[News Focus] Korea’s employment lags OECD average

SEJONG -- President Moon Jae-in, who will complete 60 percent of his term this weekend, has continued to unveil his strong commitment to active job creation since taking office in 2017. But, as of March 2020, the data held by the Organization for Economic Cooperation and Development showed that South Korea’s employment still falls behind the average of the 36 members. The country remained in the lower ranks for both the working-age population and young generation. The OECD has compared

EconomyMay 5, 2020

Airlines to record worst earnings slump amid pandemic

South Korea’s airline industry is likely to record its worst performance in the first quarter with the dismal situation continuing in the near future. The nation’s largest airline Korean Air, which will announce its first-quarter earnings next week, is expected to post an operating loss of around 240 billion won ($195 million), the first red in 18 quarters since 2015, according to industry watchers. Passenger traffic is expected to shrink around 30 percent on-year. Asiana Airlin

MobilityMay 5, 2020

Brokerages' overseas operations see profit jump in 2019

Overseas branches of South Korean securities companies saw their combined net profit rise 48.5 percent in 2019 from a year earlier due mainly to increased interest income and earnings from commission fees, data showed Tuesday. The combined net profit of 67 overseas branches of 14 securities companies stood at $182.4 million in 2019, up $59.6 million won from 2018, according to the data from the Financial Supervisory Service. The hike in net profit came on the back of increased interest income

MarketMay 5, 2020

[Monitor] Asia’s travel industry to take hardest hit from COVID-19

A total of 100.8 million jobs dedicated to travel and tourism are forecast to be slashed due to the impact of the coronavirus pandemic, according to data from the World Travel & Tourism Council. Asia’s travel industry is projected to be hit hardest, with an estimated 63.4 million job losses, the data showed. The job cuts are expected to shave about $1.04 trillion off the region’s aggregate gross domestic product. That would account for nearly half of the world’s tot

IndustryMay 5, 2020

Yulchon scouts US litigation expert from O’Melveny & Myers Seoul office

South Korean law firm Yulchon said Monday that it had named Kim Yong-sang, a US lawyer specializing in international litigation and arbitration, as co-head of its international dispute resolution team. Kim had previously worked as co-representative of the Seoul office of Los Angeles-based international law firm O’Melveny & Myers since 2016. Kim is noted for his 15 years of experience and expertise in US litigation involving antitrust, anti-corruption, international arbitration a

MarketMay 4, 2020

Coronavirus-inspired changes to arrive in S. Korean health care

South Korea is introducing new health care services to brace for the lasting impact of the novel coronavirus outbreak, intent to prevent a system collapse should a second wave of infections occur. The Ministry of Health and Welfare said in a press briefing Monday that remote medical care and respiratory-only health facilities would be set up to cope with possible rise in demand in the fall and winter, when respiratory illnesses are common. “By isolating patients with respiratory symptom

TechnologyMay 4, 2020

South Korean telecom firms expand AI-based senior care services

South Korean telecom firms have expanded their ICT-based senior care services recently, against the backdrop of increasing demand from an aging population. The services mainly use artificial intelligence-powered speakers, as well as the new 5G network and virtual reality programs. As of end-2018, there were 7.6 million people aged 65 years and over in Korea, according to the National Health Insurance Service in 2019. “There is an increasing number of seniors who need home care services

TechnologyMay 4, 2020

Retailers roll out Family Month promotions

After COVID-19 dampened consumer sentiment for the first quarter, retailers are pinning their hopes on Family Month and are rolling out various promotions to get consumers to open their wallets in May. May is usually a good month for the retail industry because of three holidays that tend to increase consumer spending on gifts for loved ones and teachers. Tuesday is Children’s Day, Friday is Parents’ Day and Teachers’ Day is May 15. To ease the burden on consumers amid th

ConsumerMay 4, 2020

Samsung makes largest R&D investment in Q1

Despite uncertainties in the global business environment triggered by the coronavirus pandemic, South Korea’s biggest tech giant Samsung Electronics said Monday it made the largest-ever investment in research and development in the first quarter. The South Korean tech giant spent a total of 5.36 trillion won ($4.37 billion) on R&D activities in the January-March period, surpassing its previous record of 5.32 trillion won in the fourth quarter of 2018, its financial data reported to

TechnologyMay 4, 2020

Ex-Shinhan Bank CEO takes post as Heungkuk Life vice chairman

Former Shinhan Bank CEO Wi Sung-ho has joined Taekwang Group as an executive member of its insurance arm, filling his financial career vacuum after stepping down from his previous post. Wi on Monday attended his first day on the job as the new vice chairman of Heungkuk Life Insurance, according to the insurer’s officials. He will also serve as management adviser for Heungkuk Fire & Marine Insurance, Heungkuk Securities, Heungkuk Asset Management, Goryo Savings Bank and Yegaram Saving

MarketMay 4, 2020

[Market Close-Up] How traditional banks can survive in the fintech era

Competition between traditional banks and fintech or Big Tech companies, such as Kakao, is set to heat up further as the financial authorities clear away hurdles to new projects. In this new environment, traditional lenders will be required to diversify their revenue sources -- from interest on loans to commissions and trusts -- to keep their heads above water in the financial market, officials and experts here say. “With the digitalization of the global economy and the expansion of e-co

MarketMay 4, 2020

Seoul stocks snap 3-day winning streak on renewed US-China tensions

South Korean stocks snapped a three-day rally to drop more than 2 percent Monday on renewed tensions between the United States and China amid the novel coronavirus pandemic. The Korean won sharply fell against the US dollar. The benchmark Korea Composite Stock Price Index (KOSPI) shed 52.19 points, or 2.68 percent, to close at 1,895.37. Trading volume was high at 1.1 billion shares worth 10.1 trillion won ($8.2 billion), with losers outpacing gainers 549 to 312. Investor sentiment was spooke

MarketMay 4, 2020

Foreigners likely to extend stock selling spree in May amid sluggish exports

South Korea’s bourse regained some momentum in April as the spread of the new coronavirus showed signs of easing but the prolonged export slump will continue to deter foreign investors, brokerages said Monday. According to the Korea Exchange, the country’s main bourse Kospi plummeted to an 11-year low of 1,439.43 on March 19, but recovered 35.3 percent to reach 1,947.56 on Wednesday. After a selling spree by foreign and institutional investors on Monday, the index once again plung

MarketMay 4, 2020

Meditoxin license revocation hearing postponed

The Drug Ministry hearing that could potentially revoke the pharmaceutical license for Meditoxin, South Korea’s first botulinum toxin product, was postponed on the day it was scheduled to be held, Monday. The hearing is the pharmaceutical firm’s last chance to express its side of the story before the Drug Ministry makes a decision as to whether to withdraw its approval to manufacture and sell the drug. It would have been a fateful day for Medytox, had it not been for a personal m

IndustryMay 4, 2020

Mirae Asset drops $5.8b US hotel deal as litigation escalates

Mirae Asset Global Investments, the asset management arm of Korean financial group Mirae Asset, said Monday that it scrapped a $5.8 billion deal to acquire 15 luxury hotel properties in the United States from Chinese investor Dajia Insurance, weeks after it called off the takeover. Mirae Asset, which acts on behalf of funds it manages, also said it invoked its right for the return of the 10 percent deposit from a third-party escrow agent as the transaction had failed. Amid ongoing litigation,

MarketMay 4, 2020

S. Korea braces for prolonged COVID-19 economic fallout

South Korea’s government on Monday vowed to announce key economic measures including extensive job creation actions within the upcoming weeks, upon judgment that the economic risks stemming from the novel coronavirus pandemic will persist. “This month will be the time to outline (the directions) for the second-half of the year against the economic crisis,” Deputy Prime Minister and Finance Minister Hong Nam-ki said at a meeting of officials. The chief fiscal policymaker the

EconomyMay 4, 2020

Lotte chief likely to push for Hotel Lotte IPO to win power struggle

Lotte Group Chairman Shin Dong-bin is likely to accelerate the initial public offering of its subsidiary Hotel Lotte to consolidate his grip on the multinational group’s South Korean entities amid a resurfacing proxy battle with his elder brother Shin Dong-joo, analysts said Monday. This comes as he immediately needs to increase the value of Lotte Corp., a Seoul-based holding firm of Korean-Japanese retail giant. The Hotel Lotte IPO will not only water down its Japanese control but also

MarketMay 4, 2020

GM Korea’s SUV Chevrolet Trax tops small SUV sales in US

GM Korea said Monday that its small sport utility vehicle Trax ranked No. 1 in the United States in the category for small SUVs in the first quarter. According to the automaker, an accumulated 28,242 units of Chevrolet Trax have been sold in the US from January to March, topping the list among 15 kinds of small SUVs sold there. Following Trax were Honda HR-V and Hyundai Motor’s Kona at 19,414 units and 15,174 units, respectively.  All Trax models are manufactured at the automaker&

MobilityMay 4, 2020

S. Korea's labor productivity growth slows on lack of investment, innovation

South Korea's labor productivity growth has sharply slowed over the past decade due partly to a lack of investment and innovation, a study suggested Monday. According to You Hye-mi, a professor from Seoul's Hanyang University, the country's labor productivity rose at an annual average of 2.67 percent between the 2010-2018 period, nearly half of the average 4.6 percent posted between the 2001-2008 period. In a research paper, the economics professor partly attributed the drop to the lack of in

EconomyMay 4, 2020

Shinhan Bank copyrights sanction compliance manuals

In a preemptive risk management action, Shinhan Bank has registered the copyrights for the business guidelines and training videos that it has produced to comply with global economic sanctions, officials said Monday. The six articles that the bank has copyrighted include the full version of its economic sanctions compliance manual, the abridged version in Korean, the English version and three versions of related training videos in English, Chinese and Japanese. Last year, in light of the he

MarketMay 4, 2020