Work-life balance draws IT talents to Pangyo Techno Valley

South Korea’s brightest IT minds are gathering to Pangyo Techno Valley -- a tech hub modeled after Silicon Valley in the US -- not only because of its vicinity to Seoul but also because of its culture that seemingly respects work-life balance, something rare among traditional big companies. The phenomenon is attributed to the rise of IT powerhouses that have nestled in Pangyo, as well as the changing perception of success among the younger generation, industry watchers say. Working long

IndustryJune 28, 2020

LCCs expand domestic routes for holiday season, but profitability remains questionable

South Korea’s low cost carriers have been opening more domestic routes to prepare for the upcoming summer holiday season, but the profitability of operating such routes remains questionable due to fierce competition over price, industry sources said Sunday.  After the latest COVID-19 outbreak, budget carriers have been focusing on expanding more domestic routes as part of an effort to secure liquidity in the short run.  Market data showed that the combined cashable assets of f

MobilityJune 28, 2020

Korean tech giants to report improved earnings in Q2

The latest forecasts about Korean technology companies’ profits in the second quarter suggest they have at least avoided the worst-case scenario amid the protracting COVID-19 pandemic, due to the semiconductor industry’s outperformance, according to industry sources on Sunday. The newest figures released by local stock brokerages show that Samsung Electronics is estimated to report around 53.6 trillion won ($44.5 billion) in sales and 6.4 trillion won in operating profit for the A

TechnologyJune 28, 2020

LG’s modest but strong change under Koo Kwang-mo

LG Group Chairman Koo Kwang-mo marks two years Monday since he took the helm of South Korea’s fourth-largest conglomerate. Under his new and pragmatic leadership, the group has seen quiet but significant changes. Koo became the new leader of LG on June 29, 2018, at the age of 40 after his father, Koo Bon-moo, passed away a month earlier. He inherited the group in the Confucian tradition whereupon the eldest son takes over the family business. The late Koo’s management philosophy

IndustryJune 28, 2020

Weighty toll of staying at home to avoid coronavirus

Park Seung-yun, a 28-year-old Seoulite, is one of many victims of “quarantine weight gain.” He was fortunate enough to work in a job where telecommuting was possible, but that has not been great as far as his waistline is concerned. “My waist measurement has grown by 2 inches (5 centimeters), forcing me to overhaul my wardrobe. Before the pandemic, I was size M or L depending on the brand. Now, I’m having to get XLs,” he said. Since he no longer had to commute, h

TechnologyJune 28, 2020

NPS offloads 1.1m shares of Hotel Shilla in Q2

South Korea’s National Pension Service sold 1.09 million shares in the nation’s leading hospitality and duty-free operator Hotel Shilla in the second quarter, a filing showed Sunday. As of Wednesday, NPS was holding 9.73 percent voting rights in the hotel and resort unit of Samsung, down 2.74 percentage points from March 31, with 12.47 percent. From April 1 to June 24, the pension fund sold Hotel Shilla’s shares 50 times out of 78 times of its stock trading. Despite the sta

MarketJune 28, 2020

Retailers see sales boost under nationwide K-Sale promotion

The retail industry is seeing sales recover, owing to the ongoing nationwide discount promotional event to revitalize the domestic economy, which has been suffering dampened consumer sentiment amid the COVID-19 outbreak. Major retailers saw sales grow during the first weekend of the government-led K-Sale period, locally dubbed “Donghaeng,” which kicked off Friday. According to Lotte Shopping, the retail arm of Lotte Group, sales of Lotte Department Store rose 21 percent from Fri

ConsumerJune 28, 2020

[News Focus] Chaebol ownership of corporate venture capital sparks debate

Deregulatory moves by financial authorities to allow South Korean conglomerates to own corporate venture capital firms have raised concerns over the manifold consequences of such a scheme. The Finance Ministry is set to unveil plans next month to revise the law so that Korean equivalents of Alphabet-backed GV -- formerly known as Google Ventures -- can be launched. The revision of the Fair Trade Act is expected to make significant changes in the history of corporate environment that has banned

MarketJune 28, 2020

Appetite of US investors in Korea’s stock market grows

The impact of US shareholders has grown on South Korea’s stock market, as they expand investments in large-cap stocks, according to the latest data Sunday. In a survey of shareholders from the US and China with more than 5 percent ownership in the local stock market, investors from the US marked nearly 27.71 trillion won ($23.02 billion) as of June 22, up 52.7 percent, or 18.15 trillion won from March 2016. While 45 retail and institutional investors owned over 5 percent stake in 111

MarketJune 28, 2020

Regulator further cuts maximum interest rate on loans by illegal lenders

South Korean financial authorities on Sunday said that illegal money lenders cannot impose annual interest rates of more than 6 percent, in a move to protect consumers in the pandemic-hit economy. The Financial Services Commission (FSC), the country's financial regulator, drafted a new set of regulations that lowers the maximum annual interest rate on loans extended by unregistered lenders to 6 percent from the current 24 percent. The modifications to related laws will be submitted to the Na

EconomyJune 28, 2020

NH Prime REIT to invest in NY’s 195 Broadway, Paris’ Tour Eqho

NH Prime REIT said Sunday it has decided to invest in landmark buildings in New York, Paris and Helsinki to expand its portfolio. South Korean banking group NH Financial’s real estate investment trust affiliate plans to purchase beneficiary certificates of 195 Broadway, a 29-story building in New York City with luxury brand Gucci as a key tenant and Tour Eqho in Paris that has global accounting firm KPMG taking most of the floors. It will invest in securities of Finland-based OP Finan

MarketJune 28, 2020

S. Korea to implement new global bank capital rules this month

South Korea will begin to implement new global bank capital rules this month, the country's financial regulator said Sunday, a move that could boost capital adequacy ratios of South Korean banks. The banking regulations, known as Basel III, were agreed upon by financial regulators around the world in 2017. The new rules, including revisions to calculation systems for capital requirements and credit risks, were set in the aftermath of the 2008-09 global financial crisis. The Financial Service

EconomyJune 28, 2020

IPO stocks fly high, appetite for newcomers set to grow further

Newly listed stocks enjoyed substantial gains in the first half this year, fueling an investor rush amid volatile market trends, data showed Sunday. A total of 12 companies made debuts on the main KOSPI and the tech-laden KOSDAQ markets, nine of which far exceeded their IPO prices, according to the data from the bourse operator Korea Exchange (KRX). As of Friday, these firms' stock price hikes averaged as high as 52.4 percent. Among them, Leading Edge Technology Co. Ltd. closed Friday at 20,

MarketJune 28, 2020

Seoul to expand ties with Beijing, Tokyo in marine shipping amid pandemic

South Korea said Sunday it plans to bolster ties with neighboring countries in the field of marine shipping to overcome the pandemic-caused challenges, by utilizing smart technologies and promoting non-contact cooperation. South Korea will take part in a virtual ministerial meeting for logistics slated for Monday, and plans to request China and Japan to bolster shipping industry ties to cope with the virus pandemic, according to the Ministry of Oceans and Fisheries. "South Korea, China,

IndustryJune 28, 2020

Duty-free sales rebound in May amid virus outbreak

South Korean duty-free stores saw their sales rebound slightly in May after dipping below the 1 trillion-won ($804 million) mark in April amid the new coronavirus pandemic, industry data showed Sunday. Combined sales of local duty-free shops rose 3 percent on-month to reach 1.02 trillion won, rebounding from 986.7 billion won in April, according to the data from the Korea Duty Free Shops Association. The number of visitors to duty-free outlets came to some 466,000 last month, up from 354,000

ConsumerJune 28, 2020

Japanese carmakers suffer extended setback in S. Korea from trade row

Japanese automakers are suffering an extended slump in South Korea amid a protracted trade row between the two Asian neighbors and the coronavirus pandemic, industry sources said Sunday. Honda Korea reported an operating profit to 1.98 billion won ($1.64 million) in the 2019 fiscal year that ended in March, plunging 90 percent from 19.6 billion won a year earlier, according to its audit report. Its sales also plunged 23 percent to 363.2 billion won from 467.4 billion won over the cited period.

MobilityJune 28, 2020

Samsung to launch 2 foldable smartphones in H2: sources

Samsung Electronics Co. is expected to launch two new foldable smartphones in the second half of the year, with an affordable foldable handset model likely to come out next year, industry sources said Sunday. Samsung is projected to unveil the Galaxy Fold 2 and the 5G variant of the Galaxy Z Flip at an event in August, along with its flagship phablet Galaxy Note 20 series, according to the sources. But its affordable foldable smartphone, presumably named the Galaxy Fold Lite, is not likely t

TechnologyJune 28, 2020

Mobile carriers tipped to deliver robust Q2 earnings on expanded 5G presence: poll

South Korea's major mobile carriers are expected to report improved bottom lines in the second quarter on the back of a rise in subscribers to 5G network services amid the pandemic, analysts said Saturday. The combined net profits of the country's three major carriers -- SK Telecom Co., KT Corp. and LG Uplus Corp. -- are estimated at 711 billion won ($591 million) in the April-June period, compared with 561 billion won from the previous year, according to a poll by Yonhap Infomax, the financia

TechnologyJune 27, 2020

Samsung heir wins public backing in legal battle, but uncertainty remains

Samsung Group heir apparent Lee Jae-yong was granted a respite Friday in a legal battle over his alleged role in a controversial merger and fraudulent accounting, as an independent panel of experts concluded that prosecutors should not indict him.    The panel, made up of civil activists, legal experts and others, concurred that the investigation into Lee unwarranted.    Early this month, a few days ahead of a court ruling over his detention, Lee, vice chairman at Samsun

IndustryJune 26, 2020

Firms share best practices for post-COVID recovery at AmCham seminar

Companies doing business in Korea have shared their best practices and lessons learned amid the pandemic in a seminar hosted by the American Chamber of Commerce in Korea on Friday. On the day, AmCham hosted the “Doing Business in Korea Seminar 2020,” which was attended by around 100 distinguished guests, including officials from the US and Korean governments and CEOs of foreign companies. In his congratulatory remarks, AmCham Chairman & CEO James Kim highlighted the need fo

IndustryJune 26, 2020