Korea to revitalize SME debt financing

South Korea will seek to boost debt issues of small and medium-sized enterprises with credit ratings of below “A” through increased investor protection and opening up new channels for debt financing, the Financial Services Commission said Friday.This comes as investors are becoming more risk-averse, investing only in high-grade bonds issued by Korean conglomerates amid decreasing market confidence and a global slowdown.With its measures, the FSC seeks to reinvigorate debt financing of small busi

July 1, 2016

BOK likely to cut key rate to below 1% in 2016

[THE INVESTOR] Korea’s benchmark interest rate could be slashed to below 1 percent this year due to Britain’s decision to leave the European Union, Nomura Financial Investment said on July 1. Kwon Young-sun, an economist at the firm said that the Bank of Korea is likely to cut the key rate by 25 basis points twice within 2016 to 0.75 percent from current 1.25 percent. On June 9, the BOK took its key seven-day repo rate to 1.25 percent from a previous level of 1.5 percent, the first cut in 12 mon

July 1, 2016

Consumer prices almost flat in June

[THE INVESTOR] Korea’s consumer prices increased by less than 1 percent for the second month in a row in June, according to government data on July 1.The country’s consumer price index rose 0.8 percent last month from a year earlier, according to Statistics Korea.The figure also climbed 0.8 percent on-year in May, after rising 1 percent or more for the previous three months.From a month earlier, the June figure stayed flat.Core inflation, which excludes volatile oil and food prices, increased 2

July 1, 2016

Prosecutors summon Lotte founder’s daughter

Shin Young-ja, the chairwoman of Lotte Foundation and daughter of Lotte Group founder Shin Kyuk-ho, appeared at the Seoul Central Prosecutors’ Office on Friday morning as the bribery investigation involving the chairwoman deepens in South Korea.Shin Young-ja is the elder sister of Lotte chairman Shin Dong-bin and SDJ Corp. chief Shin Dong-joo, who have been fighting over control of the group.Lotte Foundation chairwoman Shin Young-ja appears at the Seoul Central Prosecutors’ Office on Friday morn

IndustryJuly 1, 2016

Incheon airport to hire robots for cleaning, concierge

Incheon International Airport will deploy autonomous robots programmed to clean its facilities and to provide information, before the nation hosts the Winter Olympics in 2018.Incheon International Airport Corp. and LG Electronics on Friday signed a memorandum of understanding for the robot project and agreed to test run prototype machines from later this year.An image of a concierge robot for airportsThe project is a part of the airport’s smart service strategy, an official said. Robots will be

TechnologyJuly 1, 2016

Korean chipmakers plan W38tr equipment investment for 3 years: report

[THE INVESTOR] Korean chipmakers, including the top two Samsung Electronics and SK hynix, are expected to pour a combined 37.8 trillion won (US$33 billion) into wafer fabrication equipment or WFE in the next three years. Starting US$10.02 billion this year, the companies will invest more than US$10 billion every year in the coming years, according to a recent research jointly conducted by market research firm Gartner and chip equipment giant Applied Materials. Samsung’s wafer fabrication facilit

Latest NewsJuly 1, 2016

Kakao launches KakaoGames for global push

[THE INVESTOR] Internet giant Kakao on July 1 announced the official launch of its renamed game unit KakaoGames following its shareholders’ approval the day before. The company said the branding renewal comes in order to elevate its global awareness and improve operational efficiency overall. The company aims, among other things, to expand its presence in the global market. Unlike its cross-town rival Naver that earns more than 35 percent of sales from overseas markets, Kakao has almost no prese

TechnologyJuly 1, 2016

No. of large groups’ subsidiaries rise to 1,770 in June

[THE INVESTOR] The number of companies belonging to large corporate groups increased by 11 to come in at 1,770 in June, the Fair Trade Commission said on July 1. According to the FTC, a total of 20 companies were newly added to large groups and nine were removed, resulting in a net change of 11. Under current regulations, a corporate group with assets exceeding 5 trillion won (US$ 4.4 billion) are defined as being large and are strictly regulated. The number of groups affected by the regulation

IndustryJuly 1, 2016

NPS to build defensive portfolio

[THE INVESTOR] Korea’s national pension fund said on July 1 it will adopt a defensive strategy for alternative investments into European markets to protect against potential shocks from the post-Brexit turmoil. The National Pension Service, the world’s third-largest pension fund with 520 trillion won (US$450 billion) in assets, said it will keep a close eye on market conditions after Britain’s decision to leave the EU in order to achieve the 5 percent goal of the annual rate of return this year.

July 1, 2016