A global heavyweight in infrastructure

In April last year, Doosan Corp. chairman Park Yong-maan was invited to the 21st Asia Business Conference hosted by the prestigious Harvard Business School in Boston, U.S. The conference gave Park a chance to present the story of the group’s dramatic transformation from a domestic consumer goods and liquor producer into a global infrastructure builder in 20 years. Behind the drastic change of Doosan in a short time were, above all, successful merger and acquisition deals at home and abroad.Durin

IndustryMarch 11, 2013

Banks’ foreign-currency deposits gain in Feb.

Foreign currency deposits at South Korean banks rose in February from the previous month as the country’s trade surplus remained in the black and corporate sales of overseas bonds gained, the central bank said Monday. Outstanding foreign currency-denominated deposits held by local residents reached $34.65 billion as of the end of February, up $2.14 billion from a month earlier, according to the Bank of Korea. Residents include individual citizens and firms but does not cover foreign nationals wi

March 11, 2013

Most Koreans say tax hikes needed for welfare: poll

More than six out of 10 South Koreans believe that President Park Geun-hye cannot implement the welfare programs she promised during her election campaign without raising taxes, a survey showed Monday.The telephone survey released by the Economic Reform Research, an independent economic institute, found that 65.6 percent of 800 respondents said that President Park Geun-hye could not implement her welfare programs without raising taxes. The survey taken on March 2 has a margin of error of 3.5 per

March 11, 2013

Japan’s default risk drops below that of Korea

Japan’s credit default risk fell below that of South Korea in March following the improved economic outlook over Tokyo’s strong monetary easing, data showed Monday.The credit default swap premium for Japan’s benchmark Treasuries came in at 62 basis points on Wednesday, compared to 64 basis points tallied for South Korea, according to data by the Korea Center for International Finance.The spread on CDS reflects the cost of hedging credit risks on corporate or sovereign debt. A higher number indic

IndustryMarch 11, 2013

Ministry mulls reducing tax benefits

The Ministry of Strategy and Finance said Monday that it was considering reducing tax-exemptions and benefits “comprehensively” and across the board, in line with President Park Geun-hye’s pledge to boost welfare spending for the middle class.The downsize of tax benefits could apply to foreign investors, but an official at the Finance Ministry said that nothing had been decided yet regarding tax revision for foreigners.A local newspaper reported that the Finance Ministry had begun looking into w

March 11, 2013

Economic activity rate to fall below 60%

The proportion of people currently working or seeking work in Korea’s labor market is expected to fall below the 60 percent threshold for the first time in 24 years.Korea’s economic activity rate is predicted to sink to 59.3 percent this year, according to data by Statistics Korea and the National Assembly Budget Office. Korea has generally kept its economic activity rate above 60 percent since 1990. The economically active population also is expected to fall 2.3 percent to 25.4 million. This wo

March 11, 2013

Korea’s auto exports plunge in February

Exports by South Korean automakers plunged in February from a year earlier due to a drop in output that resulted partly from reduced working days, the government said Monday.The country’s five automakers shipped a total of 234,161 vehicles last month, down 21.9 percent from the same month last year, according to the Ministry of Knowledge Economy.Their combined value dropped by a smaller margin of 15.1 percent on-year to $3.74 billion, reflecting a continued increase in the price of domestically

IndustryMarch 11, 2013

Stocks, currency post minimal volatility

Major financial indices recorded limited volatility Monday, despite growing worries over negative effects on the stock and foreign exchange markets from geopolitical tensions on the Korean Peninsula.The movements of stock prices and foreign exchange rates Monday drew wide interest as South Korean and U.S. troops launched their annual joint drills earlier in the day.Though stocks fell below the 1,990 mark and the U.S. dollar was traded above 1,100 won during the morning trading session, the two m

March 11, 2013

Google shoe does it all

U.S. Internet giant Google has got it all over Maxwell Smart, the 1960s TV secret agent who had a phone in his shoe -- its sneaker has a computer.Google‘s high-tech footwear isn’t ready for mass production yet, but its marketing folks showed up at the South by Southwest festival in Austin, Texas, with a few pairs just to get people thinking, ABC News reported Sunday. Other bells and whistles jammed into the sneakers include an accelerometer, a pressure sensor, a gyroscope , Bluetooth and a speak

IndustryMarch 11, 2013

Seoul shares slip 0.13 pct on N. Korean risks

South Korean stocks closed 0.13 percent lower on Monday as North Korean risks dented investor sentiment despite positive U.S. jobs data, analysts said. The local currency fell against the U.S. dollar.The benchmark Korea Composite Stock Price Index (KOSPI) fell2.66 points to 2,003.35. Trading volume was moderate at 387.5 million shares worth 3.63 trillion won (US$3.32 billion), with decliners outnumbering gainers 540 to 280."Heightening geopolitical tension is weighing on the local stock market d

March 11, 2013

Samsung trails Apple in Q4 smartphone sales: data

Samsung Electronics Co., the world's top smartphone maker, saw its fourth-quarter smartphone sales lag behind rival Apple Inc. due to robust demand for the U.S. firm's iPhone 5, data showed Monday.Samsung Electronics claimed 28.7 percent of the global smartphone market in the three-month period in terms of revenue, following Apple's 42.7 percent, according to the data by market researcher Strategy Analytics.The change in ranking was largely attributed to robust demand for Apple's iPhone 5, its f

IndustryMarch 11, 2013

Seoul shares slip 0.08 pct in late-morning trade

South Korean stocks traded 0.08 percent lower late Monday morning as foreigners and retail investors opted to scale back holdings, analysts said.The benchmark Korea Composite Stock Price Index (KOSPI) fell1.66 points to 2,004.35 as of 11:20 a.m.Large caps were mixed. The country's top automaker Hyundai Motor slumped 1.64 percent and its smaller affiliate Kia Motors lost 1.5 percent.In contrast, market bellwether Samsung Electronics gained 0.33 percent.The local currency was changing hands at 1,0

March 11, 2013

Amid renewed debates, S. Korea, U.S. mark 1st year of bilateral FTA

A round of heated debates over the effects of the South Korea-U.S. free trade agreement (FTA) is expected in the U.S. capital this week, as the two sides mark the first anniversary of the implementation of the historic deal.After years of political controversies and tumultuous ratification procedures, the agreement, dubbed "KORUS FTA," went into effect on March 15 last year. It is arguably the U.S.'s most commercially significant free trade agreement in almost two decades.South Korea's oppositio

March 11, 2013

Seoul shares open lower on exporter falls

South Korean stocks got off to a weak start on Monday due mainly to falls in shares of key exporters, analysts said.The benchmark Korea Composite Stock Price Index (KOSPI) fell11.45 points, or 0.57 percent, to 1,994.56 in the first 15 minutes of trading.Major blue chips lost ground, with market bellwether Samsung Electronics slipping 0.6 percent and top automaker Hyundai Motor falling 2.11 percent.The local currency was trading at 1,097.3 won to the U.S. dollar as of 9:15 a.m., down 7 won from F

March 11, 2013

Eximbank, IIAC consider joining forces for airport project in Myanmar

The Export-Import Bank of Korea could assist Incheon International Airport Corp to finance Myanmar’s new airport project as the state-run airport operator is currently looking into ways to fund the potential deal worth up to $600 million, said sources familiar with the situation.IIAC could seek Korea Eximbank, which has a non-binding agreement with IIAC to support the export of its airport operation know-how, to back its consortium through the policy bank’s Economic Development Cooperation Fund

March 10, 2013