Woori Financial chief to remain until further notice

South Korea’s Woori Financial Group on Thursday said its current chief would maintain his role for the time being despite sanctions imposed by financial authorities for misselling of derivatives-linked funds. The announcement came as a result of a preliminary board meeting, on the eve of the regular board meeting scheduled Friday. Woori Financial’s seven board members, including Chairman Sohn Tae-seung, gathered with the goal of releasing a statement conveying the chairman’s

MarketFeb. 6, 2020

[Monitor] How much will new coronavirus hurt exports to China?

With the on-going outbreak of the novel coronavirus (2019n-CoV), concerns have been rising over the impact it will have on the country’s overall exports that have only just begun to show signs of rebounding. Looking back at the Severe acute respiratory syndrome outbreak in 2003, the growth in Korea’s overall exports slowed down in the short term but did not hamper the yearly performance. In the whole of 2003, Korea’s exports surged 19.3 percent on-year. By month, the increas

IndustryFeb. 6, 2020

Ports, shipping industry disrupted by novel coronavirus

In the wake of the novel coronavirus outbreak, operations at ports and the shipping industry have been severely disrupted, with sea ports and manufacturers shutting down in China, South Korea’s major trade partner, according to the industry on Thursday. Shipyards here are clogged with containers that should have been either delivered or stopped over at Chinese ports. Meanwhile, vessels bringing in imported goods to Korea from China have slowed, leaving customs inspection storage units ne

IndustryFeb. 6, 2020

Insurance sector speeds up digital transition

Traditional insurance companies in South Korea are speeding up digital transformation of their operations and services to compete with emerging tech-savvy companies that are proliferating in the financial sector. However, their digital strategy also involves industrial crossover partnerships with the emerging competitors, if necessary. Samsung Fire & Marine Insurance, the nation’s largest non-life insurance firm, and Kakao Pay, a fintech spin-off of mobile messenger giant Kakao,

MarketFeb. 6, 2020

Hyosung’s operating profit surpasses W1tr in 2019

Hyosung Corp. said Thursday the company and its four major affiliates saw their combined operating profit surpass 1 trillion won ($848 million) in 2019. The five companies – Hyosung Corp., Hyosung TNC, Hyosung Heavy Industries, Hyosung Advanced Materials, Hyosung Chemical -- recorded combined revenue of 18.11 trillion won and operating profit of 1.1 trillion won. It is the second time the Hyosung Group has seen the operating profit go above 1 trillion won since 2016, when it saw revenue

IndustryFeb. 6, 2020

Hyundai to inject W1tr to support auto parts makers amid virus crisis

Hyundai Motor Group said Thursday it has decided to urgently inject 1 trillion won ($847 million) of capital into local small and midsized auto parts makers struggling amid low demand from automakers due to a disruption in parts supply from China. Some 350 companies that supply auto parts to Hyundai Motor, Kia Motors, Hyundai Mobis, Hyundai Wia and Hyundai Transys will be given 692 billion won worth of product payment in advance, as well as 308 billion won of interest-free loans for the automot

MobilityFeb. 6, 2020

Korean airlines suspend 60% of flights to China

Fears of the new coronavirus have prompted South Korean air carriers to suspend more than 60 percent of their flights to China as of Thursday, according to industry sources. A total of 58 of the 94 China-bound routes operated by eight Korean carriers have been suspended due to the coronavirus scare.  The airlines have also reduced the number of flights on 25 routes to China, meaning 88 percent of all routes between the two countries have been affected by the outbreak.  The country&

MobilityFeb. 6, 2020

[News Focus] Korea’s national debt up 107 trillion won since 2016

SEJONG -- The Moon Jae-in administration has drawn up and approved a series of supplementary budgets in a bid to stimulate GDP growth and create jobs amid a tough employment market. Officials say the stimulus measures, including the active use of tax money and the issuance of treasury bonds, have benefited the overall economy. But opponents question their efficacy, pointing to a sharp increase only in nonregular jobs and to disappointing GDP growth -- 2 percent in 2019, the lowest rate in 10 y

EconomyFeb. 6, 2020

S. Korea pushes for deregulation for new industries

South Korea unveiled plans for regulatory reform Thursday in a bid to promote innovation in new industries related to the fourth industrial revolution. Making public the 2020 road map for "regulatory innovations" in the economic sector, the government said it will allow new industries to develop in an amicable environment and impose necessary regulations later. New major industries that will benefit from the initiative include software, future-generation cars, drones and medical dev

IndustryFeb. 6, 2020

Boycott cuts Japanese car imports to S. Korea by half

  Japanese car imports to South Korea halved in the fourth quarter last year as the boycott of Japanese products in the country continued, latest data showed Thursday. The value of imported Japanese cars in South Korea amounted to $203 million in the period, a 51.9 percent drop from $422 million a year earlier, according to data from the Korea Customs Service. The market share of Japanese cars -- which commanded 15.2 percent of total imported cars -- plummeted to 6.2 percent in the same

MobilityFeb. 6, 2020

Kakao’s entry into brokerage to vitalize fintech market: reports

Mobile messenger Kakao’s entry into the stock trading market, via its fintech spinoff Kakao Pay, will boost growth of the financial technology sector and the brokerage market, according to local analysts on Thursday. The Financial Services Commissions, South Korea’s financial regulator, on Wednesday approved Kakao Pay’s request to acquire a controlling 60 percent stake in local brokerage Baro Investment & Securities. The stock trader has been renamed to Kakao Pay Securi

MarketFeb. 6, 2020

Korean Air to sell assets to regain financial health

Korean Air Lines Co., South Korea's biggest airline and national flag carrier, said Thursday it will sell property and non-core assets to improve its financial status. Korean Air plans to sell its idle property in central Seoul and a non-core business unit to emerge as a financially healthy company amid growing uncertainties in the airline industry, the company said in a statement. The company aims to sell its land and building in Songhyeon-dong and an entire 100 percent stake in Wangsan Lei

MobilityFeb. 6, 2020

Business circles concerned about NPS’ stronger shareholder activism

The National Pension Service’s growing interference in corporate management as it enforces stricter yardsticks on investments and recent revisions of commercial acts are raising the hackles of South Korean business circles. On Thursday, a forum on “Improving governance structure for national pension independence” was co-hosted by five business associations -- Korea Economic Research Institute, Korea Enterprises Federation, Korea Listed Companies Association, Federation of Mi

IndustryFeb. 6, 2020

KT 2019 profit falls 12% as investment, marketing costs rise

KT Corp., South Korea's major telecommunication firm, said Thursday its net profit fell 12.2 percent last year from a year earlier as it ramped up spending on its network and marketing. In a regulatory filing, KT reported a net income of 669.3 billion won ($ 565.7 million) last year, down from 762.3 billion won in 2018, on a consolidated basis. The company said that operating profit for the year fell 8.8 percent on-year to 1.15 trillion won, although its annual revenue increased 3.8 percent

IndustryFeb. 6, 2020

LG to supply P-OLED-based digital cockpit system for Cadillac

LG Electronics announced Thursday it will supply digital cockpit systems made with flexible organic light-emitting diode displays for General Motor’s premium brand Cadillac. Known as Plastic-OLED, LG Display’s proprietary flexible OLED display will be the main material for the 38-inch dashboard and infotainment system integration that offers 4K content for the 2021 Cadillac Escalade model, according to the company. The P-OLED-based digital cockpit system, consisting of audio-vid

TechnologyFeb. 6, 2020

Public jobs account for 9.1% of labor market in 2018

Jobs offered by the government and state-run companies accounted for 9.1 percent of South Korea's labor market in 2018, government data showed Thursday. A total of 2.45 million people were employed in 2018 by the public sector, including the central and provincial governments and state-run financial and non-financial firms, compared with 2.43 million people in 2017, according to the data by Statistics Korea. Government ministries and agencies had 2.09 million employees in 2018, with the comp

EconomyFeb. 6, 2020

LIG Nex1 vies to enter defense industry in India

LIG Nex1 said it is participating in DefExpo India 2020, a biennial defense and aerospace exhibition being held from Wednesday to Sunday in Lucknow, India, the world’s second-biggest arms importer that ranks fourth in military spending. The Korean defense company will showcase weapons including its land-based short-range surface-to-air missile Chiron that is mounted on the Hybrid Biho, a 30 mm complex gun and air defense system designed to target low-flying aircrafts and helicopters. T

IndustryFeb. 6, 2020

Smilegate sends 10m yuan donation to Wuhan

Game company Smilegate said Thursday it made a 10 million yuan ($1.4 million) donation to help the people in Wuhan, China, epicenter of the novel coronavirus outbreak. The donation has been delivered to China’s Ambassador to Korea Xing Haiming. “China and Korea are long-time neighbors who must help each other to overcome hardships. I thank the support from Smilegate, as well as many other Korean companies,” the envoy said. Smilegate is the third Korean game company to reac

IndustryFeb. 6, 2020

S. Korea to invest W385b in R&D for eco-friendly auto parts

SEJONG -- South Korea said Thursday it will spend 385.6 billion won ($326.2 million) on research and development projects for auto parts for eco-friendly vehicles, such as electric cars, in line with the country's latest clean energy drive. The project that will run through 2026 will center on lending hands to small and midsized enterprises, according to the Ministry of Trade, Industry and Energy. "Amid a change in the industrial paradigm in the automobile segment, the project will help

IndustryFeb. 6, 2020

S. Korea vows deregulation in 10 sectors

South Korea's finance ministry said Thursday it has designated 10 industrial sectors for deregulation, including artificial intelligence and biotechnology, to help them develop technologies and services with fewer regulatory hurdles. Other industrial sectors include mobility service, new medical technologies, biotechnology, fintech, tourism and e-commerce, the Ministry of Economy and Finance said in a statement. Companies in the industrial sectors are expected to develop products without re

EconomyFeb. 6, 2020