Seoul stocks open higher on eased US-China tension worries

South Korean stocks opened higher Monday, buoyed by the milder-than-expected US countermeasures against China's passing of the national securities law on Hong Kong. The benchmark Korea Composite Stock Price Index (KOSPI) rose 14.83 points, or 0.73 percent, to 2,044.43 in the first 15 minutes of trading. The gains were largely attributed to a recent announcement by US President Donald Trump. The US president's sanctions against Chinese and Hong Kong officials came with harsh rhetoric yet lacke

MarketJune 1, 2020

S. Korea’s exports fail to recover in May

South Korea’s exports continued to fall in May, marking a double-digit percentage decline for the second consecutive month, according to a government report on Monday. The extended decline was largely due to the global economic fallout from the coronavirus pandemic, the ministry explained. Shipments of semiconductor products, however, bounced back, which alleviated the extended decline, it added. The nation’s outbound shipments in May dropped by 23.7 percent on-year to $34.8 bill

EconomyJune 1, 2020

[Contribution] Is there value in Asian USD bonds?

The Korea Herald is running a regular contribution series written by senior investment strategists at Standard Chartered Group Wealth Management. -- Ed. Prices of Asian US dollar-denominated corporate bonds have fallen this year. This raises the question: do they now offer attractive value? The average yield premium offered by the bonds over US Treasury yields (credit spread) looks more attractive than it has been in many years, despite the recent rebound. However, one cannot help but worry

MarketMay 31, 2020

Korean pharmas present latest findings at tumor forum

The fight against cancer is continuing despite the worldwide turmoil amid the coronavirus pandemic. The American Society of Clinical Oncology, the most authoritative annual gathering of anti-cancer drug researchers, chose to proceed with this year’s event online. The ASCO20 Virtual took place from May 29-31, inviting some 40,000 experts from over 70 countries to speak on various forms of tumors and the attempts to discover new, more advanced treatments for different types of cancer. Fr

IndustryMay 31, 2020

KT&G likely to get slap on wrist for alleged accounting fraud

An audit review committee under South Korea’s financial regulator has concluded that tobacco maker KT&G did not intentionally violate accounting rules when it acquired an Indonesian firm in 2011, according to news reports Sunday. The latest decision, when officially announced, will likely help the Korean tobacco giant to eliminate delisting concerns. In a meeting last Thursday, the committee reportedly decided that the breach of local accounting rules was mere “gross negli

MarketMay 31, 2020

Top market cap firms expand presence amid IT, bio boom

The combined market cap value of South Korea’s 10 largest companies account for almost 45 percent of the entire market, as IT and bio companies gained popularity amid the continued COVID-19 pandemic, data showed Sunday. According to the country’s bourse operator Korea Exchange, out of the 789 listed companies on the main bourse Kospi, the top 10 companies accounted for 44.7 percent in market cap as of Friday. The figure was up 2.6 percentage point from Jan. 2 this year -- before

MarketMay 31, 2020

Samsung considering expanding online recruitment process

Samsung Group, South Korea's top conglomerate, said Sunday it is considering expanding its remote hiring process after wrapping up its first-ever online recruitment exam amid the coronavirus pandemic. The Global Samsung Aptitude Test (GSAT), an entrance exam for those who seek jobs at Samsung, was conducted online for the first time this weekend. "With the result of the first online exam, we will upgrade our hiring system and plan to utilize online-related solutions in various recruiti

IndustryMay 31, 2020

Korean tech giants rethink full-fledged participation in IFA

Samsung Electronics and LG Electronics -- the two biggest tech firms in South Korea -- are likely to scale back their participation in IFA 2020, amid the prolonged COVID-19 pandemic, according to industry sources Sunday. However, the two firms have not yet finalized their plans to participate in the largest tradeshow for home appliances in Europe, slated for September. The IFA 2020 will be held onsite from Sept. 3-5 at the Messe Berlin exhibition hall as usual, the show’s organizer ann

TechnologyMay 31, 2020

Businesses, households borrow W75tr in loans during COVID-19 period

T he outstanding loans extended to local companies and households here increased by a combined 75.4 trillion won ($73 billion) from February to April, when the economic risks stemming from the novel coronavirus pushed them to the brink, data showed Sunday. The figure has increased nearly triple on-year, rising from when businesses and households borrowed a combined 21.9 trillion won, according to data compiled by the Bank of Korea and the policymaking Financial Services Commission. The outsta

EconomyMay 31, 2020

Idle funds hit record-high amid COVID-19, low rate trend

South Korea’s volume of short-term floating capital -- so-called “idle funds” -- surpassed 1,100 trillion won ($901 billion), hitting a record-high amid the prolonged COVID-19 crisis and the continued low rate trend, data showed Sunday. The volume of cash, demand deposits, money market funds and other types classified as idle funds reached 1,106.3 trillion won as of end-March, up by around 10 trillion won on-month, according to data compiled by the Bank of Korea and the Korea

EconomyMay 31, 2020

Big guns to revive Korea’s lackluster IPO market

South Korea’s lackluster initial public offering market is regaining momentum as a number of big players are set to go public this year, according to investment banking sources Sunday. Fifteen firms have submitted preliminary applications for IPOs to the Korea Exchange in May, up 36.3 percent from a year earlier, nearly four times higher than in March -- when the local stock indexes plunged amid the escalating coronavirus pandemic. The recent surge in aspiring IPOs was seen as reflect

MarketMay 31, 2020

Hyundai Motor, Hanwha Q Cells sign MOU on old EV batteries for ESS

Hyundai Motor Group said Sunday it has signed a memorandum of understanding with photovoltaic solar cells manufacturer Hanwha Q Cells for energy storage systems to use recyclable batteries from electric vehicles.  The two firms held an MOU signing ceremony on Friday, which was attended by Hyundai Motor Group President and head of Strategy and Technology Division Chi Young-cho and Hanwha Q Cells President Kim Hee-chul attended.  Amid the expanding ratio of renewable energy use such a

MobilityMay 31, 2020

[News Focus] Korea sees online shopping grow 190% since 2015

SEJONG – The online shopping market has become a core factor for the nation’s gross domestic product in recent years, as it makes up a core portion of household consumption. Data from Statistics Korea showed that the monthly turnover of retailers operating online retail operations came to 12.58 trillion won ($10.16 billion) in March. It posted growth of 191.8 percent over five years, from 4.31 trillion won in March 2015. The monthly turnover has continued to surge -- to 5.22 trill

IndustryMay 31, 2020

Japan keeps mum on S. Korea's call to lift trade curbs as deadline looms

Japan has not responded to South Korea's renewed call to swiftly retract export restrictions imposed in a row over wartime forced labor, officials here said Sunday, as the deadline for an answer neared. Earlier this month, Seoul gave Tokyo until the end of May to lift the export curbs imposed in July last year on three key industrial materials in apparent retaliation over a row surrounding the wartime forced labor. Japan also removed South Korea from its list of trusted partners. "We ha

EconomyMay 31, 2020

S. Koreans held 3.9 credit cards on average in 2019: data

South Korean held 3.9 credit cards on average last year, data showed Sunday, as credit card holdings in the country continue to increase as more people use credit cards as their preferred payment method. There were 110.98 million credit cards in South Korea as of end-2019, up 5.92 million from a year earlier, according to the Credit Finance Association. South Korea's economically active population, or the number of people aged 15 years or older who are willing to work, held 3.9 credit cards

MarketMay 31, 2020

Check your baggage onboard: Korean Air launches mobile app

Korean Air said Friday that it will launch a mobile application service for passengers to check whether their baggage is safely loaded. The service will be provided for passengers on international flights from Incheon International Airport starting June 1. The app prevents errors in loading of the luggage by comparing the barcode information of the baggage transferred during check-in with the scan information onboard an aircraft, the firm said. It is available to any Skypass member who inst

MobilityMay 29, 2020

Indian police stop LG Chem employees from going home despite flight approval

LG Chem said Friday the Indian police have restricted its special task force comprised of eight officials from boarding a chartered flight back to South Korea. According to the company, its special task force -- dispatched to India on May 13 in the aftermath of a deadly styrene gas leak at a LG Polymers plant -- was blocked by Andhra Pradesh state police on Tuesday from boarding a chartered plane back to Korea despite approval from the local aviation authorities. The flight returned to Korea

IndustryMay 29, 2020

Rivals see surge in revenue as Coupang reels from COVID-19 damage

South Korean retail giant E-mart’s online store SSG.com said Friday it has witnessed a spike in its business as worried customers are shunning online grocery delivery platforms of Coupang and Market Kurly whose logistics centers reported virus infections recently. According to SSG.com, the number and sales of early morning deliveries on Friday jumped 14 percent and 37 percent, respectively, compared to last week after two Coupang employees and one Market Kurly employee working at their

IndustryMay 29, 2020

Samsung SDI injects capital into JV for EV battery materials

South Korean battery maker Samsung SDI said Friday it has started injecting capital into EcoPro EM, a joint venture with EcoPro BM, a supplier of electric vehicle battery materials to Samsung. According to Samsung SDI, it will fund a total of 120 billion won ($96.9 million) with EcoPro BM into EcoPro EM. Samsung SDI and EcoPro BM will contribute 48 billion won and 72 billion won, respectively, to control 40 percent and 60 percent of the JV, respectively. The JV is expected to begin construc

IndustryMay 29, 2020

Govt., state-run creditors discuss Doosan Heavy's self-rescue plan

SEJONG -- Top economic policymakers and heads of state-run creditor banks on Friday discussed a self-rescue plan submitted by cash-strapped Doosan Heavy Industries & Construction Co., the finance ministry said Friday. Two state-run creditors -- the Korea Development Bank and the Export-Import Bank of Korea -- have been in talks with Doosan Group, the parent of Doosan Heavy, on a debt restructuring plan for the builder of turbines, power plants and roads. During the Friday meeting, the c

IndustryMay 29, 2020