The Korea Herald

Consumption slowdown clouds economic outlook

Department store sales drop 4.2 percent in January, the lowest in 37 monthsKorea’s private consumption is declining rapidly, data showed Wednesday, amid sluggish sentiment sparked by the eurozone fiscal debt crisis. Local consumers are tightening their belts to grapple with a slowing economy, which in turn deals a blow to manufacturers and big-ticket item sales. Sales at department stores slowed and imports of goods also dropped. Private consumption fell 0.4 percent in the October-December perio

Feb. 8, 2012

Korea gears up for Yeosu Expo

More than 300 representatives from 101 countries and nine multinational organizations gathered on Wednesday in Seoul to ensure smooth preparations for the 2012 Yeosu Expo three months ahead of its opening. Under the theme “Living Ocean and Coast,” the participant countries and organizations will showcase their diverse marine development and advancement of oceanic technology on the southern shore of the Korean Peninsula from May 12 to Aug. 12.The 93-day event will focus on oceans and their potent

Feb. 8, 2012

Unclear if Japan mergers help or harm Samsung

Questions are being raised as to how the possible merger of Japanese technology companies would impact the sales and operations of tech giant Samsung Electronics.On Wednesday, media outlets in Tokyo reported that three of Japan’s biggest electronics companies ― Panasonic, Renesas Electronics and Fujitsu ― are in talks to form a chip-making venture as they seek economies of scale in the competitive marketplace.The move comes as the firms’ system large-scale integration chip (System LSI) operation

IndustryFeb. 8, 2012

Unclear if Japan mergers help or harm Samsung

Samsung to roll out new smart TV this week

Samsung Electronics said Wednesday that it will roll out its new premium smart televisions beginning this weekend.Dubbed the ES 8000 series, the new smart TVs are installed with smart evolution kits on their backs, enabling the upgrade of key features like the TV processor by replacing it with a new one beginning next year, said Kim Hyun-suk, executive vice president at visual display business at Samsung Electronics. “The new smart TVs are being introduced for the first time in Korea and the mai

IndustryFeb. 8, 2012

Samsung to roll out new smart TV this week

Woori eyes 2012 launch of card unit

Woori Financial pinning hopes on lawmakers’ push while government takes wait-and-see stanceWoori Financial Group, which aims to launch a stand-alone credit card operation, is pinning hopes on an early law revision so that its goal can be attained this year.Though the financial group has sought to spin off a credit card unit from Woori Bank for about a year, financial regulators are taking a wait-and-see or skeptical position over the move amid heated competition in the card industry.But a revisi

Feb. 8, 2012

KT&G to freeze cigarette prices ‘for the time being’

KT&G Corp., Korea’s tobacco giant, said Wednesday it planned to freeze its cigarette prices for the time being, citing persistent inflationary pressures.The Seoul-based company has recently been faced with a dilemma as to whether it should follow the lead of its smaller rivals, which relayed price hikes since last year to cope with surging raw material and labor costs. Philip Morris International Korea is set to increase its cigarette prices by 6.8 percent on average starting Friday. Its flagshi

IndustryFeb. 8, 2012

Shares break 2,000 on eased Greece woes

Korean stocks closed 1.12 percent higher Wednesday on signs that debt-laden Greece will soon undertake the rest of the procedures needed to get its second bailout package, analysts said. The local currency rose against the U.S. dollar.The benchmark KOSPI climbed 22.14 points to 2,003.73, surpassing the psychologically significant 2,000 mark for the first time since Aug. 4. Trading volume was heavy at 571.2 million shares worth 7.09 trillion won ($6.35 billion) with gainers far outpacing decliner

Feb. 8, 2012

‘Iran sanctions won’t hurt Korean exports’

Woori, Industrial Bank of Korea freeze accounts with Bank TejaratThe new sanctions halting Korea’s transactions with the third-largest Iranian financial entity Bank Tejarat will not constrict trade flows with the Middle Eastern country, bank officials said Wednesday.Two state-run banks ― Woori Bank and the Industrial Bank of Korea ― halted transactions with Bank Tejarat as of Jan. 23 in support of the U.S.-led sanctions against Tehran aimed at preventing the country from developing nuclear weapo

Feb. 8, 2012

‘Iran sanctions won’t hurt Korean exports’

Korea to start domestic procedures for free trade talks with China

Korea will begin its domestic procedures later this month for the start of formal negotiations with China on a bilateral free trade agreement, Seoul’s trade ministry said Wednesday.The ministry said a public hearing on the launch of free trade talks with China will be held on Feb. 24 to gather opinions from experts.In early January, Korea and China agreed to start formal negotiations for a free trade agreement with the aim to launch talks before the end of June.Once Seoul smoothly completes its

Feb. 8, 2012

Nonlife insurers mull cuts in car insurance premiums

Buoyed by stellar performances last year, Korean nonlife insurers are considering cutting their car insurance premiums amid worries over high inflation, industry sources said Wednesday.Industry leader Samsung Fire & Marine Insurance Co. recently sounded the Financial Supervisory Service, the local financial regulator, on its intention to slash insurance premiums by around 2 percent, according to the sources.The FSS has begun looking into the possibility, examining other non-life insurers’ loss r

Feb. 8, 2012

Large companies vow to promote stability

A group of Korea’s large conglomerates pledged Wednesday that they will make concerted efforts to stabilize the economy and improve the livelihoods of ordinary people in the face of persistent global economic woes.The Federation of Korean Industries, a powerful interest group for the country’s big family-owned businesses, adopted a resolution on their responsibility for economic stability and social integration.The move came as the country’s large conglomerates have come under fire for monopoliz

Feb. 8, 2012

NASA planning ‘space taxi’ program

United States space agency NASA is looking for firms to design and build space taxis to transport astronauts to and from International Space Station, Reuters reported Tuesday. NASAThe program aims to continue previous plans by NASA to develop commercial passenger spaceships.With the U.S. shutting do

TechnologyFeb. 8, 2012

Software mogul to sell part of stake in company to finance new charity

SEOUL, Feb. 7 (Yonhap) -- Software mogul Ahn Cheol-soo unveiled more details of his management plan for his new charity Tuesday, saying he will sell part of his stake in his software company to raise the funds needed to operate the charity.Ahn, the founder of the nation's largest anti-computer virus

IndustryFeb. 7, 2012

Korea prioritizes inflation amid growth slowdown

The Finance Ministry on Tuesday reiterated that the inflation fight is its top priority for the coming months, even as it sees growth slowing further from external risks and weak consumer sentiment.Its report to the National Assembly said it aims to keep inflation in the low 3-percent range, a challenging task given the worries about higher oil prices that are driving price expectations higher.“Price stability is our policy priority for this year also. Measures will target making the low-income

Feb. 7, 2012

Korean companies shift from ‘Made in Asia’ to ‘Made for Asia’

Recent weeks have seen Korea post a string of gloomy economic figures.The country’s trade balance went into the red for the first time in two years in January, according to data released by the Ministry of Knowledge Economy last week.Figures from the central bank revealed a week earlier that gross domestic product grew by only 0.4 percent in the final quarter of 2011, the slowest rate in two years. Consumption by indebted households declined for the first time in three years, slipping 0.4 percen

Feb. 7, 2012

Korean companies shift from ‘Made in Asia’ to ‘Made for Asia’

Is Asian economy entering a golden age?

Robust growth, strong domestic demand, fiscal health brighten prospectsIn its outlook for the Asian economy last month, the International Monetary Fund forecast growth would come close to 6 percent in 2012 and further recover to 6.5 percent next year.Though revised slightly down, the projections nonetheless confirmed that Asia would “hold firm” as the world’s fastest growing region in the face of global financial turmoil and the eurozone’s debt problem. The IMF cut its growth outlook for the wo

Feb. 7, 2012

Hyundai Oilbank, Shell in joint venture

Hyundai Oilbank said Tuesday it will jump into the lubricant base oil business by establishing a joint venture with Shell Petroleum Co. next month.With plans to start production in the latter half of 2014, the joint venture, named Hyundai and Shell Base Oil Co., will break ground on a factory in October.Lubricant base oils, also known as base oils, are the primary hydrocarbon components of industrial lubricants such as engine oil, transmission fluid, hydraulic fluid, gear oil and metal working o

IndustryFeb. 7, 2012

SaKong will not seek second term: KITA

SaKong Il, chairman of the Korea International Trade Association, will not seek a second term despite his upbeat reappointment prospects, the state-run trade body said Tuesday. SaKong, 73, has been overseeing the association’s operations, including supporting small- and mid-size firms and improving the domestic business environment over the past three years. His term is to expire Feb. 22. “I wish to contribute to the development of the national economy and trade industry as a Korean citizen with

IndustryFeb. 7, 2012

Woongjin’s decision to sell Coway draws mixed response

Woongjin Group’s announcement that it would unload its water purifier unit, Woongjin Coway, sparked mixed reactions among investors and analysts on Tuesday, as demonstrated in the steep price changes of related shares.Woongjin Holdings shares shot up 14.9 percent to close at 7,250 won on Tuesday, reflecting a positive reaction to the plan to sell off Coway. Woongjin Chemical also climbed 13.46 percent to 1,180 won and Woongjin Energy surged 14.87 percent to 8,190 won. The chemical and energy aff

IndustryFeb. 7, 2012

Woongjin’s decision to sell Coway draws mixed response

BOK could resolve household debt: Goldman Sachs

Moody’s says Korean banks vulnerable to eurozone debt crisisA global investment bank cited the central bank’s monetary policy as a key solution to resolving the growing worries over the record-high household debt.Goldman Sachs predicted that a soft landing of Korea’s household debt will be possible according to the Bank of Korea’s interest rate-setting.Its optimistic view could be contradictory to the prevailing anxiety in the market that household debt is a ticking time-bomb as outstanding cons

Feb. 7, 2012