Power crisis looms in Korea as scorching heat continues

Alarm bells are ringing over power security this summer, as the heat wave has driven electricity demand to historic highs already before August, the hottest month of summer, arrives. The electricity reserve margin, the difference between the supply capacity and demand, fell close to 10 percent last week, recording the season’s lowest 10.1 percent on Tuesday, with the remaining supply capacity dipping to 8.8 gigawatts. A reserve ratio under 10 percent, or a remaining capacity under 10 G

IndustryJuly 18, 2021

Financial watchdog ramps up drive against overvalued IPO

South Korean companies seeking to go public are being sent back to the drawing board time and again, as the Financial Supervisory Service insists on clearer grounds for proposed share prices in its attempt to prevent overvaluation. Whether intended or not, this often leads to the downward revision of the price band by companies seeking initial public offerings, according to market observers, who stress growing macroeconomic uncertainties in the liquidity-driven market and a lack of consistency

MarketJuly 18, 2021

Majority of cryptocurrencies plummet in value

The majority of cryptocurrencies, which enjoyed records highs only three months ago, are on the downswing, with many of them halving, market data showed Sunday. Out of 102 digital coins listed on Upbit, South Korea’s largest cryptocurrency exchange, only one coin was up since April. Among the 101 coins that lost value, 84 of them plummeted more than 50 percent from three months ago. AXS, developed by Axie Infinity, was the only digital coin that bucked the trend, rising more than 150

MarketJuly 18, 2021

Emart24 introduces unmanned alcohol vending machine

Emart24 is introducing an artificial intelligence-based alcohol vending machine that would support its fully unmanned operation of convenience stores, the company said Sunday. Installed at its store headquarters in Seongdong-gu in Seoul, the machine looks like a drink refrigerator and requires customers to scan a QR code issued from a mobile app to verify their age before making purchases. Payment is only deducted after the customer takes out the alcoholic beverage from the fridge and close

ConsumerJuly 18, 2021

SpaceX to launch Korea’s midsize satellite in 2023

SpaceX will send South Korea’s next-generation midsize satellite into orbit in 2023, Korea Aerospace Industries said Sunday. KAI, the nation’s sole aircraft manufacturer, which developed KF-21 fighters, plans to launch four midsize satellites by 2025 -- No. 2 in 2022, No. 3 and No. 4 in 2023 and No. 5 in 2025. SpaceX rocket will carry the No. 4 into orbit, which will monitor Korean agriculture. KAI selected SpaceX in an open bidding. Though the launch will take place in the US,

IndustryJuly 18, 2021

Investors flock to unlisted stock markets amid IPO competition

After witnessing a string of successful initial public offerings this year, retail investors in South Korea are rushing to trade unlisted shares ahead of their grand market debuts, pinning hopes on large profit-taking. Over-the-counter trading platforms show an upward trend in the prices of unlisted stocks seeking to go public soon due to investors’ stronger demand over early investments on unicorns. According to OTC platform U-stockplus on Friday, game maker Krafton traded at 580,000 wo

MarketJuly 18, 2021

Leading shipbuilders likely to face earnings shock in Q2

South Korean shipbuilders are forecast to report sluggish earnings in the second quarter of the year due to a sharp rise in prices of steel plates despite brisk orders, analysts said Sunday. POSCO, South Korea's leading steelmaker, has raised the prices of steel plates for ships to 1.15 million won ($1,007) per ton, up nearly two times from a year ago, they said. "A hike in prices of raw materials, including steel plates, will eat into leading shipbuilders' profits in the second quarter,&

EconomyJuly 18, 2021

4th wave of pandemic casts cloud over economic recovery: experts

The fourth wave of the COVID-19 pandemic is likely to put the brakes on South Korea’s economic recovery, darkening the nation’s growth outlook for the third quarter, according to economists Sunday. "Daily new infections rose sharply during the summer vacation season, when private consumption is expected to grow. Possibilities remain that the local economy could contract in the third quarter, affected by the virus resurgence and the toughest Level 4 social distancing," sa

EconomyJuly 18, 2021

[Green Paradox] Blue hydrogen has a methane problem

Amid the global transition to clean fuel, conventional oil and gas companies appear to have found a way to stay relevant: blue hydrogen. Hydrogen, typically produced by breaking methane inside liquefied natural gas into hydrogen and carbon, is labeled as blue, when all carbon emissions from this process are captured, stored, or reused. This decarbonized hydrogen offers the oil and gas companies a path toward clean fuels while drawing on their existing gas production, transportation and sto

IndustryJuly 18, 2021

LG Electronics to transition to 100% renewable by 2050

LG Electronics said Sunday that it will shift to renewable energy for 100 percent of its needs by 2050, doubling down on its previous pledge to go carbon neutral by 2030. According to the South Korean tech giant, the transition will begin at its North American headquarters in Englewood, New Jersey, which will switch entirely to electricity generated by renewables by the end of this year. All its overseas production bases will follow suit by 2025. This will allow LG Electronics to source 50

IndustryJuly 18, 2021

EU grants 90m euros to SK Innovation’s Hungary battery plant

SK Innovation will receive subsidies worth 90 million euros ($106.2 million) from the European Union for its second battery factory in Hungary, the firm said Sunday. According to the South Korean battery-to-petrochemical giant, the state aid will take up roughly 8 percent of the total investment worth 945 billion won ($827.1 million) required for the 10-gigwatt-hour battery factory under construction in the northwestern Hungarian city of Komarom. The facility is set for completion this year a

IndustryJuly 18, 2021

Renault Samsung to suspend production at Busan plant next week on chip shortages

Renault Samsung Motors Corp. will temporarily suspend production at its plant in the southeastern port city of Busan due to shortages of chips for vehicles, the company said Sunday. The South Korean unit of Renault S.A. will close down its plant in Busan, 453 kilometers southeast of Seoul, on Monday for two days, it said. It will be the first time that the Renault Samsung plant has been shut down due to chip shortages, though rivals Hyundai Motor Co., Kia Corp. and GM Korea Co. have suspended

IndustryJuly 18, 2021

SK Innovation to get 90m euro in incentives from Hungary for battery plant project

South Korea's SK Innovation Co. will receive incentives worth 90 million euro ($106 million) from the Hungarian government for investing in the country with a project to build a battery plant, the company said Sunday. The energy and chemical subsidiary of the nation's No. 3 conglomerate, SK Group, has been constructing its second battery plant in Europe with an annual production capacity of 10 gigawatt hours in Komarom, a northwestern city of the European country, the company said. SK Innovati

IndustryJuly 18, 2021

Jeep pledges to bring 1 electric vehicle every year to S. Korea

Starting with the Wrangler 4xe, Jeep will bring at least one electrified vehicle annually in South Korea from this year onward, the brand’s chief executive officer said, expressing determination to meet their goal for a carbon-free future. Holding a media roundtable Wednesday, Christian Meunier touted the auto company’s record sales in four countries -- South Korea, Japan, Australia and India -- and said it plans to introduce more electrified vehicles into the markets. The press e

MobilityJuly 17, 2021

Kakao Pay likely to delay IPO schedule due to problem with prospectus

Kakao Pay, the financial technology arm of mobile giant Kakao, is likely to push back its initial public offering schedule as South Korea’s financial authority asked the company to make some corrections to its prospectus Friday. According to DART, the Financial Supervisory Service’s electronic disclosure board, Kakao Pay was ordered to either add or clarify important information on a prospectus it filed on July 2 as part of the registration process to go public. The FSS issues su

MarketJuly 16, 2021

S. Korea exports of antibody test kits increase for second consecutive month

South Korea‘s exports of antibody test kits increased for two consecutive months this spring, according to the Korea Customs Service’s data, Friday. Exports of COVID-19 test kits, however, are expected to decrease in the future due to international vaccination efforts, local industry sources alerted. The country‘s exports of antibody test kits in June marked $353.3 million, up 12.7 percent from $313.5 million in May, according to the data. South Korea’s exports of re

TechnologyJuly 16, 2021

Seoul stocks retreat on concerns about early inflation, virus

South Korean stocks closed lower Friday amid concerns about faster-than-expected inflation in the United States and the spreading new coronavirus pandemic at home. The Korean won rose against the US dollar. The benchmark Korea Composite Stock Price Index (KOSPI) fell 9.31 points, or 0.28 percent, to close at 3,276.91 points. Trading volume was moderate at about 1.1 billion shares worth some 14.6 trillion won ($12.8 billion), with gainers outnumbering losers 489 to 354. Foreigners sold a net 8

MarketJuly 16, 2021

Samsung considering Texas' Williamson County for new chip fab

Samsung Electronics is considering Williamson County in Texas as a possible site for its new foundry plant in the United States, according to industry sources on Friday. The South Korean tech giant confirmed that it is looking at Williamson County in Texas as a potential candidate among various sites across the US. The sources said Samsung is considering several sites in the US, such as Arizona, New York, and Austin, Texas. Earlier, Reuters reported that Samsung has applied for tax incen

TechnologyJuly 16, 2021

Citibank Korea delays reveal of consumer banking exit plan to August

Citibank Korea’s planned announcement concerning details of its consumer banking business exit strategy was delayed by nearly a month on Friday, indicating that it may be facing more hurdles in the sell-off process. The firm previously said it would reveal the details of its exit plan -- whether it would sell off the entire retail banking business or in parts -- in July. A complete pull-out of the business in phases has been mentioned as a viable option as well. Citibank Korea CEO Yoo

MarketJuly 16, 2021

Ottogi to hike instant noodle prices by 12%

South Korean food manufacturing company Ottogi announced on Friday it will raise its instant ramen prices by an average of 11.9 percent from next month. The company cited rises in ingredient prices, including flour and palm oil, as well as the increasing labor costs as reasons behind the decision. The decision to hike the ramen prices comes more than 13 years after the company‘s last price rise back in April 2008. Jin Ramen, one of the Ottogi’s flagship instant noodle products, w

ConsumerJuly 16, 2021