Uncertainty persists in Korea over Fed’s rate move

[THE INVESTOR] Weak employment and low inflation led the U.S. Federal Open Market Committee to freeze its federal fund rate at 0.25 to 0.50 percent, extending the possibility and uncertainty over a rate rise, analysts say.The U.S. FOMC said that it will maintain its benchmark interest rate, but remains “accommodative,” indicating that it will adjust its monetary policy in accordance with conditions in the labor market and consumer prices.“In determining the timing and size of future adjustments

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

[Newsmaker] KDB’s integrity questioned amid restructuring drive

[THE INVESTOR] Korea Development Bank, the government-owned bank in the vanguard of the country’s corporate restructuring drive, is finding itself in a crisis of its own. KDB suffered a severe blow to its credibility and integrity Wednesday, when the state audit agency said KDB was partly to blame for problems at Daewoo Shipbuilding and Marine Engineering, including the alleged 1.5 trillion won ($1.28 billion) accounting fraud. As the firm's main shareholder and creditor, KDB had “neglected” its

June 16, 2016

Difficulties to continue for major Korean industries: FKI

[THE INVESTOR] Most of Korea’s key industries will continue to face difficulties in the second half of the year, the largest business group in Korea said on June 16. In a seminar organized by the Federation of Korean Industries, participants projected that the conditions are unlikely to improve significantly in the second half with the exception of construction and petrochemical industries.  The Federation of Korean Industries.According to FKI’s projections, the shipbuilding industry -- hit hard

June 16, 2016

Samsung Group Lee Jae-yong sued over alleged malpractice

[THE INVESTOR] The top management of Samsung C&T, Samsung Group vice chairman Lee Jae-yong and the National Pension Service have been sued by an alliance of civic groups on charges of malpractice and stock price manipulation during the merger of then Cheil Industries and Samsung C&T in 2015.People’s Solidarity for Participatory Democracy, one of the civic groups participating in the lawsuit, claimed that the merger between Cheil Industries and Samsung C&T in July 2015 was made to benefit the Sam

June 16, 2016

20 public firms clinch top grades in gov’t grading

20 public firms clinch top grades in gov’t grading[THE INVESTOR] Twenty public companies and state-run agencies were recognized for their efforts to revamp balance sheets in the government-led annual management assessment, the Finance Ministry said on June 16.Of the 116 institutions evaluated by the test’s criteria, the number of A-grade institutions increased from 15 selected a year earlier, followed by 53 B-grade companies and 30 C-grade, the ministry said.The 20 leading companies included the

June 16, 2016

Seoul stocks dip to almost 1-month low on global uncertainties

South Korean stocks fell to nearly a one-month low on Thursday as the U.S. Federal Reserve struck a cautious note on the global economy amid rising risks of Britain's exit from the European Union. The Korean won firmed against the U.S. dollar.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 moderate at 432.98 million shares worth 4.38 trillion won ($3.74 billion), with losers overwh

June 16, 2016

LG Chem denies sell-off rumors of fertilizer business

[THE INVESTOR] LG Chem, the chemicals and battery unit of LG Group, on June 16 refuted that it was considering sale of the fertilizer business of FarmHannong, an agrochemical firm it recently acquired. The company said it would pour resources into the fertilizer business that is highly likely to see synergies with its basic material business. LG Chem acquired FarmHannong, formerly owned by Dongbu Group, for about 424.5 billion won ($363 million) in April. LG Chem CEO and vice chairman Park Jin-s

June 16, 2016

Hyosung showcases hi-tech fiber at military show

[THE INVESTOR] Hyosung Corp. on June 16 said that the company showcased light-weight bullet resistant helmet produced with the trademarked ALKEX material at the Eurosatory 2016.Eurosatory is a military and security industry show held every two years in Paris. ALKEX is an aramid fiber developed by Hyosung. Aramid fibers are heat-resistant fibers with high tensile strength, used in aerospace and military applications. The company said that introduction of the ALKEX product and other aramid product

June 16, 2016

Korea-Colombia FTA to be effective July

[THE INVESTOR] In a move expected to further boost bilateral trade, the Korea-Colombia free trade agreement will take effect next month, the government said on June 16.Colombia informed South Korea earlier in the day that it has completed the ratification process of the deal clinched in 2013, the Ministry of Trade, Industry and Energy said, adding that the deal will go into effect on July 15. South Korean cars are waiting to be shipped overseas.                                               Hera

June 16, 2016

Firms benefit from Lotte's IPO withdrawal

[THE INVESTOR] Hotel Lotte’s decision to scrap what would have been the nation’s largest-ever initial public offering is benefiting companies that are preparing to list on the local stock exchange in June.As Hotel Lotte’s IPO faces a major setback, firms expect to share the spotlight that had been focused on the Korean retail giant Lotte Group’s hotel unit. Hotel Lotte and Lotte Duty Free Shop.Some companies, which are set to go public on the benchmark KOSPI or secondary KOSDAQ market, are alrea

June 16, 2016

Korean firms lack ability to mobilize cash: report

[THE INVESTOR] The retained earnings of Korea’s top 500 companies fall far behind that of top 25 U.S.-based companies, a new report showed on June 16. Retained earnings refer to assets after dividends are paid out. The funds and other assets included in retained earnings are then used for investment, debt repayment and other management activities. The report compiled by the Korea Economic Research Institute showed that Korea’s top 500 companies by market capitalization had combined retained earn

June 16, 2016

Samsung Heavy Industries to nearly halve workforce

[THE INVESTOR] Embattled Samsung Heavy Industries came out with a heavy-duty restructuring plan that involves drastic measures including cutting up to 1500 payrolls by the end of this year.Eventually, the firm plans to reduce the workforce by up to 40 percent over the next three years.Samsung executives also agreed to pay cuts starting in July until the company returns to normal. “As CEO, I will forgo my entire salary until a business turnaround,” said Park Dae-young, head of Samsung Heavy. Park

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, financial authorities announced after a meeting Thursday. As part of the plans finalized at a meeting among financial regulators, the central bank and the 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 30 day

June 16, 2016

Korea's online shopping sales surge 16-fold in 15 years

[THE INVESTOR] The online shopping business in Korea has expanded more than 16-fold over the past 15 years due to the rapid development of online transactions, government data showed on June 16.Total online sales reached 53.9 trillion won ($46.1 billion) last year, compared with 3.3 trillion won in 2001, with an average 22 percent on-year growth every year, according to Statistics Korea.Mobile shopping amounted to 24.5 trillion won in 2015, more than tripling from 6.6 trillion won in 2013 when t

June 16, 2016

Hyundai E&C halts Iraqi project over late payment

[THE INVESTOR] A $6.04 billion refinery project being undertaken by a Korean consortium in Iraq has effectively come to a stop due to late payments from the Iraqi government. The Hyundai Engineering and Construction Co.-led consortium began the multibillion-dollar project to construct a refinery in Karbala in April 2015. The consortium also including GS Engineering and Construction Co., SK E&C Co. and Hyundai Engineering Co. Officials from companies engaged in the project pose for a photograph i

June 16, 2016

HMC Investment projects large jump in Hyundai Steel performance

[THE INVESTOR]  Hyundai Steel Co. is likely to post significant jump in operating profits for the second quarter of the year, HMC Investment Securities projected on June 16.Saying that Hyundai Steel is likely to have gained momentum in the second quarter and that the price increased projected for the second half of the year will further improve performance, HMC maintained the “buy” rating and the target price at 73,000 won ($62).On June 16, Hyundai Steel opened at 47,350 won, up 150 won from mar

June 16, 2016

Shinhan Bank pushes for ‘Asian financial belt’

Shinhan Bank, the flagship bank of Korea’s leading banking unit Shinhan Financial Group, is pushing to establish an Asian financial belt by expanding its presence in Southeast Asia. It has been setting up branch locations in countries in the financial belt that connects countries including Japan, China, Vietnam, and India, and recently launched Shinhan Bank Indonesia in Jakarta, Indonesia, on May 16. The bank was renamed from Indonesia Bank Metro Express that was acquired by Shinhan last year. S

June 16, 2016

Korean firms' Q1 sales dip, but profitability improves

South Korean companies suffered a setback in their sales amid sluggish demand at home and abroad in the first three months of the year, but their profitability continued to improve, central bank data showed Thursday.In a survey conducted by the Bank of Korea, local firms with over 12 billion won ($10.27 million) in assets said their sales dropped 2 percent in the first three months of the year from the same period last year.The survey was conducted on 3,065 select companies between May 2 and Jun

June 16, 2016

POSCO Engineering wins $140 million contract in Indonesia

[THE INVESTOR]  POSCO Engineering Co. announced on June 16 that it has been awarded an LPG plant construction project from Indonesia’s state-run oil company. The subsidiary of Korea’s largest steelmaker POSCO specializes in building industrial plant and infrastructure facilities. The $140 million project, awarded to POSCO Engineering-Wijaya Karya (WIKA) consortium, will see the construction of LPG-related facilities including two storage tanks. POSCO Engineering holds 50 percent stake in the con

June 16, 2016