Corporate bond market shivers despite steps to calm down

Despite the government‘s bond-buying initiative aimed at shoring up liquidity, South Korea’s corporate bond market is rattled by changes in credit outlooks that reflect lingering uncertainties on falling oil prices and the COVID-19 pandemic. On Monday, Hanwha Solutions’ corporate bonds meant to raise 210 billion won were undersubscribed by institutional investors. Absent in the bidding was the vehicle dubbed the “bond market stabilization fund,” a state commitment

MarketApril 14, 2020

Export prices sink to lowest level since 2016

South Korea’s export prices fell in March, as the fallout of the new coronavirus continued to rattle domestic and global markets, central bank data showed Tuesday. While global oil prices largely weighed upon the figure, the uptrend in the semiconductor business partly countered the downside effects. The export prices index in terms of local currency stood at 96.59 last month, down 1.1 percent from a month earlier and reaching the lowest since September 2016, according to preliminary

EconomyApril 14, 2020

Conglomerates’ R&D spending grows 7.8%

South Korean conglomerates increased spending on research and development despite falling sales last year, according to a report Tuesday. The combined R&D spending of 208 conglomerates last year came in at 53.5 trillion won ($44 billion), up 7.8 percent from a year earlier, according to a report on the nation’s large businesses released by corporate tracker CEOScore. The companies’ combined annual revenue, on the other hand, dropped 0.8 percent to 1,709.7 trillion won durin

MarketApril 14, 2020

Hyundai Motor extends global plant shutdowns

The dampened economic situation is forcing South Korea’s top automaker Hyundai Motor Group to shut down facilities globally following weakened exports and restrictive regulations in major markets, according to industry sources Tuesday.  The business disruption in the auto industry is also hitting tire manufacturers, with major Korean companies suspending overseas plant operations. Hyundai said Tuesday that it has decided to extend the shutdown of its manufacturing plant in Turkey t

MobilityApril 14, 2020

Renault Samsung adds connected function to mobile app for ‘untact’ service

Renault Samsung said Tuesday that it has added a connected function to customer membership mobile applications My Renault Samsung and My Renault to expand its “untact” service -- without face-to-face contact.  The apps allow customers to check information on the car, review membership benefits, reserve maintenance or after service online and conduct one-on-one chat on customer service.  The new connected functions enable remote control of the vehicle and search of c

MobilityApril 14, 2020

Netflix sues SK Broadband, refuses to share internet network costs

Video streaming giant Netflix has sued local internet network operator SK Broadband, according to industry sources Tuesday. The Korean unit of the US-based firm has reportedly filed a civil suit at the Seoul Central District Court arguing that it is not liable to pay for using SK Broadband’s internet network or other maintenance or upgrade costs. The two companies have been clashing over the issue since last year, as the Korean provider asked the traffic-heavy streaming service to shar

TechnologyApril 14, 2020

Binggrae introduces sparkling water brand Santorini

Korean food and beverage giant Binggrae on Tuesday launched a sparkling water brand Santorini. The company hopes to make a mark in the 100-billion-won ($82.2 million) domestic sparkling water market here. Named after a Greek island Santorini in the southern Aegean Sea, its new brand will be available in four flavors: plain, lime, lemon and grapefruit. “As more customers are replacing soft drinks with sparkling water due to concerns over sugar, Binggrae has decided to join the growing

IndustryApril 14, 2020

Amorepacific sweeps up European quality awards

Korean cosmetics giant Amorepacific said Tuesday it was recognized by Monde Selection, an international quality institute with almost six decades of history. According to Amorepacific, the cosmetics firm’s three brands -- Vitalbeautie, Pleasia and Boncho Study -- won one gold, four silver and one bronze in the 2020 Monde Selection quality awards. In the diet and health products category, Vitalbeautie’s Ginseng Extract Ampoule won a gold award while the brand’s Metagreen an

IndustryApril 14, 2020

S. Korean stocks rebound 1.72% amid hopes of virus outbreak

South Korean stocks rebounded 1.72 percent higher Tuesday as investor sentiment was buoyed by hopes the global coronavirus outbreak is peaking and better-than-expected Chinese data. The Korean won gained ground against the greenback. The benchmark Korea Composite Stock Price Index (KOSPI) shot up 31.32 points to close at 1,857.08. Trading volume was heavy at 872 million shares worth 9.8 trillion won ($8.1 billion), with gainers far outpacing losers 757 to 106. The country reported 27 new case

MarketApril 14, 2020

[Economy in Pandemic] S. Korea’s shrinking job market sparks fears of recession

Slammed by the novel coronavirus, South Korea’s labor market is shrinking fast, sparking concerns over its impact on consumer spending and the possibility of a sharp recession. Total payouts for state unemployment benefits hit a record high of nearly 900 billion won ($738 million) in March, data released by the Ministry of Employment and Labor showed Monday. The figure had jumped by a whopping 40.4 percent on-year, affected by the risks stemming from the COVID-19 crisis. The number of

EconomyApril 14, 2020

Hyosung makes eco-friendly bags with Samdasoo plastic bottles

Hyosung TNC said Tuesday it will make eco-friendly bags using plastic bottles with its textile brand Regen in a joint project with Jeju Province Development Corp. The textile and trading unit of Hyosung Group has signed a memorandum of understanding to establish a resource circulation system with the Ministry of Environment, Jeju Special Self-Governing Province, Jeju Province Development Corp. and eco-fashion brand Pleatsmama. Jeju Island Development Corp., which makes bottled water Samd

IndustryApril 14, 2020

‘Korea’s ICT industry will be hit hard by virus pandemic’

South Korea’s information and communications technology industry could suffer as spending by companies is poised to decline due to the COVID-19 spread, according to research firm IDC Korea on Tuesday. Spending on ICT systems is expected to decline this year due to the rise of companies’ emergency management system and short-term cost reduction, the research firm noted. In a recently published report “Korea ICT 2020 Market Outlook,” IDC revised down its forecast for m

IndustryApril 14, 2020

BOK to deliver $2b more to banks via US currency swap this week

The Bank of Korea (BOK) will deliver an additional $2 billion to local banks this week in its third injection of US banknotes under a bilateral currency swap arrangement with the US Federal Reserve aimed at preventing a foreign exchange liquidity crunch here, the bank said Tuesday. The BOK held an online auction to provide up to $4 billion in seven-day debt and 84-day loans. Bids undershot the BOK target of $3.5 billion in 84-day loans and $500 million in seven-day loans. Successful bidders

EconomyApril 14, 2020

Domestic stock funds’ returns recover on market rebound

South Korea's domestic stock investment funds are enjoying a recovery in their returns on a recent market rebound, data showed Tuesday. Domestic equity funds with a net asset value of 1 billion won ($821,000) or more yielded an average 7.59 percent in the week ending Monday, according to the data from market tracker FnGuide. The number outperformed an average 5.5 percent return for overseas stock investment funds and 0.22 percent for local bond funds over the cited period. The average yield

EconomyApril 14, 2020

Advance payments in state contracts to be expanded to help virus-hit firms

The Cabinet on Tuesday approved a revised ordinance on advance payments in state contracts to help companies damaged by the coronavirus pandemic, officials said. Under the revised ordinance, the government will be allowed to make up to 80 percent of a total contract sum in an advance payment from late this month, the Ministry of Economy and Finance said in a statement. Currently, the government is allowed to make up to 70 percent of a total contract sum in an advance payment, officials said.

EconomyApril 14, 2020

Property transfers among family members jump

A growing number of homeowners, including those with multiple houses, in some of South Korea’s major cities have given houses to family members instead of selling them to avoid hefty holding taxes, data showed Monday. The number of houses traded among family members in Daegu has more than doubled on-month from 254 in January to 632 in February, according to data compiled by the Korea Appraisal Board, a government agency that evaluates property values. The figure for Gwangju also increas

MarketApril 14, 2020

[Graphic News] Exports of farm goods inch up in Q1

　South Korea's exports of agricultural products moved up 6 percent in the first three months of the year from a year earlier, with shipments to China remaining steady despite disruptions caused by the outbreak of COVID-19, the Agriculture Ministry said. 　Asia’s fourth-largest economy saw its exports of agricultural goods reach $1.74 billion in the January-March period, up 5.8 percent from a year earlier, according to the Ministry of Agriculture, Food and Rural Affairs. The figure excl

IndustryApril 14, 2020

[Behind the Wheel] G80 sets identity of Genesis luxury sedan

Hyundai Motor’s luxury brand Genesis launched a revamped third-generation G80 on March 30, seven years after the previous version was launched in 2013.  After releasing G70 in 2017 and the brand’s first sport utility vehicle GV80 earlier this year, Genesis has been diversifying its vehicle lineup to attract a wider range of customers.  As the flagship model, the latest G80 represents and cements Genesis’ brand identity. The Korea Herald had an opportunity to test

MobilityApril 14, 2020

Seoul stocks open higher amid eased virus woes

South Korean shares opened higher Tuesday as the country witnessed a daily number of new coronavirus cases below 30. The benchmark Korea Composite Stock Price Index (KOSPI) rose 15.28 points, or 0.84 percent, to 1,841.04 in the first 15 minutes of trading. The country repoted 25 new cases of COVID-19 on Monday, bringing the nation's total infections to 10,537. Most large-cap stocks rose across the board. Market bellwether Samsung Electronics added 0.31 percent, No. 2 chipmaker SK hynix was

MarketApril 14, 2020

Doosan Group likely to sell off affiliate as part of self-rescue plan

　 The cash-strapped South Korean conglomerate Doosan Group announced Monday it has submitted a self-rescue plan to its creditors, apparently including selling of an affiliate and pay cuts for executives. 　Doosan Group has been struggling to normalize troubled affiliate Doosan Heavy Industries & Construction Co. Last month, Doosan Heavy opened a 1 trillion-won ($821 million) credit line from South Korea‘s state lenders -- Korea Development Bank and Korea Export-Import Bank -- to preve

IndustryApril 13, 2020