Investors in troubled Lime Asset lose over W634b

Troubled hedge fund Lime Asset Management on Monday confirmed total investor losses of 634.1 billion won ($520.3 million) from 173 feeder funds, which were injected in two of its master funds, Pluto FI D-1 and Tethys 2. The company said the estimate is based on the combined subscription amount of the feeder funds -- investor’s money that initially went to the funds -- at 1.6 trillion won minus their current net asset value. The estimate came as Lime Asset wrapped up the revision of the v

MarketFeb. 24, 2020

South Korea’s key industries hit hard by COVID-19

South Korea’s major industries -- including electronics, automobiles, retail and oil refining -- are on high alert due to a surge in COVID-19 cases here, as well as the market slowdown in China, the nation’s biggest export destination. As of Monday, the number of confirmed COVID-19 patients stood at 833, up 161 from the previous day, and the death toll had risen to eight. The nation’s largest tech firm, Samsung Electronics, temporarily shut down its operations at its Gumi p

IndustryFeb. 24, 2020

[Herald Interview] Philip Morris Korea reworks HR management for all stages of employment

A corporate culture centered on employees is often misunderstood here. It is mistakenly considered the opposite of a profit-centered culture and is used to describe companies providing generous welfare and compensation to employees. However, PMK goes beyond that, said Upadhyay in an interview with The Korea Herald. The company ensures staff go through a better employee experience throughout the employment cycle, starting from the job-seeking stage to leaving the company. Upadhyay, who has w

IndustryFeb. 24, 2020

JR AMC gets green light for Korea’s 1st cross-border REIT listing

South Korean real estate investment firm JR Asset Management (JR AMC) said Monday that it had obtained government approval for the initial public offering of its real estate investment trust, which invests in Belgium’s second-tallest skyscraper. The REIT, called JR Global, is hoping to carry out the nation’s first listing of a cross-border REIT. The Land Ministry authorized JR Global to embark on the IPO process and submit a prospectus. Under the Korean rules, a REIT listing does n

MarketFeb. 24, 2020

Air Busan suspends 25 international routes amid coronavirus outbreak

Air Busan on Monday said it will suspend 78 percent of its international routes next month to counter business challenges amid the COVID-19 outbreak. In March, the domestic low-cost carrier will stop operating 25 international routes bound for China and Southeast Asian countries, which have recently seen a dramatic decrease in passengers. According to the company, all Air Busan executives, including the CEO, have submitted their resignations to help the company cope with recent financial diff

IndustryFeb. 24, 2020

SK Bioscience to build vaccines platform for future virus spreads

Vaccines company SK Bioscience will build a research and development platform that will allow a speedy response to future outbreaks of mutant viruses, the company said Monday. COVID-19, severe acute respiratory syndrome and Middle East respiratory syndrome are ribonucleic acid coronaviruses that endlessly transform to outlive treatments. Developing vaccines for coronaviruses, therefore, generally requires one to five years. SK Bioscience said it envisions to shorten that by understanding what

IndustryFeb. 24, 2020

Korean economy tipped to grow below 2% on virus

Major foreign investment banks (IBs) and economic institutes have forecast South Korea's economic growth to be below 2 percent in 2020 due to the fallout of the fast-spreading novel coronavirus. According to a recent survey by Bloomberg, five out of 42 foreign IBs and economic think tanks predicted Asia's fourth-largest economy to expand in the 1 percent range this year, hit by the COVID-19 outbreak. ING Group offered a growth forecast of 1.7 percent for the Korean economy, down from a 2.2 pe

EconomyFeb. 24, 2020

Shinhan Bank closes branch on confirmed COVID-19 case

Shinhan Bank said Sunday that it is temporarily shutting down its branch at the Seongnam Industrial Complex Financial Center, Gyeonggi Province, after one of its employees tested positive for COVID-19. The confirmed patient had visited a hospital funeral center in the southern city of Daegu, where the epidemic has been spreading at a fast pace over the past week, officials said. After experiencing fever and other symptoms, the patient visited a designated inspection station in the vicinity.

MarketFeb. 23, 2020

Homeplus unionists, MBK lock horns over asset disposal, dividend payout

The labor-management feud at South Korea’s hypermarket chain operator Homeplus escalated Sunday, with union members accusing its majority shareholder MBK Partners of profiteering at the expense of the company. The controlling private equity firm denied having done so, accusing the union of misleading the public. According to the labor union, MBK Partners has pulled 1.9 trillion won ($1.6 billion) out of Homeplus hypermarkets through the sale of its properties and brought in 1.2 trillio

MarketFeb. 23, 2020

Hyundai Capital Bank Europe inks deal to control German lender

Hyundai Capital said Sunday that its German subsidiary has become the largest shareholder in a local lender, in an extended move to enhance the group’s mobility strategy. Hyundai Capital Bank Europe GmbH has signed an agreement with German car rental service provider Sixt SE to acquire 8.64 million shares, or a 41.9 percent stake, in Sixt Leasing SE for 155.6 million euros ($168 million). After the due regulatory clearance procedure is completed in both Europe and Korea, HCBE will gain a

MarketFeb. 23, 2020

[Herald Interview] Booming business at fabric maker amid soaring demand for masks

POCHEON, Gyeonggi Province -- Amid coronavirus fears, local fabric maker Environment & Human’s machines have been in full operation night and day. The non-woven fabric manufacturer churns out thin sheets of meltblown non-woven fabric, an essential material for face masks. Demand for masks has been skyrocketing, driving the government to take full control over the supply and distribution of masks. The surge -- likely to continue for some time -- reflects concerns about the virus but

MarketFeb. 23, 2020

Coway boasts No. 1 eco-tech research institute in Asia

South Korea’s leading household electronics rental service company  Coway attributes its competitiveness to the high-tech analyses at its Environmental Technology Research Institute, the biggest such facility in Asia. According to the company, the institute is at the center of its research and development of cutting-edge technologies and products, as the organization spearheads the entire product development process, starting from research to product design and development, to cond

IndustryFeb. 23, 2020

Early-stage VC Bass Investment closes new W37.7b vehicle

South Korea’s early-stage venture capital house Bass Investment said it had closed its second fund worth 37.7 billion won ($31.1 million) last week, in the latest addition to its initial 28.6 billion won fund. The new vehicle’s backers include K Cube Holdings, Com2uS, as well as ex-entrepreneurs -- including Chang Won-gui, founder of secondhand marketplace Bungae Jangteo who exited from the firm in January. No state fund has joined as its limited partner. The fund will “not

MarketFeb. 23, 2020

[Monitor] Market caps of firms decline in February

The market capitalization of listed South Korean companies declined across industries, according to data from market researcher FnGuide. Between Jan. 20 and Thursday, the combined market cap of 48 firms selling personal and daily goods, including cosmetics makers, fell 5.06 trillion won based on the closing prices of stocks. The market cap of the wholesale and retail sector dropped 2.92 trillion won, while that of the hotel and leisure industry declined about 1.85 trillion won.  (khnew

IndustryFeb. 23, 2020

Deepening COVID-19 crisis triggers rate cut speculations

While South Korea grapples with the rising new coronavirus infections, some market watchers are of the view that the central bank is likely to push for a base rate cut to minimize the downside economic impacts. Though many analysts are inclined toward a rate freeze scenario, the current economic situation could force the Bank of Korea to stipulate a record-low key interest rate, according to some. The three-year Treasury bond rate stood at 1.18 percent as of Friday, down 0.14 percentage poin

EconomyFeb. 23, 2020

Coronavirus outbreak shakes up retail, realty markets in Korea

The COVID-19 outbreak is likely to deliver a severe blow to the South Korean economy, especially in the retail sector and real estate investments, according to global real estate service provider Cushman & Wakefield. Asia’s fourth-largest economy’s growth prospects in the near term will be affected as the fast-spreading coronavirus disrupts supply chains, reduces exports and weakens consumer sentiment, the company said in its recent report on the Asia-Pacific region. “

MarketFeb. 23, 2020

Seoul stocks shed over W12tr on coronavirus woes

With the number of COVID-19 patients expanding rapidly across South Korea, the domestic stock market saw its market capitalization shed over 12 trillion won ($9.95 billion) over the past month, data showed Sunday. According to data released by financial market tracker FnGuide, the market cap of both the nation’s benchmark Kospi and secondary tech-heavy Kosdaq listed firms shed a combined 12.78 trillion won as of Thursday since the country reported the first case of COVID-19 on Jan. 20.

MarketFeb. 23, 2020

COVID-19 hits Samsung’s Gumi plant, may affect Galaxy S20, Z Flip phones

Samsung Electronics’ smartphone production facility in Gumi, North Gyeongsang Province, was shut down over the weekend due to a confirmed case of the new coronavirus that causes COVID-19, industry sources said Sunday. The Gumi facility, 202 kilometers south of Seoul, consists of two production lines for network equipment and premium smartphones, including the latest Galaxy S20 series and the foldable Galaxy Z Flip. A female employee in her 20s who worked on the smartphone line was dia

TechnologyFeb. 23, 2020

Carmakers on alert as shows put on hold amid COVID-19 spread

With global motor shows either being delayed or likely to be called off due to coronavirus concerns, automakers are likely to face setbacks in their plans to unveil their latest models, according to industry sources Sunday. Organizers of Asia’s largest auto event, Beijing Motor Show slated for April 21-30, have announced that it has been “indefinitely delayed.”  The event has been “postponed until further notice,” and a decision will be taken after closely w

MobilityFeb. 23, 2020

[Photo News] Hyundai's hydrogen campaign featuring BTS in NY

Hyundai Motor’s global hydrogen advertisement featuring BTS is aired via Marriott Marquis Hotel’s digital signage display at Times Square in New York on Friday.  In the advertisement, which played for an hour, BTS members explained the company’s vision and efforts to achieve a future hydrogen society through its hydrogen fuel cell car Nexo. (ddd@heraldcorp.com)

MobilityFeb. 23, 2020