BOK freezes key rate at 2.75%

The Bank of Korea kept its key base rate unchanged at 2.75 percent for four consecutive months on Thursday as various economic indices show signs of recovery both at home and abroad.The inflation rate in South Korea remained stable, and geopolitical risks from North Korea concerning its provocative weapons tests had very limited effect on the South’s economy.However, BOK Governor Kim Choong-soo said that uncertainties remain as the U.S. and eurozone, Korea’s two major export markets, are still g

Feb. 14, 2013

S. Korea's ranking in gold holdings jumps last year: report

South Korea's ranking in terms of gold holdings jumped last year as the country continued to invest in the precious metal as part of efforts to diversify its foreign reserve portfolios, a report showed Thursday.South Korea's gold holdings came to 84.4 tons last year, the 36th largest among 100 countries surveyed, according to the report by the World Gold Council. The ranking was up from 56th tallied in July 2011.The rise came as the country has kept purchasing gold, which is regarded as one of t

Feb. 14, 2013

Seoul shares open tad higher on auto, chemical shares

South Korean stocks began a tad higher Thursday on gains in tech and chemical shares, analysts said. The benchmark Korea Composite Stock Price Index (KOSPI) gained 2.17 points, or 0.11 percent, to 1,978.24 in the first 15 minutes of trading. Foreigners snapped up a net 7.4 billion won (US$6.8 million) worth of local equities as of 9:15 a.m. Auto and chemical issues led the gain, with No. 1 carmaker Hyundai Motor rising 0.2 percent and industry leader LG Chem advancing 1 percent. Market behemoth

Feb. 14, 2013

Seoul moves to avert sovereign rating cut

A government-led task force plans to seek close coordination with global rating agencies in a bid to prevent Korea’s credit status from being downgraded in the wake of North Korea’s nuclear test.The task force is drawing up contingency plans to effectively weather the North’s provocation and held an emergency meeting early on Wednesday.The task force is composed of senior officials from the Finance Ministry, the Financial Services Commission, the Financial Supervisory Service and the Bank of Kor

Feb. 13, 2013

Currency, monetary easing to top G20 meeting’s agenda

Currency devaluation and exit strategies for monetary easing are expected to top the agenda among financial policymakers at the upcoming G20 meeting of finance ministers and central bankers, Korean officials said Wednesday. The meeting is scheduled for Feb. 15-16 in Moscow.Korea’s Finance Minister Bahk Jae-wan and Bank of Korea Governor Kim Choong-soo will be attending the two-day meeting to share their views, especially on the global foreign exchange market, which has been prone to increased vo

Feb. 13, 2013

Korean employment weakens further in January

Korea’s employment rate continued to drop for the third straight month, hitting a one-year low of 57.4 percent in January, according to Statistics Korea.Data released Wednesday showed that Korea’s employment rate is below the OECD-member average of 63 percent.January’s job rate was unchanged from the same period a year ago, and the youth unemployment rate continues to show no signs of improvement.The jobless rate for those aged between 15 and 29 reached 7.5 percent in January for the second mont

Feb. 13, 2013

Daewoo E&C-led group wins $765m order in Nigeria

Daewoo Engineering & Construction Co., one of South Korea’s leading builders, said Wednesday that its consortium has won a US$765 million order to build a fertilizer plant in Nigeria.Under the deal with Indorama Eleme Fertilizer and Chemicals Ltd. on Tuesday, Daewoo E&C and its consortium partner Toyo Engineering Corp. will build the facility at Port Harcourt in southern Nigeria.Daewoo said it expects to complete the plant 34 months after starting construction but did not specify when the projec

IndustryFeb. 13, 2013

Samsung to bolster corporate compliance

Samsung Group, South Korea’s biggest family-owned conglomerate, plans to beef up compliance management at its affiliates as part of a group-wide strategy to better cope with risks and irregularities, an official said Wednesday.Samsung plans to adopt an index measuring compliance policies and chief executives’ efforts to put those plans into action, Samsung chief spokesman Rhee In-yong told reporters, citing the group’s chief compliance officer Kim Sang-kyun.The group will also introduce a system

Feb. 13, 2013

Hyundai Sonata tops J.D. Power quality survey

Hyundai Motor’s flagship Sonata sedan has recently topped the J.D. Power vehicle quality study in the midsize car segment, the carmaker said Wednesday. According to study results by the U.S. marketing firm J.D. Power and Associates, the Sonata model received the fewest complaints on reliability, outpacing its Japanese rivals such as the Toyota Camry, Honda Accord and Nissan Altima. Hyundai’s Verna compact and the Soul box car of Hyundai’s affiliate Kia Motors came in third within their respectiv

IndustryFeb. 13, 2013

Market slump weighs down on local builders

Some local mid-sized construction companies are experiencing severe financial difficulties due to the protracted slump in the housing market, stoking concerns that they may be forced to undergo workout programs or get delisted from the local stock market.The financially troubled companies include Hanil Engineering and Construction, Ssangyong Engineering and Construction, Doosan Engineering and Construction, and Keangnam Enterprises Ltd.Market sources said Hanil, under a debt workout program, pos

IndustryFeb. 13, 2013

Panasonic CEO attacks sprawl in bid for profit

In its 95-year history, Panasonic Corp. has grown into a consumer-electronics giant producing everything from TVs to eyelash curlers. New President Kazuhiro Tsuga is deciding what it can’t afford to make any more. Next month, the head of the company that lost more than 1.3 trillion yen ($14.1 billion) since April 2011 will explain which products he wants consigned to Panasonic’s past. He plans to cut the number of business units by a third to focus on those offering the best profit margins, such

TechnologyFeb. 13, 2013

Global handset makers grab over 50% of Japanese market

Non-Japanese handset makers garnered over half of the Japanese market for the first time in the fourth quarter as consumers moved away from local manufacturers for a wider array of mobile devices, a report showed Wednesday.It marked the first time ever that foreign handset makers managed to surpass the 50-percent mark, with Apple Inc. leading the race with 16 percent in the October-December period, according to the report by Hong Kong-based researcher Counterpoint Technology Market Research. The

TechnologyFeb. 13, 2013

SPC branches into online music service market

By Kim So-hyunSPC Group, which runs bakery brand Paris Baguette, is jumping into the online music service business.“We have reviewed the business for a long time in a bid to find new sources of profit, and we will start the service soon,” an SPC official said on Wednesday, a week after new restrictions against bakery franchises were announced.SPC Networks, a subsidiary that manages membership service points from the franchised bakeries, will run the online music service named Helium.Members can

IndustryFeb. 13, 2013

Seoul shares jump 1.56 pct on eased currency woes

South Korean stocks closed 1.56 percent higher on Wednesday as concern over a global currency row eased following a warning from major advanced economies against Japan's aggressive monetary easing, analysts said. The Korean won gathered ground against the U.S. dollar.The benchmark Korea Composite Stock Price Index (KOSPI) soared 30.28 points to finish at a three-week high of 1,976.07. Trading volume was moderate at 324.9 million shares worth 3.62 trillion won (US$3.33 billion) with gainers far o

Feb. 13, 2013

Seoul shares up 1.14 pct in late-morning trade

South Korean stocks traded 1.14 percent higher late Wednesday morning, fueled by gains in brokerage firms and steelmakers, analysts said.The benchmark Korea Composite Stock Price Index (KOSPI) climbed 22.11 points to 1,967.90 as of 11:20 a.m.Major local brokerage firm Mirae Asset Securities spiked 4.5 percent and steelmaker Hyundai Steel soared nearly 3 percent. In contrast, telecom shares trended downward, with top mobile carrier SK Telecom falling 0.6 percent. The local currency was changing h

Feb. 13, 2013