KT reports LG Uplus to watchdog for ‘irregularities’

KT Corp., the country’s top fixed line and No. 2 mobile carrier, on Tuesday reported rival LG Uplus Corp. to the communications watchdog for illegally luring subscribers.“KT has submitted a report to the Korea Communications Commission requesting a strict measure on LG Uplus, which has been receiving subscribers through illegal means despite its business suspension stemming from excessive subsidy payments,” KT said in a press release.Since Monday, LG Uplus has been under a 24-day business suspen

Jan. 8, 2013

Banks’ foreign-currency deposits dip in Dec.

Foreign currency deposits at South Korean banks fell for the second straight month in December as local firms withdrew money to cover import bills, the central bank said Tuesday.Outstanding foreign currency-denominated deposits held by local residents reached $36.03 billion as of the end of December, down $2.35 billion from the previous month, according to the Bank of Korea.The December data marked the lowest level since August when such deposits hit $35.83 billion, it added. In October, the dep

Jan. 8, 2013

Household debt, aging weigh on growth

President-elect Park Geun-hye is faced with many economic challenges ahead as Korea is about to enter a low-growth period, further weighed down by rising household debt and a rapidly aging society.With her transition team in order, Park and her advisers are set out to improve the country’s financial soundness by first extending a support mechanism that aims to alleviate the growing debt of middle-income earners and credit delinquents.As pledged, the incoming administration is expected to set up

Jan. 8, 2013

Economic power shifts to emerging markets: report

The protracted economic slump in developed countries is accelerating the shift of global economic power to emerging markets, industry sources said. A recent report from the International Monetary Fund said the gross domestic product of emerging markets is forecast to increase to $44.1 trillion this year, surpassing $42.7 trillion of the developed countries for the first time in history. The outlook for GDP came as developed countries cut government expenditure more than emerging economies. The r

Jan. 7, 2013

IBs expect Korea to grow 3 percent this year: report

Global investment banks estimate the South Korean economy will expand 3 percent this year, mainly fueled by a rebound in Chinese demand, a report showed Monday. The growth projection compiled by 10 foreign IBs for Asia’s fourth-largest economy came in at an average of 3 percent, according to the Korea Center for International Finance. Nomura and Deutsche Bank gave the lowest 2.5 percent growth estimate for Korea in 2013, while Morgan Stanley bet a 3.7 percent expansion, the highest among the tal

Jan. 7, 2013

Finance minister to start Asia tour

SEJONG (Yonhap News) ― South Korea’s finance minister will leave for Myanmar and Vietnam this week to hold bilateral meetings to discuss economic and financial cooperation, his office said Monday.Bahk Jae-wan is to embark upon his Asia tour Wednesday as part of efforts to strengthen bilateral economic and financial cooperation with members of the Association of Southeast Asian Nations, according to the Finance Ministry.His first leg of the trip is to Myanmar where he is scheduled to have ministe

Jan. 7, 2013

Overseas orders for Korean industrial plants drop in 2012

Overseas orders for industrial plants won by South Korean companies inched down from a year earlier in 2012, largely due to a drop in demand from Middle Eastern countries, the government said Monday.Orders grabbed by South Korean builders amounted to $64.8 billion last year, down 0.3 percent from $65 billion in 2011, according to the Ministry of Knowledge Economy.The annual figure marks a significant recovery from a 9.7 percent on-year drop posted in the first nine months of last year.“Orders fo

Jan. 7, 2013

Seoul shares open lower on tech, builder losses

South Korean stocks started lower Monday, led by losses in tech and construction shares, analysts said.The benchmark Korea Composite Stock Price Index (KOSPI) fell 7.31 points, or 0.36 percent, to 2,004.63 in the first 15 minutes of trading.Tech blue chips led the market decline, with top-cap Samsung Electronics falling 1.11 percent and LG Display, the biggest panel supplier for Apple's iPad tablet computer, dipping 2.27 percent.Top chipmaker SK hynix shed 1.14 percent.Construction firms also tr

Jan. 7, 2013

World Bank seeks cybersecurity center in S. Korea

The World Bank and Korea Communications Commission (KCC) will sign a deal next week on a joint project to establish a "Global Cybersecurity Center" in South Korea, officials said Sunday.The World Bank, headed by Korean-born physician Jim Yong Kim, proposed it set up the center in South Korea in late 2013, they said.The facility will be tasked with promoting cybersecurity and other information protection in developing nations."The World Bank and KCC plan to sign a memorandum of understanding on e

Jan. 7, 2013

Korea suffers sharp decline in labor productivity

Korea posted the second-largest drop in labor productivity among members of the Organization for Economic Cooperation and Development during the third quarter of 2012.According to the OECD, Korea’s labor productivity fell by 0.4 percent in the July-September period from a quarter before, along with the Czech Republic and Portugal, both of which recorded the same figure.While Norway saw its labor productivity, or the rate of output per worker per unit of time, fall heaviest by 1.3 percent, two mo

Jan. 6, 2013

Polarization deepens in construction industry

Polarization has become a buzz word in the nation’s construction industry. Large builders are looking overseas amid the prolonged slump in the local real estate market. But small and medium-sized builders, who heavily depend on the local housing market, are being pushed further to the brink of bankruptcy. According to the Ministry of Land, Transport and Maritime Affairs, overseas construction orders won by Korean builders in 2012 rose 9.8 percent to $64.9 billion (68.1 trillion won) from $59.1 b

Jan. 6, 2013

Seoul shares open lower on U.S. losses

South Korean stocks started lower Friday following overnight losses on Wall Street, analysts said.The benchmark Korea Composite Stock Price Index (KOSPI) fell 4.73 points, or 0.23 percent, to 2,014.68 in the first 15 minutes of trading.Market bellwether Samsung Electronics slid 1.04 percent and LG Electronics, South Korea's second-largest home appliances maker, dipped 0.13 percent.Carmakers were also sluggish, with industry leader Hyundai Motor retreating 0.97 percent and its smaller affiliate K

Jan. 4, 2013

Seoul shares open lower on tech losses

South Korean stocks started a tad lower Thursday led by losses in techs and automakers, analysts said.The benchmark Korea Composite Stock Price Index (KOSPI) started 10.14 points higher but soon shifted to negative territory to lose 0.84 points, or 0.04 percent, to 2,030.26 in the first 15 minutes of trading.Market bellwether Samsung Electronics lost 0.44 percent and the country's second-largest home appliances maker LG Electronics dipped 0.39 percent.Carmakers were weak, with industry leader Hy

Jan. 3, 2013

Foreign IBs mixed over Korea's rate policy

Global investment banks (IBs) have mixed views over South Korea's monetary policy for this year amid a modest recovery forecast with stable inflation predicted for the economy, a report said Thursday. Goldman Sachs expected the Bank of Korea (BOK) to keep its key interest rate steady throughout this year, citing a modest gain in consumer prices projected for 2013, according to the report by the Korea Center for International Finance. The central bank cut the key rate twice last year by a quarter

Jan. 3, 2013

Mom-and-pop shop protection bill passed

A revised bill to put limits on operations of large supermarkets passed the plenary session of the National Assembly on Tuesday.Under the ruling named the Retail Industry Development Act, aimed at protecting mom and pop shops, chains of large supermarkets, including E-Mart, Lotte Mart and Homeplus, have to stop their operations between midnight and 10 a.m. The ruling also forces supermarket chains to close their shops two days a month, including a Sunday. It is the first bill to limit operations

Jan. 1, 2013