Kospi hits 19-month low as US inflation skyrockets

South Korea’s benchmark Kospi closed at 2,504.51 Monday, its lowest level since Nov. 13, 2020 when it fell to 2,493.87, as investors priced in a big US rate hike amid a record annual increase in US consumer prices in May. A month earlier, US consumer prices surged 8.6 percent on-year, the largest gain since 1981 on record-high gasoline prices and soaring food costs, fueling bets on a sharper rate hike than the half percentage point raise the US Fed had indicated. The Fed’s two-

MarketJune 13, 2022

LG Energy Solution unveils W730b EV battery plan

South Korean lithium-ion battery cell maker LG Energy Solution on Monday unveiled a 730 billion won ($567 million) plan to expand production of batteries for electric vehicles here, including the next-generation 4680-type cylindrical batteries, which are bigger than current conventional designs. In an apparent bid to supply to carmakers like US electric vehicle giant Tesla, the company will pour in 581.8 billion won from June 2022 until October 2023 by adding a 9 gigawatt-hour pr

TechnologyJune 13, 2022

Manufacturing industry suffers W1.6tr loss from truckers’ strike: ministry

The ongoing strike by unionized cargo truckers which began last week appears to have caused at least 1.6 trillion won ($1.2 billion) in losses, the Industry Ministry said on Monday. Carmakers may have seen some 257 billion won in losses as the sit-in protest paralyzed supply deliveries, preventing 5,400 vehicles from being produced. The estimated losses were calculated by setting the price of a sedan at 47 million won. The steel industry has estimated its losses at 697 billion won for the las

IndustryJune 13, 2022

[Photo News] Meet Torres

A promotional image unveils the entire exterior of SsangYong Motor's new mid-sized SUV Torres. Under the brand slogan, “Adventurous,” the SUV maker mixed retro and future-oriented design elements while securing a large cargo space of up to 703 liters, capable of storing four caddie bags and more.  Other technological features like Lane Keeping Assist and Forward Collision Warning have been added as standard options. The price ranges between 26.9 million won and 30.4 million wo

MobilityJune 13, 2022

Lee Jae-yong regaining appetite for batteries?

Samsung Electronics Vice Chairman Lee Jae-yong reportedly met with BMW Group Chairman Olive Zipse last week in Germany in an apparent move to renew his commitment to Samsung’s electric vehicle battery business, as well as its long-held partnership with the luxury carmaker. According to news reports Monday, the Samsung chief’s first stop of his two-week Europe trip that began last Tuesday was Germany. And he held a meeting with the BMW chief at the carmaker’s Munich headquarte

TechnologyJune 13, 2022

Rate hike fears send Seoul stocks to 19-month low; Korean won sharply dips

South Korean stocks crashed to a 19-month low Monday as high inflation sparked fears of a potential aggressive monetary tightening in the US and a slowdown in global economic growth. The local currency fell sharply against the US dollar. The Korea Composite Stock Price Index (KOSPI) lost 91.36 points, or 3.52 percent, to close at 2,504.51, extending losses for the fifth consecutive session. It is the lowest figure since November 13, 2020, when the KOSPI closed at 2,493,97 points. Trading volume

MarketJune 13, 2022

Trade deficit hits $5.6b on decline in exports

SEJONG -- South Korea’s trade deficit, posted over the past five months on a cumulative basis, expanded during the first 10 days of June due to a decline in exports as well as a spike in import prices of raw materials including crude. The nation’s exports fell more than 12 percent during the June 1-10 period, compared to the same period of 2021, while imports increased by more than 17 percent, state data showed Monday. Korea recorded a trade deficit of $5.59 billion for the first 1

EconomyJune 13, 2022

Food packages get smaller for customers weary of inflation

Amid price hikes and rising food bills, retailers in South Korea have come up with a new marketing strategy to keep customers satisfied. Convenience store chain CU has launched packages of vegetables, meat and fruit that are smaller and less expensive than the ones they usually sell. The store chain also offers packaged Korean pork belly, jowl meat, false lean, and flat iron steak in 200-gram packages. The company said it has cut margins by directly purchasing vegetables from distribution cen

ConsumerJune 13, 2022

[Newsmaker] [Herald Interview] ‘Even in bearish market, K-pop-themed ETF will shine’

Unlike stocks, it is rare for an investment like an exchange-traded fund (ETF) to draw global attention. But KPOP ETF went viral in April when plans for the fund hit the news, reflecting the popularity of one of South Korea’s most high-profile exports. The orchestrator behind the ETF -- set to debut in the US market on July 5 – is Seoul-based intellectual property mogul, and Contents Technologies CEO, Lee Jang-won who recently sat down with The Korea Herald to discuss whether the K

MarketJune 13, 2022

AMD’s next-gen server CPU standard signals ties with Samsung

The latest announcement of US logic chip designer Advanced Micro Devices’ next-generational processor standard for data center servers indicates that a collaboration with South Korean tech giant Samsung Electronics is imminent. This comes as AMD’s chip architecture in the making is to be compatible with the groundbreaking Samsung-backed memory standard Compute Express Link, in order for the chip platform to go full throttle. AMD hinted at heterogeneous computing by opening up to in

TechnologyJune 13, 2022

Samsung Biologics boasts top-tier production capacity at BIO International

SAN DIEGO -- Samsung Biologics is showcasing its top-tier production capacities at the world’s largest biopharmaceutical exhibition, the South Korean company said Monday. Taking part in the BIO International Convention for the 10th consecutive year, Samsung Biologics has set up a sizable 140-square-meter booth to represent its world-leading production capacity as one of the largest contract and manufacturing organization businesses across the globe. According to Samsung Biologics, the

IndustryJune 13, 2022

Seoul shares open sharply lower on inflation, recession woes

Seoul shares opened sharply lower Monday, as the higher-than-expected inflation in the United States renewed concerns over more aggressive monetary tightening and a global economic slowdown. The Korea Composite Stock Price Index (KOSPI) fell 57.04 points, or 2.2 percent, to 2,538.83 points in the first 15 minutes of trading. On Friday, US shares tumbled after the US' consumer price index for May rose 8.6 percent, the highest level in 40 years. The Dow Jones Industrial Average retreated 2.73

MarketJune 13, 2022

Exports down 12.7% during first 10 days of June

South Korea's exports fell 12.7 percent on-year in the first 10 days of June due largely to fewer working days, and the country suffered a trade deficit due to high fuel costs, data showed Monday. The country's outbound shipments stood at $15.07 billion in the June 1-10 period, compared with $17.3 billion a year earlier, according to the data from the Korea Customs Service. The fall in exports came as the number of working days in June was fewer than a year earlier due to public holida

EconomyJune 13, 2022

Renault Korea Motors vows to stay committed to Korea

With big is beautiful still the mantra for many Korean drivers, small-car specialist Renault Korea Motors faces a challenge in the local market. So as the carmaker commits to the Korean market, new CEO Stephane Deblaise’s priority is designing a new car that suits Korean tastes and taking it to foreign markets with similar preferences. “Korean customers prefer big cars over small cars, and there are no such cars in our lineup. So we are thinking about making a big car here in Kore

MobilityJune 12, 2022

Cargo truckers’ strike deepens inflation, supply chain woes

South Korea’s unionized cargo truckers continued their sixth day of a general strike on Sunday, posing a fresh threat to the local economy amid lingering woes over higher inflation and supply chain disruptions.  Cargo truckers here began a nationwide indefinite strike on Tuesday, urging the government to extend a freight rate system that guarantees a basic level of pay. Drivers say that without the higher rate, they feel under pressure to drive dangerously fast to make ends meet.&nb

IndustryJune 12, 2022

[Newsmaker] McDonald’s Korea back on sale after six years

McDonald’s Korea, the local unit wholly owned by the US fast-food giant, is seeking a new owner -- joining the latest burger chain sales rush here. The company confirmed Friday that its US headquarters is selling its entire stake in the Korean unit as well as its business license after its first failed attempt six years ago. According to news reports, Mirae Asset Securities, the deal’s lead manager, plans to send letters as early as next month to invite potential bidders. With

ConsumerJune 12, 2022

Kakao Pay employees each lose W20m over stock dip

Kakao Pay employees who own shares in their own company each lost an average 20 million won ($15,600) due to the mobile payment firm’s stock price plunge since January, reports said Sunday. The company’s employee stock ownership association purchased a total 3.4 million shares in Kakao Pay at the price of 90,000 won per share prior to its initial public offering on Nov. 3 last year, according to a regulatory filing. Documents show that some 800 employees received an average 4,005

MarketJune 12, 2022

Kakao, Shinhan dive into online, mobile insurance market to lure millennials, Gen Z

South Korea’s tech giant Kakao and financial giant Shinhan are set to launch online- and mobile-only insurers by next month to attract millennial and Generation Z customers with affordable and simple products. Kakao’s mobile payment arm, Kakao Pay, is slated to launch its first general insurance unit called Kakao Pay Insurance in July, adding competition to the online-only insurance market here currently dominated by three existing insurers – Kyobo Life Planet, Hana Insurance

MarketJune 12, 2022

[Weekender] Metaverse technologies bring health care to doorsteps

South Korea’s health care sector is breaking physical barriers with the rise of the metaverse and its core technologies -- virtual reality and artificial intelligence. As the COVID-19 pandemic has limited most offline interactions for the past two years, metaverse technologies that ultimately envision a shared virtual space where people can interact with each other and carry out lifelike activities and tasks have been brought to the fore. Unlike the traditional health care sector that

TechnologyJune 11, 2022

BOK chief signals July rate hike amid soaring inflation

Bank of Korea Gov. Rhee Chang-yong on Friday backed a “timely” rate hike to avoid fallout from a belated decision, ahead of a policy board meeting in July, in an address to mark the 72nd anniversary of the bank’s founding. The central bank has already lifted interest rates three times this year, doing so at every policy meeting except for the one in February -- a decision experts say demonstrates the central bank’s determination to alleviate the increasing burden on

EconomyJune 10, 2022