Four companies fined for cartel in submarine project

Korea’s four major defense manufacturers have been fined for allegedly forming a cartel in a 2.7 trillion won ($2.41 billion) project to build next generation submarines, the country’s antitrust watchdog said Sunday.The four defense contractors ― LIG Nex1, Samsung Thales, Hanwha Corp. and STX Engine Co.― were imposed with a combined fine of 5.99 billion won, according to the Fair Trade Commission.Samsung Thales was fined 2.68 billion won with LIG Nex1 ordered to pay 2.47 billion won in penalties

Feb. 5, 2012

’Drug makers offered W100b in rebates over 5 years’

FTC last year slapped fines on Korean units of Sanofi-Aventis and JanssenDrug makers in Korea have offered nearly 100 billion won ($89.4 million) in rebates between 2006 and 2010, a report showed Sunday, pointing to a rampant illicit practice that has long dragged on one of Asia’s fastest growing pharmaceutical markets. Last year, 17 local and multinational firms were fined 14.3 billion for having offered cash, gift cards, lavish entertainment and other kickbacks to nearly 8,700 hospitals, docto

IndustryFeb. 5, 2012

KNOC sells part of stake in U.S. oil field

Korea National Oil Corp. the state-run oil developer, said Sunday it has sold 29 percent of its 80 percent stake in a Gulf of Mexico oil field to a domestic consortium for $308 million.The sale came six months after KNOC selected the consortium of Korea Investment Management Co., Samsung Securities Co. and Daewoo Securities Co. as the preferred bidder for the stake in the Ankor field.KNOC purchased the 80 percent interest in 2008. The state oil developer was entitled to receive 4.47 million barr

IndustryFeb. 5, 2012

Chaebol subsidiaries dwindle amid criticism

Samsung and some major conglomerates in Korea have seen the number of their subsidiaries decline over the past seven months amid escalating criticism over their excessive expansion, data showed Sunday.Samsung Group, the country’s largest family-controlled conglomerate, known as chaebol, had 79 affiliates under its wing as of Sunday, down four from July last year, according to the data by industry sources and the Fair Trade Commission, the corporate watchdog.Samsung, whose flagship is tech giant

IndustryFeb. 5, 2012

Samsung signs printer deal with California

Samsung Electronics Co., Korea’s leading tech firm, said Sunday it has won a three-year contract to supply printers to the state government of California.The company did not specify the amount of the deal, but said it will supply laser-jet printers to 150 government offices of California for the next three years. Samsung also said the deal marked the company’s largest contract with a government.Samsung currently has the second-largest share of about 20 percent in the global market for laser-jet

Feb. 5, 2012

Foreign bank branches’ 2011 net slips 16.2%

Foreign bank branches in South Korea saw their net fall 16.2 percent in 2011 from a year earlier due mainly to a decline in profit from stock investment and interest earnings, the financial regulator said Sunday.The combined net income of 38 foreign lenders’ local branches reached 1.23 trillion won ($1.1 billion) in 2011, compared with 1.47 trillion won in the previous year, according to preliminary data by the Financial Supervisory Service.Of the total, 33 foreign bank branches reaped profits,

Feb. 5, 2012

Hana Financial seeking to buy Korean American bank in U.S.

Los Angeles (Yonhap News) ― Hana Financial Group Inc., Korea’s No. 4 banking group, said that it is pushing to acquire a Korean American commercial bank in the United States as part of its bid to accelerate expansion abroad. The move comes as Hana Financial Group seeks to boost overseas revenue by taking over the Korea Exchange Bank, Korea’s No. 5 lender, in one of the biggest banking deals in South Korean history. “We are eying (targets) on the East and West coasts where a large number of overs

Feb. 5, 2012

Shares likely to move in narrow range

Korean stocks are expected to move in a narrow range in this week, as foreign buying may turn lackluster and pressure from the latest gains is likely to slow down a further gain by the key index, analysts said Saturday. The benchmark KOSPI closed on Friday at 1,972.34, up 0.38 percent, or 7.51 points, from one week ago. Although foreign investors propped up the KOSPI earlier this week, the key index failed to surpass the 2,000 level likely to have cheered investors. The last time the KOSPI trade

Feb. 5, 2012

SMEs see their cash reserves shrinking

A growing number of small and medium-sized companies in Korea are facing a shortage of operating cash in the midst of the economic slowdown and more stringent loan conditions, data showed Sunday. Cash and cash equivalents at 612 listed companies reached 52.2 trillion won (46.8 billion) as of the end of September down 3.39 percent from December of 2010, according to the Korea Exchange.Due to the eurozone fiscal crisis and deepening concerns about a global economic slowdown, local lenders are relu

Feb. 5, 2012

Korea faces 18% Iranian oil cut guideline: sources

WASHINGTON (Yonhap News) ― Korea will be forced to slash its oil imports from Iran by at least 18 percent if the U.S. Treasury Department accepts lawmakers’ guidelines on implementing a new Iran sanctions law mainly aimed at curbing its oil sales, sources here said Thursday.The U.S. has been calling for international cooperation in implementing the 2012 National Defense Authorized Act.“Some senators requested a 18-percent cut for a foreign country to be eligible for the waiver of sanctions on it

Feb. 5, 2012

Honda runs Super Bowl ads in U.S.

Honda Motor Co., coming off its worst year in the U.S., has produced two offbeat Super Bowl ads with stars Matthew Broderick and Jerry Seinfeld to revive interest in its brands.Honda will air the two 60-second spots during Feb. 5’s Super Bowl after sitting out last year’s game. A commercial promoting its CR-V crossover has actor Broderick behaving like his character in 1986’s “Ferris Bueller’s Day Off.” An Acura ad has car collectors Seinfeld and “Tonight Show” host Jay Leno competing for the fi

MobilityFeb. 5, 2012

Korea, Turkey to sign MOU on $2b power plant

ISTANBUL (Yonhap News) -- South Korean firms will sign a preliminary agreement to build a thermal power plant in southern Turkey on the sidelines of President Lee Myung-bak's trip to the Eurasian nation, officials said Sunday.A consortium of SK E&C and the state-run Korea South-East Power Co. will s

Feb. 5, 2012

CEO of chip maker Micron dies in plane crash

BOISE, Idaho (AP) -- The image Steve Appleton cultivated as a stunt pilot and off-road rally driver became the perfect metaphor for his wild, 18-year ride as the leader of Micron Technology Inc., where stomach-churning swings from billion-dollar profit to billion-dollar loss required the constitutio

TechnologyFeb. 5, 2012