[Market Close-up] Political links to South Korean hedge funds spark controversy

This is the final installment in a two-part series exploring Korea’s troubled hedge funds. -- Ed. Alleged fraud cases involving homegrown hedge fund asset managers in recent months have something in common: their unusual ties to political bigwigs. From Lime Asset Management Asset that suspended 1.66 trillion won ($1.38 billion) in assets to Optimus Asset Management that froze 550 billion won of investors’ money, hedge fund managers with a short proven track record appear to

MarketJuly 20, 2020

Local PEF’s purchase of Gangnam apartments grabs market attention

A private equity fund operated by a local real estate asset management firm has purchased an entire apartment building consisting of 46 units in Gangnam -- one of Seoul’s most expensive districts -- raising eyebrows in the realty sector that is facing tougher regulations. IGIS Asset Management bought Samseong World Tower, an 11-story building from an individual for nearly 42 billion won ($34.90 million). It is rare for a local asset management company to buy apartment complexes as an in

MarketJuly 20, 2020

GS25 says Disaronno sold most in mobile liquor orders

GS25 said Monday the bestselling product from its mobile app for wine and liquor orders was Disaronno, an Amaretto-tasting liqueur. Over 70 percent of wine orders made via the app were made outside of Seoul, it added. The convenience store chain launched the mobile app Wine25 Plus on July 13, allowing customers to order alcoholic beverages and pick them up from a nearby GS25 store. Analyzing the data for the past week, the convenience store operator revealed that 28.8 percent of liquor order

ConsumerJuly 20, 2020

Paris Baguette launches monthly sandwich, coffee subscription

Paris Baguette, South Korea’s biggest bakery brand operated by SPC Group, said Monday it is testing a new subscription business by launching a monthly discount service for its coffee and sandwich menus. Usable once every day for 30 days, the subscription offers either coffee or a sandwich and coffee set, respectively priced at 19,800 won ($16.40) and 48,900 won. There will be 12 sandwich menu choices. Users can subscribe to the service on Happy App, the SPC Group’s mobile applicat

ConsumerJuly 20, 2020

Tesla Model 3 on hire in Seoul: SK Rent-a-Car

South Korea’s rental service firm SK Rent-a-Car said Monday it has launched a rental service for Tesla Model 3 at its 10 branches in Seoul and Gyeonggi Province “As demand for electric vehicles continues to increase, we have recently released new products of Tesla, the most favored EV of customers,” a company official said. A total of 21 Tesla Model 3 units will be offered as short-term rental cars. Customers can make reservations through the firm’s website or custome

MobilityJuly 20, 2020

Kakao Games’ pre-IPO market value soars to W2.8tr from COVID-19

The coronavirus pandemic is turning out to be a blessing in disguise for game companies who are staying resilient in South Korea, with Kakao Games’ market valuation soaring -- a blessing in disguise after its failed attempt for an initial public offering in 2018. According to over-the-counter trading platform Pstock, Kakao Games’ market value soared to 2.8 trillion won ($2.3 billion) as of Friday from 1.7 trillion on June 11, when it applied for a preliminary IPO examination on th

IndustryJuly 20, 2020

Volvo Cars Korea ditches diesel to go all hybrid from 2021

Volvo Cars Korea said Monday it will no longer offer pure diesel or gasoline cars starting with its 2021 models and instead sell only hybrid cars. According to the automaker, Volvo cars will be available only in mild hybrid or plug-in hybrid vehicles starting with its 2021 models in Korea, as it aims to become carbon neutral by 2040. Korea will be the first country where Volvo won’t sell pure diesel cars at all, the company said. Volvo Cars Korea will replace D5, T4, T5 and T6 inte

MobilityJuly 20, 2020

Silicon Valley engineer joins Coupang as new vice president to oversee Rocket Delivery

E-commerce giant Coupang has appointed software engineering expert Jeon Joon-hee as the new vice president of engineering for its express delivery service, the company said on Monday. Jeon, who has previously worked at global companies like Google and Uber, will focus on advancing Coupang’s express delivery service known as ”Rocket Delivery.“ “As the COVID-19 pandemic continues, the world is watching Coupang’s innovative delivery system, which is fast and precise.

ConsumerJuly 20, 2020

Incheon Airport ditches controversial ‘phoenix-inspired’ logo option

Incheon International Airport Corp. says it is not going forward with a mythical bird-inspired logo for the corporation’s 20th anniversary next year after a leaked image online drew criticism. In an emailed statement on Sunday, the company confirmed it had ditched the new corporate identity design after “considering the majority’s opinions.” “It’s regretful that the draft was misreported as an official one,” the company said as it explained it was one

MobilityJuly 20, 2020

Tests of COVID-19 treatments in Korea gain speed

Research for COVID-19 treatments and vaccines in Korea has been picking up speed, with GC Pharma announcing Monday it preemptively began producing plasma-derived COVID-19 treatment drug samples on Friday. GC Pharma plans to apply to the Drug Ministry with the clinical phase 2 test designs of its plasma-derived COVID-19 treatment by the end of this month. If approved, it will join 13 clinical trials in varying stages that are underway in Korea. Of them, 11 are for treatments and two are for va

IndustryJuly 20, 2020

Seoul stocks end tad lower on profit-taking, stimulus uncertainties

South Korean shares closed a tad lower Monday as investors locked in part of gains built on hopes for economic relief packages in major economies. The Korean won rose against the US dollar. The benchmark Korea Composite Stock Price Index (KOSPI) lost 2.99 points, or 0.14 percent, to close at 2,198.20. Trading volume was high at about 675 million shares worth some 11.8 trillion won ($9.8 billion), with losers outnumbering gainers 476 to 369. The index climbed 2.4 percent last week on the back

MarketJuly 20, 2020

Multiplying zombie firms drag down manufacturers’ productivity: BOK

South Korea has been seeing an increase in zombie firms -- especially those who have been incapable of covering annual borrowing costs for more than two years –- and they have been dragging down the manufacturing sector’s labor productivity, a report by the nation’s central bank said Monday. The Bank of Korea defined zombie firms as at least 10 years old and unable to cover debt servicing costs from current profits due to struggling with an interest coverage ratio below 1 for

EconomyJuly 20, 2020

LS family doles out W33b worth shares to children amid falling prices

The owner family of LS Group recently bequeathed about 33 billion won ($27 million) worth of shares to children and relatives, regulatory filings showed Monday. The move by the South Korean conglomerate came as stock prices of its affiliates have plunged in the wake of the COVID-19 pandemic, which allows them to pay lower gift taxes. Group Chairman Koo Ja-yeol, LS-Nikko Copper Chairman Koo Ja-hong, LS Cable & System Chairman Koo Ja-yub and heads of other units have given a total of 959,

IndustryJuly 20, 2020

SsangYong reveals teaser of first EV E100

SsangYong Motor on Monday unveiled a teaser image of its first electric vehicle, which has been developed under the project name “E100.” The automaker’s new, electric subcompact sport utility vehicle is set to be released in the first half of next year. Prior to the launch of the new EV, the automaker released an image that graphically expresses its exterior design. The firm said the overall design is based on a streamlined line that reflects aerodynamics optimized for urban

MobilityJuly 20, 2020

Overseas securities investment hits new high in H1

South Koreans' overseas securities investment soared to a record high in the first half of the year on brisk stock purchases, data showed Monday. Local investors' transactions of overseas securities were valued at $142.4 billion in the January-June period, up 63.4 percent from the second half of 2019, according to the data from the Korea Securities Depository (KSD). The figure marks the highest half-year tally since data tracking began in 2011 and accounts for nearly 83 percent of last year'

EconomyJuly 20, 2020

Korea Shipbuilding wins W86b order from Europe

Korea Shipbuilding & Offshore Engineering Co. said Monday that it has won an 86 billion won ($71 million) deal from a European company to build two petrochemicals (PC) carriers. Under the deal, Hyundai Mipo Dockyard Co., a shipbuilding unit of Korea Shipbuilding, will start constructing the ships in November and deliver them to the buyers from the second half of 2021, Korea Shipbuilding said in an e-mailed statement. The deal has an option to build an additional PC carrier. So far thi

MobilityJuly 20, 2020

Samsung hints Galaxy Fold 2 to debut in August

Samsung Electronics has hinted it is planning to unveil its second edition of Galaxy Fold at the upcoming Unpacked event in August, according to a short teaser video uploaded on one of its social network channels. On a Twitter account run by Samsung’s UK office, a video clip featured a drop of rose gold paint transforming into a symmetrical shape assumed to be a butterfly. It also displayed the date of the Galaxy Unpacked event that falls on Aug. 5. The butterfly image previously sym

TechnologyJuly 20, 2020

[Monitor] Consumption rises during state-led sales festival

During the state-led sales festival, called the “Korea Donghaeng Sale,” aiming to boost consumption amid the pandemic, non-face-to-face sales of department stores and large discount stores were estimated at 25.94 billion won ($21.56 million), data showed Thursday. Between June 26 and July 12, sales at the nation’s major three department stores increased 4 percent on-year. Sales at the top three large discount stores decreased 1.4 percent on-year due to mandatory holidays. B

IndustryJuly 20, 2020

S. Korean drugmakers to sell generic version of Pfizer's smoking cessation drug

South Korean pharmaceutical companies will start selling generic versions of the smoking cessation drug Champix, following the expiration of its patent here, industry sources said Monday. The drug by US pharmaceutical giant Pfizer, also referred to as varenicline tartrate, helps people to stop smoking by relieving cravings for nicotine and easing severe withdrawal symptoms. Local companies, such as Hanmi Pharm Co. and Jeil Pharmaceutical Co., have both developed their own versions of the tre

IndustryJuly 20, 2020

Seoul stocks open flat on profit-taking

South Korean shares opened flat Monday, as investors went for profit-taking after the market surged by more than 2 percent last week on the back of hopes for stimulus measures in major economies amid the new coronavirus outbreaks. The benchmark Korea Composite Stock Price Index (KOSPI) rose 0.08 point, or near zero percent, to 2,201.11 in the first 15 minutes of trading. Investors took to the sidelines to keep a watchful eye on additional stimulus measures under review. European leaders cam

MarketJuly 20, 2020