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South Korea
Intelligence for Better Decision Making
Concerns over Japanese control over Line and Naver
May 16, 2024 | Indirect Indicator- Naver, a Korean tech company, is under pressure from the Japanese government to sell its shares in Line Yahoo.
- Administrative action by the Japanese government could compel Naver to sell its stake in Line Yahoo, even against its will.
- The tensions with the Japanese government are related to a data breach at Naver that resulted in the leakage of user information.
- The Japanese Ministry of Internal Affairs and Communications is calling for improved cybersecurity measures and a review of the capital relationship between Naver and Line Yahoo.
- SoftBank and Naver are currently in discussions about phasing out relations with Naver developers and subcontractors to give Line technical autonomy.
- Discussions and potential shifts in control of Line highlight the complex issues of data security, national security, and corporate governance. - The President's Office is supporting Naver's decision and is offering technical and administrative advice from related Korean organizations.
- The South Korean government emphasized Naver won't be selling its stakes to SoftBank and urged the Japanese government not to penalize Naver for this decision.
- In a first, the Presidential Office directly addressed the potential non-sale of Naver's stakes to SoftBank.
- The South Korean government affirmed its commitment to support Korean companies facing discriminatory practices overseas and promised swift responses to unfair treatment of the country's firms.
- There are concerns over job security and potential technological losses should Naver scale-down its partnership with SoftBank.
- Naver will not sell its shares in LY Corp., the operator of the Line messaging app, until at least July.
- Naver's stance on selling its shares is viewed as a business matter between Naver and SoftBank, but it has ignited political tensions between Korea and Japan.
- The Yoon administration is caught between improving relations with Tokyo and responding to public sentiment in Korea.
- Criticisms from liberal opposition politicians accuse President Yoon of a weak response to Japan's pressure on Naver.
- The dispute offers a glimpse into the complexities of economic and political relations between Japan and South Korea, and the challenges in reconciliation efforts.
- The Japanese Ministry of Internal Affairs and Communications is directing LY Corp., which operates Line, to review security governance post the breach.
US tariff hikes on Chinese products and impact on Korea
May 16, 2024 | Government Actions- The US White House is imposing a 100% tariff on Chinese electric vehicles (EVs), as well as increased tariffs on lithium batteries, battery parts, key minerals, and other core minerals, in response to perceived unfair trade practices from China.
- These tariff increases are seen as important for national security and clean energy goals.
- President Biden plans further increases on tariffs for Chinese EVs, solar cells, semiconductors, steel and aluminum products, lithium-ion EV batteries, and more, in order to protect American businesses.
- The tariff increases are part of a larger effort to encourage China to change practices related to technology transfer, intellectual property, and innovation.
- Commerce Secretary Gina Raimondo and Treasury Secretary Janet Yellen have praised and voiced concerns over the tariff decisions, respectively.
- Concerns exist over potential inflationary impacts, but US officials believe there will not be a significant effect.
- China opposes the tariff increase and plans to take measures to protect its interests.
- The US is increasing tariffs on $18 billion worth of clean-energy products from China, including quadrupling tariffs on EVs, solar products, steel, and aluminum.
- Korea expects to benefit from the increased tariffs through boosted exports.
- The US and European Union plan to increase tariffs on Chinese electric vehicle imports, leading to concerns of retaliatory measures.
- Chinese companies like BYD are preparing for potential tariffs by establishing local production in countries with lower tariffs, such as Mexico.
- Both the US and the EU triple tariffs on Chinese steel and aluminum, focusing on EVs, batteries, and semiconductors.
- Both Korean and US domestic industries may benefit from the US decision, but potential retaliation from China is a concern.
Monitored Intelligence for South Korea - Jan. 29, 2024
News
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280
Government
Releases
7
City/State
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0
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1
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Erudite Risk takes an all risks approach to intelligence reporting. We categorize key intelligence into one of 40 different risk intelligence categories.
The goal is to provide intelligence that allows decision makers to avoid being blindsided by what they may have missed, while informing them to make better decisions as well.
Risk Categories Reported on Today
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Items Reported On
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4
Accidents
3
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12
North Korea
8
Terrorism
1
Political Scandal or Corruption
2
Cyber Attacks and Data Loss
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Erudite Risk also includes operations categories so you can monitor the environment for better decision making. Everything is tied together--what happens in risk affects operations and what happens in the market impacts risk profiles.
We categorize key intelligence into one of 30 different operations intelligence categories.
Different roles and functions within the organization can monitor different key issue areas. HR may monitor employment, wages, regulations, labor and management relations, etc., while P&L leaders may monitor overall developing trends.
Operations Categories Reported on Today
Operations Category
Items Reported On
Demographics
4
Tech Development/Adoption
6
Trade Issues and Numbers
3
Politics and Elections
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1
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6
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3
Seoul dismisses Tokyo's protests over Cho Kuk's Dokdo visit
Joongang Ilbo | English | News | May 17, 2024 | Geopolitical Conflict and Disputes
Seoul dismisses Tokyo's protests over Cho Kuk's Dokdo visit. The visit sparked controversy, with Japan lodging a formal protest and expressing regrets despite objections. The Korean Foreign Ministry dismissed Japan's complaint, emphasizing Dokdo as undeniably Korean territory. The Rebuilding Korea Party criticized Japan's response, requesting an apology. Cho Kuk's visit to Dokdo led to Japan reiterating its claim to the islets, prompting the Korean government to maintain Dokdo as an integral part of Korean territory. The article also discusses Cho Kuk's brief meeting with President Yoon Suk Yeol, following a period of uncomfortable relationship since 2019 when Cho stepped down as justice minister amid a family affairs investigation led by Yoon.
Hyundai Motor, Kia urged to diversify supply chain as US moves to regulate Chinese connected cars
Korea Times | English | News | May 17, 2024 | Supply Chain Issues
Hyundai Motor and Kia are being urged to diversify their parts supply chains beyond China and expand lobbying efforts due to potential U.S. measures aimed at regulating Chinese connected vehicles. The U.S. Department of Commerce has issued warnings about national security threats posed by Chinese-connected cars, leading experts to advise Korean automakers to reduce reliance on Chinese parts and seek alternatives in countries like Vietnam. Automakers are advised to prepare for potential regulatory risks by developing specific action plans and engaging in lobbying activities to navigate the upcoming challenges.
中 전기차, 美 관세 인상에 동남아로 쏟아진다
Chinese electric vehicles pour into Southeast Asia due to U.S. tariff hike
ZD Net Korea | Local Language | News | May 17, 2024 | Trade Issues and Numbers
The Biden administration's tariff hike on Chinese electric vehicles is expected to intensify competition in the Southeast Asian market. Chinese automakers are focusing on Southeast Asia and Europe following the tariff increase in the United States. China's BYD plans to produce electric vehicles in Thailand, where the market is already dominated by Chinese electric vehicles. Hyundai Motors is also trying to enter the Southeast Asian market, but faces challenges due to intense competition from Chinese brands. Chinese companies are boasting price competitiveness in Southeast Asia, leading to further market encroachment. Additionally, Chinese companies are exploring ways to reduce logistics costs to increase electric vehicle exports to Southeast Asia.
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