Woori Bank’s Indonesian unit wins higher capital grade

Woori Bank’s Indonesian unit has received a higher grade in capital requirement imposed by the Southeast Asian country’s market watchdog, bringing it one step forward in expanding its business portfolio in the region, officials said Sunday. As of December last year, Bank Woori Saudara raised a combined capital of 5.2 trillion rupiah, or approximately 413 billion won, which falls under a BUKU3 rating, the third-highest in Otoritas Jasa Keuangan’s four-tier bank capital class

MarketFeb. 14, 2021

Convenience stores outperform pandemic-hit department stores in 2020

Convenience stores outperformed major department stores for the first time in terms of offline sales last year amid the country's yearlong social distancing scheme, data showed Sunday. The combined sales of the top three convenience store chains -- GS25, CU and 7-Eleven -- took up 31 percent of the total offline sales in local retail industry, up from 29.2 percent a year ago, according to the data from the Ministry of Trade, Industry and Energy. On the other hand, the combined percentage of bi

ConsumerFeb. 14, 2021

Household saving rate likely to rise in pandemic-hit economy: BOK

South Korea's household saving rate is likely to rise if a pandemic-hit economic crisis persists, in a potential move that could delay a recovery in consumption, a research note from the Bank of Korea (BOK) showed. The yearlong coronavirus pandemic has prompted consumers in South Korea to curb spending, mainly due to stricter social distancing measures, and stockpile cash. "It is true that the higher domestic household saving rate this year is mainly attributable to a contraction in spend

EconomyFeb. 14, 2021

Trade mediation agency resolves disputes worth W121b last year

South Korea's trade mediation agency said Sunday it resolved 120.7 billion won ($108.4 million) worth of unfair contracts through arbitration last year. The Korea Fair Trade Mediation Agency said it mediated 1,308 cases of unfair trade, subcontract work, franchise operation and retail business last year. Through the agency's dispute settlement, smaller firms received compensation of 109.1 billion won last year. When taking saved litigation costs into account, the value topped 120 billion won,

EconomyFeb. 14, 2021

Air passenger traffic dips 68% in 2020 amid pandemic

South Korea's air passenger traffic plunged 68 percent last year in the face of the coronavirus pandemic, the transport ministry said Sunday. In 2020, the number of passengers on domestic and international routes fell to 39.4 million from 123.3 million a year earlier as countries strengthened entry restrictions to stem the spread of COVID-19, the Ministry of Land, Infrastructure and Transport said in a statement. In particular, the number of passengers on international routes plummeted 84 perc

MobilityFeb. 14, 2021

S. Korea's steel output dips below 70m tons on pandemic

South Korea's steel production fell below 70 million metric tons for the first time in four years in 2020 as demand from carmakers, shipbuilders and construction firms plunged amid the COVID-19 pandemic, industry data showed Sunday. The country produced a total of 60.71 million metric tons of steel in 2020, ranking sixth in terms of steel output, following China, India, Japan, Russia and the United States, according to data from the Korea Iron & Steel Association. It was the first time for

IndustryFeb. 14, 2021

SK Group has most affiliates among conglomerates

Energy-to-telecom conglomerate SK Group has the largest number of affiliated companies, data showed Sunday. SK Group, the country's 4th largest business group, had 144 affiliates as of Jan. 31, the most among 64 conglomerates subject to tighter curbs, such as limited inter-affiliate trading. Kakao Corp., the country's top mobile messenger and platform operator, came next in line with a total of 105 affiliates, including 99 non-financials and six financials. Private equity fund IMM Investment

IndustryFeb. 14, 2021

Brokerage houses chalk up sharp earnings increase amid bull run

Earnings of brokerage houses in South Korea soared to a record-high last year amid a stock rush, chasing closely after those of first-tier banks, data showed Sunday. The combined operating profit of the top 20 brokerages by capital base stood at 7.85 trillion won ($7.09 billion) in 2020, soaring 36.7 percent from the previous year, according to the Financial Supervisory Service's regulatory filing. The brokerages' yearly net profit jumped 25.1 percent on-year to 5.96 trillion won. Their total

MarketFeb. 14, 2021

Korean Air offers 'flights to nowhere' amid pandemic

Korean Air Lines Co., South Korea's biggest carrier, has joined other airlines to offer "flights to nowhere" as a way to ride out the coronavirus crisis, the transport ministry said Sunday. Korean Air plans to use the A380 passenger jet on the route from Incheon to the East Sea, Busan, Jeju Island, the Straits of Korea and back to Incheon on Feb. 27, a ministry official said. The entertainment-packed flight to nowhere will take two hours and 20 minutes. It is priced at 219,000 won-70

MobilityFeb. 14, 2021

Hyundai, Kia target 13% rise in US sales this year

Hyundai Motor Co. and affiliate Kia Corp. aim for a 13 percent increase in US sales this year by selling more SUV and high-end models. Hyundai and Kia are targeting to sell a combined 1,360,000 vehicles in the US market in 2021, up from 1,208,374 units they sold a year earlier, the companies said. Their US sales stood at 1,304,109 units in 2019. The two South Korean carmakers expect to achieve the sales target despite the COVID-19 pandemic as demand for Hyundai's Palisade, Kona and Venue SUVs

IndustryFeb. 14, 2021

S. Korea logs $24.8b trade surplus with US in 2020

South Korea logged a $24.82 billion trade surplus with the United States last year, up 18.5 percent from the previous year, according to data compiled by the US Department of Commerce on Sunday. The country's shipments to the world's largest economy fell 1.9 percent on-year to $76.01 billion, while its imports dropped 9.4 percent to $51.21 billion over the cited period, the data showed. South Korea was the US's 7th largest trading partner last year in terms of both exports and imports, the dat

EconomyFeb. 14, 2021

S. Korean companies join global race for shift toward clean energy

South Korean companies are accelerating their shift toward renewable energy to meet tighter emission goals and get ahead in the clean technology development. Major companies have committed to use 100 percent renewable energy by 2050 to join the global clean energy RE 100 initiative led by the international nonprofit organization Climate Group to reduce carbon emissions. The Ministry of Industry, Energy and Trade has launched a domestic campaign of RE 100 to encourage more industry players to e

IndustryFeb. 14, 2021

[Herald Interview] San Francisco recycling company aims to tackle 1/3 of Korea’s plastic waste

The world recycles only 9 percent of its plastic waste. Around 12 percent is incinerated. The remaining 79 percent piles up in landfills or is thrown into the natural environment as litter. At this pace, there will be more plastics than fish in the ocean by 2050, according to the World Economic Forum. Brightmark, a waste solutions company based in San Francisco, aims to tackle the 79 percent with its patented recycling technology that can turn 93 percent of plastic wastes into reusable reso

IndustryFeb. 13, 2021

[Herald Interview] GenEdit to hone in on nervous system disorders in 2021 blueprint

It was Christmas Eve in 2015. The seasonal festive vibe was blocked out from the science lab in UC Berkley, California, where bioengineering doctoral candidate Lee Gun-woo, then 27, was immersed in his research. Lee’s heart quickened as he watched the results of his experiment unravel before his eyes. A polymer nanoparticle traveled straight to his intended target genome in a test rat and changed its DNA. A jolt ran down his spine. “This could make CRISPR DNA scissors work in the h

IndustryFeb. 13, 2021

New Seollal tradition: Cash transfers, gift cards

The social distancing rule that prohibits a gathering of more than five people during the Lunar New Year holiday has led Koreans to seek practical alternatives to the tradition of gifting cash to children -- now via mobiles, not in-person. Kakao Bank, South Korea’s internet-only lender, is capitalizing on the special circumstances created by the coronavirus that restrict in-person family visits. The firm has launched a giveaway event for those who send or receive New Year‘s mone

MarketFeb. 13, 2021

Activist funds to watch in Korea proxy season

Activist fund managers at home and abroad are expected to play a bigger role in the forthcoming proxy season this year in South Korea that starts in March. Seoul-based proxy advisory services firm Korea Corporate Governance Service said in a report Tuesday the shareholders of the companies subject to proxy battle needs closer monitoring, as their results are “unpredictable.” Homegrown private equity firms including Korea Corporate Governance Improvement and HYK Partners are expecte

MarketFeb. 13, 2021

S. Korea’s central bank faces key changes to role in digital era

The upheavals brought by the COVID-19 pandemic have hastened the challenges faced by South Korea’s central bank, from digital transformation to demand for its bigger role to strive for employment stability in carrying out monetary policies. With the quickly changing economic and financial landscape, central banks around the world are scurrying to digitalize themselves. The People’s Bank of China recently entered the final stages of its own digital currency development and other cent

EconomyFeb. 13, 2021

S. Korea expects 3 more homegrown COVID-19 treatments in H1

Three homegrown treatments for the novel coronavirus are expected to receive approval as early as the first half of this year as the country speeds up the approval process amid the pandemic.    Last week, the country's drug safety agency approved pharmaceutical giant Celltrion Inc.'s CT-P59, an anti-COVID-19 monoclonal antibody treatment, marking the country's first homegrown treatment. The treatment will be provided to medical institutions starting in mid-February. It can only be ad

IndustryFeb. 13, 2021

Naver, Kakao employees pocket 'bonuses' amid brisk performance

Naver and Kakao -- the two major South Korean tech companies -- have recently provided "bonuses," such as stock options and shares, to their employees amid record-breaking performances    Annual sales of Naver -- South Korea's top internet portal operator -- and Kakao -- the operator of the country's top mobile messenger, KakaoTalk -- both jumped to all-time highs of 5.3 trillion won ($4.8 billion) and 4.15 trillion won, respectively, in 2020. The two tech firms have been c

TechnologyFeb. 13, 2021

Parcel volume rises 21% in 2020 amid pandemic

The parcel volume in South Korea rose 21 percent last year from a year earlier as more people shifted to online shopping amid the COVID-19 pandemic, government data showed Saturday.    A total of 3.37 billion parcels were delivered in the nation by 18 logistics companies in 2020, surpassing 3 billion for the first time, according to the data by the Ministry of Land, Infrastructure and Transport.     The parcel volume exceeded 2 billion in 2016 and had posted around

EconomyFeb. 13, 2021