What’s new: 2Q16 earnings mostly in line with estimates 2Q16 earnings at SK Telecom (SKT) were mostly in line with our estimates and consensus. Sales missed our estimate by 1.4% as ARPU fell. OP was 6.7% lower than our estimate on the sluggish sales and losses at subsidiaries, including SK Planet. ARPU fell 0.7% QoQ as the weighting of subscribers opting for rate discounts increased and the number of subscribers with a second device grew to 890,000, up 16.3% QoQ. OP fell 1.3% YoY, but given the

July 29, 2016

[THE INVESTOR] Dongbu Securities on July 29 predicted that Samsung SDI's third-quarter earnings could fall below 1 trillion won (US$890 million) considering the continuing business uncertainties in China, hinting at reducing its target price soon. The stock price closed at 10,600 won, down 3.2 percent from the previous day. Samsung SDI's EV battery.The securities firm said it is unlikely for the battery-making unit of Samsung Group to solve the regulatory issues in China where the local authorit

July 29, 2016

● We believe Korean Air, Asiana Airlines, and Jeju Air generated combined 2Q sales of KRW4.4t, up 3.4% y-y and meeting the consensus, and an operating profit of KRW109.1b that missed the consensus by 35% even as demand grew and costs declined with oil prices.● We still believe sector profits will turn up in 2H on peak seasonality in 3Q and MERS base effect, and Jeju Air will lead the way.● Jeju Air is our top pick—we expect fleet expansion and route additions to boost its top line, and operating

July 29, 2016

[THE INVESTOR] S-OIL is preparing for a 300 billion won (US$ 267.58 million) bond issuance in September, local media reported on July 29.According to reports citing unnamed financial industry sources, the refiner has selected Shinhan Investment and NH Investment and Securities to oversee the deal. S-OIL, rated “AA+,” is said to be looking to issue bonds with 5-year or longer maturity. The funds raised from the sale will be injected into the company’s plant in Ulsan which is under construction. B

July 29, 2016

[THE INVESTOR] LG International is reviewing plans to issue bonds for raising 100 billion won (US$89.19 million) in August, local media reported on July 29.According to reports, the trading arm of LG Group is considering issuing 3-year and 5-year bonds. The company’s credit rating is “AA-.” LG Group headquarters in Yeouido, western Seoul.LG International said that the funds raised through the bonds would go toward funding its operations, saying that none of the previously issued bonds reach matu

July 29, 2016

[THE INVESTOR] Analysts raised their target price for Daelim Industrial, South Korea’s major builder, on July 29 as the firm posted better-than-expected quarterly revenue and earnings. For the quarter ending in June, Daelim Industrial logged 2.56 trillion won (US$2.27 billion) in sales, up 9 percent year on year and operating income of 136.2 billion won, up 115.9 percent from a year earlier. An apartment complex built by Daelim Industrial in Ulsan, South Korea.“The earnings surprise was led by i

July 29, 2016

(Yonhap)The South Korean government will expand through a legal revision its policy to provide more tax breaks for corporate research and development costs and employment as a means to develop the country’s next growth engines and boost job creation.The Finance Ministry announced Thursday it would have the high-income group and conglomerates pay more taxes while easing the tax burden on the low- and middle-income brackets and small businesses.“This is in line with efforts to run a reasonable and

July 28, 2016

[THE INVESTOR] The interest rate on residential property-backed loans dropped to a record low in June, Band of Korea data showed on July 28.According to the BOK, the average interest rate on residential property-backed loans dropped to 2.77 percent in June, lowest seen since the BOK began compiling related data in September 2001. The previous record low was 2.81 percent in April 2015.  (123rf)The average interest rate on all household loans dropped 0.1 percentage point from May to come in at 3.0

July 28, 2016

Calling low growth and low interest rates “the new normal” for Korea, the head of Korea Post, Korea’s second-largest investor that manages 108 trillion won ($96 billion), said it will direct more money into overseas bonds and alternative assets, going forward. “Our main focus remains the same -- a big chunk of our holdings will continue to be in safe assets, such as government notes, which we will hold to their maturity,” Kim Kee-deok said in an interview last week with The Korea Herald. Kim Kee

July 28, 2016

[THE INVESTOR] The capital gains tax on profits reaped from sale of stocks will be levied on a wider range of shareholders as the government pushes to subject all stock sales to taxation. According to the tax revision announced on July 28, capital gains tax will be levied on individuals who hold 1.5 billion won (US$1.33 million) or more of an individual company’s shares from April 2018. Both Kospi- and Kosdaq-listed stocks will be subjected to the same limit. At present, only those who hold more

July 28, 2016

[THE INVESTOR] Mirae Asset Global Investments denied July 28 a report that the firm plans to take its real estate investment trust unit public next year on stock exchanges in the US and Singapore to raise multitrillion won funds to accelerate its property investment business. “We have long wished for setting up a real estate investment trust unit and its initial public offering. But we haven’t mapped out any plans,” an official at Mirae Asset Global Investments told The Investor. On July 28, a l

July 28, 2016

[THE INVESTOR] Samsung Securities will launch a brokerage service on Taiwan-listed securities for institutional investors in a partnership with KGI Securities, the second-largest brokerage in Taiwan.According to Samsung Securities, the two companies signed a memorandum of understanding to cooperate on strengthening their brokerage businesses and expanding equity research coverage at KGI Securities’ headquarters in Taiwan on July 28.　“Samsung Securities will expand its footprint to the entire Asi

July 28, 2016

[THE INVESTOR] The KRX Startup Market will be established this year to facilitate trading stakes in startups that raise money through crowdfunding, Financial Supervisory Commission Chairman Yim Jong-yong said on July 28. “A dedicated market for trading stakes in companies (which used crowdfunding) will be established to enable (investors) to reclaim their money early,” Yim said at an event marking six months since the introduction of crowdfunding. Since crowdfunding was introduced, 4,445 individ

July 28, 2016

[THE INVESTOR] Korean panel maker LG Display may continue to show improved results due to increased prices and strong technology demand, a local brokerage house Eugene Investment & Securities said on July 28. “LG Display’s second-quarter earnings have improved boosted by OLED and quickly stabilizing prices, sporting events, increasing sales of newly launched panels and improved demand in China,” said Lee Jung, an analyst at Eugene Investment.  LG Display’s 65-inch Curved Ultra HD OLED TV Panel　T

July 28, 2016

South Korean firms sharply reduced bond issuance in the first half of 2016, yet another sign of their worsening financial health amid a drawn-out economic slump, a government tally showed Thursday.The value of ordinary corporate bonds issued in the six months totaled 18.9 trillion won ($16.7 billion), down 18.9 percent from a year earlier, according to the Financial Supervisory Service.They preferred gilt-edged bonds. Among non-guaranteed corporate bonds issued during the period, worth 18.87 tri

July 28, 2016