Govt. will submit extra ‘coronavirus’ budget bill this week

South Korea’s government will be submitting an extra budget bill this week to cope with the fast spread of the new coronavirus, the country’s top fiscal policymaker said Monday, requesting cooperation from parliamentarians. Though specific details have yet to be yet revealed, the budget will far exceed the 6.2 trillion won ($5.18 billion) allotted in 2015 to deal with the outbreak of Middle East respiratory syndrome. “The government’s supplementary budget bill will be

EconomyMarch 2, 2020

Kospi recovers 2,000-mark over Fed rate cut remark

  Korea’s benchmark Kospi on Monday rose less than 1 percent, barely recovering past the 2,000-point mark after crashing in the previous session over expectations on an interest rate cut in the US.  The local currency closed at 1,193.70 won against the US dollar, strengthening 20 won from the previous session’s close. The benchmark bourse Kospi opened slightly high at 1,997.03 -- rising 10.02 points, or 0.5 percent, from the previous session. It dipped below 1,980 points

MarketMarch 2, 2020

KCGI woos Delta Air Lines for Hanjin control

A coalition led by South Korea’s activist private equity fund Korea Corporate Governance Improvement called Delta Air Lines a “partner” in its pursuit for a control over Hanjin Group and its crown jewel Korean Air in a note Monday. This reflects KCGI’s drastic turn from the previous week when the activist investor questioned Delta’s increase in Hanjin KAL stake -- to 11 percent in February -- as the family-controlled Hanjin Group had entered into a proxy battle tha

MarketMarch 2, 2020

Stocks of firms selling coronavirus testing kits soar

Shares of South Korean companies dedicated to novel coronavirus testing kits soared on Monday, amid rising demand. Local diagnostic kit makers are launching devices that detect coronavirus infections, which allow authorities to test over 10,000 people a day as of current -- from around 1,000 two weeks prior. One of them is Seegene, a maker of the real-time polymerase chain reaction analysis assays. The Seoul-based company closed at 40,400 won ($33.8) per share, up 10.7 percent Monday, on the

MarketMarch 2, 2020

Watchdogs mull stricter short selling regulations

South Korea’s financial authorities are considering regulating short selling of local stocks, similar to rules being implemented in Hong Kong, to rein in the market given the massive dumping by foreign investors in the wake of the COVID-19 outbreak. However, they are yet to reach a consensus, according to officials Monday. The Financial Supervisory Service has reviewed allowing investors to short sell only locally listed stocks with a certain market capitalization. The scheme would be

EconomyMarch 2, 2020

Samsung’s Gumi plant has 4th coronavirus case confirmed

Samsung Electronics’ mobile business factory based in Gumi, North Gyeongsang Province, has confirmed the fourth case of coronavirus infection among its workforce, according to authorities Monday. An office worker at the Gumi site has tested positive for the novel coronavirus, the company reported. All of the office rooms on the same floor as the confirmed patient have now been cleared for disinfection. “There is no shutdown of the production lines in the Gumi site as of yet,&r

TechnologyMarch 2, 2020

Airlines to send more empty carriers to bring Koreans home

South Korean full-service carriers Korean Air and Asiana Airlines are reviewing sending additional ferry flights -- empty planes sent just to pick up passengers -- to Vietnam and Turkey, countries that travelers from Korea cannot enter amid the spread of the new coronavirus, according to the industry on Monday. Korean Air Flight 679 is set to depart from Incheon Airport on Tuesday and the airline is reviewing whether to send it as a ferry flight, it said.  “We will have to see the

MobilityMarch 2, 2020

Jeju Air acquires Eastar Jet for W54.5b

South Korea’s low-cost airline Jeju Air is set to take over the management of struggling Eastar Jet, according to the firm’s regulatory filings Monday. Jeju Air said it signed an acquisition deal with Eastar Holdings, the largest shareholder of Eastar Jet, for 54.5 billion won ($45 million). The firm acquired 4,971,000 common shares for a 51.17 percent stake. The purchase price was lowered from 69.5 billion won, the initial price estimated at the time of signing the memorandum o

IndustryMarch 2, 2020

[Herald Interview] SKT aims to take lead in AR/VR service

South Korea’s top mobile carrier SK Telecom is betting on high-end virtual and augmented reality technologies to increase its foothold, despite the complexity. Backed by many years of sturdy investments and its 5G mobile network, SKT has been releasing pilot VR/AR services -- promoted in the form of virtual zoo, for instance -- with the aim of eventually creating a whole new experience for customers. Behind its initiatives in the newly emerging market is Jeon Jin-soo, vice president a

TechnologyMarch 2, 2020

Sunday trading rules limit outbreak’s boost to online shopping

Online shopping for daily necessities and food has soared amid the coronavirus outbreak in South Korea, but larger retailers face a limit: Sunday trading rules. Since 2012, the Distribution Industry Development Act has banned large stores trading for at least two days a month for the sake of fostering traditional markets and small shops. Usually, the closures come on the second and fourth Sundays of every month. “On off-days, customers are left with fewer options as the ban restricts

IndustryMarch 2, 2020

Coronavirus outbreak dents value of Chaebol owners’ stock holdings

The prolonged coronavirus outbreak is driving down the stock asset valuation of the wealthy chaebol owners, with Samsung Chairman Lee Kun-hee suffering a drastic slump of more than 2.7 trillion won ($2.2 billion), according to latest data Monday. Local corporate tracker Korea CXO Institute surveyed changes in the stock asset valuation of the nation’s 10 largest conglomerates between Jan. 20 and Feb. 28, 40 days since the first confirmed case of COVID-19 infection here. The share price

IndustryMarch 2, 2020

Yuhan invests W5b in AI digital healthcare company Huinno

Yuhan announced Monday that it has made a 5 billion won ($4 million) Series A funding in Huinno -- a wearable health care device company -- becoming the second-biggest stakeholder. Huinno’s patented MEMO Watch and MEMO A.I. are portable heart rate detectors that catch off-beat pulses, enabling remote health care from big hospitals and aftercare from nearest clinics. Under a partnership with Korea University Anam Hospital, Huinno is currently recruiting 100 patients who will participate

IndustryMarch 2, 2020

SK Siltron taps EV, 5G markets with former DuPont biz

SK Siltron said Monday it has acquired the silicon carbide wafer business of Michigan-based DuPont to enter the electric vehicle and 5G network markets. The affiliate of SK Group -- the only wafer producer in South Korea -- decided in September to acquire the SiC wafer business from DuPont for 540 billion won ($450 million). The deal was concluded Saturday. SiC wafer is a next-generation chip material that is a compound of silicon and carbon, offering unique electrical and thermal propertie

TechnologyMarch 2, 2020

Seoul stocks open up on technical rebound, Fed comment

Seoul stocks opened higher on Monday on a technical rebound and comments by the Federal Reserve chairman on a possible rate cut to reassure the markets hit by the spreading coronavirus outbreak.    The benchmark Korea Composite Stock Price Index (KOSPI) rose 2.60 points, or 0.13 percent, to 1,989.61 in the first 15 minutes of trading. Investor sentiment appears to be somewhat buoyed after Fed Chairman Jerome Powell signaled on Friday (US time) that the central bank was open to

MarketMarch 2, 2020

[Monitor] More small and mid-sized firms struck by COVID-19

More than 70 percent of small and mid-sized companies here said they were facing difficulties amid the nationwide spread of COVID-19, according to a survey conducted by the Korea Federation of SMEs. The survey on 300 small and mid-sized companies showed that 70.3 percent of them said that they are having difficulties in their operation due to the viral outbreak. Of them, 72.3 percent were import-export firms, while 67.6 percent were local service businesses.  (khnews@heraldcorp.com)

IndustryMarch 2, 2020

Most Koreans concerned of prolonged coronavirus spread: survey

Eight out of 10 office workers are concerned that the COVID-19 outbreak could prolong, according to a survey by a local online community operator. Blind, a local operator of employees’ community application, surveyed some 2,427 office workers over the nationwide spread of the viral outbreak. The proportion of workers who expressed concerns increased to 83 percent, when compared to the same survey conducted from Feb. 7-13 (67 percent). Most of those who were concerned said they are wor

IndustryMarch 1, 2020

Korea’s exports bounce back despite coronavirus in Feb.

South Korea’s exports rose 4.5 percent in February from a year earlier, marking the first improvement after falling for 14 consecutive months, according to the Ministry of Trade, Industry and Energy’s report on Sunday.  According to the data, South Korea’s exports in February increased by 4.5 percent to $41.2 billion, compared to $39.4 billion in the same month last year. The average daily exports went down by 11.7 percent to $1.83 billion, compared to the last month, t

IndustryMarch 1, 2020

[Chew on IT] Over-the-top services boom in Korea despite uncertainties

  While South Korean broadcasters and mobile carriers are scrambling to roll out new over-the-top services -- pledging to invest in exclusive contents -- it is uncertain whether they can compete with foreign service providers who are dominating the market. The online streaming services -- replacing traditional cable or satellite TV networks -- took off relatively late here compared to the US where user demand is high. But the demand has been rising, coupled with hyperconnected internet t

TechnologyMarch 1, 2020

Credit card transactions dip amid coronavirus crisis

Credit card transactions nearly halved last month as the fast-spreading COVID-19 fears dampened consumer sentiment, according to latest data Sunday. The overall credit card payments from Feb. 1-23 stood at 28.2 trillion won ($23.5 billion), down 45 percent from 51.3 trillion won in January, as per eight credit card issuers, including Shinhan Card, Samsung Card, Hyundai Card and BC Card. The transactions declined 32 percent, when deducting a week’s average amount -- approximately 10 tri

MarketMarch 1, 2020

Cashier-less tech on the rise

Just grab and go. This is what customers visiting a convenience store at BC Card’s head office in Seoul have to do. They don’t need a wallet, credit cards or cash. They don’t even have to encounter any cashier for payment. It is run autonomously, replacing human labor with the latest technology that features state-of-the-art sensors to track customers’ movements, and the weight of products on shelves. The convenience store, jointly operated by BC Card, its affiliat

MarketMarch 1, 2020