Spike in coronavirus cases disrupt Samsung, LG, Hyundai plants

The novel coronavirus is disrupting the plants of Korea’s major conglomerates, as new confirmed cases reported one after another involve their employees. On Sunday, Samsung Electronics confirmed its third case of COVID-19 infection, of a worker at its smartphone plant in Gumi, North Gyeongsang Province. The Gumi site produces next-generation smartphones such as the Galaxy Z Flip and Galaxy Fold. The assembly line where the employee worked is temporarily closed and expected to be fully

IndustryMarch 1, 2020

SKT forms global alliance with 9 telcos on 5G mobile edge computing

SK Telecom Co., South Korea's largest mobile carrier, said Sunday it has formed an international alliance with nine telecommunication firms to develop 5G mobile edge computing (MEC) technologies and services. SK Telecom said Telecom Edge Cloud TF was established with nine other companies at a GSMA meeting in London last week. Its members include Deutsche Telekom AG of Germany, KDDI Corp. of Japan and EE Ltd. of Britain. The TF aims to have global commercialization of 5G MEC by sharing each

TechnologyMarch 1, 2020

[News Focus] Korean won loses ground to major currencies

SEJONG -- The South Korean won has lost its value versus yuan as well as key currencies such as the US dollar, euro and yen over the past two weeks. Despite the simultaneous epidemic shock in the region from the novel coronavirus (COVID-19) that originated in China, the recent weak position of the local currency against the yen and yuan is attributable to the rapidly growing number of infections here since the third week of February, according to market analysts. The Chinese yuan traded at 17

EconomyMarch 1, 2020

[Newsmaker] Asiana flight turns back en route to Vietnam on coronavirus

A South Korean flight turned back while en route to Vietnam on Saturday after the Vietnamese authorities prevented it from landing in Hanoi, with more flights connecting the two countries expected to be suspended amid the spread of the new coronavirus. The flight of Asiana Airlines Inc., the country's second-biggest carrier, arrived back at Incheon International Airport, west of Seoul, around two hours after departing for Hanoi at 10:30 a.m. Asiana said it decided to return flight OZ729 when

MobilityMarch 1, 2020

KDB picks 2 external partners to back W120b for supply chain autonomy

State-run Korea Development Bank said Friday it had chosen two external partners to operate funds with a combined 120 billion won ($99.2 million) of public money to support South Korea’s drive for supply chain autonomy. The two partners are BNW Investment-Industrial Bank of Korea consortium and SKS Private Equity-Korea Investment Private Equity group. These were among nine applicants to manage the funds. Each group is mandated to attract at least 40 billion won investment from the priva

MarketFeb. 28, 2020

Seoul stocks crumble on coronavirus-fueled selling spree

Stocks on South Korea’s main bourse Kospi plunged more than 3 percent Friday with investors dumping assets amid the rapid increase of COVID-19 virus cases. Market watchers are closely watching how long the selling pressure will continue despite aggressive steps being taken by the government to contain the virus spread. The benchmark Kospi opened sharply lower at 2,020.17 -- sinking 34.72 points, or 1.69 percent, from the previous session. The weak start continued through the day to clos

MarketFeb. 28, 2020

Hanwha Asset to raise W510b capital in cross-border push

Hanwha Asset Management said Friday it planned to raise 510 billion won ($421.7 million) capital from its parent Hanwha Life Insurance, which would bring its total capital to over 700 billion won -- the second-largest for an asset management company in South Korea. The fresh capital will be used to enhance overseas alternative investment capacity through acquisitions of foreign asset management firms, expand its overseas units, create a digital infrastructure and nurture more investment opportu

MarketFeb. 28, 2020

Samsung’s Z Flip sells out in 9 minutes in China despite slow market

Samsung Electronics’ Galaxy Z Flip sold out in nine minutes in China on Thursday, despite dampened consumer sentiment worldwide due to the coronavirus outbreak. According to the Chinese electronics industry on Friday, Samsung began online sales of the Z Flip across China at 8:30 p.m. Thursday, and the clamshell-type foldable phone sold out in less than 10 minutes. Delivery will begin immediately. On the same day, Samsung began to take preorders for the Z Flip’s limited Thom Browne

IndustryFeb. 28, 2020

Department stores, malls shut down temporarily due to new coronavirus

With the COVID-19 virus spreading across the country, department stores and malls are temporarily shutting down branches that confirmed patients are found to have visited. On Friday, Shinsegae Department Store closed its Gangnam branch in Seoul, when one of the employees of its partner company was confirmed to be infected by the new coronavirus. According to the department store, the employee had been off duty for personal reasons since Monday, and then went into self-quarantine on Thursday

ConsumerFeb. 28, 2020

Incheon airport’s duty-free store license auction falls flat for first time

The bidding for duty-free store licenses at Incheon International Airport failed to attract tenders to fill all of the cosmetics and apparel sections, the airport operator said Friday, the first time . According to Incheon International Airport Corporation, the operation licenses for two of the eight airside sections in the airport’s Terminal 1, DF2 and DF6, failed to attract bids. DF2 is designated for perfumes and cosmetics, and DF6 for apparel. IIAC opened the bidding on Wednesday,

IndustryFeb. 28, 2020

Korean IPOs in February defy coronavirus fears

The initial public offerings of South Korean firms in February were largely successful, despite the impact of the new coronavirus on the domestic stock market. This month through Friday, five companies -- Sunam, Lemon, Kencoa Aerospace, JNTC, Seoul Viosys -- wrapped up IPOs, raising a combined 192.1 billion won ($158.1 million). Four out of five, except for Kencoa Aerospace, were more than successful. The offered prices of the four companies were set at, or beyond, the upper cap of the price

MarketFeb. 28, 2020

Korean Air to cut flights on US routes next month

Korean Air Lines Co., the country's biggest airline by sales, said Friday it will reduce flights on US routes next month and use smaller planes due to declining demand amid the spread of the new coronavirus. Korean Air will temporarily reduce the number of flights on the routes from Incheon to San Francisco, Honolulu and Boston from March 7-28 to minimize the impact of COVID-19 on its business, the company said in a statement. "We may reorganize further flight schedules depending on cor

MobilityFeb. 28, 2020

Economic indexes for Feb. to plunge amid coronavirus outbreak

South Korea’s economic indexes for February could plunge drastically, taking the full impact of the coronavirus outbreak, the government said Friday. “The fast-spreading COVID-19 is increasingly weighing on consumer sentiment and economic activities,” said Kim Yong-beom, first vice minister of economy and finance, during a macroeconomy-finance policy meeting at the Korea Federation of Banks in central Seoul. The meeting was attended by officials from the Financial Service

EconomyFeb. 28, 2020

Smudge-proof makeup gains popularity amid virus outbreak

With the coronavirus outbreak prompting many to wear face masks, demand for smudge-proof makeup has soared, according to Lalavla on Friday. According to the health and beauty chain operated by GS Retail, sales of lip-stain products, face powder and makeup fixers rose 91 percent, 89 percent and 74 percent, respectively, in the period from Feb. 1 to Wednesday compared with the same period the previous year. Sales of products related to a healthy diet also went up 96 percent in the same period

ConsumerFeb. 28, 2020

Hyundai Motor’s Ulsan plant halts due to confirmed COVID-19 case

Hyundai Motor Group stopped operations of its Ulsan manufacturing plant’s second factory Friday after an employee who works there was confirmed with COVID-19. According to the automaker, the factory has suspended operations since 11:30 a.m. Friday. The worker was confirmed to be infected that morning. The company said it has disinfected the site and put five co-workers into self-isolation.  A Hyundai Motor employee said the duration of the shutdown will be decided later based on t

MobilityFeb. 28, 2020

NTS to capture mask filter manufacturers with illegal profiteering amid virus outbreak

South Korea’s tax agency said Friday that it had begun inspections of mask filter manufacturing companies to prevent illegal profiteering amid the new coronavirus outbreak. The National Tax Service has examined 12 local manufacturers that produce nearly 95 percent of the nation’s supply of filter material -- melt blown nonwoven fabric. Melt blown or MB filters are the core material for hygiene masks. Depending on the percentage of particle blockage, they are classified into thre

EconomyFeb. 28, 2020

Samsung apologizes for unauthorized access to employees’ donation records

Samsung Electronics and its 16 affiliates on Friday apologized for accessing employees’ records of donations to civil organizations without their permission. In a statement, they said the former control tower of Samsung Group -- called the Future Strategy Office -- had unauthorized access to the records of Samsung executives and employees regarding donations to 10 civic groups in May 2013. “The office defined the 10 civic groups as ‘rebellious’ and browsed employees&r

IndustryFeb. 28, 2020

MMAA selects 8 external partners to back W130b

The Military Mutual Aid Association said Friday it has selected eight South Korean external partners dedicated to investment in private equities and venture capital to back a combined 130 billion won ($107.1 million) this year. The Korean institutional investor will invest a total of 100 billion won to blind pool funds managed by private equity houses KStone Partners, Aju IB Investment, SkyLake Investment, KTB Private Equtiy and Dominus Investment. In the meantime, a combined 30 billion won w

MarketFeb. 28, 2020

Yeouido on guard after COVID-19 case confirmed at Eximbank

Yeouido, packed with financial companies and home to the National Assembly, was on its guard against the new coronavirus on Friday following news of confirmed cases in the area. The state-run Export-Import Bank of Korea said early in the morning that one of its employees was confirmed with COVID-19 around 7:30 p.m. the previous day. The bank immediately initiated emergency measures, shutting down its headquarters in west Yeouido and carrying out extensive quarantine. Some 800 employees w

MarketFeb. 28, 2020

Rate cut predicted in April due to virus fallout: analysts

South Korea's central bank is likely to cut the policy rate in April amid concerns that the spreading novel coronavirus outbreak will hurt Asia's fourth-largest economy, analysts here said Friday. The Bank of Korea stood pat this week by keeping the rate at a record low of 1.25 percent, while trimming its economic outlook for the year to 2.1 percent from the previous 2.3 percent. More analysts are now betting on a rate cut in April as the virus cases are increasing at an alarming level. So fa

EconomyFeb. 28, 2020