[Photo News] Convenience stores enjoy boom

With changing consumption patterns amid the rising number of single-member households and online shopping, the convenience store chains in South Korea reaped their largest margins last year, according to industry data.  GS25 made 256.5 billion won in operating profit last year, its largest on record.  CU also marked a record 196.6 billion won in operating profit.  The consolidated operating profit of Emart, the large retail store chain, meanwhile, dropped 67.4 percent to 150.7

IndustryFeb. 17, 2020

World Bank to highlight Korea’s economy, technology

The World Bank will host a special event that highlights South Korea’s economy and innovative technology this week with the Korean government dispatching a special delegation, the Ministry of Economy and Finance said Monday. The government delegation of around 140 officials led by Vice Finance Minister Kim Yong-beom will attend Korea-WBG Partnership Week for Innovation and Technology, which kicks off Tuesday and runs for three days at the World Bank headquarters in Washington. Officials f

EconomyFeb. 17, 2020

Who will chair boards at Samsung, Hyundai Motor?

Attention is turning to who will replace the leadership on the boards of Korea’s tech and automobile behemoths -- Samsung Electronics and Hyundai Motor -- at the upcoming general shareholders meetings in March. On Friday, Lee Sang-hoon, chairman of Samsung Electronics’ board, resigned from his role after being found guilty of sabotaging labor unit activities. Lee was sentenced to 18 months in jail in December upon conviction of violating labor union-related laws. On his resignat

IndustryFeb. 17, 2020

Posco International discovers new gas field in Myanmar

Posco International said Monday that it had discovered a new offshore gas reservoir near Myanmar, raising hopes for a new cash cow for the company. According to the Korean company, it began exploratory undersea drilling on Jan. 12 for its Mahar gas project. The company drilled 2,598 meters into the seabed, more than 1,000 meters below the water, and carried out drill stem testing to discover the gas reservoir, which could yield about 38 million cubic feet of natural gas per day. The company s

IndustryFeb. 17, 2020

[News Focus] Netmarble enters red in Q4, seeks change in 2020 through overseas biz

The year 2020 poses fresh challenges for Netmarble as the company strives to overcome a net loss from the acquisition of a home electronics company, while also adapting to the presence of two CEOs and tackling the global market with more game launches. Netmarble went into the red in the fourth quarter of 2019, having recorded a quarterly net loss of 6.3 billion won ($5.3 million) and a quarterly 10.3 billion won net loss attributable to its controlling shareholder. The loss resulted in part fr

IndustryFeb. 17, 2020

Hana Bank starts mobile banking service in Hong Kong

Hana Bank said Monday that it will launch its global mobile banking service in Hong Kong, making it the first Korean lender to provide such service in the global financial hub. The Global 1Q app will be available for use in Hong Kong now in addition to countries that include Canada, China, Japan, Indonesia, Brazil, Panama and Vietnam. The service was launched in Canada in 2015. The app automatically recognizes the country of the user’s current location, allowing easy access to the ser

MarketFeb. 17, 2020

HiteJinro ups promotion of soju on overseas US military bases

Korean liquor maker HiteJinro will strengthen its promotion of soju to American soldiers, as sales of its spirits products exhibit continuous growth at exchange stores inside the confines of overseas US military bases, the company said Monday. The company said it will run a six-month marketing campaign of its soju products, including Chamisul, under the slogan, “Drink soju! Responsible Drinking!” starting this month, partnering with Stars and Stripes, a US military independent news

ConsumerFeb. 17, 2020

Airlines to cut fuel surcharges on int'l routes in March

South Korean airlines will lower their fuel surcharges on international routes in March to reflect lower jet fuel prices, industry sources said Monday. The surcharges for one-way tickets on long-haul international routes will drop by two notches to 19,200 won next month from 49,200 won in February, according to the sources. If the average jet fuel price on the Singapore spot market rises over $1.50 per gallon, South Korean airlines are allowed to impose fuel surcharges starting one month lat

MobilityFeb. 17, 2020

[The Heirs (1)] Succession at CJ slow but remains on track

Despite public apathy and tougher shareholder censure, South Korea’s chaebol groups have been preparing for 3rd to 4th generational shift in their ownership. The Korea Herald looks into different groups, different families and different scenarios for their power handover. - Ed.  In taking over their parents’ multibillion-dollar chaebol, heirs follow a similar path. Young heirs begin their careers at key affiliates, usually at a manager level, and fast ascend to executive po

IndustryFeb. 17, 2020

Moody's cuts S. Korea's 2020 growth outlook to 1.9% over virus fallout

Ratings agency Moody's on Monday cut its forecast for South Korea's 2020 economic growth to 1.9 percent from 2.1 percent, citing the economic fallout of the new coronavirus. The latest forecast by Moody's is lower than the Bank of Korea's prediction of 2.3 percent expansion for this year. The spread of COVID-19 in China and around the world is expected to have a negative impact on tourism and industrial production in Asian nations, including South Korea and Japan, Moody's said. Moody's als

EconomyFeb. 17, 2020

14 online sellers of face masks involved in illegal practice: FTC

SEJONG -- The country's anti-trust regulator said Monday it has found 14 online sellers of face masks in possible violation of fair trade laws, amid surging demand for protective masks over the spread of the novel coronavirus. Some of the online sellers have been accused of unilaterally canceling orders and selling face masks at higher market prices, the Fair Trade Commission (FTC) said in a statement. For instance, one online vendor unilaterally canceled orders for 119,450 face masks betwee

EconomyFeb. 17, 2020

Korean carmakers on track to normalize production this week

South Korean carmakers said Monday they are on track for normalizing production later this week after suffering parts shortages from China amid the spreading coronavirus outbreak. The country's five carmakers -- Hyundai Motor Co., Kia Motors Corp., GM Korea Co., Renault Samsung Motors Corp., and SsangYong Motor Co. -- are still struggling to get parts on time, although suppliers in China partially resumed operations last week with the COVID-19 virus outbreak showing no sign of slowing. They

MobilityFeb. 17, 2020

S. Korea's monetary policy must maintain accommodative stance: regional think-tank

SEJONG -- South Korea must maintain its accommodative policy stance as it seeks to prop up a slowing economy amid muted inflationary pressure, a regional think-tank said Monday. "Given ample fiscal space, the fiscal stance should remain expansionary in the near term with more spending allocated toward restructuring the economy," the ASEAN+3 Macroeconomic Research Office (AMRO) said in a report. "At the same time, monetary policy should be accommodative in view of moderating ec

EconomyFeb. 17, 2020

Kia unveils design of new Sorento, launch scheduled in March

Kia Motors Corp. on Monday unveiled the design of the all-new Sorento SUV ahead of its domestic launch next month as it strives to boost SUV sales further. The fourth-generation SUV adopts a new design concept, Borderless Gesture, which is defined by a combination of the "strong design heritage" of its predecessors and the "refined and delicate feel" of a sedan, the company said in a statement. The new Sorento's powertrain and other details will be released later, it said

MobilityFeb. 17, 2020

[Graphic News] Online stores boost retail sales 4.8% in 2019

　Retail sales in South Korea rose 4.8 percent last year on the back of brisk sales at online malls, while revenue from offline stores lost ground, data showed. 　The combined sales of 26 major offline and online retailers reached 132.9 trillion won ($113 billion) last year, according to data compiled by the Ministry of Trade, Industry and Energy. 　Of the volume, 13 online stores accounted for roughly 54.7 trillion won, up 14.2 percent from a year earlier, amid a rising number of consumers

BusinessFeb. 16, 2020

Hanwha Systems to develop air taxi with Overair

Hanwha Systems, the defense unit of Hanwha Group, said Sunday it would take part in an air taxi project by US personal air vehicle company Overair. On Friday, the opening ceremony of the US company -- recently spun off from aerospace-development firm Karem Aircraft -- was attended by CEO Ben Tigner and Hanwha Systems CEO Kim Yeon-chul. In December, the US Committee on Foreign Investment approved Hanwha Systems’ investment of $25 million in Overair. The Korean firm said it would contri

IndustryFeb. 16, 2020

[Monitor] Car production in Korea declines nearly 30% in January

According to the trade industry, Korea’s demand for and exports of automobiles declined in January on-year. Car production decreased to 251,573 units last month, down 29 percent from the same month last year, due to the Lunar New Year holiday and partial strikes at some companies. Although sales of new cars from domestic brands, including the Hyundai Sonata, Kia K5, Kia Seltos and Genesis GV80, were strong, overall sales reached 98,755 units, down 15.9 percent on-year. (khnews@herald

IndustryFeb. 16, 2020

Hyundai Capital’s ‘inclusive’ corporate culture wins local support

For a company that operates globally, it can be challenging to build a universal corporate culture while considering the needs of local staff. It has not been an easy task as well for Hyundai Capital, a South Korean auto finance firm, which operates in 11 countries. But its efforts to build an “inclusive” corporate culture and to open communication channels that allow employees to interact closely are key to its global operations, the company said Sunday. The initiative is

MarketFeb. 16, 2020

Individual Lime investors face losing entire principal

The entire amount of financial losses stemming from Lime’s funds is expected to rise to more than $1 billion, sparking deep distrust in private fund operatives and concerns over a lack of protective measures for individual investors. Lawsuits for damages and compensation are likely to follow en masse, after an intermediary audit on the hedge fund firm last week by the financial watchdog specified the case as alleged fraud. On Friday, the Financial Supervisory Service said Lime and it

MarketFeb. 16, 2020

Owners of high-priced homes up 30 percent in Jamsil

     The number of taxpayers owning expensive homes, subject to higher property tax, surged at the fastest pace in Jamsil, southern Seoul, data showed Sunday.  The number of home owners who paid comprehensive real estate holding tax rose 36.1 percent on-year from some 15,000 to nearly 21,000 in Jamsil, said Rep. Kang Byung-won of ruling Democratic Party, quoting data from the National Tax Service. The number of taxpayers in Jamsil owning one residential unit with an appra

EconomyFeb. 16, 2020