Big firms' investments gain 10% despite weaker sales

Capital spending by large South Korean firms rose more than 10 percent in the first nine months of the year despite lower sales due to the coronavirus pandemic, data showed Wednesday. Combined investments by 362 big businesses in Asia's fourth-largest economy came to 63.2 trillion won ($57.1 billion) in the January-September period, up 10.3 percent from a year earlier, according to the data from corporate tracker CEO Score. The solid increase came as their total sales fell 4.5 percent on-year

EconomyNov. 18, 2020

Sitting room with a steering wheel: BMW unveils new electric Mini concept

BMW Group unveiled Tuesday a new electric vehicle concept for its Mini brand, dubbed Mini Vision Urbanaut, tha seeks to bring a living-room like feel to the interior. During its #NEXTGen 2020 digital showcase held online, the German-based automaker revealed the new “digital vision vehicle” that uses a purely electric drive system. “In the MINI Vision Urbanaut, we extend private space far into the public realm, creating completely new and enriching experiences,“ Adrian

MobilityNov. 17, 2020

Amorepacific invests W3b in beauty content producer firm

South Korean cosmetics giant Amorepacific said Tuesday it would invest 3 billion won ($2.7 million) in Dmil, a multi-channel network company. According to Amorepacific, Dmil is a media contents firm, producing and selling cosmetics-related content and items, partnering with 250 content creators, including YouTubers Jella, Woorin and Chaeyoung. “From this investment, Amorepacific Group will establish a close partnership with beauty influencer-made contents and in commerce,” Lee Yo

ConsumerNov. 17, 2020

Korean Air parent company signs agreement with KDB for Asiana acquisition

Hanjin KAL, the parent company of Korean Air Lines, on Tuesday signed an agreement with Asiana Airlines Inc.'s main creditor Korea Development Bank for its acquisition of the smaller carrier. The investment agreement calls for the KDB to inject 800 billion won ($723 million) into Hanjin KAL through a rights offering and convertible bonds. Under the deal, Hanjin KAL is required to select three of its outside directors and members of an inspection committee, which will all be designated by the

IndustryNov. 17, 2020

Kakao Bank to raise W250b from Anchor Equity Partners

South Korea’s mobile-only commercial lender Kakao Bank said Tuesday that it plans to raise 250 billion won ($226 million) from Hong Kong-based private equity firm Anchor Equity Partners. Under the plan approved by the board the same day, Anchor Equity Partners will complete the payment by Dec. 7 to buy 1 million new ordinary shares of Kakao Bank, as the lender plans to fetch a combined 1 trillion won by year-end before its initial public offering next year. Kakao Bank also said US inves

MarketNov. 17, 2020

KT CEO appointed as new board member of GSMA

KT CEO Ku Hyeon-mo has been appointed one of the four new board members of GSMA, an international industry organization dedicated to representing the interests of mobile network operators, the South Korean telecommunications firm announced Tuesday. Ku said he would put his best effort into leading innovations in a wide range of sectors, including 5G networks, artificial intelligence, platforms and business-to-business areas over the next two years. GSMA director general Mats Granryd express

TechnologyNov. 17, 2020

Mobile carriers, government still deadlocked over frequency pricing

The Seoul government and telecommunications firms held a meeting to negotiate the pricing of frequency reallocation costs for 3G and Long-Term Evolution networks in Seoul on Tuesday, but failed to reach a compromise. The latest meeting was held to close gaps that exist between the government and the nation’s three major telecommunications firms, KT, SK Telecom and LG U+. During the meeting, the ICT Ministry rolled out a new offer to local telecommunications firms, proposing to provide

TechnologyNov. 17, 2020

[Contribution] NTS strives to broaden access to tax statistics

On Sept. 24, the National Tax Service held an opening ceremony at its Seoul Regional Office for the Seoul branch of NTS Data Lab. This is the first offshoot of the NTS Data Lab, which has been in operation in the city of Sejong since 2018. The NTS Data Lab is a secured facility whose main purpose is to promote research that may inform tax policies. It gives researchers access to microdata that had been used to compile national tax statistics for further analysis. Most of the data held by NTS

EconomyNov. 17, 2020

Korean economy maintaining recovery momentum amid pandemic: finance minister

The South Korean economy is maintaining its recovery momentum amid the fallout of the new coronavirus outbreak, the country's chief economic policymaker said Tuesday. During a conference call with global credit appraiser Standard & Poor's (S&P) earlier in the day, Hong discussed the country's overall economic situation and responses to the COVID-19 pandemic, according to the Ministry of Economy and Finance. Every year, delegations from key global credit rating agencies visit South Kor

EconomyNov. 17, 2020

Banking circles grapple over new chief selection

South Korea’s banking industry on Tuesday sorted out seven candidates for the Korea Federation of Banks’ next chairmanship, set to make the final choice as early as Monday. In an apparent response to criticism that the bankers’ association is under excessive bureaucratic influence, the latest list included several figures from the private sector -- incumbent or former chiefs of commercial banks. The KFB board of directors met in a closed-door breakfast meeting early in the

MarketNov. 17, 2020

KFCC boosts global ties amid COVID-19 pandemic

The Korean Federation of Community Credit Cooperatives, the nation’s leading financial cooperative, has been strengthening global cooperation with its foreign counterparts in the midst of the COVID-19 pandemic, the federation said Tuesday. 　 Under KFCC President Park Cha-hoon’s initiative, the financial cooperative has been exchanging messages with cooperatives around the world via Facebook and Twitter to encourage each other to stay strong during the pandemic. A total of 21 foreign

MarketNov. 17, 2020

KCGI criticizes Hanjin KAL chief over merger plan

South Korean activist private equity fund KCGI on Tuesday lashed out at Korean Air's plan of acquiring its rival Asiana Airlines with the policy lender’s help, claiming that the scheme is being pursued to cement Hanjin KAL chairman Cho Won-tae’s control over the air carrier. Hanjin KAL is the holding company of Hanjin Group, which owns Korean Air. “The state-run Korea Development Bank’s pledge to finance the acquisition in advance helps the Hanjin KAL chairman complete t

MarketNov. 17, 2020

Korea Hydro & Nuclear Power vies for Czech nuclear plant deal

The competition to win Dukovany nuclear power plant deal in Czech has been narrowed down to five candidates including Korea Hydro & Nuclear Power after France-Japan consortium ATMEA dropped out of the race. According to industry sources Tuesday, Czech power utility CEZ held the second round of talks at the turn of October with five candidates willing to become suppliers for the construction of the Dukovany nuclear power plant. The five candidates include KHNP, China’s CGN, France

IndustryNov. 17, 2020

Kakao Games employees exercise stock options after IPO jackpot

Employees of Kakao Games netted 16.7 billion won ($15 million) in gains by exercising stock options after the games unit of Korea’s mobile giant Kakao successfully debuted on the Kosdaq market in September. According to a regulatory filing Tuesday, a significant number of Kakao Games employees exercised stock options to purchase 473,678 shares at the average price of 13,000 won on Sept. 23, two weeks after the company went public. In total, the employees spent 6.3 billion won to buy the

IndustryNov. 17, 2020

Renault Samsung's SM6 gains popularity with new powertrain

The revamped version of the SM6 is gaining popularity for its new powertrain, Renault Samsung Motors said Tuesday. First released in 2016, the automaker presented the revamped version of the new SM6 in July this year, with upgrades in its powertrains. The automaker said it took three and six months to present the upgraded mode, to take in and reflect the opinions of its customers. For the development of the facelifted SM6, the company plowed in 230 billion won ($208 million), Renault Samsung

MobilityNov. 17, 2020

Late Samsung chairman’s stock value exceeds W20tr on November gains

Boosted by the recent surge in stock prices of Samsung Group affiliates, the stockholding value of late group Chairman Lee Kun-hee surpassed the 20 trillion won ($18.07 billion) mark for the first time, data showed Tuesday. According to data compiled by local corporate tracker Chaebul.com, the accumulated stock value of the late chairman came to some 20.08 trillion won as of Monday, soaring about 14 percent from some 17.62 trillion won at the end of last year. Lee died last month after six year

MarketNov. 17, 2020

[News Focus] Korea 6th highest in household debt in OECD

SEJONG -- South Korean households saw their collective debt reach 191 percent of their net disposal income as of 2019, up from the ratio of 184 percent posted a year earlier, data from the Organization for Economic Cooperation and Development showed. As a result, Korea placed at sixth on the list of OECD countries in the household debt-disposal income ratio last year, up from No. 8 in 2018. The France-based organization compared the latest available data for 33 of its total 37 members. The ex

EconomyNov. 17, 2020

Seoul stocks down as investors lock in gains

South Korean shares snapped their two-day gains Tuesday after hitting a nearly three-year high the previous session, as valuation pressure offset optimism over Moderna's experimental COVID-19 vaccine. The Korean won rose against the US dollar. After choppy trading, the benchmark Korea Composite Stock Price Index (KOSPI) fell 3.88 points, or 0.15 percent, to close at 2,539.15. Trading volume was high at about 1.2 billion shares worth around 17.5 trillion won ($15.8 billion), with losers outnumb

MarketNov. 17, 2020

Pelicana-backed PEF to close W20b deal to acquire Mr. Pizza

South Korea’s private equity fund backed by fried chicken franchise Pelicana Chicken is on the verge of closing a 20 billion won ($18.1 million) acquisition deal to become the biggest shareholder of MP Group, which owns pizza restaurant franchise Mr. Pizza and coffee chain Manoffin, a filing showed Tuesday. The deal will reach a final close once MP Group gets the green light to resume trading on the Korea Exchange’s development bourse Kosdaq in a decision affecting some 10,000 smal

MarketNov. 17, 2020

Coupang now among 3 biggest employers in Korea

E-commerce giant Coupang was the third-largest business in South Korea in terms of staff as of the third quarter of this year, following Samsung Electronics and Hyundai Motor, a market research firm said Tuesday. The report released by CEOScore showed that Coupang hired a total of 43,171 employees as of late September, rising from the fourth-biggest employer position to the third. The report was based on data from the number of subscribers to the National Pension Service. Coupang’s ris

ConsumerNov. 17, 2020