S. Korea's Q1 exports of new-industry goods soar despite virus

South Korea's first-quarter exports of eight new-industry goods jumped despite a drop in overall exports due to the new coronavirus pandemic, data showed Friday. Overseas shipments of those products came to $21 billion in the January-March period, up 17 percent from a year earlier, according to the data from the Korea International Trade Association (KITA). They include next-generation semiconductors, biohealth products, electric vehicles, new-energy goods, robots, aviation products and drone

EconomyMay 22, 2020

Kospi rises close to 2,000 points on coronavirus vaccine news

South Korean stocks opened higher Thursday on encouraging news about another COVID-19 candidate vaccine in the US. Extending gains for the fifth consecutive day, the nation’s main bourse Kospi crossed the 2,000-point mark in early morning trading for the first time since March 6 as it rose 13.65 points, or 0.68 percent, to 2,003.20. It closed at 1998.31, up 0.44 percent. Retail investors drove the index as they bought stocks worth some 204.9 billion won ($166.5 million) while instituti

MarketMay 21, 2020

Flu vaccinations key this fall, winter: KCDC

A second round of novel coronavirus infections could coincide with the return of seasonal flu in fall, South Korean health authorities said Thursday, and that greater influenza vaccination will be “one of the most essential interventions” in fending off the double risk of contagion. Korea Centers for Disease Control and Prevention’s Deputy Director Kwon Jun-wook said in a press briefing Thursday afternoon that flu vaccination was projected to be “more critical than ever

TechnologyMay 21, 2020

W550b Young City prime office deal closes

A consortium composed of D&D Investment and NH Investment & Securities has completed its acquisition of Young City office complex from UK-based investment house Actis for 550 billion won ($447.2 million), the deal manager Cushman & Wakefield Korea said Thursday. D&D Investment, an affiliate of SK conglomerate’s real estate development arm SK D&D, seeks to establish a real estate investment trust called Young City REITs by securitizing the properties. The deal allowe

MarketMay 21, 2020

Posco joins Responsible Minerals Initiative

Posco said Thursday it has become the first South Korean steelmaker to join the Responsible Minerals Initiative. The RMI, which was founded by members of Responsible Business Alliance and the Global e-Sustainability Initiative in 2008, is a global consultative group of companies from a range of industries, addressing responsible mineral sourcing in supply chains. About 380 companies, including Apple, Tesla and Samsung Electronics, are members of the initiative. Posco said it will be able to

IndustryMay 21, 2020

[Herald Interview] Ocado Solutions in talks with retailers to enter Korea

British grocery e-commerce service provider Ocado Solutions is in talks with major grocery retailers in South Korea to present its advanced automation system, according to its chief executive. Recognizing how Korea has well-developed online consumer habits, it is an exciting market to introduce the Ocado Smart Platform specialized in grocery business, CEO Luke Jensen told The Korea Herald in an exclusive interview. “We are discussing with various players in the (Korean) market, to deter

ConsumerMay 21, 2020

KT CEO meets venture capitalists amid COVID-19

KT CEO Koo Hyun-mo on Wednesday met with representatives of venture capital firms, urging them to look into new opportunities to prepare for the post-coronavirus era, the firm said Thursday. Speaking during a seminar hosted by the telecommunications firm, Koo discussed some new business areas -- online education solutions, telecommuting platforms, telemedicine and others -- where the new coronavirus had strengthened demand. Some 40 executives from up-and-coming venture capital companies were

TechnologyMay 21, 2020

KAIA appoints new vice chairman with close ties to Moon

Korea Aerospace Industries Association said Thursday it has appointed former external cooperation advisor of Gangwon Province Joung Kyung-hwan as its new vice chairman. Joung was a strategic advisor to President Moon Jae-in’s presidential election campaign committee from September 2016 to March 2017. He also headed the message team for three months when President Moon made his first presidential bid in 2012. Previously in 2002, Joung was credited for aiding late President Roh Moo-hyun

TechnologyMay 21, 2020

LIG Nex1 clinches W159.2b radio system deal in Indonesia

South Korean defense firm LIG Nex1 said Thursday it has won a radio system deal worth 159.2 billion won ($129.4 million) from the Indonesian police. According to the company, it will supply trunked radio communication system, or TRS, to the Indonesian police by 2022. The TRS uses several channels or frequencies, and allows the channels to be shared by a large number of certified users, in multiple talk groups, without their conversations interfering with each other. Rather than requiring a

IndustryMay 21, 2020

Seoul stocks extend winning streak to 5th session

South Korean stocks closed higher Thursday to extend their winning streak to a fifth session, the longest period of this year, on growing hope over the resumption of global business activities. The local currency fell against the US dollar. The benchmark Korea Composite Stock Price Index (KOSPI) added 8.67 points, or 0.44 percent, to close at 1,998.31. Trading volume was moderate at some 588 million shares, worth about 8.5 trillion won ($6.92 billion), with gainers outnumbering losers 463 to 3

MarketMay 21, 2020

Macrogen’s COVID-19 test kit approved for export

Macrogen, a genomics biotech company, announced Thursday that its AxenTM Covid-19 RT test kit has gained the Drug Ministry’s approval for export. “We are planning to supply our test kit to major countries, which contacted us even during the test kit development phase and were looking forward to export approval together with us,” said Macrogen CEO Lee Su-kang. “We will not only improve our test kit’s performance to detect numerous mutations of coronavirus, which

IndustryMay 21, 2020

Netflix pressed to share network costs in S. Korea

Netflix, the world's leading videostreaming service provider, will come under growing pressure to share the network costs here following the revision to related laws, industry sources said Thursday. On Wednesday, the National Assembly approved the revision to the country's telecommunications business act, which stipulates, in a nutshell, foreign content providers, as well as local players, are also responsible for providing stable services to users. The revision was widely seen as a move to p

IndustryMay 21, 2020

[Market Close-up] Doosan Bobcat under credit pressure on US unit’s $300m leveraging plan

South Korea’s construction equipment maker Doosan Bobcat is under credit pressure as its US subsidiary Clark Equipment is looking to leverage $300 million via five-year senior secured notes in May, filings showed Thursday. Clark Equipment’s leveraging plan is adding a financial burden to Doosan Bobcat, as affiliates and subsidiaries of conglomerate Doosan Group‘s liquidity crunch might spill over to Doosan Bobcat that is already suffering a sharp fall in sales due to the ongo

MarketMay 21, 2020

Eximbank issues AU$700m Kangaroo bonds

The state-run Export-Import Bank of Korea said Thursday it has issued a three-year Australian dollar-denominated bonds worth AU$700 million ($460 million) to investors. Following the deal, Eximbank said it has become the first Asian financial institution to sell Kangaroo bonds, or Australian dollar-denominated bonds issued by a non-Australian entity, since the coronavirus outbreak. The bonds were oversubscribed as Eximbank received AU$1.7 billion subscriptions from 57 investors. JPMorgan, Mits

MarketMay 21, 2020

S. Korea to examine FX trading rules to ensure dollar liquidity

SEJONG -- South Korea plans to comprehensively examine its rules on foreign exchange trading as it seeks to ensure dollar liquidity amid lingering uncertainties in global markets over the coronavirus pandemic, Vice Finance Minister Kim Yong-beom said Thursday. Measures to help banks inject more dollars into local markets, including an eased rule on the foreign exchange liquidity coverage ratio (LCR), will be put into place for the time being, Kim said during a meeting with senior officials fr

EconomyMay 21, 2020

Producer price index falls for third consecutive month in April

South Korea’s producer price index, which serves as a yardstick for inflation, slipped 0.7 percent on-month in April, extending its decline for the third consecutive month, data from the central bank showed Thursday. The index, which reflects how domestic producers receive price changes regarding their outputs, came to 102.08 last month, which fell from the corresponding and revised figure of 102.82 in March. The figure slipped 1.5 percent on-year. The Bank of Korea said that the index

EconomyMay 21, 2020

S. Korea should enhance protection for local industries amid ‘global investment protectionism’: KIEP

While the global market dwindled and corporate assets depreciated amid the COVID-19 pandemic, the limited range and number of companies and assets with growth momentum have gained popularity from investors across borders. In order to keep the balance between economic revitalization and protection of “strategic business assets,” policymakers should raise the threshold for aspiring foreign investors here, according to a state-affiliated think tank. “The preliminary screening pr

EconomyMay 21, 2020

Kia vows all-out efforts to strengthen exports amid COVID-19 crisis

Kia Motors said Thursday it is making all-out efforts to break through export woes amid the COVID-19 pandemic by enhancing online sales and services platforms for overseas customers. In this context, Kia Motors President Song Ho-sung visited Pyeongtaek Port, the country’s main gateway for automotive exports, to check the product quality and encourage workers, the automaker said. “The current economic situation is definitely a crisis due to COVID-19, but all divisions at Kia Motors

MobilityMay 21, 2020

Korea’s top 50 firms see operating profit plunge last year

The combined operating profit of South Korea’s top 50 companies fell 61 percent in 2019 from the previous year, due mainly to the weak performance of tech giants, latest data showed Thursday. Local research firm Sustainable Growth Institute surveyed earnings data of the nation’s 50 largest companies by sales between 2018 and 2019. The survey found the combined operating profit of the top 50 companies in 2018 was 87.7 trillion won ($71.1 billion), but their operating profit shrank

IndustryMay 21, 2020

Household income grows, but wealth gap widens in Q1

SEJONG -- South Korea's household income rose in the first quarter from a year earlier, but the income gap between the haves and have-nots widened, as the employment situation of the low-income bracket worsened amid the coronavirus pandemic, a report showed Thursday. The average household earned 5.35 million won ($4,357) per month in the first quarter, up 3.7 percent from the previous year, according to the report by Statistics Korea. Household income earned through wages rose 1.8 percent on

EconomyMay 21, 2020