Seoul shares dip 1.42% on higher oil prices

South Korean stocks dropped 1.42 percent Monday on concerns that rising oil prices may hurt the South Korean economy and corporate earnings, analysts said. The local currency fell against the U.S. dollar.The benchmark Korea Composite Stock Price Index lost 28.73 points to end at 1,991.16. Trading volume was moderate at 629 million shares worth 5.48 trillion won ($4.85 billion) with decliners leading gainers 570 to 275.“Rising oil prices could be a big burden to the local economy and hurt corpora

Feb. 27, 2012

MTU, Asiana clinch deal for engine maintenance

MTU Maintenance Hannover, a German engine maintenance services provider, said Monday it has won an order from Asiana Airlines to provide maintenance, repair and overhaul services.Under the deal, MTU will be in charge of the Korean carrier’s CF6-80C2, an engine made by General Electric Aviation to power its Boeing 767 and 747 fleets, for the next five years. The deal terms were not made public.The German company is an MRO unit of MTU Aero Engines, an engine manufacturer. The deal is its first wit

IndustryFeb. 27, 2012

KEB to replace all executives

Korea Exchange Bank dismissed all nine of its executives Monday, under the business policy of its new CEO Yun Yong-ro to revamp management structure.His move comes a month after financial regulators endorsed Hana Financial Group’s takeover of KEB from Lone Star Funds.Yun, the first KEB CEO under the wing of Hana Financial, notified the nine executives, including four deputy CEOs, that their terms would not be extended.The executives were at their posts during Lone Star’s management of the bank f

Feb. 27, 2012

Childbirths in Korea rise in 2011

The number of children born in Korea increased for the second straight year in 2011, amid concerted efforts to bolster the country’s low birthrate, a government report showed Monday.According to the report by Statistics Korea, the number of newborns totaled 471,400 last year, a gain of 1,200, or 0.3 percent, from the 2010 tally. The gain was attributed mainly to more couples opting to have their first and third child last year.Reflecting this, the number of first and third-borns edged up 1.7 per

Feb. 27, 2012

Report: Women have rare egg-producing stem cells

For 60 years, doctors have believed women were born with all the eggs they’ll ever have. Now Harvard scientists are challenging that dogma, saying they’ve discovered the ovaries of young women harbor very rare stem cells capable of producing new eggs.If Sunday’s report is confirmed, harnessing those

TechnologyFeb. 27, 2012

Government to back SK Biopharm’s epilepsy drug development

SK Biopharmaceuticals Co. said Sunday it plans to carry out clinical tests for its epilepsy drug candidate in four countries as part of a government program to cultivate blockbuster drugs, targeting the international market. The drug unit of Korea’s third-largest conglomerate has since 2006 been developing a medicine for intractable epilepsy, a set of chronic neurological disorders typified by seizures. The product, codenamed YKP3089, is currently in small-scale second-phase trials in the U.S. T

IndustryFeb. 26, 2012

Hyundai ends bus supply contract with Korindo

Indonesian firm strives to renew contract as market share shrinksHyundai Motor co. stopped shipping commercial vehicles to Korindo Group of Indonesia, ending its largest contract in Asia, the company said on Sunday. The world’s fifth-biggest carmaker refused to renew its contract to produce trucks and buses for Korindo since the deal expired on June 15, the Jakarta-based Korean-run developer said. “The commercial vehicle contract with Hyundai expired last June and we have been waiting for Hyunda

IndustryFeb. 26, 2012

Oil prices, eurozone crisis to affect Seoul shares

Korean shares’ direction next week will most likely be affected by rising oil prices and lingering worries over the eurozone debt problems, analysts said Saturday.The benchmark KOSPI ended this week at 2,019.89, down 0.17 percent or 3.58 points from a week earlier.The KOSPI got off to a strong start, driven by the news that China lowered the reserve ratio for its banks. During the week, Wall Street rallies also bolstered investor sentiment here as the Dow Jones industrial average cracked the 13,

Feb. 26, 2012

Korea to tighten household loan rules for non-bank lenders

Korea will toughen rules on household lending by non-bank financial companies in an effort to put the brakes on its rapid growth, the financial regulator said Sunday.Non-bank financial firms, including cooperatives and insurers, will be required to lower their loan-to-deposit ratios to less than 80 percent in two years and to increase credit loss provisions for high-risk loans, the Financial Services Commission said in a statement. Even as the average loan-to-deposit ratio at non-bank financial

Feb. 26, 2012

ICON Media Communications forges partnership with Seoul IR Consulting

ICON Media Communications, an investor relations firm with offices in New York and Los Angeles, announced that it has formed a strategic partnership with Seoul IR Consulting.The tie is aimed at promoting strategic communications counsel between the U.S. and Korean financial markets while enhancing the brand of the two firms in the investment community.“This partnership marks a milestone for ICON as we continue to expand our footprint into the global markets,” said Debra Chen, founder of ICON. “B

Feb. 26, 2012

Standard Chartered sees deepening labor dispute

The labor dispute in Standard Chartered Bank Korea has entered a critical phase again as its management recently failed to reach a compromise with the union.The union of Standard Chartered has threatened to stage a general strike amid the standstill in their negotiations with the management.Though the unionized workers, who went on a walkout between June and August, returned to work, the dispute has not been resolved, according to bank spokespeople.“They are working at branches. But their protes

Feb. 26, 2012

Hana Financial to pick new chief this week

Chairman could oversee Hana’s emergence as Korea’s No. 1 financial groupHana Financial Group plans to select the successor to incumbent chairman Kim Seung-yu, whose term expires in late March, in the coming days.The new chairman will be the second figure to head Hana Financial since Kim took on the top post in 2005.Further, Kim’s successor will take on the role of integrating different corporate culture of Hana Bank and Korea Exchange Bank, which was acquired by the group this month, over the ne

Feb. 26, 2012

U.S. court tentatively denies Toyota arbitration for acceleration cases

A judge ruled tentatively that Toyota Motor Corp. can’t force named plaintiffs in a purported class-action lawsuit over alleged losses from unintended sudden acceleration to arbitrate their claims rather than proceed to trial. U.S. District Judge James Selna in Santa Ana, California, said in a tentative ruling on Friday that Toyota waived its right to compel arbitration for 15 of the 20 plaintiffs and that, for the remaining five, the carmaker wasn’t a party to the arbitration agreements between

MobilityFeb. 26, 2012

Porsche recalls 100,000 cars worldwide to fix headlights

Porsche was recalling 100,000 of its Cayenne models worldwide to fix a headlight locking system that was at risk of becoming detached, the German car manufacturer said Friday.It will be biggest recall in the history of the company.Owners of the luxury sport utility vehicle, Porsche’s most popularmodel, were to receive letters asking them to take their cars to workshops for a free, 45-minute repair.“The headlight locking system on current 2011 and 2012 Cayenne models is being reworked. In-house q

MobilityFeb. 26, 2012