[News Focus] Korean pharmas push for human test for COVID-19 drugs

Optimistic timelines regarding the pharmaceutical race to produce a drug for COVID-19 have been met with skepticism, but even doubters do not deny that a vaccine or a treatment is desperately needed. “There can never be a complete (economic) recovery unless a working vaccine is developed and distributed,” said Chung Chul, senior vice president and acting president of the Korea Institute for International Economic Policy, in a press briefing Tuesday at the Sejong Government Complex

IndustryMay 13, 2020

Empty duty-free stores hurt Hugel’s Q1 report

The drastic fall in duty-free shopping amid the ongoing global pandemic has eroded some 6 billion won ($4.9 million) from aesthetic solution company Hugel’s cosmetics product revenue. Hugel’s first-quarter report, filed Wednesday, showed the company suffered a 16 percent drop in on-year revenue at 41.2 billion won, a 25.1 percent drop in on-year operating profit at 12.3 billion won and a 52.4 percent fall in on-year net profit at 6.6 billion won. In the same period last year, Huge

IndustryMay 13, 2020

Celltrion’s MERS, COVID-19 anti-virals selected as national projects

Celltrion announced Wednesday its anti-viral pipelines development for Middle East respiratory syndrome and COVID-19 have been selected as national projects. The Korea Health Industry Development Institute, under the Welfare Ministry, had sought applications for infectious disease prevention and treatment tech projects, intended to encourage research and development of “cold case” treatments. Celltrion now has a total budget of 3.7 billion won ($3 million) for potential MERS trea

IndustryMay 13, 2020

Jobs disappear at sharpest pace since 1999

Recalling the nightmares of the 1997-98 Asian financial crisis, the number of employed in South Korea last month fell dramatically and at its fastest pace in two decades, data showed Wednesday. The number of employed here stood at 26.6 million in April, shedding 476,000 on-year, data released by Statistics Korea showed. This was shy of the corresponding figure for February 1999, when 658,000 jobs vanished and the nation’s economy was reeling from the financial crisis. The unemployment

EconomyMay 13, 2020

Han Sung Motor donates W40m to help local flower market

Han Sung Motor, the official dealer of Mercedes-Benz in South Korea, said on Wednesday that it has recently completed a campaign aimed at supporting the struggling local flower industry, amid the economic fallout from the coronavirus pandemic. Last month, the company purchased flowers from nearby shops located in Seoul in an attempt to help troubled small businesses hit by the viral outbreak. It gave the flowers away to visitors at their branches. The company also promoted a two-week campaig

IndustryMay 13, 2020

Banks' Q1 net profit dips 18% on loan-loss provisions

South Korean banks saw their first-quarter earnings decline 17.8 percent from a year earlier due to increased loan-loss provisions, data showed Wednesday.  The combined net profit stood at 3.2 trillion won ($2.6 billion) for the January-March period, compared with a profit of 4 trillion won a year earlier, the Financial Supervisory Service said in a statement.  Preliminary interest income for the first quarter stood at 10.1 trillion won, down 0.2 percent from a year earlier. 

MarketMay 13, 2020

Seoul stocks rebound on bargain hunting

South Korean stocks closed higher Wednesday as investors scooped up bargains amid renewed concerns over the trade row between the United States and China. The Korean won gained against the US dollar. The benchmark Korea Composite Stock Price Index (KOSPI) moved up 18.25 points, or 0.95 percent, to finish at 1,940.42. Trading volume was moderate at 608 million shares worth 8.79 trillion won ($7.18 billion), with gainers outpacing losers 426 to 403. The local stock market got off toward a weak

MarketMay 13, 2020

Cosmetics exporters eye expansion in China with regulation changes

With the Chinese government poised to revise its regulations on beauty products for the first time in 30 years, South Korean cosmetics firms are seeking to expand shipments to their largest export market, a government agency said Wednesday. Under the current regulations, exporters must pass a complicated sanitary permit and certification process. The rule applies to all beauty items, including simple soaps. Cosmetics made from raw materials that have not been used in China also have difficult

IndustryMay 13, 2020

Hyundai Glovis enters China’s cold chain market

Hyundai Glovis said Wednesday it has been picked as operator of Korea Agro-Fisheries & Food Trade Corp.’s logistics center in Qingdao, China, its first cold chain business abroad.  According to the logistics unit of Hyundai Motor Group, its local unit Beijing Glovis, which has been operating there since 2005, will take charge of operation and management of the Qingdao center.  Beijing Glovis will manage the logistics operations -- from transport to storage and delivery of

MobilityMay 13, 2020

Douzone Bizon, Celltrion Pharm join MSCI index, but Hanjin KAL omitted

Morgan Stanley Capital International has added two large and mid-cap South Korean stocks -- Douzone Bizon and Celltrion Pharm -- to its global and regional equity index, as part of rebalancing in May, according to industry sources Wednesday. The US company added information and communications technology solutions and services provider Douzone Bizon and Celltrion Pharm, a pharmaceutical firm under Celltrion, to the MSCI Korea Index. In the meantime, some firms such as biopharma firm Meditox, O

MarketMay 13, 2020

Leaders of Samsung, Hyundai meet on EV battery tech

The de facto leaders of Samsung Electronics and Hyundai Motor Group held a business meeting Wednesday to discuss cooperation on battery technology for electric vehicles. Samsung Electronics Vice Chairman Lee Jae-yong and Hyundai Motor Senior Vice Chairman Chung Euisun met at an EV battery plant operated by Samsung SDI, in Cheonan, South Chungcheong Province.  According to industry sources, it was Chung’s first visit to the battery affiliate’s facility.  The Hyundai M

TechnologyMay 13, 2020

Mercedes-Benz Korea unveils concept car Vision EQS

Mercedes-Benz Korea on Wednesday unveiled its next-generation electric vehicle the Vision EQS concept car for the first time in South Korea. The Vision EQS was introduced to the public at the 2019 Frankfurt International Motor Show in September last year. The model shows the company’s design vision for future luxury electric sedans, according to the carmaker, which held its Vision EQS media presentation in Goyang, Gyeonggi Province. By adding its top “S” class next to EQ, th

MobilityMay 13, 2020

Renault Samsung launches compact SUV Captur in Korea

Buckling down to further penetrate the popular sport utility vehicle market in South Korea despite the pandemic woes, Renault Samsung Motors on Wednesday launched its flagship compact SUV which has topped the European market since 2014. Captur is Renault Samsung’s second-generation revamped model and the second one to keep Renault’s diamond badge instead of being rebadged with the Renault Samsung logo. According to the automaker, Captur was launched in Europe in 2013 and more than

MobilityMay 13, 2020

Shinhan’s investment in HK’s K-pop fund faces redemption delay

Shinhan Investment has received a request to delay K-pop-related private equity fund redemption from a Hong Kong-based asset management firm due to underperforming entertainment business, according to industry sources Wednesday. The brokerage unit of the Shinhan Financial Group invested 20 million euros ($21.7 million) in Royal China International Asset Management’s K-pop Showbiz Asia II Fund in April last year. It was structured to earn profits from ticket sales by IME International,

MarketMay 13, 2020

Kakao joins S. Korea's top-10 market cap heavyweights

Kakao Corp., the operator of South Korea's top mobile messenger KakaoTalk, has entered the top ten stocks by market capitalization on a stellar quarterly performance, data showed Wednesday. The homegrown tech giant's market cap rose to 18.63 trillion won ($15.19 billion) as of 10:31 a.m., making it the 10th largest on the main bourse. The company is close behind South Korea’s top automaker Hyundai Motor Co., which is 9th with a market cap of 19.7 trillion won.  Samsung C&T

MarketMay 13, 2020

Samsung, Hyundai Motor heirs discuss EV biz cooperation

The heirs apparent of South Korea's top two family-run conglomerates had a rare meeting Wednesday to discuss possible cooperation in the electric vehicle (EV) business. Samsung Group Vice Chairman Lee Jae-yong exchanged views on Samsung's development of new all-solid-state battery technology and its future with Hyundai Motor Group Executive Vice Chairman Chung Eui-sun, group officials said. The meeting took place at Samsung SDI Co.'s plant in Cheonan, about 90 kilometers south of Seoul. Samsu

TechnologyMay 13, 2020

Protectionism to put more strain on exports in post-virus era: report

South Korea's exports, which have been hit hard by the new coronavirus that has halted global supply chains, are not likely to rebound immediately in the post-pandemic era, as its key trade partners are raising their guard to protect their own industries, a report showed Wednesday. "Major countries, including the United States, are already intervening deeper into the market, disbursing large sums of subsidies to protect their industries," the Korea International Trade Association (KI

EconomyMay 13, 2020

Seoul stocks open lower on escalating US-China tension

South Korean stocks opened lower Wednesday tracking overnight losses on Wall Street after US President Donald Trump continued to excoriate Beijing amid their prolonged trade row. The benchmark Korea Composite Stock Price Index (KOSPI) fell 15.74 points, or 0.82 percent, to 1,906.43 in the first 15 minutes of trading. The Dow Jones Industrial Average lost 1.89 percent overnight, and the tech-heavy Nasdaq Composite slid 2.06 percent on renewed concerns over the Sino-American trade tension. Tru

MarketMay 13, 2020

BOK to offer additional W5tr in special loans to coronavirus-hit firms

The Bank of Korea (BOK) on Wednesday said it plans to provide an additional 5 trillion won ($4.08 billion) in special, low-interest loans to local businesses hit by the new coronavirus outbreak. The additional amount will bring to 35 trillion won the amount the central bank will provide to local lenders, which in turn will offer low-interest loans to firms. "The move is expected to help expand the financial access of self-employed businesses and small and medium-sized firms that are faci

EconomyMay 13, 2020

Relief fund donation errors a headache for card issuers

On the first day South Korea started to receive applications for COVID-19 relief cash, local card issuers assigned to handle payment processes were met with a flood of unexpected inquiries -- to cancel subsidies donated by beneficiaries mistakenly. According to credit card companies, calls from recipients surged demanding to withdraw their donation to the state, saying they mistakenly clicked the button. Fund applicants can donate part or all of their subsidies to the state when filling out t

MarketMay 13, 2020