S. Korea's economy shrinks 2.9% in Q2, worst since 1997 financial crisis

South Korea's economy contracted at a sharper rate than what had been expected in the second quarter, delivering the worst performance in over two decades, as the pandemic hammered outbound shipments and private spending in Asia's fourth-largest economy, central bank data showed Thursday. In the April-June period, the country's real gross domestic product (GDP) shrank 2.9 percent from the same period last year, marking the slowest growth since a 3.8 percent on-year contraction in the last thre

EconomyJuly 23, 2020

Samsung tipped to rank 3rd in 5G smartphone production this year: report

Samsung Electronics Co., South Korea's leading tech firm, is expected to rank third in terms of 5G smartphone production this year, a report showed Wednesday. Samsung's 5G smartphone production for the year is estimated at 29 million units, placing the company in third place globally, according to market researcher TrendForce. "Samsung has been experiencing setbacks in the Chinese market in recent years," it said. "Although these setbacks have not seriously affected its global

TechnologyJuly 22, 2020

FSC OKs BC Card’s acquisition of controlling stake in K bank

South Korea’s financial regulator said Wednesday it has permitted BC Card to acquire a 34 percent controlling stake in internet-only K bank. With the Financial Services Commission’s approval, the credit card processing subsidiary of telecom giant KT will become the largest shareholder of the country’s first online-only lender. Earlier in May, the company had requested the FSC to review its eligibility to become K bank’s largest shareholder.  Initially, KT had so

MarketJuly 22, 2020

'Korean investors’ growing interest in US tech stocks risky'

Persisting economic uncertainties due to the coronavirus outbreak appear to have only made blue chip tech stocks in the United States more expensive, while growing retail investors’ appetite for US stocks on global monetary expansion have left them prone to risks, said a strategist at global asset management firm AllianceBernstein. “On the issue of COVID-19 risk, we would just very simply say why bet on things that we don’t know?” David Wong, a senior investment strateg

MarketJuly 22, 2020

[Green Paradox] Korea’s renewable energy subsidies eclipse solar power

Even the best of intentions can fall flat without full attention to vital details. The Korea Herald looks into flaws and shortcomings of Korea’s green policies. – Ed.  The definition of a government subsidy is simple: public funds granted to a domestic industry to maintain price competitiveness. However, the South Korean government’s renewable energy subsidy program launched in 2012 is doing just the opposite. Last month, the country’s largest solar power plan

IndustryJuly 22, 2020

Air traffic for world’s busiest Jeju-Seoul route falls by 30%

In the midst of the coronavirus pandemic, traffic for the world’s busiest air route between Seoul and Jeju fell by nearly 30 percent during the first six months of the year, compared to the same period last year. Nearly 5.59 million passengers made trips on the route between January and June – a 31 percent drop from last year’s figure of 8.18 million, according to data from Korea Airports Corporation, a public enterprise behind Gimpo Airport. In a report from aviation analys

MobilityJuly 22, 2020

Hanwha Energy, Korea Midland Power win mega solar power deal in Nevada

Hanwha Energy and Korea Midland Power (Komipo) said Wednesday they signed a deal in Nevada to supply electricity generated by solar power to 36,000 households. According to the energy affiliate of Hanwha Group and the state-run utility, they signed a solar power purchase agreement with a local public utility NV Energy. Under the deal, Hanwha Energy and Komipo will generate electricity from solar power plants of 128-megawatt capacity linked to an energy storage systems of 233-megawatt-hour

IndustryJuly 22, 2020

Game festival kicks off in virtual space for first time in Korea

Due to coronavirus setback, a game festival kicked off Wednesday in virtual space for the first time in South Korea. According to industry sources, “2020 Indie Craft K-Game Festival” will be held for five days until Sunday in a virtual space created by a game engine as holding the event offline was unviable due to concerns over the COVID-19 outbreak. Visitors can enter the virtual festival after creating their own 3D avatars. Then, they can visit booths, have conversations with

IndustryJuly 22, 2020

LG International to support SMEs in global market

LG International said Wednesday it has been selected as a “decent company” by the Ministry of SMEs and Startups to support small and medium-sized companies advancing into global markets. The commodity trading and mining affiliate of LG Group signed an agreement with the Startups Ministry and the Korea International Trade Association in Seoul at a ceremony attended by CEO Yoon Chun-sung, Minister Park Young-sun and KITA Chairman Kim Young-ju. The “decent company” pr

IndustryJuly 22, 2020

Hospitality industry’s Q1 output contracts to 10-year low: BOK

South Korea’s lodging and dining industry’s revenue plummeted to a 10-year low in the first quarter with a surge in loan requests, the central bank said Wednesday.  According to data from the Bank of Korea, the industrial production index for the hospitality sector stood at 85.6, down 15.5 percent from the same quarter last year, marking the steepest fall since 2010. The IPA -- which measures current economic conditions -- is calculated based on sales figures in each busine

MarketJuly 22, 2020

Seoul shares end almost flat on profit-taking

South Korean stocks closed flat Wednesday as investors cashed in profits as virus fears marred economic recovery hopes. The Korean won rose against the US dollar. The benchmark Korea Composite Stock Price Index (KOSPI) declined 0.17 point, or 0.01 percent, to finish at 2,228.66. Trading volume was heavy at 839 million shares worth 15.3 trillion won ($12.8 billion), with gainers outpacing losers 423 to 412. The KOSPI closed up 1.4 percent Tuesday, buoyed by a European Union economic stimulus

MarketJuly 22, 2020

Kakao Commerce to take over Kakao‘s character business

South Korean tech firm Kakao will relocate Kakao IX Corp.’s character merchandising business to its e-commerce unit Kakao Commerce, according to industry sources on Wednesday. Kakao IX, the current operator of character business, will finalize the restructuring during an upcoming board meeting early next month, the sources added. The latest corporate reshuffle is likely to give a boost to Kakao’s growing e-commerce business unit. Kakao Commerce last year marked 296.1 billion won

TechnologyJuly 22, 2020

S. Korea revises tax rules to respond to post-coronavirus economy

South Korea on Wednesday unveiled a set of revised taxation rules aimed at better dealing with the widening economic gap and altered tax realities under the COVID-19 context. Its measures will focus on alleviating the tax burden for struggling small businesses, enhancing income tax-paying duties of the affluent group and supporting retail investors. “Adding to its previous measures to respond to the COVID-19 crisis, (the government) has come up with tax law revision bills to fundamenta

EconomyJuly 22, 2020

‘Korean listed REITs are undervalued amid bio, tech rallies’

Despite a number of REITs attempting to make their market debuts on the nation’s main bourse Kospi in the second half, their value remains underestimated, according to the chief of the Korea Association of Real Estate Investment Trusts on Wednesday. “Beginning with IGIS Value Plus REIT’s list on the Kospi in July, 10 REITs have either been listed or waiting to be listed in the market in the second half. Unlike our expectation, nominal values of the REITs were underestimated,&

MarketJuly 22, 2020

MakinaRocks attracts W12b investments from LG, Hyundai Motor

Artificial intelligence solution startup MakinaRocks said Wednesday the company has completed the Series A round, winning a total of 12 billion won ($10 million) worth of funding from large South Korean businesses including LG and Hyundai Motor. MakinaRocks develops and provides solutions that can detect and prevent errors and defects during manufacturing processes based on deep learning and enhanced learning algorithms for companies that operate complex and large-scale manufacturing facilit

TechnologyJuly 22, 2020

LG Velvet offering 5G hits US market

LG Electronics’ design-focused Velvet smartphone has become available in the United States, providing US consumers a new 5G device choice, according to the company on Wednesday. The 6.8-inch organic light-emitting diode screen phone with a triple rear camera module in its signature water drop design will retail for $599 via US mobile carrier AT&T first and through T-Mobile and Verizon later this summer. The retail price is viewed as lower than expected compared to 5G phones avail

TechnologyJuly 22, 2020

SME exports dip 13.4% in Q2 on coronavirus

Exports by South Korean small and medium enterprises (SMEs) sank at a double-digit rate in the second quarter of the year due to the coronavirus pandemic, government data showed Wednesday. Local SMEs' overseas shipments came to $22.5 billion in the April-June period, down 13.4 percent from a year earlier, according to the data from the Ministry of SMEs and Startups, marking a sharp turnaround from the 2 percent on-year increase in their exports in the first quarter, which were worth $24.2 bil

EconomyJuly 22, 2020

NPS invests more in bio, pharmaceutical in H2

The National Pension Service was found to have expanded their investment in bio and pharmaceuticals in the first half of this year in the wake of the pandemic, data showed Wednesday. Local corporate tracker CEOScore recently surveyed 302 listed companies that the NPS holds more than five percent stake in -- with the total value of their shares standing at 127 trillion won ($106 billion). The survey showed the NPS increased investment in non-face-to-face services, pharmaceuticals, bio techno

IndustryJuly 22, 2020

Korea's FX deposits climb to record high in June

Foreign currency deposits at banks in South Korea surged to a new record high in June, central bank data showed Wednesday, amid pandemic-caused uncertainties that pushed both businesses and individuals to boost their currency holdings. Foreign currency deposits held by local residents came to $84.53 billion as of end-June, up $3.61 billion from a month earlier, according to the data from the Bank of Korea (BOK). The amount marks the highest since the BOK began compiling such data in June 2012

MarketJuly 22, 2020

More young people preparing for job exams in May amid pandemic

SEJONG -- The number of young South Koreans preparing for job exams rose in May this year, data showed Wednesday, as job markets are hit hard by the coronavirus pandemic. The data released by Statistics Korea showed that 804,000, or 17 percent, of 4.73 million economically inactive youths aged 15-29 prepared for exams in May to land jobs, up 1.7 percentage points from the same period last year. Among the 804,000 people, 28.3 percent were preparing for state exams to become low-ranking public

EconomyJuly 22, 2020