Stock Markets Revive as U.S.-China Trade Tensions Ease
IPO Activity Had Dried Up Globally Until Just Last Month
Hong Kong Bears Both the Burdens and Benefits of the Tariff War

In the ever-volatile world of international finance, few developments ripple across continents with the force of a geopolitical breakthrough. The recent tariff deal between the United States and China has emerged as one such moment. After months of escalating trade tensions, both sides have signaled a temporary truce—prompting a cautious but marked revival across global stock markets.

From Wall Street to the Hong Kong Stock Exchange, investors are breathing easier, corporations are dusting off shelved IPO plans, and analysts are recalibrating expectations. The direct beneficiaries of this detente include companies eager to reenter capital markets and investors eager to regain their footing after a bruising spring. With global attention now trained on how financial centers—especially those caught in the tariff crossfire—respond to this shift, the early signs point to a cautious resurgence.

IPO Momentum Returns Amid a Policy Truce

According to Bloomberg News on May 15, the total capital raised through IPOs globally in 2025 has reached $43.6 billion (about ₩61 trillion), a figure on par with the same period last year. That alone marks a turnaround. Just weeks ago, IPO activity had withered under the weight of the so-called “tariff war” declared by the Trump administration, dragging global equity issuance to its lowest point since the depths of the 2020 COVID-19 pandemic.

But the ice began to crack on May 12, when U.S. and Chinese officials concluded high-level negotiations in Geneva, resulting in a 90-day agreement to significantly reduce reciprocal tariffs. This policy shift offered businesses and markets alike a reprieve from the spiraling economic hostilities that had threatened to fracture global trade flows.

Seizing the moment, previously hesitant firms began pressing forward with delayed IPO plans. EToro, an Israeli company specializing in stock and cryptocurrency trading, was among the first to leap into the revived environment. On May 14, just two days after the Geneva agreement, EToro listed on the New York Stock Exchange with an IPO price of USD 52. It closed its first trading day at USD 67, a 29% surge, well above market expectations.

Following closely is Chime, a U.S.-based fintech company that has filed for its own NYSE listing. With its application submitted on May 14, industry observers expect its IPO to launch by early June, ahead of the traditional summer slowdown. Chime, which reached a valuation of USD 25 billion during a 2021 funding round, reflects the optimism returning to tech-driven finance. Other names in the IPO pipeline include MNTN, a TV advertising platform, and Hinge Health, a healthcare firm, both emblematic of a broader trend toward resumption and recovery.

April’s Financial Chill: A Market in Retreat

This spring revival stands in sharp contrast to the "deep freeze" of April, when markets globally shuddered under the weight of worsening trade tensions. Across continents, IPOs ground to a halt, and major exchanges saw sharp declines.

In the U.S., planned listings by firms like StubHub, the event-ticketing giant, and Medline Industries, a medical supplies provider, were postponed amid uncertainty. Europe, too, saw a pullback, with companies such as Greenbridge, a leading investment firm, pressing pause on listing ambitions. Over in Asia, LG Electronics’ Indian subsidiary temporarily suspended its IPO bid due to regional volatility.

No market felt the sting more than Hong Kong, a critical financial gateway for mainland China. The Hang Seng Index (HSI), which tracks 50 major listed firms, tumbled from 23,490 points on April 1 to 22,119.41 by April 30—a 5.8% decline. The index’s most dramatic fall came on April 7, when it plummeted 13.22% in a single session—the worst single-day loss since the 1997 Asian Financial Crisis.

The Hang Seng China Enterprises Index (HSCEI), which monitors H-shares (Chinese mainland companies listed in Hong Kong), mirrored the downturn. Falling from 8,593 points to 8,076.26 by the end of April, the HSCEI marked a 6.0% monthly decline. These declines reflect the extent to which political tensions can unravel investor confidence in even the most strategically positioned markets.

Hong Kong Emerges as a Safe Haven for Chinese Capital

Yet amid the turbulence, Hong Kong has also benefited from the fallout—emerging as an increasingly attractive haven for Chinese firms facing growing scrutiny in the United States. With Washington pushing for greater accounting transparency and implementing stricter listing rules, Chinese corporations are rethinking where and how to raise capital. In some cases, U.S. officials have gone so far as to threaten delisting Chinese stocks from American exchanges, adding fuel to corporate anxiety.

A market insider commented, “For Chinese firms, Hong Kong represents a more stable and familiar gateway to global investors. Given the current regulatory climate in the U.S., many are opting to rebase their IPO strategies there.”

This shift is already visible. On May 11, CATL—the world’s largest battery producer—submitted a preliminary IPO application to the Hong Kong Stock Exchange (HKEX). The company plans to issue 117.9 million shares, with a maximum offering price of USD 33.54. If priced at the upper limit, CATL would reach a market capitalization of USD 4 billion. Should demand allow for a greenshoe option (an overallotment provision), the IPO could raise as much as USD 5.3 billion.

Another high-profile shift involves Pony.ai, a Chinese autonomous driving startup already listed on the NYSE. According to Bloomberg, on May 14, the company confidentially filed for a Hong Kong IPO. The move is seen as a strategic effort to secure a second listing base amid the growing risk of forced delisting in the U.S.

In sum, while the U.S.-China tariff standoff has undoubtedly shaken global markets, the recent agreement has lit a new path forward. IPO activity is stirring again, market indices are stabilizing, and cities like Hong Kong are reinventing their roles in a fast-changing financial landscape. The coming months will reveal whether this recovery is a temporary bounce—or the beginning of a lasting recalibration in global finance.

Belgium Officially Scraps Nuclear Phase-Out Policy After 22 Years
Italy Approved Use of Nuclear Technology Last March
Spain Reconsiders Nuclear Plant Closures After Massive Blackout

Belgium has officially decided to revive its nuclear power program after 22 years. Analysts attribute the shift to surging energy prices sparked by the Russia–Ukraine war, as well as rising interest in nuclear energy across Europe following a recent large-scale blackout in Spain—a country known for its high share of renewable energy.

Belgium Formalizes Nuclear Revival

On May 15 (local time), AFP reported that the Belgian Parliament passed a government plan to revive its nuclear industry—allowing for the construction of new reactors—with 102 votes in favor, 8 against, and 31 abstentions. This marked an official end to Belgium’s 2003 commitment to phase out nuclear power, which had aimed to shut down all reactors by this year due to environmental and safety concerns.

However, the Ukraine war upended those plans. In January 2023, Belgium extended the operation of its two newest reactors by 10 years, and in February, it delayed the shutdown of its oldest plant from 2023 to 2027.

Europe’s Nuclear Pivot: Germany Stands Alone

Several European countries are now rethinking their nuclear policies. Italy—the world’s first nation to phase out nuclear—approved legislation in March allowing the use of nuclear technology. Spain, which suffered a major blackout last month, is reportedly reconsidering plans to shut down seven nuclear plants over the next decade.

France has extended the operating life of existing reactors and plans to build six more. Late last year, it connected its Flamanville 3 reactor to the grid—the first new addition in 25 years. Even Denmark, which has banned nuclear energy for 40 years, is re-evaluating its stance. On May 14, Denmark’s Energy and Climate Minister Lars Aagaard told Politiken that the government would study the potential of next-generation nuclear technologies like small modular reactors (SMRs). Although Denmark gets over 80% of its power from renewables, nuclear is being reconsidered as a viable supplement.

Germany remains one of the few major economies sticking to a full nuclear phase-out. In April 2023, it shut down its last three operating reactors. This decision has led to a drop in domestic power generation and higher electricity prices in neighboring countries connected to Germany’s power grid—prompting criticism that Germany is becoming a "burden" on Europe.

Bloomberg: South Korea Could Win 43% of Global Nuclear Contracts

With nuclear energy gaining renewed attention, Bloomberg reported on May 15 that South Korea stands to benefit significantly in the global nuclear export market. In an article titled “Nuclear Is Back—and South Korea Could Be the Biggest Winner,” Bloomberg stated that Korea could potentially secure up to 43% of over 400 planned or proposed nuclear projects worldwide, positioning it as one of the leading nuclear exporters over the next decade.

Bloomberg cited Korea’s strategic advantages—its strong track record, lower political risk compared to China and Russia, and its efficient and tightly integrated industry. While the U.S. and France have suffered from high costs and delays, and Japan is still recovering from the 2011 Fukushima disaster, Korea has built and operated reactors continuously for more than 50 years.

Mark Nelson of Radiant Energy Group noted, “Korea moves as 'Team Korea.' From the buyer’s perspective, it’s like dealing with a single, unified entity.” Korea’s strength lies in a highly efficient network that connects engineering, construction, utilities, and finance across both public and private sectors.

Bloomberg also highlighted that Korea’s nuclear industry is quietly thriving, especially along the southeastern coast, and is gaining attention from Western countries seeking to avoid dependence on China or Russia. Professor Jung Bum-jin of Kyung Hee University’s Department of Nuclear Engineering told Bloomberg, “We’ve been building reactors for over 50 years—and we’ve never stopped.”

Trump calls for iPhone production in the U.S.
Opposes Apple’s expansion of manufacturing in India
Emphasizes the need to build iPhone production facilities in the U.S.

U.S. President Donald Trump has reportedly expressed strong dissatisfaction with Apple’s expansion of production in India and directly demanded that the company increase manufacturing within the United States. His remarks draw attention as they may mark a turning point in Apple’s strategy to reduce reliance on China and strengthen its production capacity in India.

Trump: “I Want Apple to Build Factories in the U.S.; I’ve Been Patient for Years”

According to Bloomberg and other foreign media on the 15th (local time), President Trump recently spoke at an event in Doha, Qatar, where he referenced a conversation with Apple CEO Tim Cook. “I had a bit of an issue with Tim Cook yesterday,” Trump said. “I told him, ‘Friend, I’ve treated you very well. I heard you’re bringing $500 billion to the U.S., but now it turns out you’re building a factory in India. I don’t want you building a factory in India.’”

The $500 billion he mentioned refers to Apple’s previously announced investment pledge in the U.S. made in February.

Trump continued, “I told Tim, ‘Look, we’ve tolerated Apple building all of its factories in China for years. Now it’s time to build in the U.S. We’re not interested in you building in India. India will do just fine on its own — we want Apple to build factories here (in the U.S.).’” Although Trump said Apple would increase domestic production in response, he did not provide further details.

Perceived as a Way to Evade Tariffs

Trump’s comments go against Apple’s current trend of expanding manufacturing in India to reduce risks associated with China. Apple’s iPhone production in India recently surpassed $22 billion, up over 60% from the previous year. Nearly 20% of global iPhone production now takes place in India. Major suppliers such as Foxconn, Tata, and Pegatron are expanding their manufacturing bases in India to supply the U.S. market.

However, Trump appears to view this strategy as a way to circumvent tariffs, expressing displeasure. His argument — that Apple benefited from U.S. favors and must now boost domestic production — aligns with that stance.

Apple has, in fact, pledged to increase infrastructure investment in the U.S., planning to invest $500 billion over the next four years in manufacturing, R&D, data centers, and server facilities. Construction of a high-end server factory in Texas is also expected to begin in earnest this year.

Why Apple Sticks to Overseas Production

Nevertheless, Trump’s comments could be seen as a challenge to Apple’s global supply chain diversification strategy. While Apple is also expanding production of MacBooks and AirPods in Vietnam, fully shifting iPhone production to the U.S. faces serious obstacles — including high labor costs and parts supply issues.

Cheap labor is not the only reason Apple favors overseas production. A bigger factor is the flexibility, diligence, and technical skills of foreign workers.

According to a New York Times article titled “How the U.S. Lost Out on iPhone Work,” Apple executives have repeatedly emphasized the speed and scale of supply chains in Asia. For example, in 2007 — just six weeks before the launch of the iPhone — Steve Jobs ordered the replacement of the plastic screen with reinforced glass after scratches appeared when he carried his iPhone with keys in his pocket. The team contacted Corning Inc. in the U.S., but logistical and cost issues made large-scale production difficult. Meanwhile, a factory in China had already begun building new facilities and had a warehouse full of glass samples, along with the technical staff ready to conduct rapid testing.

In addition, assembly plant workers in China often work six days a week, 12 hours a day — a level of labor mobilization that’s nearly impossible in the U.S. Technical staffing is another major hurdle: manufacturing iPhones requires about 9,000 engineers to oversee and support 200,000 line workers. In the U.S., it would take nine months to recruit that many engineers, compared to just six months in China.

While the core product technology may originate in the U.S., Chinese labor is far more productive and skilled in the actual assembly and component manufacturing stages. As a result, Apple produces only a tiny portion of its products in the U.S., such as the Mac Pro. For iPhones, 90% of components are sourced from outside the U.S. Assembly is done in China, memory chips come from South Korea and Japan, chipsets from Europe, and display panels from South Korea and Taiwan.

Bloomberg concluded, “Fully assembling iPhones in the U.S. would be an extremely difficult task — even for Apple, with its deep cash reserves.” Some experts predict that if a U.S.-made iPhone were released, its base price could exceed $3,000.

Apple, meanwhile, is already using a "build-ahead" strategy — rushing shipments of India-made iPhones to the U.S. to avoid future tariffs. Still, with the 90-day U.S.–China tariff reprieve nearing its end, the outlook remains uncertain.

Coinbase demanded $20 million by hackers
Similar incident occurs just three months after the Bybit hacking case
Hacking incidents are critical blows to the cryptocurrency market, which has rapidly grown on the basis of 'trust'

It has been confirmed that Coinbase, the largest cryptocurrency exchange in the United States, has suffered a hacking attack. This marks a similar incident occurring just three months after the large-scale hack of Bybit in February.

Coinbase Crumbles Under Hacking Attack

On the 15th (local time), major foreign media outlets such as Bloomberg reported that Coinbase informed U.S. regulatory authorities that its systems had been hacked and customer data had been leaked. According to the report, the hacker informed the company on the 11th that they had obtained information on customer accounts and demanded $20 million (approximately 28 billion KRW) worth of Bitcoin in exchange for not releasing the stolen data.

The leaked information includes customers’ names, mailing and email addresses, phone numbers, the last four digits of their Social Security Numbers (SSNs), account balances, and transaction histories. Additionally, masked bank account numbers, certain bank identifiers, and government-issued ID data such as driver’s licenses and passports were also stolen. Coinbase is expected to incur a cost of approximately $180 million to $400 million (roughly 251.7 billion to 559.4 billion KRW) to recover from the hack and compensate customers.

Coinbase revealed that the hacker gained the information by bribing contract workers or support staff outside the U.S. who had internal access to its systems. The company added, “Our systems detected malicious activity over the past few months,” and stated that it had informed affected customers to prevent misuse of the stolen information.

Cumulative Hacking Damage in the Crypto Market

Hacking incidents targeting cryptocurrency exchanges occur frequently. In 2018, Coincheck suffered losses of $34 million (approx. 43.7 billion KRW), and last year, DMM Bitcoin lost $300 million (approx. 417 billion KRW) in a hack. In February of this year, Bybit — a major exchange with an average daily trading volume of over $36 billion — was hacked, resulting in the theft of $1.46 billion (approx. 2.1 trillion KRW) worth of cryptocurrencies.

According to blockchain analytics firm Nansen, the hacked funds from Bybit consisted of Ethereum and Ethereum derivatives. The Ethereum was transferred to a single wallet, then distributed to more than 40 other wallets. The derivatives were converted to Ethereum and then split into over 10 wallets, each receiving $27 million.

The attack is suspected to have been carried out by North Korea. Fireblocks, a blockchain security company that assisted with Bybit’s investigation, stated, “This hack appears similar to previous attacks on Indian crypto exchange WazirX and lending protocol Radiant Capital,” and added, “Both of those incidents were attributed to North Korea.” North Korean hackers were previously identified as the culprits behind the thefts of $234.9 million (approx. 326.9 billion KRW) from WazirX and $50 million (approx. 70 billion KRW) from Radiant Capital.

"Investor Confidence Is Collapsing" — Growing Concern

The Bybit incident sent shockwaves through the cryptocurrency market. According to crypto data provider Alternative, immediately after the Bybit hack, the Bitcoin Fear & Greed Index dropped to 25, entering the “Extreme Fear” range. This was the first time in about six months — since September 7 of last year — that the index fell to such a low. The Fear & Greed Index quantifies investor sentiment in the crypto market on a scale from 0 to 100; lower values indicate more negative sentiment. This shows how a single incident can severely shake market sentiment.

A similar trend is being observed in the aftermath of the Coinbase hack. According to global cryptocurrency tracking site CoinMarketCap, at 8:40 PM on the 15th, the price of Ethereum, the second-largest cryptocurrency by market cap, had dropped 2.61% over the past 24 hours to $2,559.65. Ripple fell 6.47% to $2.39, and Solana declined 3.24% to $171.73. Following news of the Coinbase breach, major altcoins (cryptocurrencies other than Bitcoin) collectively experienced declines.

Market observers warn that as hacking incidents at exchanges continue to pile up, investor confidence in cryptocurrencies will inevitably deteriorate. One industry insider noted, “The crypto market has grown rapidly by emphasizing the security of blockchain technology,” and added, “Frequent exchange hacks essentially undermine the very foundation of that growth.” He further stated, “The crypto market already operates outside traditional regulatory frameworks, so if investor trust bottoms out too, recovery will be extremely difficult.”

China accelerates low-altitude mobility economy
From ground dominance to aerial supremacy
Market expected to grow fivefold by 2035

As the electric vehicle (EV) market reaches saturation, Chinese automakers are turning their attention to a new frontier: flying cars. Amid the Chinese government's push to promote a "low-altitude economy," the electric vertical takeoff and landing (eVTOL) sector is expected to become a highly profitable market, projected to grow to $15.7 billion (approx. 22 trillion KRW) by 2030.

Major Chinese Automakers Invest Heavily in eVTOL Market

According to the South China Morning Post (SCMP) on May 15, China's largest automakers are ramping up investments to lead the low-altitude mobility economy, with strong support from the government. AeroHT, a subsidiary of electric vehicle maker Xpeng, recently applied for a license from the Civil Aviation Administration of China (CAAC) to produce its first flying car. Prior to this, drone company EHang had already received a license to operate passenger low-altitude air travel services.

Legacy carmakers such as FAW Group’s Hongqi, Geely Automobile, GAC Group, and Chery Automobile are also pouring resources into eVTOL and drone development. Angel investor Yin Ran, based in Shanghai, noted, “Leading Chinese automakers are now showcasing their eVTOL technology and investing in the future.”

China's low-altitude economy refers to industries involving aircraft operating below 1,000 meters above ground level. Since 2021, when the government began policy support for inter- and intra-city aerial mobility, the sector has been growing rapidly. The Civil Aviation Administration of China projects that, driven by policy backing, technological innovation, and increased investment, the low-altitude economy will grow over fivefold between 2024 and 2035 to reach $486 billion (approx. 681 trillion KRW).

Battery Makers Join the Race

It’s not just automakers—battery manufacturers are also diving into the competition by developing high-performance batteries for eVTOLs. Industry leader CATL (Contemporary Amperex Technology) invested hundreds of millions of dollars last August in Shanghai-based eVTOL maker AutoFlight, forming a strategic partnership to develop battery solutions. Other companies such as CALB (China Aviation Lithium Battery), Eve Energy, Gotion High-tech, and Farasis Energy are also joining the race.

Advanced batteries are a critical component of eVTOLs. They determine flight performance, operation frequency, and overall economic viability. These batteries require much higher energy density and power output than those in electric cars. According to a recent report by Sinolink Securities, an eVTOL flying eight times a day with a battery lifespan of 1,000 cycles would need its battery pack replaced 14 times over a 20-year lifespan.

Furthermore, eVTOL batteries must achieve a discharge rate of 2C to 3C—two to three times that of conventional EV batteries (1C)—to provide the "burst power" needed for takeoff and landing. The cost is also significantly higher: aviation-grade batteries cost about 3 yuan (approx. 580 KRW) per watt-hour—around 10 times the cost of regular car batteries. A 200 kWh eVTOL battery can cost up to $83,000 (approx. 115 million KRW) per unit.

Chinese EV giant BYD, which started as a battery manufacturer in 1994 with just 20 employees, exemplifies how battery technology can serve as the foundation for automotive success. Under founder Wang Chuanfu’s leadership and innovation-driven strategy, BYD has evolved into a global EV leader, hailed for its vertically integrated business model grounded in battery technology.

Alef’s ‘Model A’ Inches Closer to Commercialization with U.S. Approval

U.S.-based flying car startup Alef Aeronautics has taken the lead in making flying cars a reality. In 2023, the company received a Special Airworthiness Certification from the U.S. Federal Aviation Administration (FAA), bringing its vehicle closer to commercialization. This certification evaluates civilian aircraft for safety and reliability and allows limited-purpose operations such as exhibitions, research, and development. Additional approvals are required to drive on public roads.

While the FAA notes that Alef’s vehicle is not the first to receive such certification, Alef claims the Model A is the first flying car capable of operating and parking like a regular vehicle. The Model A can drive on roads like a traditional car and take off vertically for flight. Its entire body rotates to function like a propeller. It has a road driving range of 200 miles (approx. 322 km) and a flight range of 110 miles (approx. 177 km), with a seating capacity of two.

Alef began developing the Model A in 2015, inspired by the flying cars in the sci-fi film Back to the Future. The company has received backing from entities including SpaceX, led by Elon Musk. So far, Alef has secured around 3,300 pre-orders. The Model A is priced at $300,000 (approx. 420 million KRW), with production expected to begin by the end of this year.

Groundbreaking ceremony held at Saudi Arabia's 'King Salman Automotive Industrial City'
Joint venture with Saudi sovereign wealth fund, aiming to begin operations in Q4 2026
Establishing an annual production system of 50,000 units to accelerate entry into the 3 million-unit market

This move is aimed at efficiently targeting the rapidly growing Middle Eastern automotive market and strengthening the brand's foothold in the region. In particular, Hyundai plans to accelerate its push into the eco-friendly vehicle market by producing electric vehicles locally, in line with the carbon neutrality initiatives of key Middle Eastern countries such as Saudi Arabia and Qatar.

Hyundai Motor's First Plant in Saudi Arabia

On May 14 (local time), Hyundai Motor announced that it held a groundbreaking ceremony for its new plant on the site of Hyundai Motor Manufacturing Middle East (HMMME), located in Saudi Arabia’s King Salman Automotive Industrial City. HMMME is a joint venture with 30% owned by Hyundai Motor and 70% by Saudi Arabia’s Public Investment Fund (PIF). The factory is designed to produce a mix of electric vehicles and internal combustion engine vehicles, with an annual capacity of 50,000 units. The plant is scheduled to begin operations in the fourth quarter of 2026.

More than 200 people attended the groundbreaking ceremony, including Saudi Minister of Industry and Mineral Resources Bandar Ibrahim AlKhorayef, PIF Deputy Governor Yazid Al-Humied, Acting South Korean Ambassador to Saudi Arabia Moon Byung-jun, and Hyundai Motor Group President and CEO Jang Jae-hoon. PIF’s Yazid Al-Humied stated, “We will accelerate the growth of Saudi Arabia’s mobility ecosystem through continued partnership with Hyundai Motor.”

In his congratulatory speech, Jang Jae-hoon said, “I don’t believe that overseas investment will neglect or weaken domestic investment. This year, Hyundai Motor Group plans to invest around 25 trillion KRW (approx. $18.4 billion) in Korea, while investing 31 trillion KRW (approx. $22.8 billion) over four years in the U.S. While global growth is a top priority, we are committed to continued domestic investment.” He added, “This groundbreaking ceremony marks the beginning of a new era for both Hyundai and Saudi Arabia. We will lay the foundation for a new chapter in future mobility and technological innovation.”

King Salman Industrial City: A Forward Base for the Middle East Automotive Industry

The King Salman Automotive Industrial City, where HMMME is located, is a newly established automotive manufacturing hub in King Abdullah Economic City (KAEC), built by the Saudi government to foster the automotive industry. Situated about 100 kilometers from Jeddah — Saudi Arabia’s second-largest city and major trade port — the area is emerging as the center of the Middle Eastern automotive industry, attracting electric vehicle makers and parts suppliers.

Named after Crown Prince and Prime Minister Mohammed bin Salman, the King Salman Automotive Industrial City is part of Saudi Arabia’s national development project, Vision 2030, which aims to diversify the economy and promote social and cultural transformation. The industrial city spans 60 square kilometers, equivalent to about 8,108 soccer fields. It will host production facilities for Hyundai, Saudi Arabia’s first EV brand, Ceer Motors, Lucid Motors, and Pirelli Tires, among others.

Responding to Growing Demand for EVs in the Middle East

Hyundai's decision to build its first Middle Eastern factory in Saudi Arabia stems from the country’s position as the region’s automotive powerhouse, accounting for about 34% of the total market. Of the approximately 2.49 million cars sold in the Middle East last year, 840,000 were sold in Saudi Arabia. Among the 14 countries where Hyundai sells vehicles in the region, Saudi Arabia represents more than half of its sales. In the first quarter of this year, Hyundai ranked second in Saudi market share at 24%, just behind Toyota at 26%. The local production strategy may be key in overtaking the current leader.

Hyundai also sees significant growth potential in the electric vehicle market, where it already has a competitive edge. In line with Vision 2030, the Saudi government aims to produce 500,000 EVs annually and convert over 30% of Riyadh's vehicles to electric. Qatar is developing infrastructure to achieve 10% EV adoption by 2030. The UAE's EV import value soared 14-fold, from $100 million in 2019 to $1.39 billion in 2022, highlighting rapid market growth.

Additionally, Hyundai’s outlook in the region is bolstered by deepening ties between the U.S. — Hyundai’s largest export market — and Middle Eastern countries. Former U.S. President Donald Trump, during his first official overseas trip after regaining power, visited Saudi Arabia, Qatar, and the UAE starting on May 13 to strengthen economic cooperation.

Returned to pre-tax loss, sales declined across all regions
Plans to cut costs by £60 million over two years
Job cuts could reach up to 1,700 positions

As the global luxury market downturn deepens, UK trench coat brand Burberry is initiating a wave of job cuts. CEO Jonathan Akeroyd, who took office in July last year, pledged to restore Burberry’s reputation as a once-coveted brand. However, the company has struggled to regain its appeal due to weak consumer sentiment and lackluster response to new products.

Burberry to Cut 19% of Workforce

On May 14 (local time), The Wall Street Journal reported that Burberry plans to lay off around 1,700 employees globally to improve profitability and efficiency. With a current workforce of about 9,000, this amounts to a reduction of 18.9%. Burberry aims to save £60 million (approx. 111.5 billion KRW) by the 2027 fiscal year—an increase from the previously announced £40 million target.

In an official statement, Burberry said the restructuring is in its early stages and acknowledged worsening macroeconomic conditions driven by rising geopolitical uncertainty. The company stated that it is focusing on strengthening the brand and improving profitability, and expects the benefits of restructuring to become more visible over time.

According to WSJ, Burberry posted £2.46 billion (approx. 4.57 trillion KRW) in revenue for the 2025 fiscal year (April 2024 – March 2025), in line with market expectations. However, it recorded a pre-tax loss of £66 million, reversing from a £383 million profit in the previous year. Sales declined across all regions, with the Asia-Pacific market dragging the most due to weakened middle-class spending and China’s economic slowdown.

Burberry Slashed Prices by Half — A Blow to British Luxury Prestige

Burberry’s troubles date back to 2020. To recover from severe sales declines during the COVID-19 pandemic, the company took the unprecedented step of offering up to 50% discounts on clothing and bags in countries like China, Australia, and the U.S.

Typically, luxury brands avoid discounting—even amid steep losses or mounting inventory—out of concern that it could damage their prestige. Brands like Chanel and Louis Vuitton actually raised prices globally during the pandemic to reinforce their exclusive image.

Burberry’s decision to break this “taboo” reflected pessimism about its future outlook. Chinese luxury media outlet Jing Daily commented, “Burberry was the first global luxury brand to jump into discounting during the unprecedented COVID-19 crisis.” In addition to discounts, Burberry also laid off 500 staff and closed several offices around the world during that period.

Share Price Collapse and Removal from the FTSE 100

Due to its poor performance last year, Burberry was removed from the UK’s premier stock index, the FTSE 100. After being listed on the London Stock Exchange in 2002, Burberry joined the FTSE 100 in 2009, recognized for its resilience during the global financial crisis. The FTSE 100 includes the top 100 companies by market capitalization listed on the LSE.

However, amid the broader slump in the luxury sector—driven in part by weakened Chinese demand—Burberry's earnings and share price plummeted. Just before its removal, the company’s market capitalization had fallen to £2.23 billion (approx. 3.9 trillion KRW), down nearly 70% from the previous year.

Despite past CEOs’ efforts to restore the brand’s image and elevate its luxury status, they failed to produce lasting results. Over the last decade, Burberry cycled through five different CEOs, reflecting deep internal instability, and ultimately resulting in its delisting from the FTSE 100.

Charlie Huggins, a portfolio manager at investment advisory firm Wealth Club, commented, “Cost-cutting is a positive step, but time is running out for Burberry,” adding, “Investors have seen multiple failed restructuring attempts in recent years. This plan feels like Burberry’s last chance.”