BOK trims key rate to record low amid grim growth outlook

South Korea's central bank slashed its policy rate by a quarter percentage point to a record low of 0.50 percent Thursday as the country's economy is expected to grow at the slowest pace in over two decades amid the COVID-19 pandemic. The move came a little over two months after the Bank of Korea (BOK) cut the base rate to 0.75 percent from 1.25 percent in its first emergency rate cut since October 2008. "Economic growth in Korea has slowed considerably," the BOK said in its stateme

EconomyMay 28, 2020

Seoul stocks open higher on Wall Street gains

South Korean stocks opened higher Thursday, taking a cue from overnight gains on Wall Street. The benchmark Korea Composite Stock Price Index (KOSPI) rose 13.77 points, or 0.68 percent, to 2,044.97 in the first 15 minutes of trading. The gains were led by the US tech stock rally overnight, triggered by global chipmaker Micron Technology Inc.'s estimate-beating earnings guidance, analysts said. The Dow Jones Industrial Average jumped 553.16 points, or 2.21 percent, to close at 25,548.27 on Th

MarketMay 28, 2020

KIC’s investment in marijuana producers not questionable, says experts

With South Korea’s sovereign wealth fund sparking a media debate over its investment in marijuana producers, some experts here said Wednesday that the case can hardly be seen as breaching its commitment to socially and environmentally responsible investing. Marijuana production itself cannot be the target of criticism, although it carries a heavy social stigma in Korea where the recreational use of marijuana is banned. Even if the investment was made by sovereign wealth fund Korea Investm

MarketMay 28, 2020

Corporate direct financing down 29% in April

South Korean companies' stock and bond sales fell 28.8 percent in April from a month earlier, due mainly to a decline in sales of corporate debt, data showed Thursday. Local companies raised a combined 11.47 trillion won ($9.3 billion) by selling stocks and bonds in April, down 4.6 trillion won from March, according to the data from the Financial Supervisory Service (FSS). The decline is attributable to the 27 percent on-month fall in debt offerings to 11.42 trillion won, the FSS said. Last

EconomyMay 28, 2020

S. Korea to set up W500b fund for auto parts firms

SEJONG -- South Korea will set up a guarantee fund of 500 billion won ($405 million) to provide more loans to auto parts companies that have been hit by the coronavirus pandemic, Finance Minister Hong Nam-ki said Thursday. The fund, which will be financed by the government and carmakers, will provide guarantees for loans for auto parts firms, Hong said. The public sector will buy 9,500 cars by the end of September to prop up auto parts firms, Hong said. To boost private consumption, the gove

EconomyMay 28, 2020

S. Korea to promote open trade to overcome pandemic

South Korea's trade minister said Wednesday the country will continue to promote open trade amid growing protectionism in the aftermath of the new coronavirus pandemic, calling for major trade partners to join efforts to normalize the virus-hit global supply chains. "In the post-pandemic era, the global environment for trade and commerce will change drastically," Trade Minister Yoo Myung-hee said during a videoconference with experts around the globe, hosted by the Korea Internationa

IndustryMay 27, 2020

ULikeKorea introduces COVID-19 body patch monitoring system

South Korean ICT company specializing in smart livestock health management uLikeKorea said Wednesday it has successfully developed a COVID-19 body patch system that can monitor symptoms, activity level and location related to the virus in real-time. According to uLikeKorea, the system was made with non-toxic and environmentally friendly materials that can be attached to the chest. It can detect temperature, pulse, activity level and location in real-time, it said. “ULikeKorea used the

TechnologyMay 27, 2020

[Photo News] Regular check-up right beside chairman

Hyundai Heavy Industries Chairman Kwon Oh-gap (first from right) visits Hyundai Oilbank’s Daesan plant in South Chungcheong Province to inspect its regular maintenance on Wednesday. 　　 (khnews@heraldcorp.com)

IndustryMay 27, 2020

Local telecom firms bid for fifth-largest cable TV operator Hyundai HCN

South Korea’s three major telecommunications firms have submitted nonbinding indicative offers to acquire Hyundai HCN, the nation’s fifth-largest cable TV operator owned by Hyundai Department Store Group, according to industry sources Wednesday. The three local firms -- KT, SK Telecom and LG Uplus -- are expected to compete for acquiring the cable TV operator, which has a 4 percent market share with 1.3 million subscribers. The cable TV unit’s total revenue last year was 292

TechnologyMay 27, 2020

[Feature] Chinese solar firms suck air from Korean industry

Although South Korea’s No. 1 solar module maker Hanwha Q Cells’ power business posted a record operating profit of 100 billion won ($81.4 million) in the first quarter, it faces challenges not only from the demand crunch due to the COVID-19 outbreak but also its weak price competitiveness against Chinese rivals. On May 15, Korea Electric Power Corp. announced it would build solar power generation facilities in Guam with a capacity of 60 megawatts with solar power modules manufact

IndustryMay 27, 2020

[Exclusive] Nexon mulls launching FPS game Sudden Attack on Steam

Korea’s No. 1 game company Nexon said Wednesday it was positively reviewing whether to provide its first-person shooter game Sudden Attack on Steam in response to an online petition calling for the game to be made available globally. Steam is a global digital platform where users can install PC games online directly to their cloud drives after purchase. On May 23, a US-based fan called Fox R. launched an online petition on Change.org, requesting “Sudden Attack be made available

IndustryMay 27, 2020

Manufacturers’ sentiment marks record-low since 2009

Weighed down by the prolonged COVID-19 pandemic, South Korean manufacturers saw their business confidence sink to the lowest level in over 12 years for the upcoming month, central bank data showed Wednesday. The business sentiment index -- BSI -- for the domestic manufacturing sector came to 49 for June, down from 50 for this month, according to the Bank of Korea. While a reading below 100 indicates a pessimist market sentiment, the latest figure marked the lowest since February 2009, in the

EconomyMay 27, 2020

GS Caltex unveils all-in-one pump station in Seoul

South Korean oil refiner GS Caltex said Wednesday it would begin the operation of its first all-in-one pump station that can accommodate all types of vehicles running on gasoline, diesel, liquefied petroleum gas, electricity and hydrogen, starting Thursday. According to GS Caltex, it has recently added a hydrogen charging station, jointly constructed with Hyundai Motor in Seoul, completing its 3,305-square-meter hybrid charging station in Gangdong-gu, eastern Seoul. The hydrogen station is th

IndustryMay 27, 2020

[Market Close-up] S. Korean stock market recovers faster than its global peers

Buttressed by the buying spree of retail investors and expansion of liquidity, South Korea’s stock market recovered to the psychologically important 2,000-point mark, rebounding faster than other major stock markets around the world. According to the Korea Exchange, the Kospi reached 2,029.78 points at Tuesday’s close, 12 weeks after last posting above the 2,000-mark on March 6, when it closed at 2,040.22. The index plunged to a yearly low of 1,457.64 on March 19, but rose sharply

MarketMay 27, 2020

BMW unveils new 5, 6 Series lineup at ‘drive-thru’ world premiere in Korea

INCHEON -- BMW Korea unveiled revamped models of the 5 and 6 series sedans on Wednesday, holding the first world premiere event in the country as a foreign carmaker, which was also BMW Group’s first official event since the COVID-19 pandemic. The carmaker displayed three new versions of the 5 Series and the 6 Series Gran Turismo: BMW New 523d, BMW New 530e and BMW New 640i xDrive. The 5 Series will be presented with a lineup of six gasoline and diesel engine types, including 4-cylinde

MobilityMay 27, 2020

S. Korea to keep aggressive spending to address coronavirus pandemic

SEJONG -- South Korea will maintain its aggressive fiscal spending as it is set to unveil the third extra budget early next month to minimize the economic pain from the coronavirus pandemic, Vice Finance Minister An Il-whan said Wednesday. The third extra budget is aimed at focusing on reviving economic growth and creating jobs, An told a meeting with fiscal experts earlier in the day. The budget is also designed to provide financial support to small- and medium-sized enterprises hit by the

EconomyMay 27, 2020

[Herald Interview] JANDI: Usurping KakaoTalk in Korea’s work communication

Toss Lab, the maker of innovative collaboration tool JANDI, has established itself at the top of South Korea’s growing work communication platform market. The fledgling company, in just six years, has managed to go head-on with not only domestic competitors such as Flow and Collabee but also global companies like Slack and Microsoft Teams. Ironically, however, these direct competitors offer far less of a challenge than that of the immensely popular messenger service KakaoTalk, in JANDI

TechnologyMay 27, 2020

Mirae Asset fined for illegal internal trading, but avoids prosecutorial probe

South Korean financial giant Mirae Asset Group is likely to resume its drive to launch a mega-sized investment bank as authorities on Wednesday decided not to request a prosecutorial probe for conducting illegal intra-unit trading and instead chose to slap a light penalty. The nation’s antitrust watchdog Fair Trade Commission said it has imposed a fine of 4.39 billion won ($3.6 million) on financial conglomerate Mirae Asset Financial Group and its affiliates for violating rules that ban

MarketMay 27, 2020

Seoul stocks extend gains to third session on hopes of recovery

South Korean stocks finished a tad higher Wednesday despite escalating tension between the United States and China, as investors sought to scoop up bargains amid growing hopes of an economic recovery. The Korean won fell against the US dollar. The benchmark Korea Composite Stock Price Index (KOSPI) added 1.42 points, or 0.07 percent, to close at 2,031.20, extending its winning streak to a third consecutive session. Trading volume was high at about 1.16 billion shares worth some 12.5 trillion w

MarketMay 27, 2020

S. Korea’s global GDP ranking slips to 10th place: data

South Korea’s global GDP ranking slipped to 10th place last year, the first drop since the 2008 global financial crisis, data showed Wednesday.  According to the Organization for Economic Cooperation and Development, the country’s nominal GDP stood at $1.64 trillion in 2019 ranking No. 10 out of 38 OECD member countries, two rungs down from 2018. Asia’s fourth-largest economy was outpaced by Canada and Russia last year, which ranked eighth and ninth, respectively. 

EconomyMay 27, 2020