Hyundai Mipo Dockyard sees May sales drop 13.5% year-on-year

[THE INVESTOR] Hyundai Mipo Dockyard on June 17 revealed that May sales dipped 13.5 percent from a year ago, in a preliminary regulatory filing. The company’s May sales came in at 281.9 billion won ($US 240.9 million), down 13.5 percent from a year ago, and lower by 0.27 percent compared to the previous month. By Choi He-suk (cheesuk@heraldcorp.com)

June 17, 2016

Hyundai Heavy posts drop in May sales

[THE INVESTOR] Hyundai Heavy Industries posted May sales of 1.64 trillion won (US$ 1.4 billion), down 13.96 percent compared to the same month last year. For the year so far, Hyundai Heavy’s sales came in at just under 9 trillion won, down 16.48 percent compared to the same period last year. Hyundai Heavy, the country’s largest shipbuilder, has been plagued by falling orders and rising costs, pushing it to draw up tough revival plans.Hyundai Heavy shares closed at 104,000 won, down 0.95 percent

June 17, 2016

[Eye Interview] ‘Mom, buy me stock’

Whenever John Lee has a chance to meet new people he emphasizes the same piece of advice: “Buy your children stocks, instead of paying high fees for private education.”During our interview at his office in Bukchon, northern Seoul, the CEO of Meritz Asset Management asked me directly if I was investing in stocks.For ordinary Korean workers, it is not easy to check the stock market frequently and pick good shares that will yield high returns. When news reports tell us the local stock market has re

June 17, 2016

Lotte hires major law firms for defense as probe widens

[THE INVESTOR] Lotte Group said Friday that it has hired South Korea’s mega law firms to represent and defend its position as Seoul prosecutors widen their probe into the country’s fifth-largest conglomerate over alleged embezzlement and slush fund creation.Korea’s top law firms including Kim & Chang, Bae, Kim & Lee (Taepyeongyang), Lee & Ko (Gwangjang) and Shin & Kim (Sejong) are set to represent Lotte Group’s headquarters and its major affiliates which are currently under heavy investigation,

June 17, 2016

Hanjin Shipping gets 3-month extension on W190b bonds

[THE INVESTOR] Hanjin Shipping on June 17 received a three-month extension on corporate bonds with a combined value of 190 billion won (US$ 161.9 million).The bondholders’ decision gives Hanjin Shipping until Sept. 27. Hanjin Shipping had been at risk of defaulting had the bondholders rejected its request and kept the original June 27 maturity date.By Choi He-suk (cheesuk@heraldcorp.com)

June 17, 2016

Seaspan refuses to cut costs for Hanjin

[THE INVESTOR] The world’s largest containership owner Seaspan Corp.’s CEO Gerry Wang indicated he would not be accepting charter rate cuts requested by South Korean shipping line Hanjin Shipping.Wang told London-based journal Lloyd’s List that he would “withdraw the tonnage than agree to any concessions.”These comments run counter to what Hanjin Group said regarding a meeting between its chairman Cho Yang-ho and Wang on June 14.Hanjin spokespeople had hinted the discussions went well, and that

June 17, 2016

[Weekender] Postretirement plans rise in importance

A 29-year-old high school teacher surnamed Ko in Seoul started a variety of savings when she begun her career in 2011. From personal annuity savings to a housing deposit account, Ko regularly saves about 1 million won ($850) in total every month. Her personal annuity savings will allow her to receive 300,000 won per month from the age of 55 if she successfully accumulates 300,000 won every month for the first 10 years. As she works as a private school teacher, she was also eligible to join the T

June 17, 2016

Finance minister sees difficult H2 for Korea

[THE INVESTOR] The Korean economy will continue to face tough internal and external conditions, the country’s top economic policymaker said on June 17. Speaking at a conference with think tanks, Deputy Prime Minister and Minister of Strategy and Finance Yoo Il-ho said that difficult conditions will continue and that the government will roll out necessary counter measures. Deputy Prime Minister Yoo Il-ho(second from right) is speaking at a conference with think tanks.“Internal and external condit

June 17, 2016

Korea’s trade with China, US declines

 [THE INVESTOR] Korea’s current account surplus with China fell nearly 20 percent last year due to the sluggish growth of the world’s second largest economy, central bank data showed June 17.The current account surplus with China came to $45.14 billion in 2015, a 19.5 percent decline from the previous year’s $56.06 billion, according to data from the Bank of Korea. The figure decreased for two straight years since 2013 when it reached $56.69 billion. Busan PortThe central bank cited a drop in ex

June 17, 2016

Prosecutors search for evidence against agro body chief

[THE INVESTOR] The prosecution raided the office and home of National Agricultural Cooperative Federation chairman Kim Byeong-won on June 17 on suspicion of illegal activities during the election campaign. The NACF is Korea’s largest agroindustry body that counts NongHyup Financial Group among its affiliates. Its chairman is elected among chiefs of regional branches who run for office.NACF chairman Kim Byeong-won.The prosecution suspects that Kim took part in illegal campaign activities during t

June 17, 2016

Stocks, bonds offer investment options amid low interest rates

With the central bank slashing its benchmark interest rate to a historic low of 1.25 percent, putting money in bank accounts will not increase people’s income, as bank deposit rates will drop in line with the key base rate.Experts recommend reallocating people’s funds in bank deposits to other assets that offer higher yields. Real estates may be an option, but not a lot of people can afford to invest in an apartment unless they borrow money from banks with low interest rates. Funds investing in

June 17, 2016

[Photo News] Tycoon and top regulator

Kumho Asiana Group chairman Park Sam-koo (left) meets Financial Services Commission chairman Yim Jong-yong during a policy meeting to boost culture and tourism at Cheong Wa Dae on Friday. Park attended the meeting in the capacity of chairman of the Visit Korea Committee. (Yonhap)

June 17, 2016

[Weekender] Money doesn’t come easy

There is a saying, “Money does not grow on trees.” One has to work really hard to earn it.But making an honest buck in this age of low interest rates and low growth has become harder than ever.It is not as if Koreans do not work hard. In fact, Koreans work the longest hours after Mexicans in the Organization for Economic Cooperation and Development. Koreans worked 2,124 hours in 2014, according to the latest data.Working long hours does not necessarily mean that they work hard. But still, averag

June 17, 2016

Salaried workers cut spending on congratulatory, condolence money

South Korea's salaried workers spent less on congratulatory and condolence money for weddings and funerals in the first quarter as they felt the pinch amid an extended economic slowdown, government data showed Friday.In the three months ended March 31, people spent an average of 250,127 won ($214) to congratulate a couple on their marriage or to express their condolences. It was down 3.3 percent from a year earlier, according to data from Statistics Korea."In the household spending data, the rat

June 17, 2016

Low oil prices cast deep shadow on Korean builders

[THE INVESTOR] Local construction firms are facing growing risks in oil producing countries. On June 16, Hyundai Engineering and Construction Co. disclosed that a US$6 billion project in Iraq had to be halted due to late payments. Although the company said that it is seeking other means of payment, the move sparked concerns that similar developments could occur in other oil producing countries. The concern is further fueled by the fact that a large chunk of Korean construction firms’ unclaimed f

June 17, 2016

Prosecutors make first arrest in the DSME case

[The Investor] The first arrest in the widening Daewoo Shipbuilding and Marine Engineering corruption probe was made on June 17, fueling speculations that the investigators are closing in on former CEO Nam Sang-tae. Prosecutors arrested the chairman of HUMEX Shipping & Air Freight, identified by his surname Chung, on charges of bribing former DSME CEO Nam Sang-tae, in exchange for obtaining an exclusive contract.  Main office of DSME. The InvestorAccording to investigators, Chung, who is Nam’s c

June 17, 2016

Asiana’s accumulated passenger figure tops 300m

[THE INVESTOR] The number of paying passengers of Asiana Airlines broke the 300 million mark, industry data showed on June 17.According to the data, Asiana flights carried more than 300 million passengers as of May 20.The company was founded in 1988. It broke the 100 million milestone in 2001, and the 200 million mark in 2009. The company will celebrate the landmark event by reducing the price of return trips on select domestic and international routes. By Choi He-suk (cheesuk@heraldcorp.com)

June 17, 2016

KAI, Airbus Helicopters to collaborate on choppers for marine operations

[THE INVESTOR] Korea Aerospace Industries is to enter the market for choppers designed for maritime operations in collaboration with Airbus Helicopters, the Korean company said June 17. The arrangement was announced at the Eurosatory defense exposition held in Paris.  For the project, the two companies will build maritime operations helicopters based on the KAI KUH-1 Surion. Surion is a transport utility helicopter developed by KAI and Airbus Helicopters. According to KAI, the market for maritim

June 17, 2016

Korean corporates rush to issue new bonds

[THE INVESTOR] Korean companies are scurrying to issue new corporate bonds to raise cheap money as the country’s central bank recently cut its key rate to a historic low.  (Posco Daewoo)POSCO Daewoo, a trading company, is poised to issue new debt worth 100 billion won (US$ 85.5 million) early July in a bid to pay back its 200 billion won worth of bonds that mature on Nov. 16. “We plan to issue the bonds in advance due to the current low interest rate. If the US raises its rate during the second

June 17, 2016

Banks to benefit from LCR rules: experts

[THE INVESTOR] The latest financial regulations released by the government in efforts to secure foreign currency stability met with mostly positive responses from industry watchers.Regarding one of the key features requiring banks to raise their foreign exchange liquidity coverage ratio for banks, experts said the move would eventually lead to reinforcing the health of the banking sector. As a part of the stability plans, financial regulators said local banks will be required to raise their FX L

June 17, 2016