Factory's Post 🇪🇺 #3

[123 Factory] April 2025 Newsletter

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123 Factory
April 15, 2025

We've gathered the latest business trends, useful information for market entry, and hot news from the Korea-Europe ecosystem! Factory's Post is back to deliver the insights you need for your business growth.💡

In recent months, South Korea has undergone a series of significant political changes. On April 4, 2025, President Yoon Suk-yeol was officially removed from office following a unanimous ruling by the Constitutional Court. This marks the country’s second presidential impeachment in eight years, after the dismissal of former President Park Geun-hye in 2017. The process has had implications not only within South Korea but also across international markets.

image=hani.co.kr

⏰ A summary of the key political timeline is as follows (KST):

  • December 3, 2024, 22:27 – President Yoon declares martial law

  • December 4, 2024, 01:02 – The National Assembly votes to lift martial law (190 votes in favor)

  • December 14, 2024 – The National Assembly passes an impeachment motion and submits it to the Constitutional Court

  • April 4, 2025, 11:22 – The Constitutional Court unanimously upholds the impeachment of the president

As a result, a presidential election must be held within 60 days.

European media have highlighted South Korea’s democratic resilience and responded positively to how the situation has been handled through constitutional procedures. However, the extended leadership vacuum and continued political and economic uncertainty present both risks and opportunities for European businesses operating in or with South Korea.

✅ Economic Impact and European Business Considerations

The recent political developments in South Korea have introduced a range of economic implications, with direct consequences for European businesses. Since the beginning of the crisis, the Korean won has depreciated by approximately 8% against the euro, resulting in mixed effects for stakeholders:

  • Exporters from Europe may face reduced competitiveness, as a weaker won increases the relative cost of imported goods in Korea.

  • Investors and companies operating in Korea are being offered revised incentives by the Korean government aimed at maintaining foreign investment and encouraging new market entry.

  • Trade operations continue to be supported by the EU-Korea Free Trade Agreement, which remains a key stabilizing framework despite delays in regulatory approvals for new business ventures.

At the same time, broader geopolitical and structural factors are shaping the EU-South Korea economic relationship. Both economies face similar pressures from U.S. protectionist trade policies and intensified competition from subsidized Chinese industries—particularly in sectors such as electric vehicles and semiconductors. As U.S. market access becomes more uncertain, Korean manufacturers are increasingly turning to the EU as a more predictable alternative.

The European Union’s single market, legally binding climate goals, and recent trade enforcement measures against Chinese imports may further strengthen the competitiveness of South Korean products within Europe. These developments are taking place in a context of shared strategic concerns over global security and supply chain stability, fostering deeper alignment between the EU and South Korea.

For European businesses, understanding the evolving dynamics in the Korean market will be critical throughout 2025.

More detailed EU policy analysis will be linked here.

Tech & Energy

🔋 LG Energy Solution Powers Up Poland’s Grid

image=Korea Herald

LG Energy Solution has signed a deal with Poland’s state-run PGE to supply batteries for a 981 MWh energy storage system, one of its largest ESS projects in Europe. Worth $401 million, the contract includes lithium iron phosphate batteries and full EPC services. The facility in northern Poland will begin operations in 2027 to boost renewable energy capacity.

The batteries will be made at LG’s Wroclaw plant, marking its first ESS supply from Europe as it shifts from EV battery production. With rising demand for local energy infrastructure, LG plans to expand ESS output and pursue more large-scale projects across the region.

A promising leap toward Europe’s greener grid. Read the full article here.

🔦 German Laser Power Meets Korea’s Battery Boom

image=Today Energy

LTB Lasertechnik Berlin showcased its battery recycling laser tech at InterBattery 2025, aiming to enter the Korean market. In partnership with the Berlin-Brandenburg Economic Development Agency, LTB presented automated systems using laser-equipped robots to extract valuable metals from used batteries. The goal is commercial rollout in 18 months, targeting collaboration with Korean companies.

LTB sees Korea as a fast-moving, high-potential market, and hopes to advance its tech through local partnerships. With roots in Berlin’s laser-tech hub, the company emphasizes deep R&D and custom solutions over rapid scaling.

Read more here.

Developments & Policy

🧬 Seoul Supercharges Bio & MedTech Scene

image=Seoul Biohub

Seoul is investing 13.8 billion KRW (approx. €9.3M) into Seoul Biohub to boost the city’s bio and medical startup ecosystem. The initiative focuses on startup incubation, open innovation, and global expansion, supporting early-stage companies. Since 2017, the hub has nurtured 316 startups, generating significant revenue, investment, and jobs.

Successful cases include Curebus, which signed a €345M deal with Italy's Angelini Pharma, and Ubix Therapeutics, which licensed tech to Korea’s Yuhan Corp for €103M. This year, Seoul will support 27 promising startups, run global accelerator programs, and expand R&D infrastructure access. Major international events like BIOUSA and HLTH are also on the agenda.

The city is actively connecting local innovators with international partners. With expanded support for R&D and global outreach, Seoul Bio Hub is shaping up as a key launchpad for Asia’s next biotech success stories. Read more here.

🚀 Korea Aims for the Stars: Space Industry to Become Strategic Powerhouse

South Korea is taking bold steps to position its space industry as a national advanced strategic industry. This move aims to fuel industrial growth, create jobs, and enhance national security in the rapidly evolving New Space era, where private players like SpaceX lead the charge.

As part of the plan, the Korea AeroSpace Administration (KASA) aims to nurture 30,000 space professionals by 2045. New initiatives include youth-targeted programs, specialized graduate schools, and increased R&D support for professionals. The strategy also promotes international cooperation, including talent exchange programs tied to NASA’s Artemis mission.

KASA’s move reflects Korea’s ambition to become one of the world’s top 5 space powers. Read the full article here.

AI & Invest

💸 This Company Says "No Thanks" to Meta’s $800M Offer

South Korea’s FuriosaAI has reportedly turned down an $800M acquisition offer from Meta, choosing instead to pursue independent growth in the global AI chip race. The deal fell through due to disagreements over post-acquisition strategy and structure, not valuation. Meta had been eyeing FuriosaAI after struggling with its own custom AI chips.

Despite industry speculation about financial struggles, FuriosaAI secured stable funding and continues to test its Renegade chip with major partners like LG AI Research and Saudi Aramco. Renegade is a second-gen AI chip optimized for inference, boasting twice the efficiency of GPUs at just 25% the power consumption. It’s also notably cheaper to operate than Nvidia’s H100.

It’s a bold move to watch, one that could shape what’s next for FuriosaAI. Read the full article here.

Upcoming Events

  • AUTOMOTIVE WORLD KOREA
    16-18 April | Seoul, Korea | Mobility
    Promote your technology and products to the global market and Explore the future of eco-friendly, intelligent, and service-driven mobility.

  • ICPI WEEK 2025
    22-25 April | Incheon, Korea | Pharmaceutical·Bio·Cosmetics
    Seven B2B exhibitions on products and Technologies of the Value chain in the Pharmaceutical·Bio·Cosmetics industries.

  • Auto Shanghai 2025
    21 - 25 April | Shanghai, China | Mobility
    Innovation and global cooperation, with themes such as New Energy Vehicles (NEVs), smart car technologies, and new business models in the digital era.

  • SusHi Tech Tokyo 2025
    8-10 May | Tokyo, Japan | Sustainable Tech
    Openly discussing the envisioned future of cities, and creating more opportunities that lead to the growth of innovation and startups.

  • AI EXPO KOREA
    14-16 May | Seoul, Korea | AI
    Generate your high-quality B2B sales leads at the most effective AI SHOW in Korea, exhibiting on AI Solution, AI Infrastructure & Platform, and AI Convergence.

  • BUTECH 2025
    20-23 May | Busan, Korea | Machinery Fair
    International experts, scholars, and industrialists gather to witness the latest technologies of East Asia

  • COSMOBEAUTY SEOUL 2025
    28-30 May | Seoul, Korea | Cosmetics & Beauty
    Discover the latest beauty trends at internationally certified beauty exhibition with 38-year tradition at the heart of beauty industry.

123 Factory

Based in Berlin & Seoul, 123 Factory is a dynamic collaboration platform where Korean and European businesses grow together. We are a strategic partner driving innovation, helping European businesses enter the Asian market and vice versa. Let’s turn ideas into reality and scale your business together! 🚀

Also interested in the European market? Our Korean-language newsletter offers complementary insights for businesses looking to strengthen connections across the Korea-Europe corridor.

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