AirAsia Berhad, the Malaysia-based low-cost carrier, has no plan to acquire Korea’s budget airline T’way Air, CEO Tony Fernandes said during a press conference in Seoul on Wednesday. “There is nothing going on right now,” he said, though he added that he would “never say never.”Speculation was rising among industry people here that Asia’s largest budget carrier was considering buying the financially struggling T’way through a consortium with Korea’s Cheongju International Airport. Local airlines

IndustryOct. 10, 2012

Despite eurozone crisis, Korean automakers to reach milestone for second consecutive yearHyundai Motor and Kia Motors are set to achieve 1 million units in vehicle sales in the United States for the second consecutive year.For the first time in 2011, the affiliated automakers became the fourth non-American automotive group, with yearly vehicle sales exceeding 1 million units in the U.S.While Hyundai and Kia broke the 1 million-unit mark based on sales between January and November last year, they

IndustryOct. 10, 2012

South Korea's jobless rate inched down in September from a month earlier and job creation also quickened, raising hopes that the labor market conditions are improving, a government report showed Wednesday.According to the report by Statistics Korea, the jobless rate stood at 2.9 percent last month, down from 3 percent tallied in the previous month. The number of jobs added to payrolls also acceler

Oct. 10, 2012

The Korean economy is again expected to take a beating this year on account of bleak global economic conditions. The International Monetary Fund on Tuesday lowered its forecast for Korea’s economic growth this year to 2.7 percent, down from the 3 percent it previously predicted in September. The prolonged eurozone debt crisis and lackluster performance of the U.S. economy, the organization said, were the main causes behind the revision. The IMF also slashed its projections for Korea next year to

Oct. 9, 2012

Seoul cites improved external resilience and financial stability for the lapseThe country will not be renewing an expanded currency swap contract with Japan, citing Korea’s improved financial market stability, the Finance Ministry said on Tuesday. “(The two countries) have decided to let the contract lapse as scheduled after considering Korea’s improved resilience to external risks and the increased stability in domestic and international financial markets,” said Deputy Finance Minister Choi Jon

Oct. 9, 2012

South Korea’s Hyundai Heavy Industries has won a $3.2 billion order to build a thermal power plant in Saudi Arabia for state-run Saudi Electricity, a report said Tuesday.The world’s top shipbuilder by orders will build the 2.64-gigawatt power-generating plant over the next four years in Jeddah, Dow Jones Newswires said, citing a person with knowledge of the matter.A Hyundai spokesman declined to comment on the report.Hyundai, which builds ships, heavy machinery and plants, had set a target of $2

Oct. 9, 2012

South Korean telecom giant KT Corp. said Tuesday it has signed an agreement with Japan’s NTT DoCoMo Inc. to step up cooperation on mobile payments through near field communication technology.Under the memorandum of understanding signed on Monday, the two companies will ramp up joint efforts to provide NFC-based financial services and customer benefits to subscribers in South Korea and Japan, KT said in a press release.NFC technology, which allows wireless data exchanges between two devices withi

Oct. 9, 2012

South Korean stocks closed 0.14 percent lower on Tuesday as global economic concerns continued to drag on investor sentiment, analysts said. The local currency gained against the U.S. dollar.The benchmark Korea Composite Stock Price Index slipped 2.85 points to 1,979.04. Trading volume was moderate at 501.1 million shares worth 3.56 trillion won ($3.2 billion), with gainers outnumbering decliners 420 to 379.“Foreigners were selling and investors were reluctant to snap up shares amid persistent g

Oct. 9, 2012

Household loans extended by South Korean financial institutions increased for a fifth consecutive month in August, but the growth rate slowed as the property market sagged on falling demand amid the economic downturn, the central bank said Tuesday. Household lending extended by local banks and non-bank institutions totaled 649.8 trillion won ($584.3 billion) as of the end of August, up 4.1 percent from the previous year, according to the Bank of Korea. Such lending grew by 2.3 trillion won on-mo

Oct. 9, 2012

Overseas plant building orders won by Korean companies slid 33.5 percent to $8.7 billion in the third quarter from a year earlier, mainly due to delayed orders from the Middle East, the world’s largest plant construction market, the Ministry of Knowledge Economy said on Tuesday. “The global economic slowdown forced some plant building projects in the Middle East to be delayed,” Joo Hyun-dong, an official from the ministry said.Affected by worsening third-quarter performance, accumulated overseas

Oct. 9, 2012

Five creditor banks agreed on liquidity support worth 129.7 billion won ($116.7 million) for financially struggling Ssangyong Engineering and Construction on Tuesday, according to banks and the builder.Wooribank, the main creditor, will provide the largest amount of 51.7 billion won, followed by Korea Development Bank with 3.5 billion won, Hana with 1.7 billion won, Shinhan with 1.4 billion won and KB Kookmin with 1.2 billion won. Following earlier funding worth 6.32 billion won by its largest s

IndustryOct. 9, 2012

Data shows Korean economy heavily reliant on top two groupsEarnings of Samsung Electronics, Hyundai Motor and Kia Motors are expected to account for more than half of those reaped by the nation’s 30 major firms this year, a local financial data provider said on TuesdayAccording to FnGuide, the 30 largest enterprises are estimated to post a collective net profit of about 67.5 trillion won ($60.2 billion) this year.Among them, the profits of three ― Samsung, Hyundai and Kia ― are projected to reac

IndustryOct. 9, 2012

Hyundai Motor and affiliate Kia Motors forecast sales in China will exceed their targets as South Korea’s two largest carmakers benefit from a wave of anti-Japan protests in the world’s largest vehicle market.The two carmakers will probably sell more vehicles in 2012 than the 1.25 million they had projected, Seoul-based Hyundai Motor said in a statement Sunday. Combined deliveries rose to 127,827 units last month, or 9.5 percent higher than the previous record set a year earlier, it said.Non-Jap

MobilityOct. 9, 2012