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An employee walks past the logo of LG Energy Solution at its office building in Seoul, South Korea, November 23, 2021. LGES, which supplies Tesla (TSLA.O), General Motors (GM.N) and other automakers, said revenue growth in 2024 would not be as high as the mid-30% rate forecast for this year. LGES shares dropped as much as 6.69% to the lowest level in more than 12 months, versus the benchmark KOSPI's (.KS11) 0.6% fall. The company also said it would produce cheaper lithium iron phosphate (LFP) batteries from 2026 to better respond to demand for lower-priced EVs. But it was down 6% from the June quarter due to the demand slowdown in Europe, production adjustments by automakers and lower metal prices.

Persons: Kim Hong, Lee Chang, sil, Kim Gyunghoon, Kim, Kang Dong, LGES, 1,345.0800, Heekyong Yang, Joyce Lee, Miyoung Kim, Jamie Freed Organizations: LG Energy, REUTERS, GM JV, Korean, EV, General Motors, GM, Hyundai Motor Securities, Thomson Locations: Seoul, South Korea, SEOUL, China, Europe, Poland, U.S, Ohio, ARIZONA, Arizona

Expectations for persistently higher interest rates has led companies to alter plans as they eye 2024 warily. "EV demand next year could be lower than expectations," Lee Chang-sil, chief financial officer at South Korean battery maker LG Energy Solution (373220.KS) said on Wednesday, due to global economic uncertainty. GM on Tuesday said it would focus near-term EV efforts on meeting demand rather than hitting specific volume targets. If interest rates remain high or if they go even higher, it's that much harder for people to buy the car." Like many other industrial firms, carmakers hedge against commodity price swings, and with EV demand slowing, raw material prices have softened, including those used heavily in batteries.

Persons: Tesla, Aly, Lee Chang, Mary Barra, Elon Musk, Nidec, China's CATL, Ben Klayman, David Gaffen, Eric Onstad, Jonathan Oatis Organizations: REUTERS, Honda, EV, sil, South, LG Energy, General Motors, GM, Investors, Tech, Cox Automotive, European Union, Volkswagen, Fastmarkets, CME, U.S, Ford, EVs, Victoria Waldersee, Thomson Locations: Tesla China, Shanghai, China, KS, United States, Mexico, Detroit, New York, London, Berlin

The company, which supplies General Motors Co (GM.N), Tesla Inc (TSLA.O) and others, warned it faces weaker EV demand in Europe and China than previously expected. The U.S. is the only market where demand forecasts have not been cut, the company said. LGES reported an operating profit of 461 billion won ($363 million) for the April-June period, up from 196 billion won a year earlier, but that was far below the company's estimate of 612 billion won and an average analyst forecast of 641 billion won compiled by Refinitiv SmartEstimate. "LGES' comment on sluggish EV demand in Europe, where it has major customers like Volkswagen and Renault, seems to be affecting the company's share price," said Kang Dong-jin, an analyst at Hyundai Motor Securities. Revenue for the quarter rose 73% to 8.8 trillion won, LG Energy said in a regulatory filing.

Persons: bln, Lee Chang, LGES, Refinitiv SmartEstimate, Jang Seungkwon, Kang Dong, 1,271.1000, Heekyong Yang, Jihoon Lee, Hyunsu Yim, Shri Navaratnam, Sonali Paul Organizations: GM Bolt, Korea's LG Energy Solution, General Motors, General Motors Co, Tesla Inc, sil, Volkswagen, Renault, Hyundai Motor Securities, Revenue, LG Energy, Thomson Locations: SEOUL, Europe, China, U.S

☆ South Korea lifts power prices by 5.3% in delayed move
▼ + stars: | 2023-05-15 | by ( ) www.reuters.com time to read: +2 min

It is the second increase in power prices this year after a sharper 9.5% hike that took effect at the beginning of the year. The price adjustment had been due on April 1 but was delayed after a public outcry about the increased cost of living. Korea Electric Power Corp (KEPCO), the state-run electricity powerhouse, suffered an operating loss of 6.2 trillion won ($4.69 billion) for the first quarter after a huge 32.6 trillion won loss for the whole of last year. The ministry also announced a 5.3% increase in city gas prices for households. With parliamentary elections some 11 months away, the latest opinion poll by Gallup Korea showed last Friday the disapproval rating on President Yoon stood at 59%, far outpacing the approval rating of 35%.

[1/2] Electric power transmission pylon miniatures and LG Energy Solution logo are seen in this illustration taken, December 9, 2022. LG Energy Solution (LGES) reported an operating profit of 633 billion won ($472.6 million) for the January-March period, up 145% from 259 billion won a year earlier. When asked about rival Chinese battery makers' efforts to enter the U.S. market, LGES Chief Financial Officer Lee Chang-sil said the company would maintain its competitive position in the U.S. LG Energy Solution's revenue for the quarter doubled to 8.7 trillion won, LG Energy said in a regulatory filing. Shares of LG Energy Solution (LGES), carved out of LG Chem Ltd (051910.KS) last year, rose as much as 2.4% in morning trade, outpacing a flat broader KOSPI market (.KS11).

☆ South Korea to offer $5.3 bln in financing to support battery investment in North America
▼ + stars: | 2023-04-07 | by ( Heekyong Yang | ) www.reuters.com time to read: +2 min

SEOUL, April 7 (Reuters) - South Korea on Friday said it will provide 7 trillion won ($5.32 billion) in financial support for its battery makers seeking to invest in infrastructure in North America over the next five years to help firms cope with the U.S. Inflation Reduction Act. "Both the government and businessmen should cooperate to find solutions together to effectively cope with situations changing rapidly after the Inflation Reduction Act," Trade Minister Lee Chang-yang said while presiding over a meeting with major battery cell makers and materials firms. In November, South Korea launched the government-backed battery alliance to better source key metals dominated by China to bolster battery supply chain stability. In March, LGES said it would resume a stalled U.S. battery project with a $5.6 billion investment in Arizona to qualify for federal incentives under the Inflation Reduction Act. ($1 = 1,316.2200 won)Reporting by Heekyong Yang; Editing by Christopher CushingOur Standards: The Thomson Reuters Trust Principles.

Samsung said it will make a 300 trillion Korean won investment in a new semiconductor facility in South Korea over the next two decades. It is part of a broader tech investment plan by the South Korean government. The South Korean government is looking to join together its biggest technology companies to spur development in key areas. The new 300 trillion won chip complex Samsung is building will be just outside of the South Korean capital of Seoul. The South Korean government said that companies will build five chip manufacturing facilities in the cluster.

[1/2] Chinese tourists stand next to street vendors at Myeongdong shopping district in Seoul, South Korea, January 9, 2023. REUTERS/Kim Hong-JiSEOUL, March 2 (Reuters) - South Korea's government on Thursday promised to boost exports and attract tourists as the country's statistics agency released January data that showed gloomy prospects for the economy. Reflecting the sense of urgency within the government, South Korea's trade minister convened a separate emergency meeting of officials from almost all ministries to press for more exports. South Korea's official forecast is for exports to drop 4.5% in 2023 compared with last year. South Korea's trade-reliant economy contracted by an estimated 0.4% in the fourth quarter of 2022 from the previous quarter as exports collapsed.

Worldwide boy-band sensation BTS may be on hiatus, but refreshing new financial acts threaten to upend the world of K-pop, and perhaps South Korea. The battle over 28-year-old SM Entertainment, the $2.3 billion force behind Girls' Generation and EXO, is at heart a family feud. It helps, too, that K-pop has turned into one of South Korea’s strongest exports, thanks largely to “Butter” and “Dynamite” singers BTS. "We oppose all aggressive outside mergers and acquisitions, including Hybe," SM said in a statement, according to Reuters. Separately, internet conglomerate Kakao said on Feb. 7 it would acquire a 9.05% stake in SM via 112 billion won of new shares and 105 billion won of convertible bonds.

Align Partners' stake in SM, a pioneer in K-pop behind acts like Girls' Generation and Red Velvet, is just 1% - but still worth tens of millions of dollars. HYBE hasn't disclosed whether it intends to buy more of SM after the current tender offer. Taken together, the 40% stake would cost HYBE about 1.137 trillion won ($884 million) under current plans - though SM shares traded above HYBE's tender offer price on Thursday. Align's Lee said this would become a proxy fight, with SM's current executives wooing shareholders with plans to improve SM's sales and profitability. ($1 = 1,284.9500 won)Reporting by Hyunsu Yim and Joyce Lee; Editing by Kenneth MaxwellOur Standards: The Thomson Reuters Trust Principles.

The company offered a positive outlook in the North American market, where it sees a growing number of customers requesting made-in-USA batteries to be qualified for federal EV subsidies. The company had secured additional orders worth about 20 trillion won in the fourth quarter, Chief Financial Officer Lee Chang-sil added. LGES reported operating profit of 237 billion won ($193 million) for the October-December period, versus 76 billion won a year earlier. That compared with an average analyst forecast of 256 billion won compiled by Refinitiv SmartEstimate. Revenue for the quarter rose 92% to 8.5 trillion won, LG Energy said in a regulatory filing.

SEOUL, Nov 17 (Reuters) - South Korean and Saudi Arabian leaders pledged stronger ties on Thursday in the fields of energy, defence industry and building projects, as the oil-rich kingdom signed investment agreements worth $30 billion with South Korean companies. "In particular, he said he would like to drastically strengthen cooperation with South Korea in the areas of defence industry, infrastructure and construction," Yoon's office said. Saudi-based Asharq TV quoted the kingdom's investment minister as saying deals signed on Thursday were worth $30 billion. "The (South Korean) government will actively support the successful implementation of cooperative projects which apply Korea's state-of-the-art architecture ... in NEOM," said South Korea's trade minister, Lee Chang-yang. Shares in Lotte Fine Chemical (004000.KS), which signed an agreement for chemical industry cooperation with the Saudi Ministry of Investment, rose 2.1%.

The South Korean firm said its battery order backlog rose to 370 trillion won ($260 billion) by the end of September, or nearly 15 times its projected 2022 revenue. LGES shares jumped 3.3% after the results, beating a rise of 1% rise in the benchmark index (.KS11). LGES, which also supplies automakers such as GM, Ford Motor Co (F.N) and Volkswagen AG (VOWG_p.DE), raised its 2022 revenue outlook to 25 trillion won from 22 trillion, citing new projects from automakers. The result beat a Refinitiv SmartEstimate of 488 billion won profit from 17 analysts and compares with a loss of 373 billion a year earlier. Revenue jumped 90% to 7.6 trillion won.

☆ U.S. and S.Korea exchange 'frank views' on vehicle credits, network fees
▼ + stars: | 2022-09-22 | by ( ) www.reuters.com time to read: +2 min

The logo of Kia Corp is seen on a steering wheel of its electric vehicle EV6 during a photo opportunity in Seoul, South Korea, June 1, 2021. Register now for FREE unlimited access to Reuters.com RegisterIn South Korea, there is a legislative push to make the likes of Netflix (NFLX.O) and Alphabet's Google (GOOGL.O) pay local network fees. While the readout from the U.S. Commerce Department said Secretary Gina Raimondo and South Korea's Lee Chang-yang reaffirmed the importance of the bilateral economic relationship, it also hinted at tensions. The pair "exchanged frank views on U.S. concerns about South Korea's pending legislation to impose network usage fees on foreign content providers and South Korea's concerns relating to electric vehicle tax credits," it said. Register now for FREE unlimited access to Reuters.com RegisterReporting by Costas Pitas in Los Angeles; Editing by Sandra MalerOur Standards: The Thomson Reuters Trust Principles.

☆ Electric vehicles row overshadows S.Korean president's first U.S. visit
▼ + stars: | 2022-09-20 | by ( Hyonhee Shin | ) www.reuters.com time to read: +5 min

He will fly to Canada on Thursday for the last leg of his trip before returning home on Saturday. Seoul officials have asked Washington to postpone the new rules until Hyundai completes building its Georgia factory in 2025. A number of high-level South Korean officials have been mobilised in recent weeks to relay concerns to their U.S. counterparts and press for exemptions, though solutions are far from clear. Trade Minister Lee Chang-yang will travel to the United States this week to discuss the IRA, the ministry said on Tuesday. However, the South Korean government is focusing on bilateral dialogue for now, he said, when answering a lawmaker's question in parliament.

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