Seoul shares snap 3-day winning streak amid recession woes; Korean won tumbles

South Korean stocks snapped their three-day winning streak Wednesday, as investors were spooked by overnight plunges on Wall Street caused by growing concerns about an economic recession. The Korean won tumbled against the US dollar. The benchmark Korea Composite Stock Price Index (KOSPI) shed 44.1 points, or 1.82 percent, to close at 2,377.99 points. Trading volume was moderate at about 411 million shares worth some 7.7 trillion won ($5.9 billion), with losers outnumbering gainers 511 to 336. I

MarketJune 29, 2022

[Photo News] El Salvador Project

Jungheung Group Vice Chairman Jung Won-ju (right) and Urban Development Minister of El Salvador Edgar Romeo Rodriguez Herrera shake hands to encourage Daewoo E&C’s participation in the Los Chorros highway expansion project. The project, mainly focusing on connecting San Salvador to western parts of the country, includes the use of the Export-Import Bank of Korea’s Economic Development Cooperation Fund for a construction of 902-meter-long bridge. The organizers of the project are

IndustryJune 29, 2022

Korean minister visits Czech over reactor project

SEJONG -- South Korea has recently carried out a senior-level promotion in the Czech Republic for its nuclear energy technologies in an attempt to win a reactor project in the European nation, the Energy Ministry said Wednesday. The core of promotion activities was Minister of Trade, Industry and Energy Lee Chang-yang’s meetings with Czech senior officials and political heavyweights in Prague on Tuesday.   In a meeting with his counterpart Jozef Sikela, Lee commented on details on Ko

EconomyJune 29, 2022

Duty-free shops open cross-border sales to secure overseas consumers

South Korea’s duty-free shops are launching cross-border sales services starting Friday with high hopes to secure consumers overseas, as they are losing price advantage to local clients due to high won-dollar exchange rates. Lotte Duty Free opened the overseas shipping service on Wednesday, which sells around 220 kinds of products including cosmetics, fashion items and food products. Consumers in nine countries including China, Japan, US, Singapore and Thailand can enjoy free shipping as

ConsumerJune 29, 2022

LG turns to clean tech as future growth driver

LG Group is betting big on clean energy technology as part of its ongoing efforts to seek future growth drivers that are also environmentally sustainable. LG Corp., the holding unit, said Wednesday that LG Group plans to inject 2 trillion won ($1.55 billion) in the next five years into the fields of bio materials, batteries and plastic recycling and other carbon neutral technologies. The new clean tech push comes as Chairman Koo Kwang-mo marked his fourth anniversary at the helm of the natio

TechnologyJune 29, 2022

Worsening inflation outlook fuels sharper rate hike bets

South Korean consumers raised their outlook this month for where inflation will be in one year to the highest level in 10 years, a Bank of Korea survey showed Wednesday, reinforcing expectations that the central bank would be emboldened to back a steeper-than-expected rate hike in July. In a monthly survey of 2,500 households conducted June 13-20, consumers forecast inflation to average 3.9 percent, up from the previous 3.3 percent in May. The monthly increase is also the largest gain seen sinc

EconomyJune 29, 2022

BMW Group Korea launches BMW Service Care Plus

BMW Group Korea said Wednesday that it has launched a digital vehicle management program, BMW Service Care Plus, last month, the first of its kind in the automobile industry. The service was launched to meet the needs of an expanding customer base, according to the company. Customers with BMW vehicles released more than six years ago cannot apply for BMW’s BSI (BMW Service Inclusive Standard), the company’s warranty system. However, BMW Service Care Plus now services customers wit

IndustryJune 29, 2022

Korea approves 1st homegrown COVID-19 vaccine

South Korea has authorized its first homegrown COVID-19 vaccine, finally securing vaccine sovereignty almost 30 months after the pandemic began. The government on Wednesday announced the official approval of SKYCovione, a recombinant protein-based COVID-19 vaccine developed by SK Bioscience, after the final examination committee held a meeting to review the previous assessments earlier in the day. “The Ministry of Food and Drug Safety thoroughly verified safety and efficacy through a t

TechnologyJune 29, 2022

Daewoo E&C renovates homes of patriots’ descendants

Construction company Daewoo Engineering & Construction said Wednesday that it has been participating in a community service project to improve the housing environment for descendants of independence fighters. The construction company took part in the project — hosted by nonprofit volunteer organization Habitat for Humanity Korea — by donating 200 million won ($154,621) in February, and repairing seven homes belonging to the descendants of activists who fought against the 1919-1

IndustryJune 29, 2022

From mini couches to feeding mats, Gucci launches pet collection

Italian luxury fashion brand Gucci on Wednesday launched its new “Gucci Pet Collection,” catering to canines and felines that enjoy extravagant lifestyles. The product line is part of a larger collection titled “Gucci Lifestyle,” which was launched in September 2021. The pet attire and accessories are all made from recycled cotton and polyester, and Gucci’s own eco-friendly fabric called Demetra that is made from sustainable, renewable sources. Pet owners can now

ConsumerJune 29, 2022

Dunamu unveils speakers at blockchain developers’ conference

Dunamu, operator of popular crypto exchange Upbit, said that experts representing the latest blockchain trends such as non-fungible tokens and metaverse gaming will attend its annual developers’ conference as speakers. The Upbit Developer Conference 2022 will be held for two days from Sept. 22 at the Busan Port International Exhibition and Convention Center under the theme “Imagine Your Blockchain Life.” Speakers include Sebastien Borget, CEO and co-founder of metaverse game

IndustryJune 29, 2022

[Market Eye] Kospi’s rebound to 3,000 unlikely to happen anytime soon

When South Korea’s key stock index surpassed the 3,000-mark for the first time in its 40-year history in January 2021, it seemed the bull market would last forever. But risks stemming from high inflation, fears of recession and the global supply bottleneck this year has beaten down the index down to some 2,400 points as of this week, with analysts warning investors that they are unlikely to feel the relief of recovering to 3,000 anytime soon. “Our base Kospi target of 3,000 implies

MarketJune 29, 2022

LG Energy Solution reconsiders US battery plant in fear of surging costs

LG Energy Solution said Wednesday it is reviewing the profitability of its new battery plant in the US, citing growing uncertainties surrounding inflation woes and unfavorable foreign exchange movement. In March, the world’s second-largest electric vehicle battery maker announced plans to build its own battery plant in Queen Creek, Arizona, with an annual capacity of 11 gigawatt hours of cylindrical batteries. A 1.7 trillion won ($1.3 billion) investment had been planned to be injected in

IndustryJune 29, 2022

Labor, management circles revise proposals for next year's minimum wage

Representatives of South Korea's labor and management have submitted amendments to their respective proposals for an increase in next year's minimum wage, only to confirm a wide gap, officials said Wednesday. Under the current law, the 27-member Minimum Wage Commission (MWC), a trilateral panel composed of nine representatives each from labor, management and the general public, has to complete its review on the new minimum wage by mid-July for a formal announcement by Aug. 5 every year

EconomyJune 29, 2022

S. Korea's trade terms down for 14th straight month in May

South Korea's terms of trade worsened for the 14th straight month in May due to fast-rising import prices of oil and other key commodities, central bank data showed Wednesday. The nation's net terms-of-trade index for goods -- a gauge of overall trade terms -- stood at 85.33 last month, down 10.6 percent from a year earlier, according to the preliminary data from the Bank of Korea (BOK). The figure, however, was up 1.3 percent from a month earlier, the first on-month rise in four month

EconomyJune 29, 2022

Biz leaders of S. Korea, Japan to hold annual meeting next week after nearly 3-year hiatus

Business leaders of South Korea and Japan will hold their annual meeting early next week, the Federation of Korean Industries (FKI) said Wednesday, after a nearly three-year hiatus caused by the COVID-19 pandemic. The Korea-Japan Business Council, co-hosted by the FKI and the Japan Business Federation, or Keidanren, will take place in Seoul at the FKI headquarters Monday, the FKI said in a release. More than 20 top business leaders, including the chiefs of the FKI and Keidanren -- Huh Chang-soo

EconomyJune 29, 2022

Korean Air, Asiana resume Gimpo-Haneda route after 2-year suspension

Korean Air Lines Co. and Asiana Airlines Inc., South Korea's two biggest carriers, on Wednesday resumed the Gimpo-Haneda route after a two-year suspension due to the COVID-19 pandemic. South Korea and Japan agreed to reopen the route last week. Korean Air and Asiana will operate two flights per week on the Haneda route, respectively, while All Nippon Airways Co. and Japan Airlines Co. will provide a total of four flights a week as well, according to the Land, Infrastructure and Transport Mi

MobilityJune 29, 2022

BOK likely to weigh more on 'big-step' rate hike should June inflation hit 6 pct: official

Demand for an unprecedented "big-step" rate hike among policymakers of the Bank of Korea (BOK) will likely intensify ahead of an upcoming rate-setting meeting should the country's consumer prices in June rise 6 percent or higher, a high-ranking central bank official has said. The outlook comes amid growing speculation the BOK could lean more toward the possibility of an unprecedented 0.5 percentage-point hike in borrowing costs when monetary policy board members gather on July 13 in th

MarketJune 29, 2022

Inflation expectations in S. Korea hit 10-yr high in June

Inflation expectations in South Korea hit the highest level in about 10 years in June amid worries that prices are fast increasing due to high energy and commodity costs, a central bank report showed Wednesday. Ordinary people expected consumer prices to rise 3.9 percent over the next year, the fastest pace since April 2012, according to the report from the Bank of Korea (BOK). The June figure was also higher than a 3.3 percent rise predicted the previous month. Data on expected inflation is clo

MarketJune 29, 2022

Seoul shares open steeply lower on US stock plunge

South Korean stocks opened sharply lower Wednesday, tracking an overnight Wall Street plunge amid growing fears of economic recession. The benchmark Korea Composite Stock Price Index (KOSPI) fell 32.67 points, or 1.35 percent, to trade at 2,389.42 in the first 15 minutes of trading. Overnight, Wall Street tumbled amid bleaker-than-expected economic indicators that added to investor jitters over a possible recession. The Dow Jones Industrial Average dipped 1.56 percent, while tech-heavy Nasdaq co

MarketJune 29, 2022