BorgWarner: ‘We're ready for any powertrain — and Korea is key'
BorgWarner, a global automotive parts supplier headquartered in the United States, is working to further expand its presence in Korea based on its resilient portfolio.
'We have the ambition to do a lot of business in Korea, and that's one of the reasons we are here,' Pierre Boitard, vice president at BorgWarner responsible for overseeing the business and operations of turbos and thermal technologies in Asia, told The Korea Herald in Seoul on Thursday.
BorgWarner currently operates eight plants and one research and development center in Korea.
'We've been basically showcasing all our current products and innovations that we are bringing, like our new battery systems but also our integrated generator system,' said Helmut Forster, vice president at BorgWarner responsible for all sales activities of the auto parts maker's turbos and thermal technologies, in the same interview.
BorgWarner showcased its latest electric vehicle-related developments, such as lithium iron phosphate, or LFP, batteries, next-generation inverters and high-voltage coolant heaters, at the Seoul Mobility Show in March this year.
'If we're able to find customers here for local needs, then it makes absolutely sense also to localize those products to bring those products into Korea as a local production, then we're talking about expansion,' said Forster.
The BorgWarner executives noted that they recently celebrated a big business win in Korea without disclosing any details about the secured order. The client list of the auto parts supplier includes Hyundai Motor, Kia and KG Mobility.
Asked how the US government's tariff policies would impact BorgWarner's business efforts, Boitard pointed out that BorgWarner's global footprint and the way its supply chains are organized allow the company to adapt to different circumstances.
'(The automotive) industry is very much about addressing local markets,' said Boitard.
'If you were to centralize everything in one place, and if ties are being cut, then it's becoming a problem, but that is not how we operate. We have plants in every location where we are needed, and we organize our supply chain in the most efficient way to make sure that we are able to supply our customers where they are.'
As automakers across the globe are shifting towards electric vehicles, BorgWarner has been speeding up the development of EV-related auto parts as the company set a goal for its EV sales to account for 45 percent of total revenue by 2030. BorgWarner posted $14.1 billion in sales in 2024, with EV and hybrid-related products taking up approximately 16.6 percent.
'We are really having a very resilient portfolio because we haven't given up on our combustion portfolio,' said Forster.
'If combustion stays longer, we're good. If (battery electric vehicles) accelerates, we have it. And if hybrids are in between, stay till 2035 or 2040, we're good. So we're able to adapt. We have a very resilient product portfolio within our global presence. …Whatever powertrain, we have a solution anywhere in the world. So when things move one way or another, we can shift gears because we have everything already available.'
As for the Korean auto market being uniquely dominated by one auto conglomerate Hyundai Motor Group and its three brands of Hyundai Motor, Kia and Genesis, Forster said it is challenging but drives BorgWarner forward to deliver the best products.
'We have to deliver top-notch performance here, otherwise this wouldn't work,' said Forster.
'So we have special development programs running for projects in Korea. Some of my global teams are working specifically for this market or for the specific requirements. So it is challenging. There is a drive towards technology here and really pushing the limits and we need to support that.'
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Korea Herald
10 hours ago
- Korea Herald
Nowhere to turn but toward future: Seoul and Tokyo 80 years after liberation
Calls grow for fresh Korea-Japan declaration to tackle shared challenges absent from 1998 agreement Eighty years after the end of Japan's 35-year colonial rule, South Korea and Japan remain locked in an uneasy duet — pulled together by the inescapable demands of geopolitics, yet held apart by the deep, unhealed wounds left by Japan's occupation of the Korean Peninsula. As Korea marks its 80th National Liberation Day on Friday, the question has never felt more urgent. Can Seoul and Tokyo — tethered by geography and facing many shared challenges — forge a genuinely future-oriented partnership despite historical disputes so deeply ingrained that they have outlived generations? The stakes are raised by the rapidly shifting global order under US President Donald Trump's 'America First' foreign policy. Washington is recalibrating its alliances with both South Korea and Japan, pivoting toward the China threat in the Indo-Pacific region. As the region's strategic map is redrawn, Seoul and Tokyo are left with fewer and fewer exits from each other's orbit. 'Future-oriented relations are not about people-to-people exchanges or building mutual trust. Rather, they require a fundamental discussion of how Korea and Japan must inevitably cooperate to survive in a profoundly transformed global environment,' Yang Kee-ho, professor of Japanese studies at Sungkonghoe University, told The Korea Herald. 'This is the moment when Korea and Japan must envision a new phase of cooperation.' The list of pressures is long: the intensifying US-China strategic competition, Trump's go-it-alone diplomacy, and for Seoul, the challenge of navigating Washington's push to 'modernize' the alliance and grant greater strategic flexibility to US Forces Korea. Add to that North Korea's advancing nuclear and missile programs, and Beijing's ambitions — from dominating global high-tech manufacturing through its 'Made in China 2025' initiative to becoming a 'fully developed, rich, and powerful' nation by 2049. 'Such developments carry a considerable risk of disrupting the status quo in Northeast Asia, which is why it is necessary to build sufficient, shared deterrence through joint discussions,' said Yang, highlighting the need for coordination between Seoul and Tokyo. South Korea and Japan have cogent reasons to work in tandem for better outcomes for both countries in the face of parallel challenges, including 'mounting Trump-origin risks' such as tariff negotiations with the US, said Choi Eun-mi, a research fellow at the Center for Regional Studies at the Asan Institute for Policy Studies. 'The merits of Korea-Japan cooperation, in my view, are very significant in that regard,' Choi said. 'At present, cooperation between Korea and Japan has become nothing short of indispensable, both domestically and internationally.' Symbolically, President Lee Jae Myung is set to visit Tokyo from Aug. 23 to 24 for a summit with Japanese Prime Minister Shigeru Ishiba before heading to Washington for his first in-person meeting with Trump. Foreign Minister Cho Hyun also opted for Tokyo for his first overseas trip before flying to Washington. Korea-Japan cooperation is also imperative, given the breadth of shared future-oriented challenges. 'Between Korea and Japan, there are numerous common challenges,' Lim Eun-jung, professor in the Division of International Studies at Kongju National University, told The Korea Herald. 'Population decline, a super-aged society, labor shortages, regional extinction, industrial transformation, cybersecurity, the utilization of AI and the proliferation of humanoid robots, and energy security are all areas that show the structural similarities of the two countries.' Closer, yet still divided Even as pressing shared challenges bring Seoul and Tokyo closer, major obstacles, including potential discrepancies in their foreign policy approaches to China and North Korea, still stand. 'In dealing with North Korea, South Korea favors dialogue, while Japan has traditionally prioritized sanctions over engagement,' said Lee Ki-tae, director of the Center for Diplomatic Strategy at the Sejong Institute, discussing the Lee Jae Myung administration's inter-Korean policy. 'That said, the Ishiba administration appears to place somewhat greater weight on dialogue, aligning its stance more closely with ours and reducing the potential for friction.' Lee, however, noted, 'On China policy, Japan remains firmly in step with the US, whereas South Korea prefers not to be drawn into (the US-China competition) — a subtle divergence in perception.' Historical disputes, which are ingrained in the 1965 Treaty on Basic Relations that formally normalized diplomatic relations between South Korea and Japan, remain intact as a major obstacle. Despite the general positive assessment of the Lee administration's Japan policy in its early stages, experts point out that the current tendency of both the Lee and Ishiba administrations to leave historical disputes off the agenda also poses a significant hurdle. 'The overall start has been good. Given how difficult things are right now for both Korea and Japan, avoiding conflict is important, so the direction itself has been well set,' Yang said. 'However, the current situation is a disguised peace or a postponed conflict.' Yang pointed out that the Lee administration's 'pragmatic diplomacy' cannot replace a guiding principle for historical disputes, urging Seoul to go beyond pragmatism by establishing clear rules for dealing with and managing these issues with Japan. Without such principles in place, Yang warned, Seoul and Tokyo risk letting conflicts accumulate. In that scenario, the ruling Democratic Party of Korea could be tempted to bash Japan to boost support for the party or President Lee, repeating a familiar vicious cycle. History still under the surface Echoing those concerns, Choi underscored that Seoul and Tokyo 'need to discuss how they will live with and manage historical issues, given that they are difficult to resolve, impossible to simply erase, and, in truth, extremely hard to settle completely.' 'Yet that discussion is entirely absent, which is regrettable. It's not that we've solved this issue and therefore no longer talk about it — it clearly remains beneath the surface, but it's just not showing right now,' Choi explained. 'Japan doesn't want to bring it up, and Korea isn't talking about it either, which means the issue could resurface at any time. I'm not sure if I should call it a 'risk,' but I would describe it as one factor that makes cooperation more difficult.' Lee Ki-tae pointed out that sustainable ties require political will. 'It is most important for the leadership in both countries to demonstrate the will not to exploit negative public sentiment toward each other for domestic political purposes,' he said. Lee also underlined the significance of Seoul and Tokyo in forging public discourse on the indispensability of bilateral cooperation. 'Beyond that, the leadership must recognize that Korea-Japan cooperation is, in a sense, essential for the survival of both countries, and they should communicate this effectively to their citizens,' Lee added. 'It is also important to explain clearly to the public that cooperation between Korea and Japan contributes to addressing issues on the Korean Peninsula, as well as to peace and stability in the broader Northeast Asian region.' In particular, Seoul and Tokyo should avoid repeating the past mistake of allowing historical disputes to spill over and hamper economic and security cooperation, as happened during the overlapping period of the Moon Jae-in administration and Prime Minister Shinzo Abe's second term. 'I'd like to single out the Moon-Abe period as an important turning point because, no matter how much Korea-Japan relations were tied up in historical issues, there had always been certain lines neither side would cross,' Lim said, when asked about the most important turning point in bilateral relations over the 80 years since liberation and its significance. 'During the Moon and Abe administrations, however, those lines collapsed, sending the relationship into a downward spiral.' Tensions peaked in 2019 when South Korea's Supreme Court ordered Japanese companies to compensate the Korean victims of wartime forced labor. In response, the Abe administration restricted exports of three key semiconductor materials in July and removed South Korea from its list of preferred trading partners the following month. These actions led to a nationwide boycott in South Korea of Japanese goods and travel to Japan. That November, the Moon administration conditionally delayed its decision to end the GSOMIA military intelligence-sharing pact with Japan, effectively suspending its operation, while a radar lock-on dispute the following month further strained defense cooperation and exchanges between the two countries. This period also saw growing economic security concerns, driven by the first Trump administration's 'America First' policies and supply chain disruptions caused by the pandemic. 'Yet, paradoxically, this period also made us realize anew that Korea and Japan are bound together — economically, socially and culturally — in ways that are profoundly close,' Lim said. 'Never again should historical issues be allowed to damage cooperation not only in the economic sphere, but also in the realm of security.' Time for a new joint declaration For many in Seoul, the benchmark for a diplomatic reset remains the 1998 Kim Dae-jung-Obuchi Declaration, formally titled the Korea-Japan Joint Declaration: A New Partnership Toward the Twenty-first Century. In the declaration, Seoul and Tokyo set out a roadmap for future-oriented cooperation, including principles for collaboration across sectors such as security, the economy, policy, people-to-people and cultural exchanges and global issues. It also included Japanese Prime Minister Keizo Obuchi's expression of 'deep remorse and heartfelt apology' for Korea's colonization. The time has come to forge a new joint declaration. 'The international situation in 1998, when it was created, is completely different from what it is now, so we need a vision for Korea-Japan cooperation that reflects the current circumstances,' she said. 'Among the action plans for 43 items included (in the declaration), there are some that were relevant then and still are today, but there are also topics that are no longer timely. So, we need an updated version that addresses how to deal with those aspects.' Choi cites the 'Trump risk' as a clear example. 'It's not just because of the Trump administration, but because the international environment has become very unstable,' Choi said. 'For instance, if US involvement is reduced, how will regional security be maintained? We need to discuss how Korea and Japan can cooperate in that context.' Choi noted that a forward-looking approach should extend beyond economic and historical matters that were absent or only lightly addressed in the 1998 declaration. For instance, the 1998 declaration did not mention supply chains, AI or 5G, which are now central to both bilateral and global agendas. The joint declaration also left out specific historical topics, like the memorial service at the Sado gold mine, where Koreans were subjected to forced labor during World War II. Choi underscored that these issues should be included in a new framework, along with plans for handling future challenges. Lee concurred on the need to forge a new joint declaration in light of the shift in the balance between Seoul and Tokyo since then. 'At that time, in 1998, we were still — I wouldn't say far behind Japan, but in a somewhat lower position — and that perspective was reflected in much of the content,' Lee said. 'If that declaration was made in the context of Japan helping Korea, today the two countries are truly on an equal footing. In this context, we need a new version of the Korea-Japan Partnership Declaration that considers how the two countries, as equals, should cooperate.' Seizing the Ishiba opportunity Nam Ki-jeong, professor at the Institute for Japanese Studies at Seoul National University, views the current Ishiba administration in Tokyo as part of a rare alignment of circumstances that could offer the Lee administration a valuable opening. 'The Ishiba Cabinet has the potential to last a bit longer,' he said. 'While it's possible that it could end in a very short period, if we carefully devise and execute a strategy in coordination with the Ishiba Cabinet and those around it, we can advance Korea-Japan relations during the time that the Cabinet is in place.' Even if the political situation changes, Nam argues, the groundwork laid now could bring long-term benefits. If the ruling Liberal Democratic Party were to shift further to the right after the Ishiba Cabinet, for example, under figures like former economic security minister Sanae Takaichi, the existing groundwork could help keep a more hardline government in check. On the other hand, if the LDP were to hold longer to the relatively liberal approach established by Ishiba, Seoul and Tokyo could have a better chance of improving their relationship beyond its current state. 'Right now, Korea-Japan relations enjoy an exceptionally favorable combination of administrations. When such a combination emerges, we must think on our side about how to make the most of the opportunity,' Nam said. 'Producing tangible results while Ishiba is in office is crucial at this moment.'
Korea Herald
10 hours ago
- Korea Herald
From ashes of war to arsenal of world: South Korea's defense industry boom
As top 10 arms exporter, Seoul's modern weapons soar globally, but guarding tech, talent remains challenge It was 72 years ago that the bloody 1950–53 Korean War ended with an armistice. Today, the once-war-ravaged nation stands among the world's leading arms exporters, its factories turning out advanced tanks, artillery systems and fighter jets destined for battlefields far beyond the Korean Peninsula. South Korea's arms industry is riding a wave of global demand, but the current geopolitical climate brings both opportunity and risk. Its weapons are in high demand for their advanced technology and fast delivery, yet the country must tread carefully, as shifting alliances and regional tensions complicate the path forward. Turning crisis into opportunity South Korea, in recent years, has often been listed among the world's top 10 arms exporters, in the ranks with the United States, Russia and China. It was No. 10 among global arms exporters, with a 2.2 percent share of the market in the 2020-2024 period, according to the Stockholm International Peace Research Institute. The South Korean government is now setting its sights on breaking into the ranks of the world's top four arms exporters. 'South Korea has rapidly matured into one of the world's leading arms exporters, backed by a highly capable manufacturing base, proven platforms and a track record of delivering on time and at scale,' Yu Ji-hoon, a research fellow at the Korea Institute for Defense Analyses, told The Korea Herald. Yet it took decades of sustained effort to get this far. In 1971, the United States began withdrawing troops from South Korea, reducing the number of American soldiers stationed there, even as tensions with North Korea persisted in the decades after the Korean War. The withdrawal was carried out under the Richard Nixon administration, which pushed for allied nations to strengthen their own self-defense capabilities. This prompted South Korea to concentrate its efforts on developing and producing advanced weaponry to achieve self-reliance in defense. In 1973, the government launched a full-scale initiative to promote the heavy and chemical industries, a critical component in manufacturing weapons, according to the Korea Development Institute. The Russian arms repayment project, a unique post-Cold War arms-for-debt arrangement between Seoul and Moscow, which started in the late 1980s, was another driving force behind the South's defense industry. Instead of cash repayments, Russia repaid part of the debt with military equipment and related technology. Until the mid-2010s, South Korea's arms exports were largely concentrated in ammunition, naval vessels and some aerospace components. But its export portfolio has since started to diversify and expand. Provider of world-class weapons In South Korea's expanding arms export portfolio, the K2 tank, dubbed "Black Panther' and built by Hyundai Rotem, has been a flagship item. It first entered service with the military here in 2014. The K2 is South Korea's most advanced main battle tank, designed for speed, precision and adaptability on the mountainous Korean Peninsula. In recent years, it has drawn major international orders, most notably from Poland, as militaries seek modern armor to replace aging Cold War units. It is central to South Korea's largest-ever defense export deals, including the one with Poland, signed in 2022,in which Warsaw ordered 180 K2 Black Panther tanks from Hyundai Rotem in a $3.37 billion agreement. Deliveries began within months, far faster than European or American suppliers could offer. In 2025, Warsaw followed with a $6.5 billion contract for 180 upgraded K2PL tanks, to be produced in part in Poland. The two phases, part of a broader plan involving the manufacturing of up to 1,000 K2s, have made Seoul one of the North Atlantic Treaty Organization's most important new arms partners and cemented South Korea's status as a major player in the global defense market. Other key weapons in the portfolio are the K239 Chunmoo Multiple Rocket Launcher System, K9 self-propelled howitzer, FA-50 fighter jets and Surion helicopters. Prominent deals made with global clients include K239 Chunmoo MLRS systems purchased by the United Arab Emirates and Saudi Arabia in 2017 and 2022, respectively. South Korea on Thursday signed a $250 million agreement to supply Vietnam with 20 K9 self-propelled howitzers, marking the weapon's first deployment to a member of the Association of Southeast Asian Nations bloc. The K9 is already in service in countries such as Turkey and Egypt. Experts say South Korea's growing appeal lies in its weapons' balance of cost and capability — and in its ability to offer buyers comprehensive, tailor-made packages. 'South Korean-manufactured weapons, including the K9 self-propelled howitzer, offer proven performance, interoperability with Western systems and cost-effectiveness,' explained Yu, who is also a former professor of military strategy at the South Korea's Naval Academy. 'More importantly, Seoul has demonstrated willingness to localize production, transfer technology and support customers' domestic capability development.' South Korean arms-makers are increasingly structuring export deals to include technology transfers and licensed local production, allowing buyer nations to build part — or in some cases most — of the weapons on their soil. This approach not only sweetens contracts in competitive bidding, but it also aligns with many countries' desire to develop their domestic defense industries. This is reflected in Hyundai Rotem's Poland deal, as well as Hanwha Aerospace will establish joint production lines for the K9 howitzer and Chunmoo rocket system, with Romania and Poland, respectively. 'It's a key all-in-one package deal strategy played out by South Korean arms manufacturers — providing technology transfer, customized weapons and factories for the buyers,' Choi Gi-il, a professor of military studies at Sangji University, said via phone. Rosy future, lingering risks South Korea's arms exports fell to $9.5 billion last year after hitting a record high of $17.3 billion in 2022 and sliding to $13.5 billion in 2023, according to its arms procurement agency, the Defense Acquisition Program Administration. DAPA is cautiously eyeing a $23 billion goal for this year. The agency's ambitions may get a lift this year from favorable geopolitical winds, according to an expert. NATO allies have recently agreed to more than double their defense spending target from 2 percent of gross domestic product to 5 percent by 2035, creating a surge of demand for new equipment. Adding to the momentum, Seoul's latest cooperation with Washington in the shipbuilding sector, under a joint initiative known as 'Make American Shipbuilding Great Again,' is expected to further bolster South Korea's defense export prospects. Seoul has put forward sweeping proposals for joint shipbuilding projects with the US, a move that was reportedly pivotal in securing a tariff agreement with the administration of US President Donald Trump earlier this month. 'Overall, South Korea's defense industry is likely to get a lift this year from NATO's increase in defense spending target and Seoul's role in building American ships, as well as cooperation on maintenance, repair and overhaul projects for the sector,' Choi of Sangji University said. Choi added that South Korea's existing top clients are likely to continue to make steady purchases. 'Looking at global arms exports by region, the most prominent markets include Eastern European countries facing wartime conditions and Middle Eastern nations, where unstable security situations are driving demand,' he noted. However, the new momentum carries its own risks. 'The global trend right now resembles Trump's reshoring policy, aimed at bringing manufacturing and supply chains — particularly in strategic industries — back to the US,' said Choi. 'For South Korea, that could mean a new battle to protect its hard-won edge, guarding against the loss of technology and skilled personnel as it undertakes certain projects.' mkjung@
Korea Herald
11 hours ago
- Korea Herald
Korean tycoons to join Lee for Trump summit
South Korea's top conglomerate leaders will join President Lee Jae Myung on a US visit next week for his summit with US President Donald Trump, aiming to promote major investments in strategic sectors including semiconductors, batteries, automobiles and shipbuilding, according to industry sources Thursday. The Aug. 24-26 trip will feature four chaebol heads — Samsung Electronics Chairman Lee Jae-yong, SK Group Chairman Chey Tae-won, Hyundai Motor Group Executive Chair Chung Euisun and LG Group Chairman Koo Kwang-mo — along with executives from leading shipbuilding, aviation and defense firms. The delegation will be tightly focused on the Aug. 25 White House summit, with the government assembling a compact, high-impact team capable of announcing significant US investments. Samsung is operating and building foundry plants worth $37 billion in Austin and Taylor, Texas, while SK hynix is investing $3.87 billion in an advanced packaging plant for its cutting-edge high bandwidth memory chips in Indiana. Hyundai's Chung met Trump in March, pledging $21 billion in new US projects, including a steel plant. LG Energy Solution is also investing about 30 trillion won ($21.7 billion) across the US, including a 7-trillion-won facility in Arizona. The four chaebol groups are expected to discuss semiconductor expansion and AI chip partnerships, as well as electric vehicle and battery production growth, and Inflation Reduction Act subsidies, during the visit. Hanwha Group Vice Chairman Kim Dong-kwan and HD Hyundai Senior Vice Chairman Chung Ki-sun, who are part of the delegation, are also expected to announce new deals as their companies are both central to the Korea-US shipbuilding cooperation initiative known as the MASGA project. Hanwha acquired Philly Shipyard last year, while HD Hyundai secured a US Navy maintenance contract. Korean Air Chairman Cho Won-tae, traveling with the delegation, recently signed $32.7 billion in supply agreements with Boeing and GE Aerospace. Ahead of the departure, the president will meet the delegation to review each company's investment pledges, tailoring the 'Korea Sales' campaign to appeal to Trump's preference for favorable reciprocal deals, sources say. "The summit agenda is expected to cover economic cooperation in manufacturing, advanced technology and key minerals, with an aim to further strengthen the bilateral economic security partnership," Presidential spokesperson Kang Yu-jung said.
