[KH Explains] Banks puzzled by derivatives misselling proposal

South Korean regulators’ push for banks to make up for investors’ losses incurred from equity-linked securities tied to a Hong Kong index has left both Korean and foreign banks baffled. Korea's major lenders accepted compensation guidelines suggested by financial watchdog the Financial Supervisory Service last month, agreeing to partly redress investors for the losses from the ELS products. The payback scheme is expected to cost around 2 trillion won ($1.47 billion) in total for

IndustryApril 8, 2024

Late Hanjin chairman’s legacy honored in new biography

Hanjin Group, the South Korean aviation conglomerate behind the nation's flag carrier Korean Air, announced Monday the release of a biography honoring the life and accomplishments of its late chairman Cho Yang-ho. The book, titled “Charting New Horizons: the Life and Legacy of Cho Yang-ho”, was unveiled during Cho's memorial ceremony held on the same day in Singal, Yongin, Gyeonnggi Province. After joining Korean Air in 1974, Cho Yang-ho emerged as a visionary figure in the

IndustryApril 8, 2024

7 in 10 Korean retailers feel threat from Chinese e-commerce rush

Seven out of 10 retailers in Korea say they feel threatened by the rapid expansion of Chinese e-commerce platforms, especially the big three -- AliExpress, Temu and Shein -- an industry-wide survey found Monday. Of the 500 retailers surveyed by the Korean Chamber of Commerce and Industry, the nation’s largest business lobby, 69.4 percent said their businesses are under threat by the Chinese rush, while 74.4 percent expected heightened competition in the market. Almost 60 percent of online

IndustryApril 8, 2024

Foreigners' stock investment hits record high in Q1

Foreign investors sustained a five-month buying streak in the South Korean stock market, resulting in an unprecedented quarterly volume. The Financial Supervisory Service disclosed Monday that foreign investors amassed a total of 15.8 trillion won ($11.67 billion) worth of local shares in the first quarter of this year, marking the highest recorded amount since the agency started compiling data in 1998. In March, approximately 5.1 trillion won streamed into the domestic stock market from oversea

MarketApril 8, 2024

Seoul shares end tad higher on auto, battery stocks

South Korean stocks ended slightly higher Monday on the back of autos and batteries following stronger-than-expected US jobs data. The Korean won fell against the US dollar. The benchmark Korea Composite Stock Price Index gained 3.44 points, or 0.13 percent, to 2,717.65. Trade volume was moderate at 611.2 million shares worth 10.36 trillion won ($7.6 billion), with decliners outpacing gainers 590 to 277. Foreigners bought 207.6 billion won worth of local shares, while retail investors and instit

MarketApril 8, 2024

Hanwha’s succession plan picks up pace

Hanwha Group, Korea’s seventh-largest conglomerate by total assets, is poised to solidify its plan for succession, which will move from the current chairman to his three sons, as the company has taken a clearer stance on who will take charge of each business. According to the conglomerate, Hanwha Group Chairman Kim Seung-youn visited the headquarters of Hanwha Robotics in Pangyo, Gyeonggi Province, on Friday, with his youngest and third son Kim Dong-seon, who is the vice president of Hanw

IndustryApril 8, 2024

Hyundai, Kia expand role in India’s EV localization

Hyundai Motor and Kia announced Monday that they have signed a strategic partnership with Exide Energy, a leading battery company in India, to speed up India’s transition into electric vehicles and expand the Korean automakers’ presence there. Under the partnership, Exide Energy will develop lithium-iron-phosphate, or LFP, battery cells and supply them to the automakers’ manufacturing footholds in India. The LFP battery cells will be loaded onto the carmakers’ India-speci

MobilityApril 8, 2024

Samsung, SK boost investment to secure hefty chip subsidies in US

South Korean chipmakers Samsung Electronics and SK hynix have been boosting investment in the US to secure federal subsidies and get ahead in the intensifying competition in the advanced chip packaging and artificial intelligence chip sectors. Samsung Electronics, the world's top memory chipmaker that also runs chip design and foundry businesses, is reportedly planning to increase its investment in its semiconductor fabrication plant currently under construction in Taylor, Texas. According

IndustryApril 8, 2024

CJ's Tous Les Jours to set up franchisee training center in US

CJ Foodville, the operator of the South Korean bakery chain Tous Les Jours, said Monday it plans to establish a training center in the US aimed at enhancing the service and operational expertise of its local franchisees there. This initiative comes as CJ Foodville has recently experienced an increasing number of inquiries from Americans interested in operating Tous Les Jours franchise outlets in the US, the company added. According to CJ Foodville, contracts for new franchise openings have alrea

CompaniesApril 8, 2024

[Photo News] SK founder's legacy lives on

SK Group said Monday that it was opening the birthplace of its founder Choi Jong-gun and the second-generation Chairman Chey Jong-hyun to the public in celebration of its 71st anniversary. The "Ancient Residence of SK," located on a 1,111 square-meter site in Suwon, Gyeonggi Province, has been refurbished as a memorial hall exploring the history of South Korea’s economic growth and entrepreneurship. The current Chairman Chey Tae-won is the third-generation leader of the nation&rs

IndustryApril 8, 2024

Mercedes-Benz charity run raises record donations

Mercedes-Benz’s Corporate Social Responsibility Committee said Monday that the Give ‘N Race charity event, held in Busan on Sunday, raised an unprecedented 1.017 billion won ($751,500), with the engagement of 20,000 participants. Initiated in 2017 as part of its commitment to social responsibility, Mercedes-Benz has consistently organized the Give ‘N Race to support vulnerable children and youth in Korea by merging philanthropy and running. This year’s event, the 11th, br

MobilityApril 8, 2024

[Photo News] Mobility for dogs

Innocean, a global marketing and communications affiliate under Korean auto giant Hyundai Motor Group, said Monday that it has drafted a virtual mobility campaign for dogs by using generative artificial intelligence. Launched on April Fools' Day, the so-called "Dogbility" campaign uses images drawn by generative AI, including vehicles specifically built for dogs. Innocean said the images reflect Hyundai Motor's vision -- "Progress for Humanity" -- for not only human

MobilityApril 8, 2024

S. Korean economy to grow 2.3% in 2024: AMRO

An economic surveillance organization in Asia has expected the South Korean economy to expand 2.3 percent this year on rising exports, Seoul's finance ministry said Monday. The ASEAN+3 Macroeconomic Research Office made the assessment in its regional report, noting that the recovery of the semiconductor sector will boost exports and lead the overall economic growth, according to the Ministry of Economy and Finance. Last year, the Korean economy expanded 1.4 percent amid a global economic sl

EconomyApril 8, 2024

Seoul shares open lower despite US gains

South Korean stocks opened lower Monday despite Wall Street gains backed by stronger-than-expected US jobs data. The benchmark Korea Composite Stock Price Index dropped 6.29 points, or 0.23 percent, to 2,707.92 in the first 15 minutes of trading. On Friday, data showed that the US posted the biggest job growth in almost a year in March, indicating a strong economy. Even though the strong labor market may mean interest rates may stay elevated for longer, Wall Street closed higher on the belief th

MarketApril 8, 2024

[Graphic News] Most Chinese e-commerce platform users in S. Korea dissatisfied: poll

Most South Korean users of recently burgeoning Chinese e-commerce platforms were dissatisfied with various aspects of their services despite their competitive pricing, a poll showed. In the poll conducted by the Korea Chamber of Commerce and Industry recently on 800 consumers with experience using either AliExpress, Temu or Shein in the past year, 80.9 percent said they have experienced dissatisfaction with the services. Delayed delivery was cited as the biggest reason for dissatisfaction, at

MarketApril 8, 2024

2 S. Korean banks compensate retailers for HK-tied ELS losses

Two South Korean banks have compensated retail investors for their losses involving troubled Hong Kong-tied equity-linked securities (ELS) after financial authorities' probe into possible illegal activities related to the sale of the high-risk notes, industry sources said Sunday. Shinhan Bank and Hana Bank provided the compensation to some of the individual retailers who invested in Chinese shares listed on the Hong Kong bourse through ELS products sold in their outlets, they said. Other ba

IndustryApril 7, 2024

S. Korean exports grow rapidly amid lagging domestic recovery: KDI

South Korea's exports have grown rapidly, driven by the strong rebound in the semiconductor sector, though private consumption and investment remain weak, a state-run think tank said Sunday. "The Korean economy is experiencing a moderate downturn, buoyed by rapid growth in exports, particularly from the IT sector," the Korea Development Institute (KDI) said in a monthly economic assessment report. "But consumption remains weak, particularly in goods consumption, as financing

IndustryApril 7, 2024

[Herald Interview] Porsche zeroes in on making more fans with new Panamera

The chief of the Porche's Panamera line said building a bigger local fandom will be the carmaker's most important goal as the sporty sedan's third-generation was rolled out in Korea. “The question is not only ‘how do we get the customers to the brand and how do we get them not only as customers and drivers of our cars' (but also) 'How do we get them as fans of the brand?’” said Thomas Friemuth, the head of Porsche’s Panamera product line at

MobilityApril 7, 2024

[Hello India] 'The Indian elephant has begun its stampede': Balancehero CEO

South Korean founder and CEO of India-focused mobile finance tech firm Balancehero is seeking to gain further momentum by taking a segmentation approach to India’s vigorous economic run. "My Indian friends often likened India to an elephant: challenging to set in motion, but once spurred into action, its force is thunderous. Now, it seems the elephant has begun its stampede,” said Balancehero CEO Charlie Lee said in a recent interview with The Korea Herald. Lee foresaw such expo

IndustryApril 7, 2024

[KH Explains] Hyundai Motor’s bet on robot dog befalls murky outlook

Hyundai Motor Group has found itself at a crossroads as Boston Dynamics, a US-based robotics company that the Korean auto conglomerate acquired in 2021, struggles to find a breakthrough amid mounting losses. Over two years have passed since Hyundai Motor Group Executive Chair Chung Euisun appeared on stage with Boston Dynamics’ four-legged, dog-like robot, Spot, at the CES 2022 in Las Vegas. “Robots are getting closer to humans. Just like you are carrying your phone today, in the

MobilityApril 7, 2024