Four out of 10 Koreans suffer pay cut amid pandemic

Over 40 percent of workers in South Korea have suffered a wage cut due to changes in their working conditions sparked by the coronavirus pandemic, a survey showed Wednesday.  According to the survey conducted by Incruit, a job search website, some 42 percent of respondents said their paychecks were reduced after January when the novel coronavirus started to hit the country. Reasons for pay cuts varied, with some saying they were forced to take unpaid leave and others suffering wage freeze

EconomyMay 7, 2020

S. Korea to offer W1.5tr in subsidies to temporary workers affected by coronavirus

SEJONG -- South Korea will provide 1.5 trillion won ($1.2 billion) in subsidies to temporary workers who lost their jobs due to the coronavirus pandemic, Finance Minister Hong Nam-ki said Thursday. The move is the government's latest measure to protect the nation's job market as the pandemic is expected to force an economic contraction this year. Temporary or freelance workers who lost their jobs will be eligible for the subsidies, and they will receive a total of 1.5 million won each, Hong s

EconomyMay 7, 2020

Seoul stocks open lower on dismal data from major economies

Seoul stocks opened lower Thursday following dismal economic data from major economies amid the novel coronavirus pandemic. The benchmark Korea Composite Stock Price Index (KOSPI) shed 6.74 points, or 0.35 percent, to 1,922.02 in the first 15 minutes of trading. US stocks closed mixed Wednesday (local time). The Dow Jones Industrial Average lost 0.91 percent to close at 23,664.64, but the tech-heavy Nasdaq Composite advanced 0.51 percent to finish at 8,854.39. Investors apparently focused on

MarketMay 7, 2020

S. Korea's current account surplus widens in March on investment gains

South Korea's current account surplus widened from a year earlier in March as a sharp increase in primary income helped offset a slight drop in its goods account surplus, central bank data showed Thursday. The country's current account surplus came to $6.23 billion in the month, compared with a $5.04 billion surplus the same month last year, according to preliminary data from the Bank of Korea (BOK). South Korea has posted a current account surplus for 11 consecutive months. Its goods accoun

EconomyMay 7, 2020

Ministries told to cut discretionary spending by 10% for 2021 budget

The Ministry of Economy and Finance on Wednesday asked all government ministries to cut discretionary spending by 10 percent in their requests for next year’s budget. The government aims to use the money saved to invest in new projects that could reinvigorate the economy amid signs of an economic downturn brought on by the latest coronavirus pandemic, according to the Finance Ministry. A task force formed of vice ministers and ranking officials will be launched to map out a strategic b

EconomyMay 6, 2020

Kakao Bank triples operating profit

South Korea’s top internet-only bank Kakao Bank said Wednesday that its operating profit nearly tripled in the first three months this year over soaring demand for mobile loan services and stock trading accounts. The internet-only bank’s operating profit came in at 18.4 billion won ($15 million) in the first quarter, up from 6.4 billion a year before. Founded in January, 2016, the company posted losses in the first couple of years, but made a turnaround in 2019 with a net profit o

MarketMay 6, 2020

KT&G donates COVID-19 test kits worth W100m to Indonesia

South Korean tobacco giant KT&G said Wednesday that it had donated 100 million won ($81,780) worth of COVID-19 test kits to Indonesia, where it has a corporate body. According to the company, it delivered the kits, which are made in Korea and can diagnose 6,300 people, via its overseas corporate body to the Indonesian National Board for Disaster Management on Tuesday. “We made the decision to support the country where our overseas office is located to lend help,” a KT&G

IndustryMay 6, 2020

Wrinkle treatment companies vie to fill hole left by Meditoxin

“Saturated” is a word often used to describe the Korean botulinum toxin market, which has been dominated by first movers Medytox and Hugel. But the playing field is about to undergo a major shift, as No. 1 player Medytox faces the possible revocation of its license to sell cash cow Meditoxin. Anticipating the potential disappearance of Meditoxin, several players are already out to grab a slice of the pie. Hugel, Daewoong Pharmaceutical, Huons, Chong Kun Dang and more are lining up

IndustryMay 6, 2020

Top Korean refiner hemorrhages W1.7tr in Q1 due to coronavirus

South Korea’s leading refiner and chemical company SK Innovation on Wednesday said it has swung to red with an operating loss of 1.7 trillion won ($1.3 billion) in the first quarter -- its worst performance amid the sharp slump in global demand due to the COVID-19 pandemic. The company recorded revenue of 11.1 trillion won, a 12.6 percent drop on-year. Its operating loss was triggered by its ailing petrochemicals business, which lost 1.6 trillion won in the first quarter. “Due t

IndustryMay 6, 2020

Samsung heir pledges not to pass on group control to children

Apologizing for past wrongdoings while inheriting leadership from his father, Samsung Electronics heir and Vice Chairman Lee Jae-yong pledged Wednesday he will not hand over management control to his children. “I will not pass the company’s managerial rights to my children,” Lee said during a televised press conference, arranged upon the firm’s external compliance committee’s advice. He touched on issues chosen by the committee, including an apology over illegal

IndustryMay 6, 2020

Seoul stocks end higher on hopes over economy reopening

South Korean stocks advanced by more than 1 percent Wednesday as investors bet on the reopening of businesses around the globe after coronavirus lockdowns. The Korean won sharply rose against the US dollar. The benchmark Korea Composite Stock Price Index (KOSPI) gained 33.39 points, or 1.76 percent, to close at 1,928.76. Trading volume was high at 1 billion shares worth 8.4 trillion won ($6.7 billion), with gainers far outpacing losers 695 to 146. The index stayed above the flatline througho

MarketMay 6, 2020

[Breaking] Lee Jae-yong: I will not pass on Samsung’s management to my children

Samsung Electronics heir and Vice Chairman Lee Jae-yong on Wednesday said he plans not to pass on the management of the tech empire to his children, in a televised public apology in Seoul. “I would like to take this opportunity to say that I do not plan on bequeathing the management rights of the company to my children,” Lee said. “I have thought about it for a long time, but it is the first time to publicly say it,” he said as he stood before reporters to deliver the

IndustryMay 6, 2020

Hyundai Mobis develops engine sound system for EVs

Hyundai Mobis, an auto parts making unit of Hyundai Motor Group, said Wednesday that it has developed the world’s first virtual engine sound system called Acoustic Vehicle Alert Sound with a vehicle’s grille cover.  The system was created by making use of the grille cover of the electric car, which has a completely blocked front grille unlike a combustion engine car that has an open-type grille in the front, as part of the speaker.  The sound system makes a beeping sound

MobilityMay 6, 2020

Hyundai’s all-new Palisade debuts with highest-level trim

Hyundai Motor Group said Wednesday that it has launched the latest version of its sport utility vehicle Palisade incorporating the highest-level trim, following consumer demand. The automaker has added the highest grade trim of 2020 Palisade called Calligraphy, a concept which was first introduced to the new Grandeur launched last year.  The all-new Palisade has applied a special radiator and intake grille, wheel designs, a skid plate and a body color cladding, the company said.  T

MobilityMay 6, 2020

Tech firms gear up for IPOs in H2

Twenty firms have submitted preliminary applications for initial public offerings to the Korea Exchange in April, five times higher than the previous month, a report by a local brokerage showed Wednesday. “With the number of confirmed COVID-19 cases sharply declining and the continued stock index rally in mid-April, the number of firms preparing for listing plans has greatly increased,” said Lee So-joong, an analyst at SK Securities. “Despite lingering uncertainty of the CO

MarketMay 6, 2020

LG files over 1,000 patents for steam tech

LG Electronics said Wednesday it has filed over 1,000 patents related to its proprietary steam technology. The South Korean tech giant has been highlighting the role of steam in home appliances ranging from clothes care systems, dryers and dish washers to ovens, amid the growing interest in health and hygiene in the wake of the coronavirus spread. Trademarked as TrueSteam, the LG steam technology was first applied to a washing machine in 2005, which helped enhance the washing quality by remo

TechnologyMay 6, 2020

Online shopping jumps nearly 12% on-year in March amid virus pandemic

Online shopping surged nearly 12 percent from a year earlier in March, data showed Wednesday, an apparent outcome of the new coronavirus outbreak that forced people to stay home. The value of online transactions came to about 12.58 trillion won ($10.3 billion) in the month, up 11.8 percent from the same month last year, according to the data from Statistics Korea. The increase followed a 24.5 percent on-year spike the previous month. The sharp increase in March was largely attributed to the

ConsumerMay 6, 2020

Number of full-time workers plunges in March amid pandemic

The true impact of the pandemic on the job market in March was far more serious than government data would suggest, a local research institute said Wednesday. The Korea Economic Research Institute said a team led by professor Park Ki-sung from Sungshin Women’s University reworked the raw material used to calculate the employment statistics, instead using the Full-Time Equivalent method to determine actual employment growth. Under the FTE method, an employee working 40 hours a week count

IndustryMay 6, 2020

BOK offers additional $1.33b to banks via US currency swap

The Bank of Korea (BOK) said Wednesday it will deliver an additional $1.33 billion to local banks under its bilateral currency swap arrangement with the US Fed that is designed to help stabilize the local foreign exchange market. The BOK held its sixth online auction to provide FX liquidity earlier in the day, but bids undershot the target amount of $4 billion. The central bank said it will temporarily suspend its online bids, noting the shortfall in bids may indicate abundant liquidity in th

EconomyMay 6, 2020

Exports of foodstuffs up 3.8% through April amid pandemic

South Korea's exports of agricultural and meat products increased 3.8 percent in the first four months of 2020 from a year earlier, data showed Wednesday, on the back of rising demand for processed foodstuffs around the globe amid the new coronavirus pandemic. Outbound shipments of such goods reached $2.38 billion during the January-April period, according to the data compiled by the Ministry of Agriculture, Food and Rural Affairs. "Amid the lockdowns around the globe, shipments of snac

EconomyMay 6, 2020