Public sector's debt growth accelerates in 2018

South Korea's public sector debt growth accelerated in 2018, but its share of the country's gross domestic product remained flat, the finance ministry said Thursday.The country's public sector debt, known as D3, which includes the debt of the central government and state-funded firms, reached 1,078 trillion won ($926 billion) as of end-2018, up 34 trillion won from a year ago, according to data compiled by the Ministry of Economy and Finance.It accounted for 56.9 percent of the country's GDP las

EconomyDec. 26, 2019

Indebted CJ Group moves to generate cash through divestment

Korean food-to-entertainment conglomerate CJ Group is moving to generate cash through divestment efforts by its affiliates this month, making potential room to tackle the group’s snowballing liabilities.The group’s debt -- which stood at 16.6 trillion won ($14.3 billion) as of end-June according to Korea Ratings -- has cast a shadow on Chairman Lee Jae-hyun’s “Great CJ 2020” initiative to secure 100 trillion won in annual group revenue, pushing the conglomerate to t

MarketDec. 25, 2019

Trilateral summit raises hopes for recovery of consumer goods stocks

At the end of a sluggish year, South Korea is gradually coming to anticipate the recovery of its consumer goods stocks, placing its hopes on the latest trilateral talk with China and Japan.The key point of interest comes down to whether Seoul will break free of the consequences of economic retaliatory measures taken by Beijing in response to the deployment of an advanced US missile defense system in 2016.On Tuesday, the leaders of the three Northeast Asian states reaffirmed their shared goals of

MarketDec. 25, 2019

Conglomerates’ R&D investments rise 11% despite lower sales

South Korea’s large businesses increased investment in research and development by around 11 percent throughout the year despite declines in sales, according to data from a local market tracker released Wednesday. The aggregate investments of 211 major companies stood at 39.2 trillion won ($33.7 billion) as of the third quarter, up 11.3 percent from the 35.2 percent recorded during the same period last year, showed a report from corporate researcher CEO Score. The 211 firms are among the c

TechnologyDec. 25, 2019

LG to debut connected car platform with global tech giants at CES 2020

LG Electronics said Wednesday it will debut its connected car platform -- built in collaboration with multiple global tech companies -- for the first time at the Consumer Electronics Show 2020 that kicks off in Las Vegas on Jan.7. The South Korean tech giant is going to demonstrate the latest version of Linux-based car infotainment platform webOS Auto that it has been working on with Qualcomm, Microsoft, Qt and Luxoft. The company will exhibit a connected car model co-designed by automotive seat

TechnologyDec. 25, 2019

Hyundai E&C wins 800b won worth of orders in Singapore, Vietnam

Hyundai Engineering & Construction Co. said Wednesday it has clinched some 800 billion won ($687 million) worth of deals to build a road and a hotel in Singapore and Vietnam, respectively.The deal with Singapore's Land Transport Authority, worth $435 million, calls for Hyundai E&C to build a 4.5-kilometer elevated highway in Sembawang in the northern part of Singapore. Hyundai E&C expects the construction of the road to take 84 months. Separately, Hyundai E&C said it has won a co

IndustryDec. 25, 2019

E-mart to open second outlet in Philippines

South Korea’s largest retailer E-mart said Wednesday that it will open its second No Brand store in the Philippines this week.  No Brand is E-mart’s private brand promoting low-priced items ranging from food to daily necessities. The outlet is slated to open Friday on a 353 square-meters area in Robinsons Galleria South, a commercial establishment located in San Pedro City, Laguna province.The new branch plans to sell some 630 No Brand items, in addition to some 150 local items.

IndustryDec. 25, 2019

Mobile carriers ready for spike in year-end data usage

South Korea’s mobile carriers are busy preparing to counter an expected surge in data traffic during the year-end season, the companies said Wednesday.  Now is usually the time when mobile carriers experience a dramatic increase in data usage, including voice calls, particularly in locations where many people gather to celebrate.Whenever large numbers of people occupy the same space at the same time, data traffic tends to increase accordingly, said officials from the mobile carriers.T

TechnologyDec. 25, 2019

[Monitor] Rehired mid-aged workers earn less than W2m

Six out of 10 workers in their 40s, 50s and 60s who have been rehired earn less than 2 million won per month, data from Statistics Korea showed earlier this week.The wage tended to decrease as they get older with those in their early 40s receiving an average of 2.3 million won, those in their early 50s 2.17 million won and those in their early 60s 1.83 million won.The data was collected from those who were out of a job as of October 2017 and were reemployed a year later.(khnews@heraldcorp.com)

EconomyDec. 25, 2019

Banking groups’ overseas assets grow 40% in 3 years

The combined assets of the overseas subsidiaries of South Korean financial groups have expanded nearly 40 percent over the past three years, data showed Wednesday.According to data by the state-run Korea Deposit Insurance Corp., the total assets owned by overseas subsidiaries of South Korea’s major 10 financial groups tallied 61.6 trillion won ($529.2 billion) as of end-June.The list includes Shinhan Financial Group, Hana Financial Group, Woori Financial Group, KB Financial Group, JB Finan

MarketDec. 25, 2019

Kakao M carries on M&A push with $23m deal

Kakao M, a subsidiary of South Korean internet giant Kakao, is again adding momentum to mergers and acquisitions to consolidate its content production capacity and generate synergy among its media units.In the latest move, Kakao M subsidiary Starship Entertainment inked a deal to buy a 100 percent stake in a local performing arts company, Shownote, for 26.8 billion won ($23 million) in cash. Starship Entertainment also announced a plan to raise 11 billion won in capital, part of which will come

MarketDec. 25, 2019

Investors turned to real estate, gold and foreign stocks in 2019: KRX

Reflecting the slowing economy and prolonged low interest rates, investors here have increasingly turned their eyes to real estate, gold and overseas securities, South Korea’s stock market operator said Wednesday.Based on a survey of industry experts and media correspondents, the Korea Exchange selected its top 10 news stories about the domestic stock and derivative markets this year.A representative phenomenon was the soaring demand for real estate investment trusts, or REITs, led by the

MarketDec. 25, 2019

[Feature] What you didn’t know about Korean hangover cures

Given the average amount of alcohol Koreans consume on a daily basis, it is no wonder the hangover cure market here has been continuously growing at an annual 15 percent. The demand for these cures is especially strong around the end-of-year season during which time Koreans spend night after night socializing one last time before the year ends.But the truth is the exact mechanism to erase a hangover is not scientifically identified as of yet, and the hangover cures out in the market are merely b

IndustryDec. 25, 2019

Glenwood PE signs W608b deal to acquire SKC Kolon PI

South Korea’s investment house Glenwood Private Equity has inked a deal to buy a controlling stake in the world’s leading polyimide film maker SKC Kolon PI for 608 billion won ($523.2 million) from its two major stakeholders, according to regulatory filings on Tuesday. The purchase price of a 54.07 percent stake in SKC Kolon PI has shrunk from earlier market estimates of some 700 billion won. The transaction is poised to take place by Feb. 28. SKC Kolon PI is a joint venture of Korea

MarketDec. 24, 2019

Increasing number of Chinese visitors bodes well for duty-free operators

The number of Chinese visitors to South Korea is expected to jump more than 25 percent in 2019, boding well for duty-free business operators here, data showed Tuesday.  According to the data jointly compiled by the state-run Korea Tourism Organization and Shinhan Financial Investment, the number of Chinese travelers in November surged 30.3 percent to some 426,800. A considerable number of these travelers were vendors who purchase Korean duty-free goods in bulk and sell them back at home, th

IndustryDec. 24, 2019

[Graphic News] Annual number of Jeju airport passengers tops 30m for first time

The number of passengers handled this year by Jeju International Airport, the gateway to the resort iIsland, topped 30 million for the first time, data showed.A total of 30,057,300 passengers traveled through the airport until Dec. 16 this year, according to data released by the Korea Airports Corp.It is the first time for any of 14 airports in South Korea, excluding Incheon International Airport, to handle more than 30 million passengers a year. (Yonhap) 

IndustryDec. 24, 2019

Over 71% of 2020 budget to be allocated for H1

The South Korean government on Tuesday vowed to further accelerate its fiscal spending next year, seeking to revitalize the economy following years of sluggish growth.The Ministry of Economy and Finance confirmed the fiscal allocation plan for 2020 at a Cabinet meeting under the chairmanship of Prime Minister Lee Nak-yon.Under the fiscal program, 71.4 percent of the annual expenditure or 305 trillion won ($262 billion) out of 414.1 trillion won has been allocated for the January-June period -- t

EconomyDec. 24, 2019

From loan control to tax probes, Korea wages war on housing prices

Following the unexpected stringent mortgage control measures announced by the government last week, state agencies are also ramping up pressure to cool down the real estate market by conducting tax probes on individuals and even limiting the use of credit loans for buying houses.The National Tax Service said Monday it will investigate 257 homeowners and track the source of their funds. They are suspected of having purchased expensive apartments with money transferred from parents and relatives,

EconomyDec. 24, 2019

What Korean commercial banks face in 2020

With unresolved problems set to drag into the new year, South Korean commercial lenders face a number of burdens that will keep them occupied throughout 2020. One of the major issues that drew public flak earlier this year was the misselling of derivatives products worth a combined 800 billion won ($688 million) by Woori Bank and KEB Hana Bank, putting its customers at risk of losing large sums. The banks failed to provide customers with adequate information about the high-risk nature of the pro

MarketDec. 24, 2019

[Monitor] TV market to see growth in 2020

The global TV market that has seen lackluster sales this year due to the US-China trade dispute and overall market downturn is expected to pick up next year, according to industry watchers.TV sales usually peak in even-number years when major sports events are held. Tokyo Summer Olympics 2020 is scheduled for July-August.According to global market research firm IHS Market, the delivery and sales of TVs worldwide in 2020 are expected to grow by 4 percent and 2 percent on-year, respectively.South

TechnologyDec. 24, 2019