[Economy in Pandemic] ‘Second wave’ of COVID-19 casts shadow on S. Korea’s growth scenario

With the second wave of COVID-19 outbreak fast approaching amid reinforced social distancing measures, pessimism is mounting once again on South Korea’s economic growth outlook this year. According to previously suggested scenarios by key global institutes and local think tanks, the country could see its economy contract as much as 2 percent. Some market watchers and the central bank, however, also warned against excessive fear and pessimism, claiming that the latest turnouts will not

EconomyAug. 24, 2020

Seoul stocks extend winning streak to 2nd session on bargain hunting

South Korean shares gained Monday for a second consecutive session, as investors continued to hunt for undervalued stocks despite the resurgence of new coronavirus cases nationwide. The Korean won fell against the US dollar. The benchmark Korea Composite Stock Price Index (KOSPI) rose 25.24 points, or 1.1 percent, to close at 2,329.83. Trading volume was moderate at about 640 million shares worth some 11.5 trillion won ($9.7 billion), with gainers outnumbering losers 473 to 361. Foreigners pu

MarketAug. 24, 2020

BMW Korea rolls out limited editions for 25th anniversary

BMW Korea said Monday it is launching three new limited edition models online to celebrate 25 years in Korea. The automaker will be releasing two sport activity vehicles -- X5 M50i and X6 M50i -- and the sport sedan M340i in its signature metallic gray. Only 25 of each of the models will be on sale at BMW Shop Online, the automaker’s online platform, at 2:05 p.m. on Tuesday.  The SAVs are limited editions based on the M performance model M50i. The automaker said it is introducing

MobilityAug. 24, 2020

JTI Korea introduces same-day delivery service for Ploom Tech

JTI Korea is introducing a same-day delivery service for its tobacco-infused vapor device Ploom Tech, via Naver Shopping, the company said Monday. Implementing the new service in Seoul first, the company said all orders made before 9 a.m. on Naver Shopping, an e-commerce platform, will be delivered on the same day. The company is an official retailer of Ploom Tech on Naver Shopping‘s smart store, and all users verified to be over 19 can make purchases on the platform, JTI Korea explain

ConsumerAug. 24, 2020

[Herald Interview] Smart to be safe: Buildings undergo transformation

All buildings -- whether residential or commercial -- have certain management systems to prevent unexpected dangers. These systems include a wide range of facilities and services, from ventilation and cooling to fire detection and security systems. Though they often go unnoticed or are hidden behind the walls, they have to continuously evolve. “Whether a building is smart or not is decided by how its management control system is integrated to provide the most efficient solutions,&rdquo

IndustryAug. 24, 2020

KB, Hana see overseas biz grow in H1 amid coronavirus

Despite border restrictions placed during the COVID-19 pandemic, South Korea’s major lenders KB Kookmin and Hana posted robust net profit overseas in the first-half of the year, buoyed by their performance in Southeast Asia. Overall, the combined net profit of four major banks here -- KB Kookmin, Hana, Shinhan and Woori -- in the first-half of the year increased 20.1 percent to 289.2 billion won ($242.9 million), latest data showed. While KB Kookmin and Hana gained momentum, taking adv

MarketAug. 24, 2020

Buyout investors eye Korean waste management firms

Buyout investors at home and abroad are zeroing in on waste management companies in South Korea, as they hope to enjoy rising income over soaring demand for their services, according to market watchers on Monday. Such buyout bids, in turn, present exit opportunities to foreign capital holding majority stakes in such companies, they said. Last week, international investment firm Kohlberg Kravis Roberts closed the acquisition of 100 percent in medical and industrial waste management f

MarketAug. 24, 2020

Foreign investment banks raise Kospi target on signs of export recovery

Despite wide fluctuations in South Korea’s stock market, along with a resurgence in novel coronavirus infections, foreign investment banks have painted a rosy outlook for the nation’s main bourse. Swiss banking giant Credit Suisse has raised its yearly Kospi target to 2,600 from the previous estimate of 2,300, saying that exports have begun recovering as major economies ease COVID-19 lockdowns. “The continuous weakened US dollar gives a boost to the Kospi index, improving s

MarketAug. 24, 2020

Market expects Samsung’s Quantum Dot displays in Q3 2021

Samsung Display could commercialize its next-generation Quantum Dot displays for televisions as early as the third quarter of next year, according to a market researcher Monday. A report released by Omdia noted Samsung Display recently supplied prototypes of its QD displays for Samsung Electronics and Sony for use in TV manufacturing. The panel maker officially announced its switch from large-size liquid-crystal display panels to QD displays in October as it started converting the curren

TechnologyAug. 24, 2020

Apple pledges W100b to correct unfair practices

Apple has pledged 100 billion won ($84 million) to correct its business practices in South Korea by sharing advertising costs with mobile carriers and by supporting small and medium-sized enterprises, the antitrust watchdog said Monday. The Fair Trade Commission said it had prepared a tentative agreement through consultations with Apple Korea after the US tech giant applied for a consent order June 4. The consent order initiated a process to close an FTC case against Apple by voluntarily agr

IndustryAug. 24, 2020

Finance minister hints at offering 2nd round of virus emergency handouts

Finance Minister Hong Nam-ki said Monday the government will review the need to provide a second round of emergency handouts if the recent resurgence of new coronavirus infections does not slow down. Hong told lawmakers that the government has not been having "in-depth discussions" over the possibility of offering a second round of emergency handouts. The government will make a decision on the matter as it is monitoring the resurgence's impact on the economy, Hong said. If the g

EconomyAug. 24, 2020

[Monitor] Exports and imports down in August

South Korea‘s trade volume declined in August compared to the same month last year amid the slowing global economy in the COVID-19 pandemic. According to data from the Korea Customs Service, the country’s exports and imports both slumped year-on-year. Exports decreased 7 percent to $23.1 billion in the period between Aug. 1 and 20 compared to the same period of last year, while imports fell 12.8 percent during the same period. Taking into account the number of working days, da

IndustryAug. 24, 2020

BOK to sharply lower economic growth outlook over spiking virus cases: chief

South Korea's central bank will sharply lower its economic growth outlook for this year, as downside economic risks have heightened amid a flare-up in virus cases, its chief said Monday. Bank of Korea (BOK) Gov. Lee Ju-yeol presented the grim prospect for Asia's fourth-largest economy, saying that the pace of economic recovery is expected to remain weak on spiking virus cases. "In May, the BOK's growth projection was a 0.2 percent contraction. But I think we will have to sharply lower th

EconomyAug. 24, 2020

Seoul stocks open nearly flat amid soaring virus cases

South Korean shares opened nearly flat Monday, as investor wariness grew over the resurgence of new coronavirus cases nationwide. The benchmark Korea Composite Stock Price Index (KOSPI) fell 2.21 points, or 0.10 percent, to 2,302.38 in the first 15 minutes of trading. The index got off to a weak start, largely on fears that the spiking COVID-19 outbreaks may lead to wider economic lockdowns. South Korea's top quarantine officials said on Sunday that the country may have to raise the current

MarketAug. 24, 2020

Citibank strengthens contactless services amid prolonged pandemic

Riding the rapid digital transformation trend in the financial sector triggered by the coronavirus pandemic, Citibank Korea said Sunday it will ramp up contactless wealth management services. The bank will hold a series of online seminars, titled “Citi Webinar On-Air,” in the second half of this year -- categorized into three sections. One of the programs, “Open Seminars” invites all clients every other week to its YouTube channel, where it will share its outlook on g

MarketAug. 23, 2020

Climbing loan delinquencies keep banks on edge

The delinquency rates for loans extended by South Korean banks have overall surged last month, sending lenders jitters as they apparently brace for side-effects of the government’s forbearance extension measures. Loan delinquency rates of the five major commercial banks here -– KB Kookmin, Shinhan, Hana, Woori and NH NongHyup -– all came in an estimated range of 0.23 percent and 0.36 percent, according to data provided by the banks. The top and bottom lines of the range ea

MarketAug. 23, 2020

Tech industry on high alert as COVID-19 hits R&D, manufacturing facilities

South Korea’s tech industry is again on high alert as the resurgence of the novel coronavirus across the country has hit companies’ major research and manufacturing facilities, according to industry sources on Sunday. Samsung Electronics, the world’s biggest semiconductor supplier, reported on Saturday that two employees who work for the 16 and 17 chip fabrication lines in Hwaseong, Gyeonggi Province, were confirmed to be COVID-19 patients. The two lines are Samsung&rsquo

TechnologyAug. 23, 2020

[Herald Interview] Shared space operator FastFive turns to small buildings for sustainable profits

Amid the growing need to have a fresh approach in the already saturated shared space industry, local company FastFive is turning to small commercial building landlords to minimize initial expenditures and build a sustainable profit structure. Kim Dae-il, chief executive officer of FastFive, told The Korea Herald in a recent interview that the company is looking to forge more partnerships with landlords of small commercial buildings instead of signing long-term lease contracts with landmark bui

MarketAug. 23, 2020

Shinsegae Food pours W9.8b into US factory to expand ready-meal provision

Shinsegae Food, the food arm of retail giant Shinsegae Group, said Sunday it is injecting 9.8 billion won ($8.23 million) into its US-based food manufacturing facility as it seeks to bolster the ready-made food business in the market. According to the company, it is plowing funds to Chang Tuh Corporation, the operator of a manufacturing plant for ready-made products in the US. Shinsegae Food acquired Chang Tuh Corp. for 12.1 billion won last year from Emart, a hyper mart giant under Shinseg

ConsumerAug. 23, 2020

As Kospi recovers, foreign ownership hits 42-month low

Foreign stock ownership of South Korea’s main bourse Kospi dipped to a 42-month low in August due to their massive selling amid a faster-than-expected recovery of the coronavirus-affected market, data showed Sunday. The average monthly ownership of foreign investors came to 35.78 percent of the bourse’s market capitalization this month, the lowest monthly average since Feb. 2017, when it was 35.74 percent, according to data from the bourse operator Korea Exchange. Since the main b

MarketAug. 23, 2020