Korea's Q1 growth revised up, but further contraction in store in Q2

South Korea's economy shrank at a slightly less-than-expected rate in the first quarter but is projected to face a deeper contraction in the current quarter due to the growing economic fallout from the coronavirus pandemic, the central bank said Tuesday. The country's real gross domestic product (GDP) contracted 1.3 percent from three months earlier in the January-March period, 0.1 percentage point lower than the expected 1.4 percent contraction in advance data, according to the Bank of Korea

EconomyJune 2, 2020

Auto sales dip 36% in May amid pandemic

South Korea's vehicle sales plunged 36 percent last month from a year earlier as the new coronavirus outbreak continued to dent demand for cars amid the coronavirus pandemic, with overseas sales hit particularly hard, industry data showed Monday. The country's five carmakers -- Hyundai Motor Co., Kia Motors Corp., GM Korea Co., Renault Samsung Motors Corp. and SsangYong Motor Co. -- sold a combined 423,416 vehicles in May, down from 665,136 units a year ago, according to data from the companie

MobilityJune 1, 2020

Creditors to provide additional W1.2tr to Doosan Group

Creditors of cash-strapped Doosan Group decided Monday to provide an additional 1.2-trillion-won ($1 billion) to the conglomerate. Main creditors, such as Korea Development Bank and the Export-Import Bank of Korea (Eximbank), said they agreed to give financial support at a meeting held on the day. The creditors have provided a total of 2.4 trillion won to the embattled group since March. "We have decided to additionally provide 1.2 trillion won (to Doosan Group), accepting its self-r

IndustryJune 1, 2020

Parent firm to issue W300b BWs to join Korean Air's rights issue

Hanjin KAL Corp., the parent firm of Korean Air Lines Co., said Monday it will issue 300 billion won ($240 million) worth of bonds with warrant (BWs), mainly to participate in the airline's planned rights issue. Hanjin KAL held a board meeting to agree to issue the BWs on July 3, with a maturity of three years, to take part in Korean Air's upcoming recapitalization worth 1 trillion won, planned for late July, the company said in a statement. The holders of BWs will have the right to buy a ce

MobilityJune 1, 2020

Seoul apartment prices in non-Gangnam areas rise upon mortgage ban

Despite the government’s tightened regulations to curb apartment prices in Seoul, the average rate has risen during the first five months this year, particularly in the middle-class districts, data showed Monday. The average apartment price in the city stood at 10.64 million won ($8,670) per square meter as of end-May, up 4.9 percent from December, according to real estate data tracker KB Kookmin Bank Liiv On. Areas considered less-wealthy, including Dongdaemun-gu and Seongbuk-gu, saw

MarketJune 1, 2020

BC Card’s QR code payment available at 7-Eleven

Card processing firm BC Card said Monday that its QR code payment system will be available at 7-Eleven convenience stores, operated by retail firm Korea Seven. Korea Seven, a subsidiary of retail giant Lotte Group, currently runs approximately 10,000 stores across the nation. With the new partnership, the card company now has five big names in the convenience store segment -- GS25, CU, 7-Eleven, EMart24 and Ministop -- as partners to nurture the mobile payment system, BC Paybooc QR Code. Af

MarketJune 1, 2020

Samsung’s top brass hears about labor relations from presidential council

Around 20 CEOs of Samsung Electronics and its affiliates on Monday attended a lecture by the head of the presidential council on economic, social and labor affairs, according to the company. The South Korean tech giant invited Moon Sung-hyun, chairperson of the presidential Economic, Social and Labor Council, and arranged a special lecture for the leaders of affiliates, including Samsung Electronics Vice Chairman Kim Ki-nam, Samsung C&T CEO Lee Young-ho and Samsung Life Insurance CEO Jeon

TechnologyJune 1, 2020

S. Korea to invest $15m in ADB funds

  The Ministry of Finance and Ministry of SMEs and Startups said Monday they will invest $15 million (18.4 billion won) in the Asian Development Bank’s upcoming new fund program to help early-stage startups here to expand their business into Southeast Asia regions.  The Ventures Facility Investment Fund is aimed at financing small and medium-sized companies in business sectors like agriculture, public sanitation or fintech that foster sustainable economic growth in Southeast A

EconomyJune 1, 2020

[Herald Interview] Finding talent amid COVID-19 outbreak with ManpowerGroup

Finding the right talent for the right company has become harder than ever before as the COVID-19 outbreak has dealt a heavy blow to the global economy and created a massive pool of jobs seekers at the worst possible gridlock. Deputy Prime Minister and Finance Minister Hong Nam-ki called the slump in job markets “grave” as the number of employed people in South Korea stood at 26.56 million in April, 476,000 fewer than a year ago, marking the biggest on-year decline since February

IndustryJune 1, 2020

Electric bicycles demand surges amid COVID-19 outbreak

South Korean bicycles maker Samchuly Bicycle said Monday its sales of electric bicycles have surged as people are looking for new ways to travel amid the coronavirus outbreak. According to the company, its sales of electric bicycles have surged 34 percent on-year in the first quarter as they can serve as an alternative to crowded public transportation. “Demand for electric bicycles as well as general bicycles has jumped as customers can minimize contact with other people when travelin

IndustryJune 1, 2020

GM Korea’s RV sales increase by 43.1% in May

GM Korea said Monday that it sold a total of 24,778 vehicles in May, while sales of sport utility vehicles such as the Chevrolet Trailblazer, Equinox and Traverse rose by 43.1 percent on-year. The automaker said of the 24,778 sold, 5,993 units moved domestically, while 18,785 units sold abroad.  Subcompact car Chevrolet Spark led May sales with 2,065 units, the company said. A monthly high of 822 Chevrolet Malibu vehicles sold in May. Compact SUV Trailblazer, which the automaker has been

MobilityJune 1, 2020

Nongshim buys more kelps to meet surging demand for chapaguri

Following the global popularity of chapaguri -- instant noodle dish that came into the limelight due to Oscar-winning movie “Parasite” -- Nongshim said Monday it is participating in auctions to purchase kelps, a key ingredient, to meet surging demand. Chapaguri is a mixture of Nongshim’s Chapaghetti black bean instant noodle and Neoguri, a soup-based instant noodle. The menu was translated as “ram-don” in English subtitles in the movie. According to No

ConsumerJune 1, 2020

Investors rush to buy LegoChem Bio stocks on bonus issue

LegoChem Biosciences shares hit the daily price limit of 30 percent on Monday after it announced a bonus issue -- offer of free additional share to existing shareholders for every stock they hold. “We have decided on the bonus issue, taking into consideration the low volume of stocks kept our company undervalued despite the series of upbeat license-outs,” said a LegoChem Biosciences official. The company, which is listed on secondary bourse Kosdaq, will newly issue 1,283,070 pre

IndustryJune 1, 2020

More virus-hit duty free shops, others given deep cut in rental fee

South Korea will expand the reduction of rental fees for airport duty-free shops and other commercial facilities hit hard by the new coronavirus outbreak, the transport ministry said Monday. State-run Korea Airports Corp. (KAC) and Incheon International Airport Corp. (IIAC) will cut rental fees for duty-free shops, banks, restaurants and other businesses at the country's 15 airports by up to 75 percent by August, according to the Ministry of Land, Infrastructure and Transport. IIAC operates

IndustryJune 1, 2020

Samsung launches world’s most curved gaming monitor

Samsung Electronics announced Monday the launch of its new Odyssey G7 gaming monitor that has the world’s first curvature radius of 1,000 millimeters. First unveiled at the Consumer Electronics Show 2020 in Last Vegas in January, the Odyssey G7 provides more immersive and comfortable gaming experience with less strain on the eyes. “Samsung Odyssey G7 curved monitor is the ultimate combination of curvature, comfort and competitive edge, giving gamers the advanced performance they n

IndustryJune 1, 2020

S. Korea sharply cuts this year's growth outlook amid pandemic, but expects strong rebound in 2021

South Korea on Monday sharply slashed its growth estimate for the year, but expected a strong economic rebound next year on the back of massive fiscal spending, vowing to adopt "all possible means" to help Asia's fourth-largest economy chug along amid the pandemic. The finance ministry revised down its growth outlook to 0.1 percent from the 2.4 percent forecast late last year. Such a sharp cut follows the outbreak of the new coronavirus that has infected more than 6 million people g

EconomyJune 1, 2020

Celltrion’s potential COVID-19 therapy reduces virus by 100 times in animal tests

Celltrion on Monday announced that its antiviral COVID-19 treatment candidate CT-P59 reduced the amount of SARS-CoV-2 virus in infected ferrets 100-fold in preclinical trial results, with significant improvements in lung lesions. The company said it will proceed with the first human clinical trials in July. If the results are replicated in human test subjects, CT-P59 will gain an edge in potentially becoming an acknowledged therapy for the ongoing global pandemic. “Celltrion is drawing

IndustryJune 1, 2020

MERS survivors sustain lasting PTSD from stigma: study

Victims of emerging infectious disease suffer post-traumatic stress disorder due to social stigma, Seoul National University Hospital said Monday, prompting a renewed look at how COVID-19 confirmed patients are framed in the popular narrative. SNUH, together with National Medical Center, conducted a follow-up study on the psychological aftereffects of EID on 63 Koreans who had contracted and survived the Middle East respiratory syndrome in 2015. A total of 186 patients are registered in the

IndustryJune 1, 2020

‘Single-largest extra budget’ sought to deal with COVID-19 fallout

South Korea’s government and ruling party on Monday vowed to effectuate “the single-largest supplementary budget ever” within this month to head off the economic fallout of the COVID-19 pandemic. Seeking synergy with the upcoming “mega budget,” the country also rolled out its economic policy road map for the second half of the year, including its own version of the “New Deal” package. “The government plans to submit the supplementary budget bill

EconomyJune 1, 2020

Seoul stocks climb to near 3-month high on hopes of economic recovery

South Korean stocks closed sharply higher Monday on hopes of a quick economic recovery prompted by a government push for a third supplementary budget and eased concerns over tensions between the United States and China. The Korean won sharply rose against the US dollar. The benchmark Korea Composite Stock Price Index (KOSPI) surged 35.48 points, or 1.75 percent, to close at 2,065.08, the highest reading since March 5. Trading volume was moderate at about 982.5 million shares worth some 9.6 tri

MarketJune 1, 2020