Everyday steps to stem COVID-19

South Korea is gearing up for an economic reopening with renewed guidance for physical distancing. The updated guidance, issued Wednesday, is meant to replace the stringent physical distancing implemented March 22 that is set to last until May 5. If the number of COVID-19 cases continues to stabilize, the country may switch over to an eased form of social distancing. The following steps are intended to limit the spread of the virus while at the same time allowing the resumption of normal acti

TechnologyApril 22, 2020

KRX warns retail investors for investment binge on leveraged WTI futures ETN

The Korea Exchange (KRX) on Wednesday warned investors about the possibility of total losses of their investments in leveraged West Texas Intermediate crude oil futures exchange-traded notes. The nation’s market operator will suspend trading for local ETN products with an excessive disparate ratio of over 30 percent -- Shinhan Leverage WTI Futures ETN(H) and MiraeAsset Leveraged Crude Oil Futures ETN(H) 9 -- on Thursday and Friday. It has planned to resume single-valent trading for the

MarketApril 22, 2020

Seoul stocks end up on stimulus amid virus woes

Seoul stocks closed higher Wednesday, snapping a two-day losing streak, as investors reacted to the government's stimulus packages and await corporate earnings results amid coronavirus woes. The Korean won fell against the US dollar. The benchmark Korea Composite Stock Price Index (KOSPI) fell 16.77 points, or 0.89 percent, to close at 1,896.15. Trading volume was moderate at 805 million shares worth 9.3 trillion won ($7.5 billion), with gainers outpacing losers 435 to 404. The main index end

MarketApril 22, 2020

Credit card loans soar in March amid COVID-19 fallout

South Korea’s credit card loans soared 25.6 percent on-year in March, amid the prolonged economic fallout of the COVID-19 outbreak, industry data showed Wednesday. Seven major credit card service providers -- Shinhan, KB Kookmin, Woori, Hana, Samsung, Hyundai and Lotte -- extended 4.3 trillion won ($3.47 billion) in new loans last month, up 882.5 billion won from a year earlier. The corresponding figures for January and February were up 1.6 percent and 16.6 percent, respectively. The

MarketApril 22, 2020

Seegene’s COVID-19 test kits get FDA emergency approval

Seegene said Wednesday it real-time PCR test kits were granted the US Food and Drug Administration’s emergency use authorization for COVID-19 testing. The company’s Allplex 2019-nCoV Assay has already sold over 10 million tests globally in over 60 countries. Allplex can identify three different target genes -- E, RdRP and N genes -- in a single reaction tube, which maximizes throughput for high volume testing. Seegene is now exporting 3 million test kits every week, and plans to e

IndustryApril 22, 2020

Medytox response draws ire from shareholders

Medytox’s claims that its botulinum toxin product Meditoxin presents no safety issues is drawing ire from shareholders and skepticism from the Drug Ministry. The Korean Drug Ministry suspended the manufacturing and sale of Meditoxin on April 17 due to concerns that the product was made using unapproved materials between 2012 and 2015. On Tuesday, Medytox released a statement saying it had filed an administrative complaint with the ministry, asking it to reverse the suspension order on t

IndustryApril 22, 2020

Korean pharmas form unprecedented alliance to fight pandemic

Governmental organizations and the pharma industry are of the same mind in South Korea when it comes to the urgency of the need to fight COVID-19. The Korea Pharmaceutical and Bio-Pharma Manufacturers Association said Wednesday it will push for members to make joint investments for co-developing vaccines and treatments for the global virus pandemic. This will involve establishing a joint venture, and a combined fund from both the industry and government bodies, with further details to be alig

IndustryApril 22, 2020

Execs involved in financial impropriety receive mild punishment

The financial and banking sectors have seen a significant jump in the amount of fines imposed on companies that have violated domestic laws in recent years, but top officials responsible for financial irregularities have received relatively light punishments, data showed Wednesday. According to a report released by corporate data tracker CEOScore, some 33.5 billion won ($27 million) in fines were levied on financial and banking firms involved in illicit activities in 2019, up 122.4 percent fr

MarketApril 22, 2020

Market volatility likely to continue until NK leader returns: analyst

Health rumors surrounding North Korean leader Kim Jong-un may expand volatility in South Korea’s stock market already gripped with fears on plunging oil prices, analysts said Wednesday. Cheong Wa Dae’s announcement Tuesday that played down news reports of Kim being in critical condition will reduce uncertainties, but it is premature to determine that stock indexes and the local currency will be on a recovery track anytime soon, they added. “If Kim Jong-un does not make a pub

MarketApril 22, 2020

Samsung C&T goes all-out to win new Banpo reconstruction bid

Samsung C&T proposed Wednesday a construction plan in which all its affiliates participate to create a “landmark” apartment complex in Banpo, Seoul, as part of an all-out effort as it seeks to win the contract in the area designated for redevelopment. Reconstruction bids are currently being accepted for the new Banpo 15-apartment unit in Gangnam, and Samsung C&T, Daelim Industrial and Hoban Construction are competing. The result is due to be announced Thursday. Sansumg C

IndustryApril 22, 2020

Hanjin Group sells rent-a-car unit to focus on logistics business

Hanjin Group said Wednesday that it has sold a rent-a-car unit to Lotte Rental to focus on strengthening its core business in logistics and parcel services.  According to the company, it has clinched a deal to transfer 60 billion won ($48 million) of assets to Lotte Rental, which also runs a rent-a-car business. Hanjin also handed over some 3,000 vehicles. The deal was discussed in mid-February, while the finalization process is to take place by May, Hanjin Group said.  “We w

MobilityApril 22, 2020

[Photo News] New Volkswagen

Stefan Krapp, head of Volkswagen Korea, poses with the automaker’s brand new logo and design unveiled on Wednesday.  According to VW Korea, the new logo indicates the company’s goal to become “New Volkswagen,” under its core brand values: human-focused and digital-centered.  Krapp said during the logo unveiling ceremony that the company will make VW become “a more friendly brand that anyone can have access to.”  The new logo will be applied

MobilityApril 22, 2020

Korean Air sells Jeju housing complex for employees amid liquidity crisis

Korean Air, the main cash cow for the transport and logistics company Hanjin Group, has sold a housing complex it built for its employees on Jeju Island, industry sources said Wednesday. The move was seen as a way to secure capital amid a liquidity crisis stemming from the COVID-19 pandemic.  The airline reportedly clinched a contract worth 40 billion won ($32 million) for the complex, which comprises 22 two-story houses on 9,450.9 square meters in the Yeon-dong neighborhood. The buyer&rs

MobilityApril 22, 2020

Amorepacific announces ‘less plastic’ campaign on Earth Day

Amorepacific Group, a leading cosmetics company here, announced a plan on Wednesday to use less plastic to safeguard health and the environment. Wednesday was Earth Day. The company’s “less plastic” campaign consists of three actions: to reduce the use of plastic packaging for its products, to recycle more of its plastic packaging and to increase the use of upcycled materials to produce its products. “We will continue to stand up front in creating a happier, more beau

ConsumerApril 22, 2020

Samyang Foods to record highest sales in Q1

Samyang Foods, an instant noodle manufacturer here, is expected to see the highest sales in the company’s history in the first quarter of this year, with sales of instant noodles showing notable growth amid the COVID-19 outbreak. According to the industry on Wednesday, Samyang Foods’ total sales in the first quarter is expected to see an increase of 30 percent from a year earlier, with its exports recording over 75 billion won ($60.8 million) in the first quarter. That figure is mo

ConsumerApril 22, 2020

[Economy in Pandemic] With flattened curve, what’s ahead for S. Korean economy?

The signs of a slowing COVID-19 spread on the back of a strong state drive to contain the novel coronavirus are raising expectations of an early recovery of the South Korean economy. Despite the flattened curve of infection cases, it is premature for excessive optimism on Korea posting a V-shaped recovery, considering its heavy dependence on exports for growth, experts said Wednesday. “Given that Korea is quite an export-oriented economy, the slumping global demand is expected to hit th

EconomyApril 22, 2020

JB Financial acquires Vietnamese brokerage from Morgan Stanley

JB Financial Group has completed the acquisition of a Vietnam-based brokerage previously owned by global investment bank Morgan Stanley, as part of the local banking group’s effort to make inroads into Southeast Asia. JB Financial Group said Wednesday it paid 19.9 billion won ($16.1 million) for a 100 percent stake in Morgan Stanley Gateway Securities, a midsized brokerage headquartered in Hanoi. Founded in 2006, the firm posted some 300 billion Vietnamese dong ($12.7 million) as capita

MarketApril 22, 2020

Crowdfunding platform Wadiz launches offline space to showcase products

South Korean crowdfunding platform Wadiz said Wednesday it has launched an offline space to help fundraising efforts by showcasing products to visitors and funders. Located in eastern Seoul, Gonggan Wadiz features a display room for “makers,” or those with an ongoing fundraising project on the Wadiz platform, as well as a workstation and networking space, officials said. Visitors and funders will be able to try the products before they invest in a project, they added. The two-sto

MarketApril 22, 2020

Shipbuilders nervous as oil prices plummet

South Korean shipbuilders are jittery as oil prices in the US plummeted to negative territory for the first time in history this week, coupled with the reduced demand for crude oil and global shipments driven by the novel coronavirus pandemic. The business outlook for the global shipbuilding industry is also not very rosy. In the first quarter of this year, global orders for ships fell 78 percent year-on-year to 2.33 million compensated gross tons. Here, only two liquefied natural gas carri

IndustryApril 22, 2020

S. Korea to sharply increase aid package for virus-hit firms, job protection

South Korea's finance ministry said Wednesday it will sharply increase the size of the nation's aid package for coronavirus-hit companies and job protection. The aid package will rise to 135 trillion ($109 billion) won from 100 trillion won, which had been set previously, to supply more liquidity into companies hit by the COVID-19 pandemic, the Ministry of Economy and Finance said in a statement. Of the additional 35 trillion won, 20 trillion won will be used to buy more corporate bonds and 1

EconomyApril 22, 2020