Korea's exports down for 14th straight month on extended chip slump

South Korea's exports fell at a slower-than-expected pace in January but extended the slump to a 14th consecutive month due to fewer working days and still weak demand for chips, data showed Saturday. Outbound shipments came to $43.35 billion last month, down 6.1 percent from $46.17 billion a year earlier, according to the data compiled by the Ministry of Trade, Industry and Energy. The declining pace was slower than the median forecast of a 7.5 percent on-year drop as a fall in chip exports

EconomyFeb. 1, 2020

Opposition lingers in Shinhan’s Orange Life merger

Shinhan Financial Group’s plans to merge Orange Life Insurance with its wholly owned life insurance unit seemed to have been working out smoothly. However, trouble persists as minority shareholders continue to demand an increase in their dividend payouts. Small shareholders of Orange began making the demand after teaming up with civic activist group the Korea Stockholders Alliance in November, but Shinhan refuses, saying it would constitute a breach of trust with its other shareholders.

MarketJan. 31, 2020

Korea’s semiconductor show canceled amid coronavirus outbreak

Semi Korea, the local organizer of Semicon Korea, on Friday canceled the nation’s semiconductor show due to mounting concerns over the new coronavirus. Semi Korea’s decision came in line with World Health Organization chief Tedros Adhanom Ghebreyesus’ announcement, in which he declared the outbreak a “public health emergency of international concern.” Semi Korea added that it is currently looking into contingency plans for Semicon Korea 2020 and will post updates

IndustryJan. 31, 2020

Samsung to send donations to China

Samsung on Friday announced a donation of 10,000 articles of anti-contamination clothing, as well as 30 million yuan ($4.3 million) to support China’s response to the novel coronavirus, the company announced Friday. The donations will be sent to the Red Cross Society of China, via Samsung’s Chinese headquarters, it added.  By Shim Woo-hyun (ws@heraldcorp.com)

IndustryJan. 31, 2020

Hanjin heiress partners with KCGI, Bando for group's management control

The heiress of South Korean airline-focused conglomerate Hanjin Group, widely known for the "nut rage" incident in 2014, has joined hands with a local fund and a builder for the group's management control ahead of a shareholders meeting in March. In a joint statement with local activist fund Korea Corporate Governance Improvement (KCGI) and midsized builder Bando Engineering & Construction, Cho Hyun-ah, the eldest daughter of late Hanjin Group and Korean Air Lines Co. Chairman Cho

IndustryJan. 31, 2020

Local automakers face difficulties sourcing auto parts from China

South Korean automakers are struggling to operate manufacturing lines here following difficulties in sourcing components from China due to the suspension of factory operations in the mainland.  According to Hyundai Motor Group, the automaker has decided to cancel extra working hours at its Ulsan and Jeonju plants this week, following the temporary shutdown of the two partnering factories in China that are responsible for supplying components such as wiring.  To contain the rapidly s

MobilityJan. 31, 2020

Hyosung Heavy Industries expands in Europe with deal in Sweden

Hyosung Heavy Industries said Friday it won a contract to supply high-voltage switchgears in Sweden, clenching a second deal in Europe to expand its presence there. According to the company, it recently landed a contract with Svenska Kraftnet, Sweden’s national power grid, to supply 420-kilovolt switchgears. The company said it will supply the high-voltage switchgears to electric stations in Stockholm by 2021. “Hyosung Heavy Industries plan to expand its power apparatus business

IndustryJan. 31, 2020

Posco’s operating profit down 30% in 2019 amid industry downturn

South Korean steel giant Posco said Friday its operating profit dropped 30.2 percent in 2019 from the previous year, amid the overall industry downturn and protectionism by major trading partners. The steelmaker said its revenue stood at 64.3 trillion won ($53.9 billion), down 0.9 percent on-year. The operating profit posted at 3.86 trillion won, while net profit was 1.98 trillion won last year. The operating margin recorded 6 percent. Its sales volume increased by 400,000 tons on-year to re

IndustryJan. 31, 2020

SK hynix’s 2019 operating profit plunges 87%

South Korean chipmaker SK hynix’s operating profit in 2019 plummeted 87 percent to 2.7 trillion won ($2.2 billion), amid the continued fall in memory chip prices and lower demand, according to its earnings report released Friday. The world’s second-biggest memory provider raised 26.9 trillion won in annual sales last year, a 33.3 percent plunge from 2018. The net profit nosedived 87 percent to 2.02 trillion won for the whole year. The company’s operating margin also droppe

IndustryJan. 31, 2020

[Newsmaker] Despite doctors’ assurances, public uneasy over use of Wuhan evacuation plane

After the government flew the first chartered flight using Korean Air’s B747 to Wuhan and brought 368 South Koreans here on Friday morning, the future use of the plane has come under public scrutiny, despite assurances by doctors about very low possibility of getting infected. According to the real-time air traffic tracker Flight Radar 24, Korean Air’s 22-year-old B747 which has tail number HL7461 was used to evacuate Koreans based in Wuhan, the epicenter of the coronavirus outbrea

MobilityJan. 31, 2020

[Photo News] Asiana Airlines sends relief goods to support Wuhan

Asiana Airlines said Friday that it has sent relief goods including masks and medical products worth 40 million won to support the people in Wuhan, China, as well as authorities’ effort to contain the virus.  The products will be delivered to people in need in China, the air carrier said, adding that it has sent the items on OZ331 flight bound for Beijing and OZ323 bound for Chengdu. By Kim Da-sol (ddd@heraldcorp.com)

MobilityJan. 31, 2020

Entertainment firm behind BTS seeks IPO underwriter: report

Big Hit Entertainment, the agency behind K-pop sensation BTS, is seeking an underwriter in the initial step to go public, according to news reports Friday. Big Hit has sent a request for proposal to multiple securities brokerage firms to underwrite its initial public offering, an investment banking source was quoted as saying by local news outlet the Bell. The news report did not clarify which stock market in Korea that Big Hit would choose to be listed. An underwriter is responsible for offer

MarketJan. 31, 2020

S. Korea eases rules on extended work hours

South Korea introduced a new regulation Friday allowing an exemption from the 52-hour workweek restriction for institutes involved in crucial research projects or companies that see workloads unexpectedly surge.  The Ministry of Employment and Labor proclaimed the revised enforcement rule of the Labor Standards Act, which loosened the requirements for granting special extended work hours. The rule went into effect immediately.  The extended work hours system, which temporarily all

EconomyJan. 31, 2020

Leadership vacuum at Woori and Hana inevitable due to FSS’ heavy sanctions

Financial giant Woori Financial Group said Friday that it has delayed the process to select CEO candidates for its banking unit Woori Bank. The announcement came after the nation’s financial watchdog Financial Supervisory Service decided the day before to impose sanctions on top executives of Woori Financial Group and Hana Financial Group. “The company has decided to readjust the schedule for shortlisting CEO candidates due to recent changes,” the financial conglomerate sai

MarketJan. 31, 2020

LG Display goes into red amid restructuring efforts

LG Display announced Friday it has posted an operating loss of 1.35 trillion won ($1.1 billion) in 2019 -- largest in eight years -- going into the red amid ongoing business restructuring efforts.  Overall, the world’s biggest provider of organic light-emitting diode panels posted 23.5 trillion won in sales and 1.36 trillion won in operating loss last year, according to its earnings report for the final quarter of 2019. Compared to 2018, the annual sales dropped 8 percent, while th

IndustryJan. 31, 2020

S. Korea's daily FX turnover jumps to record high in 2019

The daily foreign exchange turnover by local and foreign banks in South Korea climbed to an all-time high in 2019 on a sharp increase in the transaction of derivatives, central bank data showed Friday. The daily FX turnover came to an average $55.77 billion in the year, up $260 million, or 0.5 percent, from a year earlier, according to the data from the Bank of Korea. The amount marks the highest since 2008, when the central bank began including transactions of FX derivatives in such data. &

MarketJan. 31, 2020

[Herald Interview] Blazing Samsung Biologics’ trail into new territory

Describing Samsung Biologics, the biotech arm of the mammoth Samsung Group, as a “startup,” Executive Vice President John Rim is confident that the company’s competitive edge will bring Korea’s footprint forward in the biologics drugs field. Armed with 34 years of experience working at multiple global pharmaceutical companies, Rim joined Samsung Biologics in September 2018. “Korea has to find technology and competitive advantage where it can survive for the long

IndustryJan. 31, 2020

S. Korea ready to take action against economic fallout from new coronavirus

South Korea said Friday it is ready to take action to reduce the impact of the new coronavirus on Asia's fourth-largest economy. The country reported its seventh case of the novel virus earlier in the day despite enhanced quarantine efforts to stem its spread. "So far, the (outbreak) has not had a significant impact on our economy," Vice Finance Minister Kim Yong-beom said during a meeting with economy-related vice ministers. The remark came as the global financial market has been

EconomyJan. 31, 2020

Korea's industrial output grows 1.4% in December

South Korea's overall industrial output gained 1.4 percent in December from a month earlier despite a slight tumble in the service sector, data showed Friday. From a year earlier, the overall industrial output grew 3.2 percent, according to the data compiled by Statistics Korea. The production in the mining, manufacturing, gas and electricity industries rose 3.5 percent from a month earlier, while that of the service sector edged down 0.1 percent. The production, retail sales and investment

IndustryJan. 31, 2020

World’s largest halal exhibition to be held in Malaysia in April

Malaysia International Halal Showcase, the world’s largest halal trade fair, will be held in Kuala Lumpur from April 1 to 3, the event’s organizers said Thursday. According to Malaysia’s Ministry of International Trade and Industry, this year’s MIHAS, themed “Expand Your Halal Horizon,” will feature over 1,200 booths of companies from countries around the world, including halal-certified and trade-ready manufacturers, suppliers, buyers and distributors. T

IndustryJan. 31, 2020