S. Korean units of 3 foreign automakers suffer slump in Q1 sales

South Korean units of three foreign carmakers posted a 24 percent on-year drop in their domestic sales in the first quarter of the year, suffering the worst performance since the 2009 financial crisis, industry data showed Monday. From January to March, GM Korea Co., Renault Samsung Motors Corp. and SsangYong Motor Co. -- the Korean units of General Motors Co., Renault S.A. and Indian carmaker Mahindra & Mahindra Ltd. -- sold a combined 43,109 vehicles in the domestic market, down from 56,5

IndustryApril 5, 2021

Seoul stocks open lower on doubts over US infrastructure project

South Korean stocks opened lower Monday as investors speculate on a US congressional pushback over the massive size of the $2.25 trillion infrastructure proposal in the United States. The benchmark Korea Composite Stock Price Index (KOSPI) fell 4.71 points, or 0.15 percent, to 3,108.09 points in the first 18 minutes of trading. In Seoul, top cap Samsung Electronics edged up 0.24 percent, and No. 2 chipmaker SK hynix advanced 0.71 percent. Top automaker Hyundai Motor lost 0.21 percent, and i

MarketApril 5, 2021

Quarter of firms fail to pay interest on debt in 2020

Nearly a quarter of companies in South Korea failed to pay the interest on their debts in 2020 despite an overall rise in corporate earnings, a report said Monday. A total of 255 listed firms in Asia's fourth-largest economy had an interest coverage ratio of less than 1 last year, up six from a year earlier and accounting for 25.1 percent of 1,017 businesses listed on the country's main and secondary bourses, according to the report from the Korea Economic Research Institute (KERI). The intere

EconomyApril 5, 2021

S. Korea's household debt-to-GDP ratio nears 100%: report

South Korea's household debt has been rising faster than that in most major economies to reach nearly 100 percent of its gross domestic product (GDP), a report showed Monday. The country's household debt-to-GDP ratio stood at 98.6 percent as of the end of June last year, according to the report from the Korea Institute of Public Finance. The figure is much higher than the global average of 63.7 percent and 75.3 percent for advanced economies. South Korea's growth pace of household debt has al

EconomyApril 5, 2021

S. Korea's FX reserves fall in March on stronger dollar

South Korea's foreign reserves declined in March as the US dollar's strength reduced the value of non-dollar assets, central bank data showed Monday. The nation's foreign reserves came to $446.1 billion as of end-March, down $1.43 billion from the previous month, according to the Bank of Korea (BOK). Foreign reserves consist of securities and deposits denominated in overseas currencies, International Monetary Fund reserve positions, special drawing rights and gold bullion. The FX reserves dec

EconomyApril 5, 2021

Bitcoin falls after hitting all-time high, widens gap with global exchanges

Bitcoin, the largest cryptocurrency, fell on Sunday after hitting a fresh record high over the weekend. The price difference between domestic and overseas exchanges, dubbed as the kimchi premium, widened as much as 10 percent, indicating a heated investors’ atmosphere. Bitcoin prices stood at around 73.50 million won ($65,056) in the early afternoon at local exchange Upbit and Bithumb, declining from the fresh record high of 75.30 million won on the previous day. This compares to other

EconomyApril 4, 2021

S. Korea and China to build smart agriculture complex in Pocheon

A massive agriculture complex will be developed in Pocheon, Gyeonggi Province as part of a joint project between Korean and Chinese industry players, the Korea-China Private Economic Association announced Sunday. The agriculture complex, which would sit on a 250,000-square-meter parcel of land, has been designed as an eco-friendly town comprising smart farms, hydrogen fuel cell generators, logistics systems and housing with leisure facilities. The private companies from two countries would

TechnologyApril 4, 2021

KAI sets sights on Asia No. 1 in ‘new space’ era

From flying cars to private satellites, the paradigm of global aerospace industry is shifting faster than ever. After SpaceX ushered in the dawn of the “new space” age, private players are now making an aggressive foray into the space industry, which had been dominated by governmental agencies. At this turbulent time, Korea Aerospace Industries, the nation’s sole aircraft manufacturer, aims to capture new opportunities in order to rise as Asia’s No. 1 aerospace comp

IndustryApril 4, 2021

[#WeFACE] ‘Gas stations will disappear, but not their social roles’

The Korea Herald is publishing a series of interviews with executives of South Korea’s leading corporations on their response to environmental, social and corporate governance, or ESG, issues, which have become central factors globally in measuring the sustainability of an investment or business decision. -- Ed.  One electric vehicle charger installed at a service station in Seoul generates no more than 100,000 won ($88.1) in revenue per month. After electricity bills are paid and

IndustryApril 4, 2021

ManpowerGroup expands presence with RPO Solution in Korea

Since its launch last year, Manpower Korea’s recruitment process outsourcing -- or RPO -- service has garnered positive feedback from clients for completing recruitment at a reduced time and cost. According to the Korean unit of ManpowerGroup, a global workforce solutions provider headquartered in Wisconsin, two projects last year exemplified the strength of its Talent Solutions RPO service in the local market. In one of the cases, a US-based health care company was able to achieve its

IndustryApril 4, 2021

Krafton earnings soar ahead of IPO

South Korean game developer Krafton’s sales last year jumped 53 percent to around 1.7 trillion won ($1.5 billion), the company said in its annual report. The company behind the hit battle royal game PlayerUnknown’s Battlegrounds is expected to accelerate steps for an initial public offering, on the back of the strong performance. According to Krafton’s business report for 2020, the company’s revenue for the whole of last year amounted to 1.67 trillion won, up 53.6 per

TechnologyApril 4, 2021

Hybe: Breaking down K-pop giant’s aggressive expansion

Hybe, formerly known as Big Hit Entertainment and home to South Korean pop group BTS, made headlines over the weekend following the announcement that it has bought Ithaca Holdings, a US music firm behind the likes of Justin Bieber and Ariana Grande. The $1 billion deal has been described as “inevitable” by Hybe Chairman and CEO Bang Si-hyuk who said the two firms will work closely together to “transcend borders” and “break down cultural barriers.” Scooter Br

IndustryApril 4, 2021

Export-Import bank to offer Hyundai Motor W3tr for future mobility development

The Export-Import Bank of Korea has signed an agreement with Hyundai Motor to provide financial support to the automaker vying with global rivals to take the lead in future vehicle markets.　 Under the memorandum of understanding inked on Thursday, the state-run policy lender will offer the automaker some 3 trillion won ($2.65 billion) until 2023 for its projects involving its plan to make the transition to become a smart mobility solution provider that manufactures zero-emission and driverless

MarketApril 4, 2021

Nearly one-third of S. Korean investors are overseas stock traders

As the number of South Koreans investing in the local stock market nears 10 million, about one-third of those investors are also overseas stock traders, according to local securities firms Sunday. The recent data, compiled by 10 major brokerages here including Mirae Asset Securities and Kiwoom Securities, showed that the number of active equity accounts for overseas stock trading was 3.21 million as of March. The number of trading accounts at local investment firms came to 435,000 at the end

MarketApril 4, 2021

S. Korea’s W200b New Deal policy fund sees fast sales

Retail investors have snapped up almost all of a 137 billion-won ($121 million) fund aimed at promoting government-led projects under the Korean New Deal as of Sunday, as individuals seek to take advantage of the state policy fund to use as a financial cushion against losses. The 137 billion won was earmarked for retail investors out of a larger 200 million-won fund. The 137 billion won was parceled and sold via five major commercial banks on Thursday. The ones offered by the commercial lender

MarketApril 4, 2021

South Korea’s stock market cap increases 2.7% in Q1

The valuation of the South Korean stock market has risen 2.7 percent in the first quarter of this year from the end of last year, falling behind other global stock markets that logged an over 4 percent gain, according to Bloomberg data Sunday. Buttressed by ample liquidity, the combined market cap of 86 nations came to some $107.86 trillion as of Wednesday, up 4.5 percent from $103.23 trillion marked at the end of last year. The market size of global stock markets fluctuated widely in the Janu

MarketApril 4, 2021

Listed firms' 2020 net profit jumps nearly 20% despite pandemic: KRX

South Korean listed firms saw their net profit increase nearly 20 percent last year despite the fallout from the pandemic, the bourse operator said Sunday. The combined annual net income of 694 KOSPI-listed companies, excluding financial firms, came to 63.45 trillion won ($56.25 billion) on a consolidated basis, up 18.15 percent from the previous year, according to the Korea Exchange (KRX). Their combined operating profits rose 3.2 percent on-year to 107.4 trillion won, while sales decreased b

EconomyApril 4, 2021

Manufacturing sentiment hits over 6-year high amid post-pandemic recovery

South Korean manufacturers' business sentiment has improved sharply, hitting an over 6-year high, amid hopes that the economy may recover from the coronavirus pandemic faster than expected, a poll showed Sunday. A survey of some 2,200 manufacturing firms put the business sentiment index (BSI) at 99 for the April-June period, the Korea Chamber of Commerce and Industry (KCCI) said. The figure is up 24 points from the previous quarter and at the highest level since the third quarter of 2014. A r

EconomyApril 4, 2021

Farm goods exports hit record high in Q1

South Korea's exports of agriculture products reached an all-time high in the first quarter of the year on the back of strong demand for kimchi and processed foods, data showed Sunday. The record amount of $1.98 billion represents a 13.7 percent rise from the previous year, according to data compiled by the Ministry of Agriculture, Food and Rural Affairs. By category, outbound shipments of fresh products remained sluggish, but those of processed goods increased 9.3 percent to hit $359 million.

EconomyApril 4, 2021

Public firms' planned job additions remain 40% lower than last year

More than 35 public firms in South Korea plan to hire more than 5,000 new employees this year, but the number is still almost 40 percent lower than last year's job additions amid extended pandemic fallout, data showed Sunday. Thirty-six public firms plan to hire 5,089 regular workers this year, compared with 8,350 people hired last year, according to data posted on the state portal All Public Information in One (ALIO). Korea Railroad Corp. (KORAIL), the operator of railway services, plans to h

EconomyApril 4, 2021