Naver, Kakao earnings to improve in Q2: report

[THE INVESTOR] Korea’s top Internet companiesKakao Corp. and Naver Corp. are expected to see their earnings improve in the second quarter of the year, according to a report on June 17.Naver is the leading Internet portal operator while Kakao runs the nation’s top mobile messenger KakaoTalk. Kakao CEO Rim Ji-hoon.The net profit of Naver is likely to soar 46 percent on-year to 181 billion won (US$155 million) in the April-June period, according to a report by online financial information provider

June 17, 2016

Korea Development Bank may face parliamentary hearing

[THE INVESTOR] The Korea Development Bank is facing increasing heat over its part in the Daewoo Shipbuilding and Marine Engineering crisis. Following the damning reports from the Board of Audit and Inspection, the KDB has come under fire for allowing the shipbuilder to reach critical conditions unchecked. As more of its malpractice comes to light, the possibility of a parliamentary hearing on the state-run policy bank has surfaced. On June 17, Rep. Kim Jong-in, the interim leader of the main opp

June 17, 2016

Finance minister vows to map out aggressive fiscal policy

South Korea's finance minister said Friday that he will come up with aggressive fiscal measures for the second half in order to get over rising downside pressures at home and abroad, giving hints that the government is considering drawing up an extra budget."The government will seek economy-boosting measures along with aggressive fiscal intervention," Finance Minister Yoo Il-ho said in a breakfast meeting with the heads of state-run and private think tanks in Seoul. Finance Minister Yoo Il-ho (Y

June 17, 2016

Seoul shares open higher on Wall Street gains

[THE INVESTOR] South Korean stocks opened higher on June 17, tracking overnight gains on Wall Street after Britain postponed its referendum campaign on its European Union membership in the aftermath of a lawmaker’s death. The benchmark Korea Composite Stock Price Index advanced 16.38 points, or 0.84 percent, to 1,968.37 in the first 15 minutes of trading. Most large caps traded bullish. Market top cap Samsung Electronics gained 0.99 percent, and top automaker Hyundai Motor increased 1.12 percent

June 17, 2016

Hyundai Motor, HHI unions warn of ‘all-out July strike’

[THE INVESTOR] Concerns are growing about widespread strikes in July as major labor unions are forming alliances to take industrial action. On June 16, the unions of Hyundai Motor and Hyundai Heavy Industries said that they would work together for an “all out strike” in July. The unions of both Hyundai affiliates warned of a strike should this year’s wage negotiations spill over into July.  “Walkouts will be conducted alongside the negotiations this year, together with the 150,000 members of the

June 17, 2016

Hyundai Steel output to be normalized by July

[THE INVESTOR] Hyundai Steel Co.’s production capacity will be normalized by early July, the company said on June 17.The production capacity of the company’s mill in Dangjin, South Chungcheong Province, had been affected with one of its three furnaces experiencing problems since May 12. The furnace, the first of the three to go on line in January 2010, had experienced trouble in maintaining temperature, reducing its daily out to about 3,000 metric tons. Before the fault developed, its daily outp

June 17, 2016

Labor dispute adds to Hyundai Heavy’s troubles

[THE INVESTOR] Ailing Hyundai Heavy Industries Co. faces tough challenges ahead with the union likely to resort to “powerful” strikes.On June 17, the union announced that industrial dispute has occurred, opening the way for industrial action in negotiating with the management. Although the union has cited slow progress in the negotiations, pundits say that the move is likely to be aimed at meeting the legal requirements for industrial action before the restructuring measures are executed. Hyunda

June 17, 2016

Hyundai E&C scraps US$720m East Timor project

[THE INVESTOR] Hyundai Engineering & Construction Co. disclosed on June 16 that it has pulled out of the US$720 million project in East Timor. In a regulatory filing, the builder said that the decision was made due to delays in the project receiving approval from East Timor courts. The company had won the project last year in collaboration with Hyundai Engineering Co. The contract was for building a seawall and supply facilities to be used for oil development efforts off the southern coast town

June 17, 2016

Korea‘s shipbuilding industry likely to remain flat in H2

[THE INVESTOR] South Korea’s shipbuilding industry is expected to remain lackluster while auto, electronics and steel industries are unlikely to improve in the second half of this year, experts said on June 16. They said local shipbuilders are likely to suffer a lack of fresh orders, a move that could put further strain on embattled shipyards.They made the predictions on the country’s major industries in a seminar organized by the Federation of Korean Industries that speaks for the country’s lar

June 17, 2016

Hanwha Thales to kick off radar development for KF-X jets: CEO

[THE INVESTOR] Defense manufacturer Hanwha Thales plans to kick off the process to develop an advanced radar system for Korea’s indigenous fighter jets next month, the company’s CEO said on June 16.In April, the defense unit of conglomerate Hanwha Group was picked as the preferred bidder to build active electronically scanned array radars for some 120 fighter jets that South Korea seeks to develop by the mid-2020s. (Hanwha Thales)CEO Chang Si-kwontold reporters in Paris that his company plans to

June 16, 2016

Investors file class-action suit against GS Engineering

[THE INVESTOR] Investors have filed a class-action suit against GS Engineering & Construction for allegedly concealing losses.According to law firm Hannuri, the nation’s highest court confirmed a lower court ruling allowing 15 people who invested in the construction arm of GS Group to file a class-action suit. GS Group is Korea’s seventh-largest conglomerate. The suit is demanding GS to pay for damages worth 46.5 billion won (US$ 39.5 million) to 10,399 investors.In 2013, GS failed to disclose i

June 16, 2016

Seoul looks to reduce banks’ forex uncertainties

[THE INVESTOR] Seoul is looking to strengthen the ability of local banks to deal with sudden changes in the international market, the financial authorities announced after a meeting Thursday. As part of the plans -- finalized at a meeting between the financial regulators, central bank and Finance Ministry -- local banks will be required to raise their foreign exchange liquidity coverage ratio to 80 percent by 2019. The FX LCR is maintained at a level between the net forex outflow expected over a

June 16, 2016

Tax revenue growth credit-positive for Korea: Moody’s

[THE INVESTOR] A significant rise in South Korea’s tax revenues in the first four months of this year is credit-positive for Korea as it will help support the government’s stimulus packages, Moody’s Investors Service said on June 16. In December, Korea’s credit ratings was upgraded from Aa3 to Aa2 by the rating firm, which changed its economic forecast from positive to stable, noting its stronger economic and fiscal fundamentals compared to China and eurozone countries. “The increased tax revenu

June 16, 2016

DreamT Entertainment to delist from KONEX

[THE INVESTOR] DreamT Entertainment, home to a four-member K-pop girl group Girl’s Day, plans to voluntarily delist from KONEX, the country’s stock exchange for start-ups and SMEs, to join the secondary KOSDAQ on Nov. 18.  Idol group Girl's Day.“As the company has started working on TV drama production, we expect additional revenue from our diversified business portfolio,” a Dreamt Entertainment official said. He blamed KONEX market’s low trading volume for the venue change, saying its corporate

June 16, 2016

[Monitor] Korean firms' Q1 sales dip

Korean companies suffered a setback in their sales amid sluggish demand at home and abroad in the first quarter of the year, according to the central bank on Thursday. Local firms with over 12 billion won ($10.3 million) in assets said their sales dropped 2 percent from the same period last year.

June 16, 2016

Seoul stocks tumble to near 1-month low

[THE INVESTOR] South Korean share prices tumbled to near one-month low on June 16 on the cautious tone of the US Federal Reserve on the global economy amid rising risks involving Britain’s exit from the European Union. The local currency closed at 1,171.4 won against the US dollar, up 1.9 won from the previous session’s close.The benchmark Korea Composite Stock Price Index lost 16.84 points, or 0.86 percent, to close at 1,951.99, booking a sixth straight losing session. Trade volume was at 432.9

June 16, 2016

4 state firms receive lowest grades in evaluations

[THE INVESTOR] Four state-run corporations -- Korea Resources Corp., Korea National Oil Corp., Korea International Broadcasting Foundation and Facility Management System -- have received the lowest marks in their work performance evaluation for last year. Announcing the results of its assessment on June 16, the panel, under the Ministry of Strategy and Finance, evaluated 116 state-run corporations and institutions based on their management performance last year. A total of 161 experts, including

June 16, 2016

Hyundai Glovis rejects US request to use home-registered vessels

[THE INVESTOR] Hyundai Glovis has once again turned down proposals by the US government to use US-registered ships for its car shipments to the nation, according to company sources on June 16. US government officials including maritime administrator Paul Jaenichen recently came to Korea to discuss marine policies with Korean officials from the Ministry of Oceans and Fisheries, sources said.In the latest meeting at Sejong City, South Chungcheong Province, representatives from Hyundai Glovis, a lo

June 16, 2016