BOK names research head as new deputy governor

The Bank of Korea said Monday that it had appointed Lee Hwan-seok, the incumbent head of its research department, as its new deputy governor, a senior post within the central bank that had been vacant for nearly two months. Lee, 55, joined the BOK in 1991 and built his career in its policy departments, including research and monetary policy, the bank said. He also served as monetary policy board secretariat within the bank’s planning and coordination department and chief of staff withi

EconomyMarch 9, 2020

Dark clouds loom over Korea's economy

Fifty days after confirmation of the first novel coronavirus case in South Korea, the economy is in a tailspin with major industries facing severe setbacks amid production disruptions, falling consumption and growing uncertainties. As of Monday morning, the number of confirmed COVID-19 patients stood at 7,382, up 248 from the previous day, while the death toll stood at 51. As the outbreak continues to escalate, global investment banks and rating firms -- including Morgan Stanley, Nomura, Sta

IndustryMarch 9, 2020

Celltrion applies for European approval of Humira biosimilar

Celltrion said Monday that it applied for the European Medicine Agency’s commercialization approval of CT-P17, a Humira (adalimumab) biosimilar. CT-P17 is a highly potent biosimilar of AbbVie’s autoimmune disease treatment Humira, a blockbuster original that recorded $19.1 billion global revenue in 2019. If approved, the CT-P17 will be a meaningful addition to Celltrion’s portfolio for rheumatoid arthritis and inflammatory bowel disease treatment, alongside the company’

IndustryMarch 9, 2020

Corporate bond sales soar amid low rates in Feb.

Corporate bond sales in South Korea surged in February as firms rushed to secure funds amid low rates and greater uncertainty, data showed Monday. South Korean companies floated 12.3 trillion won ($10.2 billion) worth of bonds last month, up 5.5 trillion won from the previous month, according to the data from the Korea Financial Investment Association. The amount was far larger than a forecast of 6.5 trillion won for the month's estimated demand for corporate debt sales. The association said

MarketMarch 9, 2020

New coronavirus leading to more jitters in Seoul-Tokyo trade row

South Korea and Japan plan to hold another meeting this week to discuss their monthslong trade dispute, but they are unlikely to reach a compromise anytime soon as the global outbreak of the new coronavirus has led to more jitters in the bilateral relationship. The two Asian neighbors are set to hold their first trade meeting in around three months on Tuesday, according to the Ministry of Trade, Industry and Energy. While the meeting was planned to be held in Seoul, it was later replaced with

EconomyMarch 9, 2020

Persistent virus outbreak to further hurt Korea's growth: reports

The outbreak of the new coronavirus here may further undermine South Korea's economic growth if it is lasts for a significant amount of time, reports suggested Monday, while some said the virus may already have nearly halved the country's economic growth. "Household spending in Japan and Korea are set to weaken further and slower growth in the US and Europe will add to external headwinds," S&P Global Ratings said in an article titled "COVID-19 Now Threatens More Damage to As

EconomyMarch 9, 2020

15 Korean pharmas, 4 state institutes research coronavirus

South Korea’s state-run research institutes and pharmaceutical firms are working hard to find a cure for the new coronavirus, according to news reports Monday. Around 15 firms and four institutes here are burning the midnight oil to get an effective cure, according to Korea Pharmaceutical and Bio-Pharma Manufacturers Association. KPBMA Chairman Won Hee-mok emphasized the synergies between private and public research bodies in yielding a faster outcome. The association identified Korean

IndustryMarch 9, 2020

Lotte unit offers voluntary retirement

Lotte Himart Co., South Korea's leading home appliance store chain, said Sunday it will offer a voluntary retirement program to its employees due to deepening losses. Some 80 employees who have worked for the company for more than 25 years and are aged 50 or older are eligible for the voluntary retirement schemes, a Lotte Himart spokesman said. The company plans to provide those who agree to retire early with severance pay according to their overall working years, a sizable compensation and

IndustryMarch 8, 2020

Firms extend remote work with creativity amid prolonged virus outbreak

Amid the prolonged outbreak of the COVID-19, South Korean businesses are extending telecommuting and flexible work hours for employees in various forms to prevent further spread. While the companies are putting such measures temporarily in support of the so-called “social distancing” campaign promoted by the government to keep people from gathering in large crowds, some companies are taking it as an opportunity to seriously consider plans to build virtual and smart work systems.

IndustryMarch 8, 2020

Korean economy could shrink 1% due to coronavirus outbreak: ADB

Assuming the worst-case scenario regarding the ongoing new coronavirus outbreak, South Korea could see its GDP contract by as much as 1 percent this year, according to the Asian Development Bank. In its latest report “The Economic Impact of the COVID-19 Outbreak on Developing Asia,” the multilateral agency suggested four possible scenarios to assess the economic fallout that the fast-spreading epidemic may have on major Asian economies. The categories were classified into

EconomyMarch 8, 2020

Retail investors upset with uncontrolled short selling

With the nation’s stock market plummeting and investors offloading shares en masse, tens of thousands have flocked to sign online petitions calling for a ban on short selling. As of Sunday afternoon, over 49,000 Koreans have signed 10 online petitions from end-January, demanding that the short selling of local securities be abolished or at least temporarily banned when stock indexes drop over 10 percent. Short selling is a strategy of borrowing, selling and repurchasing stocks to return

MarketMarch 8, 2020

Coronavirus puts Korean venture firms on edge

The coronavirus fear is increasing financial burdens on listed South Korean venture firms as they are facing more calls for cash redemption from investors. Investors in firms listed on Korea’s development bourse Kosdaq have cashed out their combined 361.3 billion won ($303.4 million) investment in mezzanine bonds -- convertible bonds and bond warrants -- from January until Friday, prior to their due maturity date, according to regulatory filings. This marked a 48.4 percent increase on-y

MarketMarch 8, 2020

Gold trading dazzles as stock market loses sheen

In contrast with the slump in major global stock markets amid the continuing spread of the new coronavirus, gold trading in South Korea has posted stellar returns this year, local experts said Sunday. According to data compiled by Daishin Securities, gold has recorded the highest investment earnings rate so far this year. The price of a gold bar at the Korea Gold Exchange -- a private gold exchange here -- stood at 64,010 won ($53.80) per gram as of Friday, surging 13.21 percent from the end

MarketMarch 8, 2020

Incheon airport pledges ‘COVID-19 free facility’

Pledging to become a coronavirus-free airport amid the spread in South Korea, Incheon International Airport Corp. on Monday starts a full-fledged three-step temperature monitoring program on all outbound passengers. The airport said the preboarding temperature checks, which have been running on a trial basis since Thursday, will officially begin as of 9 a.m. Monday as part of an effort to make the airport coronavirus free. “As the gateway to Korea, Incheon airport will establish a rigo

MobilityMarch 8, 2020

Businesses piggyback on coronavirus crisis with corona-related trademarks

Applications to register trademarks reminiscent of the deadly novel coronavirus, or COVID-19, are on a rapid rise in Korea, according to data from the Korean Intellectual Property Office. Since the government reported the first confirmed case of the acute respiratory disease on Jan. 20, a total of eight trademarks christened “corona” have been applied for at the patent office -- from both individuals and companies.  The growth in applications of such trademarks coincided wi

MarketMarch 8, 2020

Banks undermine watchdog, reject KIKO arbitration

The Financial Supervisory Service is finding itself under mounting strain as local banks are blatantly refusing or delaying their response to its mediation proposal over the disputed sales of currency-linked derivatives. As of Sunday, only one out of six lenders -- Woori Bank -- has consented to the FSS’ recommendations to pay indemnities for the alleged misselling of derivatives. The knock-in, knock-out -- KIKO -- products caused 723 local businesses to lose a combined 3.3 trillion won

EconomyMarch 8, 2020

Global smartphone market likely to contract over rampant coronavirus

Amid the ceaseless spread of the novel coronavirus around the globe, the world’s smartphone market is forecast to witness a contraction in the first half of the year, according to various market reports on Sunday. US-based Counterpoint Research said in its latest report that the global handset market is estimated to shrink 5 percent in the first quarter alone. Strategy Analytics said the volume of smartphone shipments worldwide would decline 10 percent from its initial forecast largel

TechnologyMarch 8, 2020

Korean air carriers’ coronavirus losses to reach W5tr by June

South Korea’s aviation industry is likely to see losses from the coronavirus outbreak snowball to at least 5 trillion won ($4.2 billion) by June, according to industry sources on Sunday. With more international routes shutting down as countries announce entry bans on people traveling from Korea, at least 5.8 trillion won of losses are expected from the country’s eight air carriers, based on the calculation from their flight records as of the fourth week of February.  But such

MobilityMarch 8, 2020

S. Korea to spend W616b on space projects in 2020

South Korea plans to spend around 615.8 billion won ($516.5 million) on space development projects this year as the country gears up to launch its first domestically-built rocket and next generation satellites, the science ministry said Sunday. The investment is a 6.4-percent increase from 2019, with the earmarked budget to be focused on building up the country's capability to use space more effectively and bolster related industries, according to the Ministry of Science and ICT. Of the total

TechnologyMarch 8, 2020

SKT, Singtel, AIS set up esports JV targeting Southeast Asia

Leading telecom companies of South Korea, Singapore and Thailand have teamed up to establish an esports joint venture targeting some 800 million Southeast Asian gamers, SK Telecom said Sunday. Under the agreement, Korea’s SKT, Singapore’s Singtel and Thailand’s AIS will each invest an equal amount of funds and share equal rights to the joint venture, expected to launch in 2020. The addition of AIS is the result of a follow-up to the partnership SKT and Singtel had agreed on

TechnologyMarch 8, 2020