LIG Group honorary chairman dies at age 86

LIG Group Honorary Chairman Koo Cha-won died Saturday of a chronic illness, the company said. He was 86. Born in 1935, Koo was the second-generation leader at LIG Group, which was spun off from LG Group in 1999. Koo headed LIG Insurance before selling the country's fourth-largest non-life insurer to KB Financial Group Inc., a major South Korean banking group, in 2015. He also served as honorary chairman of LIG Nex1, a key South Korean defense company. Koo was a younger cousin of LG Group Hon

IndustryMarch 28, 2020

Korea’s short-term funding market reels from coronavirus

South Korea’s short-term funding market is showing no signs of stabilizing, despite the central bank’s relief package to help ease the credit crunch amid the global coronavirus pandemic. The interest rate of commercial papers with 85-91 days of maturity -- a frequent short-term debt instrument by nonfinancial companies -- soared to 2.09 percent Friday, up 5 basis points from the previous day’s close, according to data from the Korea Financial Investment Association. The figur

MarketMarch 28, 2020

Calls for basic income subsidy support grow

Provincial governors and mayors urged the central government Saturday to shoulder the cost of basic income subsidies to help citizens. “It is imperative for the (central) government to take more aggressive and proactive measures to bring the society‘s safety net back to normal,” the Governors Association of Korea, composed of the heads of 17 local governments, said in a proposal to Korea‘s central government. “Facing a national emergency, the (central) governmen

EconomyMarch 28, 2020

S. Korea calls for allocation of Special Drawing Rights

South Korea's finance minister has called on the International Monetary Fund to consider allocating the Special Drawing Rights, an international reserve asset, to provide global liquidity amid the rapidly spreading coronavirus pandemic. Hong Nam-ki made his case in a video conference of the International Monetary and Financial Committee, the governing body of the IMF, which was held Friday to discuss the unprecedented challenge posed by COVID-19. The SDR is an international reserve asset that

MarketMarch 28, 2020

S. Korea approves W1tr financial relief package for Doosan Heavy

South Korea’s government and key state-run banks on Friday sealed a plan to provide a credit line of 1 trillion won ($826 million) to Doosan Heavy Industries & Construction, in an effort to prevent a possible liquidity crunch amid the novel coronavirus spread. As the key creditor, the Korea Development Bank said it will provide financial support to the struggling power equipment maker jointly with the Export-Import Bank of Korea. “Together, we shall provide some 1 trillion w

MarketMarch 28, 2020

Hanjin KAL’s proxy war to intensify despite activist fund's defeat

South Korea’s activist private equity fund Korea Corporate Governance Improvement on Friday vowed to restore Hanjin Group “back on track,” signaling its push for activism despite the Friday defeat. “We could feel the shareholders' desire to change Hanjin KAL’s management by the owner family,” the coalition led by KCGI wrote in a letter to shareholders. “The most crucial is for Hanjin Group to make a breakthrough, and we believe that the only solut

MarketMarch 27, 2020

IATA urges rescue package for virus-hit S. Korean airlines

The International Air Transport Association (IATA) has called on South Korea to offer a comprehensive rescue package to support local airlines "in grave and immediate danger of insolvency," according to Korean Air Lines Co. on Friday. In a letter sent to President Moon Jae-in this week, IATA, a global trade association for the airline industry, asked the Seoul government to urgently extend direct financial support, loan guarantees by the government, support for corporate bond issuanc

MobilityMarch 27, 2020

LG dumps flagship smartphone brand G Series

LG Electronics has decided to drop plans to highlight its flagship smartphone brand G Series as part of efforts to turn around its struggling mobile device business, according to industry sources Friday. The company has reportedly decided to ditch the brand name for premium, mass-market models, according to sources. Instead it will start giving separate names for each model. The decision was made public at a meeting between the company and mobile carriers in South Korea. Since launched

TechnologyMarch 27, 2020

SPC Samlip appoints Hwang Jong-hyeon as new CEO

SPC Samlip, a bakery and restaurant franchise giant, said Friday it has appointed Hwang Jong-hyeon as its new chief executive. SPC Group, the holding company, said it has also appointed Ahn Ji-yong as the new CEO to lead its subsidiary SPC GFS. Hwang served as the CEO of Samjin Eomuk, a fish cake maker, and previously worked for Dongwon F&B, the food division for Dongwon Group, for 30 years to lead numerous mergers and acquisitions and contributed to the growth of Dongwon’s dairy

ConsumerMarch 27, 2020

Lotte Shopping stresses profitability as utmost priority

Lotte Shopping said Friday it plans to undergo major restructuring, including shutting down money-losing stores and sluggish businesses, while taking measures to strengthen its e-commerce platform. Lotte Shopping operates the retail unit of Lotte Group, including the department store and mart. During its general shareholders meeting held in Seoul, Lotte Shopping CEO Kang Hee-tae announced improving profitability as the company’s utmost priority this year. “While we expect a dif

ConsumerMarch 27, 2020

Non face-to-face food ordering services popular amid social distancing trend

Baemin Order, an ordering and payment service for restaurants, accumulated over 2 million orders in five months since its launch in November, its operator Baedal Minjok said Friday. Baemin Order, which can be accessed through the Baedal Minjok delivery app, is a service in which users can order and pay for food in advance of a visit to a restaurant. This service allows users to either pick up the food or dine in at the restaurant without making contact with a server, Baedal Minjok explained.

ConsumerMarch 27, 2020

Samsung, LG employees to get lower pay raise this year

South Korea’s biggest companies Samsung Electronics and LG Electronics have decided to lower the pay raise for employees this year, according to industry sources Friday. Samsung’s management and representatives of the employees have agreed on a 2.5 percent increase in base salary. However, depending on personal performance evaluation, the rate will vary. Samsung granted a pay raise of 3.5 percent in 2018 and 2019. The lower increase this year reflects growing uncertainties in

TechnologyMarch 27, 2020

Hanjin Group Chairman Cho Won-tae reelected as executive director of Hanjin KAL

Hanjin Group Chairman Cho Won-tae was reappointed as executive director of Hanjin KAL, the holding company of Hanjin Group that owns Korean Air, on Friday, a much anticipated result despite a monthslong tug-of-war with his sister Cho Hyun-ah over the management control. According to Hanjin KAL, Cho garnered 56 percent approval during the shareholders meeting held at Hanjin KAL headquarters in Seoul on Friday. About 43 percent were against him holding the post.  Despite concerns to mainta

MobilityMarch 27, 2020

Hyundai Motor Group promotes Kia’ vice president, appoints foreign leaders

Hyundai Motor Group said Friday that it has promoted Kia Motors Vice President Song Ho-sung to president and appointed Jochen Paesen to lead Kia Motors’ interior design team as a director. The company said the latest executive reshuffle is to execute the company’s future mobility vision and bring change to the current leadership.  President Song had previously led the automaker’s export sales, European sales and global business management teams, the company said. He is

MobilityMarch 27, 2020

Korean firm buys stake in Russian liver cancer therapy developer for $20m

Seoul-based Thelma Therapeutics said Friday it has closed a deal to buy 27 percent stake in Russian liver cancer therapy developer for 24.3 billion won ($20 million), to tap the overseas health care market. The stake was of NBT, a parent company that wholly owns radioembolization therapy device developer Bebig, both located in the Dubna Special Economic Zone on the northern outskirts of Moscow. Bebig is known for selling the therapy device called Microsphere, used to cure liver cancer -- a the

MarketMarch 27, 2020

Samsung, LG, Hyundai close more overseas plants

South Korean firms are shutting down more facilities across the world given the coronavirus spread, according to industry sources Friday. Samsung Electronics has reportedly decided to shut down its home appliance factory in Campinas, Brazil, following the closure of its smartphone plant in Manaus in the country earlier this week. The Campinas facility will be closed for two weeks from Monday through April 12. The shutdown of the Manus plant will also be extended to April 12. LG Electronics

IndustryMarch 27, 2020

S. Korea posts record high trade surplus in copyrights in 2019

South Korea posted a record high yearly trade surplus in copyrights last year, backed by the global popularity of K-pop, extending its annual surplus streak for the seventh year, the culture ministry said Friday. The trade surplus in copyrights came to $1.62 billion in 2019, the biggest yearly earnings since relevant figures were first compiled in 2010, the Ministry of Culture, Sports and Tourism said, citing data from the Bank of Korea. The same year, South Korea's trade balance in broader in

EconomyMarch 27, 2020

Consumer sentiment dips to over 10-year low in March

Amid the snowballing economic fallout of the novel coronavirus, South Korea saw its consumer sentiment aggravate in March, hitting its lowest point in more than a decade, central bank data showed Friday. The composite consumer sentiment index, or CCSI, stood at 78.4 in March, down 18.5 points on-month and marking the lowest score since March 2009, when the world was reeling under the global financial crisis, according to data from the Bank of Korea. The corresponding survey was conducted o

EconomyMarch 27, 2020

Mirae Asset Daewoo loses $5m in email scam

Korean brokerage firm Mirae Asset Daewoo said Friday that its Hong Kong branch has suffered a loss of $5 million in a recent email fraud scam. The firm’s Hong Kong branch concluded an underwriting agreement to take over airplanes from an aircraft leasing company last year and made another contract to sublease the aircrafts to a carrier in Asia. But it was targeted in a “spear-phishing” attack while paying the balance, the brokerage said. Spear-phishing is an email scam targe

MarketMarch 27, 2020

LG Group chief highlights risk management amid virus spread

LG Corp. CEO Koo Kwang-mo, leader of South Korea’s fourth-largest conglomerate, said Friday he will focus on risk management amid the global coronavirus pandemic. At the company’s annual shareholders meeting held at its headquarters in Yeouido, western Seoul, Koo highlighted that LG Group will need to be unshaken by the current risks and rather focus on prioritizing customer value. “Amid the persisting uncertainties triggered by the global coronavirus spread in the busine

IndustryMarch 27, 2020