Heads of Korean budget carriers ask for govt support

Amid the falling number of passengers and suspension of routes due to the coronavirus outbreak, chief executive officers of Korean budget carriers on Friday released a joint statement asking for the government’s support.  The country’s six low-cost carriers -- Air Busan, Air Seoul, Eastar Jet, Jeju Air, Jin Air and T’way -- said in a joint statement that the “aviation industry has been falling apart” since the nationwide boycott of trips to Japan last year an

MobilityFeb. 28, 2020

Initial sales of Galaxy S20 series downbeat amid virus fears

Sales of Samsung Electronics Co.'s Galaxy S20 smartphones were lackluster on their first day, 50 percent lower than their predecessors, amid the spreading coronavirus outbreak, industry sources said Friday. Samsung Electronics sold an estimated 70,800 units of the latest smartphone series in the domestic market on Thursday, sharply lower than first-day figures for the previous series, the Galaxy S10 phones, launched in March last year, according to industry insiders. The Galaxy S10 series s

IndustryFeb. 28, 2020

LG, Woowa Brothers to collaborate on food robotics

Robots delivering food to doorsteps and serving tables at restaurants may not be that far in the future. LG Electronics and Woowa Brothers said Friday they will jointly develop food delivery-and-serving robots, combining LG’s artificial intelligence and automated indoor driving technologies with Woowa Brothers’ food delivery know-how. Woowa Brothers operates Baedal Minjok, Korea’s biggest food delivery app by market share. The unicorn was acquired by Germany’s Deliver

IndustryFeb. 28, 2020

Banks' lending rates slightly drop in Jan.

Lending rates on fresh loans extended by banks in South Korea dropped slightly from a month earlier in January, central bank data showed Friday. The average interest rate on all new bank loans came to 3.19 percent in the month, down 0.03 percentage point from the previous month, according to preliminary data from the Bank of Korea. The rate on all outstanding loans came to 3.38 percent, down 0.02 percentage point from December. The average rate on fresh corporate loans slipped 0.04 percentag

EconomyFeb. 28, 2020

Celltrion begins research for coronavirus vaccine

Celltrion said Friday it has begun research for a drug candidate to fight the new coronavirus. The company has obtained a blood sample from a patient confirmed with COVID-19. Having discovered a drug candidate for the Middle East respiratory syndrome, the company will search for a new potential molecule that can help prevent the spread of the coronavirus. “We’re in the initial phase. It will take time for any results,” said a Celltrion official. “Since viruses mut

IndustryFeb. 28, 2020

Korean companies join virus fight with relief goods

  South Korean companies, although they are also feeling the pinch of the fast-spreading coronavirus, are rushing to join the nationwide virus fight with relief efforts, industry sources said Friday. South Korea has so far reported more than 1,700 COVID-19 cases, with most of them identified in the southeastern city of Daegu and surrounding North Gyeongsang Province. Samsung Group, the country's largest conglomerate, on Wednesday decided to donate 30 billion won (US$24.7 million) to the

IndustryFeb. 28, 2020

[Weekender] Survival diary of Korean internet cafes

An internet cafe in South Korea goes by many names, but there is one unwritten rule that can’t change. PC room, PC bang or whatever they are called, fees must stay around 1,000 won ($0.85) per hour. “Long ago, when people played StarCraft, they were willing to pay 2,000 won per hour,” said Kwon Young-mi from the marketing team of Sante PC, the No. 2 PC room franchise with 147 outlets in Korea. “However, as franchised and large-scale PC rooms came in, competition g

IndustryFeb. 28, 2020

Korea's Jan. industrial output edges up, virus fallout in store to hit hard

South Korea's overall industrial output rose in January, but the rapid spread of the new coronavirus is widely expected to have an impact on industrial activities this month, data showed on Friday. The country's overall industrial output continued to rise for a fourth straight month, posting a 0.1 percent gain in January from a month earlier, according to the data compiled by Statistics Korea. But production in the mining, manufacturing, gas and electricity industries fell 1.3 percent from a

IndustryFeb. 28, 2020

Bidding for Incheon airport duty-free store licenses falls through

The license bidding for duty-free stores at Incheon International Airport fell through due to a lack of tenders, the airport operator said Thursday. The biddings to run a section for perfume and cosmetics and another for apparel in the airport's first passenger terminal failed, according to Incheon International Airport Corp. (IIAC). Located west of Seoul, the Incheon airport is South Korea's main gateway. IIAC opened the bidding for five sections at the airport, as the contracts of the c

ConsumerFeb. 27, 2020

GS Group donates W1b to fight spread of coronavirus

GS Group said Thursday it has donated 1 billion won ($820,000) to the Community Chest of Korea to prevent and deal with the spread of COVID-19 outbreak. “We hope that the donation will help the medical staff and victims who are struggling under difficult circumstances,” said Chairman Huh Tae-soo. “We will continue to do our best to support those vulnerable to the virus, especially in Daegu and low-income people who suffered from the contraction due to economic activities,&r

IndustryFeb. 27, 2020

NPS harvests record yield in 2019

The National Pension Service, South Korea’s largest public pension fund, reaped record investment return in 2019 largely thanks to a bull run in overseas stock markets, its preliminary data showed Thursday. Its annual rate of return came to 11.31 percent last year, the highest since the launch of NPS Investment Management in 1999, followed by 10.39 percent in 2009 and 10.37 percent in 2010. Over the past year, it earned 73.4 trillion won ($60.4 billion) return, which is 1.5 times large

MarketFeb. 27, 2020

Seoul shares fall, bonds gain over BOK key rate freeze

South Korean stocks dipped over 1 percent Thursday after the nation’s central bank decided to keep its policy rate steady for now despite the market’s widespread anticipation of a further cut. The benchmark Kospi opened lower at 2,073.87 -- down 2.90 points, or 0.14 percent, from the previous session. The index edged up in early morning then suddenly headed south after the Bank of Korea’s announcement. The weak trend continued throughout the day to close at 2,054.89 -- the l

MarketFeb. 27, 2020

Co-working spaces could get unexpected boost from coronavirus outbreak

The ongoing coronavirus outbreak has created a new demand for global shared workspace provider WeWork in Korea, despite initial fears the outbreak would spook potential customers. WeWork, which currently operates 19 locations in Korea, told The Korea Herald on Thursday that Korean companies mindful of the COVID-19 epidemic are reaching out to WeWork for an alternative workspace. “Companies of all sizes and industries in the region -- members and nonmembers - have been reaching

IndustryFeb. 27, 2020

S. Korea offers to bear 50% of rent discounts amid coronavirus fallout

South Korea’s government announced Thursday that it will share the cost burden of landlords who voluntarily offer a rental discount to tenants amid the new coronavirus fallout, according to the top fiscal policymaker. “For landlords who reduce the rental fees for their small business owner tenants during the first six months of this year, (the government) will reduce 50 percent of the (lease) reduction amount from (their) income tax or corporate tax, regardless of their total in

EconomyFeb. 27, 2020

Mirae Asset Group donates W2b to support fight against coronavirus

Mirae Asset Financial Group has donated 2 billion won ($1.64 million) to the Hope Bridge Association of the National Disaster Relief to support medical personnel and provide relief goods amid the COVID-19 outbreak. The donation was made to provide items needed for medical and relief aid, such as protective outfits and masks, and daily necessities, especially for people in Daegu and North Gyeongsang Province, the company said. Mirae Asset has been helping its cooperative firms by making paym

MarketFeb. 27, 2020

Deutsche Telekom to test-run SKT’s 5G tech in Germany

Deutsche Telekom, the parent company of T-mobile, will start testing the 5G radio frequency repeater that it co-developed with SK Telecom during the second quarter of this year, according to a statement released by the South Korean mobile carrier on Thursday. SK Telecom’s 5G radio frequency repeater is a wireless device that receives 5G signals from outside and transmits it to users inside buildings and tunnels and on basement floors. In the second quarter of this year, Deutsche Telekom

TechnologyFeb. 27, 2020

[News Focus] Employment falls in almost all age groups

SEJONG -- The tight hiring market has been a point of contention over the past two or three years, though the Moon Jae-in administration has continued to express a strong commitment to job creation as often as possible. Recent data from a government agency showed that people are still having difficulty holding jobs, which particularly has been witnessed among almost entire generations. According to Statistics Korea, the number of employed people fell for the second consecutive month -- from 2

EconomyFeb. 27, 2020

BOK freezes rate despite coronavirus, lowers growth outlook

Despite the economic fallout of the new coronavirus, South Korea’s central bank on Thursday froze its policy rate, but chose to cut the growth outlook, reflecting heightened uncertainties. Instead of taking immediate monetary easing decisions, it decided to focus on microscopic actions such as expanding financial support for affected industries. The Bank of Korea’s rate-setting Monetary Policy Board held its second meeting for this year and decided to keep the nation’s ba

EconomyFeb. 27, 2020

S. Koreans' work hours edge down in 2019

Average work hours in South Korea decreased 0.5 percent last year as the country enforced a shorter workweek system, government data showed Thursday. According to the Ministry of Employment and Labor's survey, the average South Korean employee worked 1,957 hours in 2019, 10 hours less than the previous year. The figure for companies hiring at least five workers was 1,978, a 0.4 percent decrease from 2018. The reduction came despite the fact that 2019 had two more working days than 2018.

EconomyFeb. 27, 2020

Price gap widens between jeonse, apartment cost

The price gap between the average jeonse -- a real estate term unique to South Korea that refers to property lease -- and average sale price of apartments in Seoul reached a record high in February in seven years, increasing the financial burden on potential home buyers, according to latest data Thursday. Jeonse refers to a two-year leasing system that requires tenants to pay a large deposit instead of monthly rent. The average jeonse price amounted to 55.6 percent of the average apartment

MarketFeb. 27, 2020