Financial authorities vow to minimize inconveniences from Citigroup’s exit from S. Korea

South Korea’s top financial regulator vowed Friday to minimize inconveniences caused by Citigroup’s decision to withdraw retail banking operations in 13 markets, including South Korea, as part of its business reorganization for Asia.  “The Financial Services Commission and the Financial Supervisory Service will closely monitor future progress regarding the group’s latest decision and review necessary measures to minimize any possible consumer inconveniences, stabili

MarketApril 16, 2021

Hyundai Motor Group, SK Innovation team up on hybrid EV batteries

Hyundai Motor and Kia, Hyundai Motor Group’s two automakers, are joining hands with SK Innovation to develop batteries for hybrid electric vehicles, the group said Friday. The auto group will work with the country’s leading battery producer, SK Innovation, to develop “pouch-style” batteries optimized for electric vehicles. They hope to apply the batteries to Hyundai’s hybrid electric vehicles slated for release in 2024. The partnership will boost the country&rsq

MobilityApril 16, 2021

Dongbu-led consortium to take over Hanjin Heavy as debt restructuring nears end

An investor group led by South Korean builder Dongbu Corp. signed a deal to acquire a controlling stake in debt-saddled shipbuilder Hanjin Heavy Industries & Construction, filings showed Friday. According to the filings, a consortium composed of Dongbu and local private equity firm Echoprime Private Equity will buy a combined 55.7 million common shares, or 66.85 percent voting rights, from eight banks including the state-run Korea Development Bank and the Philippines-based BDO Unibank. T

MarketApril 16, 2021

Mirae Asset’s Canadian subsidiary rolls out Bitcoin futures ETF

South Korean asset management firm Mirae Asset Global Investments has launched two exchange-traded funds tracking the value of Bitcoin futures via its Canadian subsidiary Horizons ETFs. Along with the Bitcoin-based ETFs it also rolled out a fund investing in stocks in the battery, bitotechnology, internet, and gaming industries, often collectively referred to as the BBIG sectors. Of the newly launched cryptocurrency ETFs is an inverse product, called BetaPro Inverse Bitcoin ETF, which profi

MarketApril 16, 2021

[Newsmaker] Posco C&C severs ties with Myanmar’s military conglomerate MEHL

Posco C&C decided to end their business partnership with Myanma Economic Holdings Public Company Limited (MEHL), one of Myanmar’s two largest military holding companies, the company said Friday. The affiliate of South Korea’s steel giant Posco said it will end its partnership with MEHL by purchasing all the stakes MEHL has in their joint venture, Myanmar Posco C&C Co., following public outcry against Myanmar military’s brutal crackdown on its citizens after a coup in

IndustryApril 16, 2021

Construction workers’ fund to commit W60b to PEs, VCs

South Korean institutional investor, the Construction Workers Mutual Aid Association, has selected four domestic external partners for its 60 billion-won ($53.7 million) commitment to have exposure to private equities and venture capital, an official said Friday. The institutional investor, dedicated to the welfare of workers in the field of construction, has decided to allocate a combined 40 billion won to Dominus Investment and Stic Investments for its private equity exposure. The external p

MarketApril 16, 2021

Citibank Korea union head says preparation for legal action on the way

Unionized workers at Citibank Korea voiced criticism against Citibank Korea’s decision to withdraw its retail banking operations, calling it unilateral. “(Citibank Korea’s labor union) can‘t accept Citigroup’s unilateral announcement. Since Bloomberg reported on the group’s possible divestiture plan in February, we have been preparing legal action and systematic countermeasures,” said Jin Chang-geun, head of the Citibank Korea labor union. “We&r

MarketApril 16, 2021

LG Energy Solution joins RE100, EV100 as industry’s first

LG Energy Solution, South Korea’s leading battery maker, has marked the industry’s first case of joining both RE100 and EV100, the two global campaigns addressing climate change and clean energy, officials said Friday. Abbreviated for Renewable Electricity 100%, RE100 is an international campaign launched by nonprofit organization the Climate Group in partnership with Carbon Disclosure Project in 2014. The campaign aims to have businesses that consume more than 100GWh a year switch

TechnologyApril 16, 2021

Kakao founder sells W500b worth of stocks as part of donation pledge

The founder of South Korea's top mobile messenger operator Kakao Corp. and his wholly-owned company has sold 500 billion won ($447 million) worth of stocks in Kakao part of his pledge to donate half of his assets, a filing showed Friday. The move came after Kim Beom-su, who serves as Kakao's chairman, pledged in February this year to donate more than half of his assets, which at the time was estimated to be worth more than 10 trillion won. In March, he joined the Giving Pledge, a global campai

IndustryApril 16, 2021

S. Korea to boost spending on R&D for next-generation cars

South Korea said Friday it plans to increase investment in research & development (R&D) on key technologies for next-generation vehicles in a bid to help local automakers take the lead in the market. Finance Minister Hong Nam-ki said the government will spend 367.9 billion won ($328 million) in supporting R&D on next-generation autos this year, up 37 percent from the previous year. "It is urgent to make an investment in R&D on next-generation vehicles in a preemptive manne

IndustryApril 16, 2021

Hanjin Heavy slumps after takeover deal

Shares in Hanjin Heavy Industries & Construction Co. slumped Friday after its creditors signed a deal to sell the financially troubled shipbuilder. Hanjin Heavy fell 4.08 percent to 7,750 won ($6.90) as of 10:48 a.m. Creditors of Hanjin Heavy, led by the state-run Korea Development Bank (KDB), signed a deal with a consortium led by local builder Dongbu Corp. to sell it a 66.85 percent stake in the company Thursday. The consortium plans to complete the acquisition of the company by August

IndustryApril 16, 2021

S. Korean consortium to produce Russia's Sputnik V vaccine for export

South Korean biotech company Huons Global said Friday that it has signed a technology transfer deal with Russia's sovereign wealth fund to produce a Russian COVID-19 vaccine in South Korea. Under the agreement with the Russian Direct Investment Fund, the Huons Global-led consortium will manufacture Sputnik V in South Korea. Three other participants in the consortium are two South Korean companies -- Humedix and Boran Pharma -- and Singapore's Prestige BioPharma. Huons Global said it is set to

IndustryApril 16, 2021

Hyundai to again suspend plant over chip shortage

Hyundai Motor Co. said Friday it will again suspend the Sonata-producing plant in South Korea for two days next week due to an electronic parts shortage. Hyundai will halt the operation of the Asan plant, 100 kilometers south of Seoul, which produces the Grandeur and Sonata sedans, on Monday and Tuesday, a company spokesman said over the phone. The company already suspended the Asan plant on Monday and Tuesday of this week due to the lack of powertrain control units. It expects the four-day s

IndustryApril 16, 2021

Slump in domestic demand eases amid pandemic: finance ministry

The South Korean economy is on a recovery track as exports remain robust and a slump in domestic demand has gradually eased amid the pandemic, the finance ministry said Friday. In its monthly economic assessment report, the government presented a more positive assessment about private consumption, compared with March, when it said domestic demand had suffered extended sluggishness. "While the country's exports and the manufacturing sector have extended improvements, slumps in domestic dem

EconomyApril 16, 2021

Seoul stocks open higher on Wall Street rally

South Korean shares opened higher Friday, taking a cue from an overnight rally on Wall Street over strong signals of economic rebound. The benchmark Korea Composite Stock Price Index (Kospi) rose 7.79 point, or 0.24 percent, to 3,202.12 in the first 15 minutes of trading. Overnight, the S&P 500 gained 1.11 percent and the Dow Jones Industrial Average advanced 0.9 percent, both reaching all-time highs, as steep improvement in US jobs and sales data raised hopes of global economic rebound.

MarketApril 16, 2021

[Newsmaker] Cryptocurrency turnover in S. Korea doubles over past month

The cryptocurrency turnover in South Korea has more than doubled over the past month, a market tracker said Friday, as retail investors scramble to the virtual currency amid the fallout of the coronavirus pandemic. The combined turnover of 14 cryptocurrency exchanges in Asia's fourth-largest economy came to $21.63 billion as of 4 p.m. Thursday, according to CoinMarketCap. In particular, the top four exchanges -- Bithumb, Upbit, Corbit and Coinone -- had a combined turnover of $18.85 billion, o

MarketApril 16, 2021

Citibank to pull retail biz out of Korea, but no timeline set

Citibank Korea, the South Korean unit of Citigroup, said Thursday that it would withdraw its retail business as part of its parent company’s reorganization plans for Asia. 　 The decision was made to streamline operations and enhance global competitiveness by focusing investments and resources on its consumer banking franchise, it said in a statement. But the bank has not yet set a timeline or made detailed plans and will take time to conduct a thorough review, as well as hold discussion

MarketApril 15, 2021

Kakao at No. 6 on Kospi in market cap after stock split

South Korea’s top mobile messenger operator, Kakao, replaced Samsung Biologics as the No. 6 company on the Kospi in terms of market capitalization Thursday, a day after its stock split. Shares of Kakao, after a 5-for-1 stock split, jumped 7.59 percent to 120,500 won ($108.07) at the closing bell, lifting the company’s market cap to 53.48 trillion won. The price of Kakao stocks with lowered face value surged over 18 percent during intraday trading, before the bourse operator interru

MarketApril 15, 2021

[Newsmaker] Can yogurt fight COVID-19? Namyang Dairy under fire for false claims

Namyang Dairy Products, a major dairy producer here, has come under fire for claiming its yogurt drink prevents COVID-19. At a symposium hosted by the Korea Research & Institute of Bio Medical Science on Tuesday, the head of Namyang Dairy’s internal research institute presented the results of its research on Bulgaris, the firm’s yogurt drink. “We’re the first firm in the country that has discovered fermented dairy products are effective in preventing influenza and

ConsumerApril 15, 2021

SsangYong Motor faces another court receivership

SsangYong Motor, the cash-strapped South Korean affiliate of Indian carmaker Mahindra & Mahindra, was put under court receivership Thursday, marking the second such case in 12 years. The Seoul Bankruptcy Court approved the corporate rehabilitation procedure as US-based vehicle importer HAAH Automotive Holdings backed down on its letter of intent to acquire the ailing automaker. The US investor, which previously held talks to acquire a majority stake, was due to submit its official lett

IndustryApril 15, 2021