South Korea

Joongang Ilbo | English | News | Jan. 9, 2026 | UndeterminedBizdev-Partnering

The Ministry of Trade, Industry and Resources has affirmed that the world's largest semiconductor cluster project will proceed in Yongin, Gyeonggi, despite political calls to reconsider its location due to electricity supply concerns. The ministry stated that most agreements for utilities like electricity and industrial water are already in place and that while long-term power plans beyond 2039 are still being finalized, early-phase requirements are secured to keep the project on schedule.

The Yongin chip cluster, led by Samsung Electronics and SK hynix, spans 11.44 million square meters with investment pledges of 360 trillion won and 600 trillion won respectively. The cluster is expected to play a key role in South Korea’s semiconductor supply chain. Climate Minister Kim Sung-whan raised concerns that the 15 gigawatts of power needed—equivalent to about 15 nuclear reactors—may be difficult to supply to Yongin, suggesting a possible relocation to southern energy-rich regions. This proposal aligns with President Lee Jae Myung’s strategy to develop a “southern semiconductor belt” to drive regional growth and leverage renewable energy.

However, the relocation debate has faced opposition from industry leaders and lawmakers who argue that the existing cluster’s proximity to established supply chains, skilled labor pools, and infrastructure in Yongin is critical. They also note challenges in rural areas such as talent shortages and lack of supplier ecosystems. Former Samsung president and People Power Party lawmaker Koh Dong-jin called the proposed relocation "absurd," emphasizing that the project is a national strategic initiative already under construction.

Power supply for the Yongin cluster remains a significant challenge. Samsung is estimated to need 9.2 gigawatts, with Korea Electric Power Corporation (Kepco) committed to supplying 2.7 gigawatts and liquefied natural gas generators providing another 3 gigawatts. The remaining power will depend on new transmission lines and generation projects, some delayed due to local resistance. SK hynix’s 5.5 gigawatt demand is partly fulfilled with ongoing grid construction and promised capacity, though long-term delivery depends on overcoming similar transmission issues.

Construction has begun on SK hynix’s factories with operations targeted for next year, while Samsung is moving slower but has started land acquisition for its planned semiconductor fabs scheduled for mass production by 2030. The cluster will eventually host more than 80 related organizations, including materials, parts, equipment firms, and research institutions. Industry insiders consider relocating the project outside Gyeonggi highly unlikely given the existing concentration of resources and government backing.

Yonhap | English | News | Jan. 9, 2026 | Corporate Corruption or Fraud

Prosecutors have requested an arrest warrant for Kim Byung-ju, chairman of private equity firm MBK Partners, to question him regarding the management of Homeplus Co., a struggling retailer. The Seoul Central District Prosecutors Office also sought warrants for three other senior executives, including a co-chief executive of Homeplus, on charges of fraud and violations of the Capital Markets Act.

MBK Partners acquired Homeplus in 2015 from British retailer Tesco Plc for 7.2 trillion won (approximately US$4.9 billion). However, Homeplus faced financial difficulties amid a downturn in the discount store sector and entered court-led rehabilitation proceedings in March 2025.

The accusations against MBK Partners include the alleged sale of a large amount of short-term Homeplus bonds around the time the retailer's credit rating was downgraded. Korea Ratings lowered Homeplus's credit rating from A3 to A3 minus on February 28, 2025, and the company filed for rehabilitation proceedings four days later.

삼성중공업도 MSRA 취득 준비 돌입…美 함정 MRO 사업 역량 제고

ET News | Local Language | News | Jan. 9, 2026 | UndeterminedMergers & Acquisitions

Samsung Heavy Industries has started preparations to acquire the U.S. Navy Ship Maintenance Agreement (MSRA) to strengthen its position in the U.S. ship maintenance, repair, and overhaul (MRO) market. The company is gathering necessary documentation to prove its qualifications and plans to formally apply for MSRA approval through the U.S. Naval Supply Systems Command soon.

Initially focused on MRO services for non-combatant ships, Samsung Heavy Industries now views MSRA acquisition as crucial due to competitors like HD Hyundai Heavy Industries and Hanwha Ocean having already secured MSRAs, and others preparing to do so. While MSRA is not mandatory for non-combatant ship contracts, it is essential for winning contracts related to combatant ships, making it a key factor for maintaining competitiveness.

The MSRA approval process involves qualification screenings, on-site inspections, security evaluations, and assessments of a shipyard's capabilities, similar to South Korea’s defense contractor designation procedures. Experts believe Samsung Heavy Industries, with its strong global reputation in commercial ships and offshore plants, is well-positioned to obtain MSRA certification.

The company’s collaboration efforts, such as a strategic partnership with Vigor Marine Group for U.S. Navy support ship MRO, are expected to support its MSRA acquisition. After obtaining MSRA, Samsung Heavy Industries plans to actively compete in the MRO market and expand its cooperation to commercial and special-purpose ships, including joint construction projects with U.S. partner shipyards.