new graduate hiring for positions in design, process, and mass production.
These companies are significantly increasing their investments, anticipating that the surge in AI-driven semiconductor demand will continue for several years. This aggressive investment and talent acquisition strategy is based on the strong belief that securing early leadership in this semiconductor supercycle is critical to achieving market dominance.
Ⅲ. BATTERY INDUSTRY TREND
1. LG Energy Solution Develops New Battery Technology: Enhanced Low-Temperature Performance and Stability
LG Energy Solution announced on the 20th that it has successfully developed a core electrolyte technology in collaboration with POSTECH (Pohang University of Science and Technology) and Sungkyunkwan University. This innovation is designed to simultaneously improve the low-temperature performance and thermal stability of lithium-ion batteries.
The newly developed technology maintains approximately 87% of its capacity even at temperatures as low as -20°C, a significant improvement over existing electrolyte. Furthermore, it effectively suppresses thermal runaway by over 90%.
The findings from this research have been published in “Advanced Energy Materials" and "Journal of Materials Chemistry A," two of the most prestigious academic journals in the energy sector.
The essence of this new development is an electrolyte technology that utilizes Allyl Trimethyl Phosphonium (APT) ionic compounds.
Ionic compounds are formed when positively and negatively charged ions are strongly bound, much like magnets. Within an electrolyte, these ions facilitate the movement of charge, thereby enabling electric current to flow.
Specifically, APT-based ionic compounds serve as more than just simple additives; they possess the dual functionality of lowering the electrolyte's freezing point and regulating interfacial reactions.
By integrating this material into the electrolyte, the joint research team successfully mitigated performance degradation in lithium-ion batteries.
Under the testing, battery cells incorporating this technology demonstrated a high-capacity retention rate of approximately 87% after 100 charge/discharge cycles in extreme conditions at -20°C.
Typically, battery cells under similar conditions maintain only about 10% of their capacity.
Moreover, the application of the same APT-based ionic compounds to high-capacity silicon anode batteries enhanced thermal safety by suppressing thermal runaway by over 90%.
The company anticipates that this technology will substantially reduce the heat generated during battery cell ignition by 90% compared to existing solutions, thereby significantly slowing down the heat transfer rate.
An official from LG Energy Solution stated, "This APT-based electrolyte technology is to deliver new customer value across a diverse range of applications, including electric vehicles, aerospace, and batteries designed for cryogenic environments."
2. Global ESS Market Dominated by China: Korean Battery Makers Fight for Leadership
- U.S. ESS production hubs established: “Chinese regulations offer growth opportunities for domestic companies”
- Full effort on government ESS bids; Busy with countermeasures including ESS production line expansion
The global competition for leadership in the Energy Storage System (ESS) market, which has emerged as the next-generation growth engine after electric vehicles, is intensifying.
South Korean battery manufacturers are responding to the dominance of Chinese firms by seeking opportunities for a rebound through its entry into the North American market and the expansion of government ESS initiatives.
According to market research firm SNE Research on the 19th, Chinese companies such as CATL (37%), EVE (13%), BYD (9%), CALB (7%), and Gotion (6%) have virtually monopolized the global ESS market.
In contrast, the combined market share of South Korea's top three battery makers remains in the single digits. The domestic battery industry's global ESS market share plummeted from 55% in 2020 to the 6% range in 2024.
Industry observers pinpoint the North American market as a significant area of opportunity for South Korean battery companies. According to market research firm BNEF, the U.S. ESS market is projected to surge from 51 GWh in 2023 to 485 GWh in 2030 and 976 GWh in 2035.
Particularly, with U.S. tariff policies significantly weakening the price competitiveness of Chinese-made batteries, the expansion of the ESS market share for Korea's top three battery makers is anticipated in the long term.
LG Energy Solution was the first to begin mass production of ESS batteries in May, converting its electric vehicle line at the North American Holland plant for ESS use.
Samsung SDI also commenced local production this month, utilizing its joint venture plant with Stellantis, while SK On plans to start ESS production at its Georgia plant in the second half of next year.
Moreover, the full-scale launch of government tenders for long-duration ESS projects is also fueling anticipation for new growth momentum within the domestic battery industry.
The Korean ESS market experienced rapid growth, accounting for half of the global new ESS capacity until 2018. However, it stagnated after 2019 due to low profitability and safety concerns.
With the government's annual ESS tenders, aiming to supply 23 GW by 2038, the domestic market is expected to return to a growth trajectory.
In the first tender held last May, a total of 563 MW, exceeding the initial target of 540 MW, was awarded to ESS business operators across eight regions nationwide. Samsung SDI reportedly secured 76% of the total volume, being selected as the preferred bidder for six projects.
The second tender, scheduled for this month, is also expected to be around 540 MW, similar to the first, with an estimated value of KRW 1 trillion. The supply period has been announced as December 2027.
Samsung SDI, having achieved success in the first tender, is expected to continue promoting its ternary (Nickel-Cobalt-Aluminum, NCA) batteries. In contrast, LG Energy Solution and SK On are anticipated to focus on lithium iron phosphate (LFP) batteries, which offer strong price competitiveness.
Given that over a year remains until supply after operator selection, LG Energy Solution and SK On are actively preparing countermeasures, such as transitioning production bases to Korea or expanding dedicated ESS production lines, in anticipation of the second tender.
3. Global EV Battery Cathode Material Usage Reach 1.52 Million Tons in Jan–Aug, Up 39.5% YoY
- Non-China usage at 550,000 tons, up 29.7%; Ternary materials up 13.4% vs. LFP 65.7% surge
- Chinese firms dominate top four ranks for LFP cathode materials: Technology internalization and production diversification required
Global usage of electric vehicle (EV) battery cathode material recorded a significant year-on-year increase of 39.5% from January to August this year. The market for Lithium Iron Phosphate (LFP) cathode materials, largely monopolized by Chinese companies, recorded a higher growth rate compared to ternary cathode materials.
According to market research firm SNE Research, the total usage of cathode materials in Battery Electric Vehicles (BEVs), Plug-in Hybrid Electric Vehicles (PHEVs), and Hybrid Electric Vehicles (HEVs) worldwide reached approximately 1.521 million tons from January to August, a 39.5% increase year-on-year. Even excluding China, cathode material usage during this period increased by 29.7% year-on-year, totaling approximately 551,000 tons.
By type, ternary cathode material usage increased by 13.4% year-on-year to 619,000 tons. Ronbay (China) and LG Chem maintained their first and second positions, respectively, in the ternary cathode material market. While Korean companies such as L&F, EcoPro, and POSCO Future M remained in the upper ranks, Chinese manufacturers including Reshine, Easpring, and Shanshan showed notable advancements.
LFP cathode material usage surged by 65.7% year-on-year to 902,000 tons. The proportion of LFP within the total cathode material usage also increased to approximately 59% (by weight). This trend is attributed to the expansion of affordable BEVs in China and a growing preference for cost-competitive LFP batteries. Chinese companies—Hunan Yuneng, Wanrun, Dynanonic, and Ropal—swept the top four positions, evidencing the virtual monopoly of China in the LFP cathode material market.
SNE Research noted, "The cathode material market has entered a transitional phase, facing simultaneous pressures from technological regulations and supply chain restructuring." The firm pointed out, "China strictly limits the overseas transfer of core cathode material technologies, while the European Union demands a shift to a circular system by strengthening recycling efficiency and recovery standards."
The research firm further projected, "As Chinese companies' overseas expansion signals global oversupply and intensified price competition, leadership will likely fall to companies that prioritize technology internalization, recycling-based supply stability, and regionally diversified production." SNE Research suggested, "A strategy of gradually expanding lines with proven demand and modularizing production by region will prove effective."
Ⅵ. ELECTRIC VEHICLE INDUSTRY TRENDS
1. EV Sales Surpass 170,000 Units, Reaching All-Time High
- Exceeds last year’s total sales of 140,000 units
- New model effect overcomes demand stagnation
- Green light for annual sales to exceed 200,000 units
Electric vehicle (EV) sales in South Korea have surpassed 170,000 units this year, marking an all-time high. The "new model effect" has successfully overcome previous demand stagnation, bringing the EV market back to growth after three years. This trend signals a strong possibility of achieving 200,000 annual sales for the first time in history.
According to data compiled by ETnews from the Ministry of Land, Infrastructure and Transport and CarIsYou Data Lab, cumulative EV sales reached 170,514 units by September this year, already exceeding last year's total annual sales of 146,883 units.
The 170,514 units represent a 57.3% increase compared to the same period last year (108,430 units).
Domestic EV New Registrations
2021 2022 2023 2024 2025 (Jan-Sep)
10,402 164,482 162,593 146,883 170,514
Source: CarIsYou Data Lab
Notably, September alone recorded 28,528 units, marking the highest monthly sales since EV sales officially began to accelerate in the domestic market. This year saw a rapid increase in EV sales, with purchase subsidies secured by most local governments being run out around September.
This transition back to growth in EV sales comes three years after 2022. Following its initial surge past 100,000 units in 2021 with 100,402 sales and peaking at 164,482 units in 2022, cumulative annual EV sales in South Korea had stagnated, reaching 162,593 units in 2023 and 146,883 units last year.
This year's sharp rise in EV sales is largely attributed to the "new model effect."
Kia's 'EV3,' launched last year, has sold 18,732 units this year alone, making it the top-selling domestic EV. Hyundai's 'IONIQ 9,' released in February, sold 6,943 units, while Kia's 'EV4,' introduced in March, recorded 7,034 sales.
Global brands like Tesla, BYD, and Polestar also benefited from the new model effect. Tesla, led by its new 'Model Y,' sold 43,637 units by September, maintaining its leading position in the overall EV market, encompassing both domestic and imported models.
BYD Korea, which sequentially launched three models—the BYD Atto 3, Seal, and Sealion 7—starting in April, sold 3,018 units by September, surpassing 1,000 monthly sales for the first time last month.
Polestar saw a 443.2% surge in sales compared to the same period last year, selling 2,227 units of its 'Polestar 4.'
This positive momentum is expected to continue into the fourth quarter.
With Kia launching the 'EV5' in September and Tesla hinting the introduction of the Cybertruck, the new model effect is set to continue through the year-end, further increasing the possibility of breaking the 200,000 annual EV sales mark.
An industry official stated, "This year, EV sales have grown at the fastest rate ever. This creates hope that the EV chasm will be resolved, and the market will enter a full-fledged growth phase."
2. Kia Motors Significantly Expands EV Production, Accelerating Electrification Transition
- European EV production to triple in scale
- Securing annual production capacity of 180,000 units by 2027
- Domestic internal combustion engine (ICE) production to be reduced
- Aims for electrification transition to meet EV demand
Kia Motors is set to triple its EV production capacity in Europe.
The company plans to establish an annual production system of 180,000 EVs in Europe alone by 2027, aiming to swiftly respond to the growing demand for EVs.
Furthermore, Kia Motors also plans to reduce the production of Lambda3 engine, which are used in internal combustion engine vehicles, in South Korea, shifting its focus towards EV manufacturing.
Industry analysts suggest that as Kia Motors prioritizes EV production concurrently in both South Korea and Europe, the pace of its electrification transition will accelerate.
According to industry on the 15th, Kia Motors will triple the EV production capacity at its Slovakia plant by 2027. This plant began producing the EV4 hatchback, a strategic model targeted for the European market, this year.
The company also plans to rapidly increase production by manufacturing the compact electric SUV EV2, slated for European launch next year, alongside the EV4 hatchback.
By 2027, the Slovakia plant alone is projected to produce a total of 180,000 units, comprising 80,000 EV4 hatchback and 100,000 EV2.
Kia Motors is also moving to scale down Lambda engine production at its AutoLand Gwangmyeong facility in Soha-dong, Gwangmyeong-si, Gyeonggi Province. The company is expected to focus on producing Lambda engines for aftermarket service (AS) while continuously reducing production of new Lambda engines for new vehicles.
Regarding this, Kia Motors stated, "Discussions concerning Lambda engine production are ongoing."
While scaling down Lambda engine production, Kia Motors is expanding its EV production. Last September, the company completed the 'Gwangmyeong EVO Plant,' Hyundai Motor Group's first dedicated EV factory, within AutoLand Gwangmyeong.
Kia Motors invested a total of 401.6 billion won to construct the EVO Plant on approximately 60,000 square meters of land within AutoLand Gwangmyeong.
The company is currently producing the compact electric SUV EV3 and the compact-midsize electric sedan EV4 at this EVO Plant.
It is assessed that as Kia Motors rapidly reorganizes its domestic and international production facilities with a focus on electrification, it will be able to respond swiftly to the increasing demand for electric vehicles. The global EV market, which experienced a period of demand stagnation, has shown signs of recovery this year.
3. EV Phobia Remains: One in Four Consumers Rule Out Purchase Even in 10 Years
- EV sales surpass 170,000 units, setting all-time record
- Trust restoration still ongoing following fire incidents
- 25% of consumers decline EV purchase due to safety concerns
Despite reaching record annual cumulative sales, a lingering distrust among some consumers towards electric vehicles remains evident in South Korea. Despite the EV market recovering from a rapid downturn triggered by last year's Incheon Cheongna apartment fire, safety concerns continue to persist.
According to the data from the Ministry of Land, Infrastructure and Transport and CarIsYou Data Lab, cumulative domestic EV sales reached 170,514 units by September this year, comfortably surpassing last year's total annual sales of 146,883 units. September alone recorded 28,528 units, marking a monthly all-time high. If sales maintain their current momentum until year-end, annual sales are projected to exceed 200,000 units for the first time in history.
Though the market has seemingly overcome the three-year "EV chasm" (a period of demand stagnation), consumer perception remains complex. According to the '4th EV Planning Survey' released by automotive research specialist Consumer Insight and other agencies, 70% of general consumers anticipated growth in the EV market, yet 25% responded that they have no intention of purchasing an EV even 10 years from now. Furthermore, only 8% expressed an intention to purchase within two years, while 64% were categorized as 'considering purchase within 3-10 years.'
The primary reason for purchase hesitancy is, undoubtedly, 'safety.' Among respondents not considering an EV purchase, 45% stated that they found it difficult to trust EVs due to safety issues such as fires. This proportion was significantly higher than concerns about vehicle price (25%) or lack of charging infrastructure (14%). Following the Cheongna fire incident last year, a deep-seated perception that 'EVs are unsafe' took hold, leading some consumers to continue choosing internal combustion engine vehicles over EVs.
Nevertheless, the perception of EVs has improved compared to last year. The percentage of respondents predicting market 'growth' for EVs significantly increased from 52% last year to 70% this year. Predictions for 'maintenance' of the market decreased to 23%, and for 'decline' to 7%. Consumer Insight analyzed, "The expansion of charging infrastructure, price reductions, and improvements in driving range have led to the restoration of consumer confidence."
Government support policies are also bolstering the market's recovery. Minister of Environment Kim Sung-hwan announced that the government is planning to increase EV transition subsidies by up to an additional 1 million won next year. This initiative is expected to boost the average subsidy from 3 million won this year to approximately 4 million won.
Ⅴ. BIO INDUSTRY TRENDS
1. Celltrion Forecasts Operating Profit to Exceed KRW 1 Trillion This Year, Anticipating Sector-Leading Growth
Celltrion is projected to achieve the most substantial performance growth within the bio･pharmaceutical industry this year, with revenue set to exceed 4 trillion won and operating profit expected to surpass 1 trillion won. Analysts suggest that its profitability recovery is in full swing, with a combination of enhanced production efficiency, expanded new product offerings, and improved cost ratios.
In a report released on the 20th, Korea Investment & Securities forecasted Celltrion's revenue for this year to reach 4.2436 trillion won, marking a 19% increase year-on-year. Operating profit is estimated to surge by 127% over the same period to 1.1166 trillion won, with an operating profit margin (OPM) projected at 26.3%. While the sales outlook for its existing product portfolio and 'Zymfentra' was slightly adjusted downwards, the accelerated improvement in cost ratios is expected to elevate this year's gross profit margin (GPM) by 9.2% to 56.4%.
In particular, Celltrion is anticipated to have strengthened performance momentum in the second half of the year, driven by increasing biosimilar sales and the positive impact of new product launches, specifically the Prolia and Xolair biosimilars. For the third quarter of this year, revenue is analyzed to be 1.0958 trillion won, with operating profit reaching 312.8 billion won, representing year-on-year increases of 24% and 51%, respectively.
Meanwhile, the company recently completed the acquisition of Imclone Systems, a subsidiary plant of Eli Lilly in the U.S., thereby securing a vital production base in North America. Korea Investment & Securities further projected that "once independent operations commence in January next year, Contract Manufacturing Organization (CMO) sales will be reflected in consolidated earnings from 2026." The firm added, "Celltrion is expected to maintain stable growth, targeting 5.6 trillion won in revenue and 1.8 trillion won in operating profit by 2027."
2. Samsung Biologics Navigates Smooth Spin-Off, Focusing Solely on CDMO to Maximize Shareholder Value
- Shareholders approve split plan with over 99.9% support
- CEO John Rim, “Conflict of interest in biosimilar sector will be resolved.”
- Effective date of split November 1st; Relisting scheduled for November 24th
- Expediting reinforcement of order competitiveness and shareholder value
Samsung Biologics is to re-establish itself as a "pure CDMO (Contract Development and Manufacturing Organization)" by separating its CDMO and biosimilar businesses. The resolution on a spin-off was passed with overwhelming approval at an extraordinary shareholders’ meeting held on October 17, setting Samsung Biologics on a path to exclusively focus on its core CDMO business. The split is slated to take effect on November 1, with a planned relisting and change of listing on November 24, following a trading suspension period.
During the extraordinary shareholders’ meeting at Songdo Convensia in Incheon, the sole agenda item, "Approval of the Split Plan," passed with an impressive 99.9% vote from attending shareholders. As a special resolution for shareholders, a company split requires approval from at least two-thirds of attending shareholders and one-third of the total issued shares.
With the approval, Samsung Biologics' investment division will be spun off, leading to the creation of a new entity, 'Samsung Epis Holdings.' The surviving company, Samsung Biologics, will focus on the CDMO business. Meanwhile, the newly formed Samsung Epis Holdings will manage subsidiaries and pursue new investments, retaining Samsung Bioepis as a 100% owned subsidiary.
Existing shareholders will receive shares in both Samsung Biologics and Samsung Epis Holdings proportional to their current ownership. Current Samsung Biologics shareholders will be allocated shares in the two entities at a ratio of 0.6503913 to 0.3496087, respectively. This division was determined based on the book value of net assets for both the surviving and newly established companies as of the end of the first quarter of 2025.
The effective date for the split is November 1, with trading suspended from October 30 to November 21. Relisting is scheduled for November 24. Following the completion of the spin-off, the two companies will commence operations as independent entities, moving beyond their former parent-subsidiary relationship.
Samsung Biologics anticipates that this spin-off will resolve conflicts of interest with clients and significantly enhance the competitiveness of each business.
In his chairman's address, CEO John Rim stated, "Despite maintaining strict information firewalls between Biologics and Bioepis, some clients have historically perceived the two companies as a single entity, leading to concerns about conflicts of interest." He emphasized, "This split will definitively resolve such worries and bolster our competitive edge in securing new orders." Rim added that Samsung Biologics, now a pure CDMO, "will expand its production capabilities and proactively invest in portfolio diversification, including Antibody-Drug Conjugates (ADCs) and Cell and Gene Therapies (CGTs), to elevate global customer satisfaction and strengthen its market position."
The newly established Samsung Epis Holdings will wholly own biosimilar specialist Samsung Bioepis. Through this new subsidiary, it aims to drive future growth by pursuing bio-technology platforms and other innovative ventures. CEO Rim mentioned, "Allowing two companies with distinct business characteristics to be independently valued will ultimately lead to enhanced shareholder value. Each company will further solidify its inherent specialization and competitiveness."
The market has responded favorably to the spin-off. ISS, the world's largest proxy advisory firm, recommended approval, citing its "strategic validity in terms of strengthening business specialization." The National Pension Service, Samsung Biologics' third-largest shareholder with a 7.3% stake, also cast its vote in favor.
Samsung Biologics confirmed, "Through this split, Samsung Biologics and Samsung Epis Holdings will further solidify their independent decision-making frameworks, thereby strengthening the competitiveness of each business and elevating corporate and shareholder value."
3. CJ Group Accelerates Global Expansion with Biotech Expert
- Yoon Seok-hwan named new CJ CheilJedang CEO
- Focus on biotech to drive business transformation
- Fostering new growth in PHA, Microbiome, and other bio ventures
CJ Group is proactively executing a strategic personnel reshuffle to bolster its biotech business, identifying it as a core growth engine. The key move is the appointment of Yoon Seok-hwan, currently head of the Bio Business Division, as the new CEO of CJ CheilJedang. This appointment is seen as a strong commitment to fully launch the biotech business after the group withdrew its previous plans to sell the division, which were once valued at 5–6 trillion won. Industry observers anticipate that Yoon will collaborate closely with Lee Sun-ho, Head of CJ's Future Planning Office, who recently returned to the holding company after six years, to support the execution of the group's strategy.
According to industry sources on the 19th, CJ Group announced its CEO appointments on the 17th, which included Yoon Seok-hwan's promotion to CEO of CJ CheilJedang. Yoon, the new leader of CJ CheilJedang, is recognized as a "biotech expert," having joined the company in 2002 and served in various roles such as head of bio business in Latin America, global marketing, and director of the technology research center. Since 2023, he has led the Bio Business Division, earning wide recognition for his global operational capabilities and R&D strategy formulation skills. Yoon is expected to lead CJ CheilJedang's new bio initiatives, enhancing its global competitiveness.
Indeed, CJ CheilJedang has recently been shifting its strategic focus from food to bio. The company has streamlined inefficiencies by divesting parts of its animal nutrition and health (ANH) business, which faced growth stagnation due to global market downturns in recent years. Furthermore, it reconsidered its plans to sell the Green Bio business last year, repositioning it as a high-profit, future-oriented growth engine. The appointment of an expert CEO amidst this restructuring signals CJ Group's firm commitment to transform CJ CheilJedang from merely a food company into a global biotech leader.
Under CEO Yoon's leadership, CJ CheilJedang is expected to further strengthen its existing "Green-White-Red" bio business portfolio. In the Green Bio sector, the company aims to expand its global market dominance, focusing on producing feed-grade amino acids (such as lysine, arginine, and tryptophan) and food-grade flavoring materials (like nucleic acids). Concurrently, the White Bio segment will concentrate on developing bio-based eco-friendly materials, including marine biodegradable plastic PHA. Red Bio initiatives will involve CJ BioScience, a subsidiary dedicated to microbiome drug development, positioning it as a bridgehead into the high-value-added pharmaceutical market. The company faces various challenges, including expanding its bio foundry business, enhancing PHA profitability, and responding to market changes such as the EU's anti-dumping tariffs on Chinese lysine.
The strategic placement of a specialist CEO underscores the group's intention to accelerate the achievement of these ambitious goals.
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The ‘Ministry of Intellectual Property (MOIP)’ launched as a national intellectual property policy control tower.(News Letter No. 563)
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Korean Industrial Insight No.20 of AI, Semiconductors, Batteries, Electric vehicles, and Bio in chinese
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