Hanwha Systems acquires British antenna company

Hanwha Systems Co., the defense industry unit of Hanwha Group, said Monday it has acquired a British satellite communication antenna company in a move to secure a new growth driver. Hanwha Systems clinched a deal last week to acquire the business and assets of Phasor Solutions Ltd., which develops satellite communication antenna technology, the company said in a statement. "We have made a swift decision to acquire the British company as the satellite communication equipment market has

IndustryJune 8, 2020

[Graphic News] Amount of idle money in S. Korea hits record high

　The volume of short-term floating capital in South Korea hit an all-time high of more than 1,100 trillion won ($904 billion) amid low interest rates and increased uncertainties over the novel coronavirus pandemic, data showed. 　Cash and other forms of short-term capital, including demand deposits and money market funds, totaled 1,106.3 trillion won as of end-March, Bank of Korea and Korea Financial Investment Association data showed. The amount was the largest since the institutions began

BusinessJune 8, 2020

Listed firms' earnings outlooks swing to upturn

Earnings forecasts for South Korea's listed firms rebounded from a long downturn last week amid rising hopes for their possible exit from the coronavirus shock, a market tracker said Monday. Companies listed on the country's main stock market saw the average estimate of their earnings per share (EPS) for the next 12 months amount to 6,038 won ($4.99) on Thursday, up 2.5 percent from the prior week, according to FnGuide. The increase in EPS, or a company's profit divided by its outstanding com

EconomyJune 8, 2020

Foreigners extend stock sell-off to 4th straight month in May

Foreign investors became net sellers of South Korean stocks in May, extending their selling spree to a fourth straight month, data showed Monday. Foreigners sold a net 4.06 trillion won ($3.3 billion) worth of local stocks last month, according to the data from the Financial Supervisory Service (FSS). American investors sold a net 1.8 trillion won of stocks last month, while Saudi investors net purchased 600 billion won worth of stocks, according to the FSS. As of end-May, local stocks held

MarketJune 8, 2020

Seoul stocks open higher on Wall Street gains

South Korean shares opened higher Friday, tracking gains on Wall Street that followed an estimate-beating jobs report in the United States. The benchmark Korea Composite Stock Price Index (KOSPI) rose 17.62 points, or 0.81 percent, to 2,199.49 in the first 15 minutes of trading. The gains were largely attributed to a drop in the US unemployment rate in May, possibly suggesting an economic recovery. The Dow Jones Industrial Average jumped 829.16 points, or 3.15 percent, to close at 27,110,98

MarketJune 8, 2020

[Banks of Future] Virtual banks come of age in COVID-19 era

The Korea Herald is publishing a series of articles on South Korea’s fast-growing online-only banks and fintech firms facing opportunities and challenges. This is the first installment. -- Ed. Virtual banks that have no physical presence but offer immediate services online have been touted as banks of the future in recent years, despite resistance from traditional players. Labeling them as financial services of the future seems far-fetched. In recent months, they have grown faster t

MarketJune 7, 2020

S. Korea faces prolonged economic contraction: KDI

Despite some recovery on the back of the government’s expansionary fiscal moves, South Korea’s economy is continuing to contract, as the negative impact of COVID-19 spreads across all industries, a state-run think tank warned Sunday. The pessimistic analysis came as the country is exerting all policy efforts to boost the virus-hit economy, including a 35.3 trillion-won ($29.2 billion) supplementary budget bill submitted to the National Assembly on Thursday. “The Korean econo

EconomyJune 7, 2020

LG Uplus renews supply deals with local 5G equipment firms

LG Uplus announced Sunday that it has renewed its contracts with Ubiquoss and Dasan Network Solutions to supply 5G equipment. South Korea’s third-largest mobile carrier will purchase 271 billion won ($224 million) of 5G equipment by May 2023 -- revised from the initial 155 billion-won deal set to expire on November 2021. It will buy about 90 billion won of 5G equipment a year. LG Uplus said the this will increase supplies of equipment for its 10 Gigabits per second 5G network service.

TechnologyJune 7, 2020

[Chew on I.T.] What makes up smartphone prices?

It was three years ago that the psychological threshold for smartphone prices passed the $1,000 mark with the launch of Apple’s 10th anniversary iPhone X, with Samsung’s Galaxy Note 9 following the next year. But more recently, phone manufacturers have suffered declines in demand for high-end phones costing over $1,000 as the global economy slowed. They consequently shifted their business focus to less premium or midrange phones. This year, the market has already seen multiple

TechnologyJune 7, 2020

Asiana resumes flights to Hanoi in three months

Asiana Airlines said Sunday it has resumed flights to Hanoi after Vietnam exceptionally allowed 220 South Korean students to enter the country. Since March 22, Vietnam has suspended the entry of all foreigners to contain the spread of COVID-19. In February, Asiana made an emergency return as the Vietnamese government refused to allow the plane from Korea to land at Hanoi.　 Asiana said its OZ733 flight carrying 218 Korean students departed from Incheon International Airport at 9:20 a.m. on Su

IndustryJune 7, 2020

Social distancing boosts PC games, mobile videos: report

Given the nationwide social distancing norms in place, South Koreans are playing more computer games and watching videos on mobile devices, data showed Sunday. According to a report from local market research firm Nielsen KoreanClick, Koreans spent 34 percent of their time playing games on PCs in the March-April period, an 11 percentage-point increase on-year, topping other activities. Meanwhile, Koreans spent less time on internet portals and search engines, with the ratio dropping from 26

IndustryJune 7, 2020

[News Focus] Is it time to recalibrate the Korean won?

SEJONG -- In 2019 South Korea ranked 20th in gross domestic product per capita among the 37 members of the Organization for Economic Cooperation and Development, outstripping Japan and Spain. In terms of GDP alone, over the past five years Korea has moved around on the list, occupying the eighth through the 11th positions. Further, it is one of the world’s six largest exporters. But Korea is one of only two OECD countries where the value of the currency against the US dollar posts four

EconomyJune 7, 2020

Global economy seen to contract 4% this year: poll

Business lobby groups in 18 countries forecast the global economy to contract 4 percent this year due to the impact of the new coronavirus outbreak, a South Korean industry association said Sunday. The 4 percent negative growth outlook is worse than the International Monetary Fund's forecast of a 3 percent contraction for the year and better than the Organization for Economic Cooperation and Development's 5.1 percent contraction, the Federation of Korean Industries (FKI) said in a statement.&

EconomyJune 7, 2020

S. Korea to supervise non-holding financial groups

In an effort to stem unfair practices and illegal activities, South Korean authorities propose to set up a system to oversee non-holding financial conglomerates, which have been in the blind spot of regulations so far.  The Financial Services Commission and Financial Supervisory Service made an advance legislation notice Friday about an act to reinforce the supervision of non-holding financial giants, including Samsung Group, Kyobo Group, and Hyundai Motor Group. Under the new rules, loc

MarketJune 7, 2020

Samsung reiterates 2015 merger was ‘legitimate’

Samsung Electronics reiterated Sunday that the merger of its two key affiliates that was allegedly fast-tracked to allow Vice Chairman Lee Jae-yong to wrest control of the conglomerate was completely legitimate. The company said in a statement that the merger of Samsung C&T and Cheil Industries in 2015 took place legitimately, a day before a review of the arrest warrant for Lee. The statement that started with, “Samsung is in crisis,” said, “To overcome this crisis, man

IndustryJune 7, 2020

Shinhan BNP Paribas draws W520b to support domestic solar projects

Shinhan BNP Paribas said Sunday it has clinched a combined 520 billion won ($430.1 million) commitment to create a fund to support small firms dedicated to 280-megawatt solar energy projects across South Korea. The Seoul-based asset management firm’s deal comes amid growing new and renewable energy momentum buttressed by the nation’s recent environment initiative, called “green new deal,” aimed at investing in environmentally-friendly energy businesses and creating jobs

MarketJune 7, 2020

Hyundai delays delivery of GV80 SUV following engine vibration issue

  Hyundai Motor Co., South Korea's No.1 carmaker, said Friday that it will delay delivery of its diesel-powered GV80 sport utility vehicle due to engine vibration issues. In a notice sent to customers who ordered the company's first-ever uber luxury SUV by its high-end Genesis sub-brand, Hyundai confirmed that there have been intermittent problems with the engine. The engine at the center of the problem is a new longitudinal in-line six diesel that is exclusive to the GV80. The company

IndustryJune 5, 2020

SK Group mulls W94.2b investment in Air Asia

SK Group, South Korea’s third-largest conglomerate by revenue, has been reviewing to invest some 94.2 billion won ($78 million) for a 10 percent stake in Asia’s largest low-cost carrier Air Asia, after the Korean conglomerate was recently approached by the firm, industry sources said Friday.  SK Southeast Asia Investment Corp., the group’s investment arm operating in the region, recently received a proposal from the Malaysian-flagged Air Asia to make an investment for a

MobilityJune 5, 2020

IGIS Asset Management to list 1st REIT on Kospi

South Korea’s biggest real estate asset management firm IGIS Asset Management said Friday that it is eyeing its first real estate investment trust to list on the nation’s main bourse Kospi in mid-July. IGIS Value Plus REIT is designed to indirectly invest in the commercial Taepyeongno Building. Located in central Seoul next to the Korea Chamber of Commerce and Industry, the 23-story office building was valued at 302.5 billion won ($250.6 million) as of July 1 last year, IGIS Asset

MarketJune 5, 2020

Market Kurly’s 315 workers test negative for COVID-19

Market Kurly said Friday that 315 people linked to a COVID-19 case at its logistic center have all tested negative for the disease. The online grocery platform had one virus infection case involving a part-time worker at one of its logistics centers in Songpa-gu, Seoul, on May 27, which prompted the company to conduct the round of virus tests on employees and visitors at the center. Market Kurly and the government sorted out and designated 315 people linked to the center and had them tested

ConsumerJune 5, 2020