DSME plans more cuts of staff, wages

Daewoo Shipbuilding & Marine Engineering unveiled an additional self-restructuring plan Friday, pressed by the government and its creditors concerned about the worsening performance amid falling new orders.In the self-rescue plan submitted to its creditors, led by the state-run Korea Development Bank, the firm proposed a further cut in workforce and wages, as well as temporary closure of docks, industry sources said.YonhapA fresh idea in the plan is to transform its profitable marine defense-rel

May 20, 2016

Daewoo Shipbuilding rolls out restructuring plan

Daewoo Shipbuilding & Marine Engineering unveiled an additional self-restructuring plan Friday, pressed by the government and its creditors concerned about the worsening performance amid falling new orders.In the self-rescue plan submitted to its creditors, led by the state-run Korea Development Bank, the firm proposed a further cut in workforce and wages, as well as temporary closure of docks, industry sources said.A fresh idea in the plan is to spin off its profitable marine defense-related bu

May 20, 2016

Korean shares end nearly flat amid U.S. rate risks

Korean shares closed almost unchanged Friday, while foreign investors continued to offload local shares ahead of what many believe is an imminent U.S. rate hike. The local currency slightly gained ground against the U.S. dollar.The benchmark Korea Composite Stock Price Index (KOSPI) added 0.89 point, or 0.05 percent, to 1,947.67. Trading volume was slim at 383 million shares worth about 4.4 trillion won ($3.69 billion). Gainers outpaced decliners 467 to 340.The index showed range-bound movements

May 20, 2016

‘Cut charter fees, or face court receivership’

Korea’s top financial regulator said Friday that regardless of the deadline, Hyundai Merchant Marine should seek to continue negotiations to reduce charter fees with foreign shipowners, hinting at giving the ailing shipper more time to settle deals. Speaking to reporters after a meeting with regional bankers, Financial Services Commission Yim Jong-yong said, however, that if negotiations are not successful, HMM will be put under court receivership.The government had initially given the shipper u

May 20, 2016

Institutions sell net 3.558 tln won since April on profit taking

Korea's institutional investors have sold a net 3.558 trillion won ($2.986 billion) worth of local stocks since April on profit taking, the Korea Exchange (KRX) said Friday.From April 1 to May 19, domestic institutions largely offloaded exporter stocks such as Samsung Electronics, LG Chem, Samsung C&T and POSCO. As a result, the benchmark Korea Composite Stock Price index (KOSPI) fell 1.4 percent to 1,946.78 from 1,973.57 during the cited period, KRX data showed.Instead, they bought defensive st

May 20, 2016

Koreans' overseas card spending shrinks 3.8% in Q1

Overseas card spending by Koreans shrank in the first quarter despite a large increase in the number of people going overseas, the central bank said Friday.In the January-March period, overseas card spending amounted to $3.3 billion, down 3.8 percent from the previous quarter, according to the Bank of Korea (BOK). From a year earlier, the Q1 tally marked a 2.7 percent increase. (Bloomberg)Overseas card spending includes purchases made with debit and direct payment cards, in addition to credit ca

May 20, 2016

Korean shares open higher on tech gains

Korean shares opened higher Friday partly on advances by tech shares.The benchmark Korea Composite Stock Price Index (KOSPI) added 0.17 percent, or 3.28 points, to 1,950.06 in the first 15 minutes of trading.Large caps traded mixed.Tech giant Samsung Electronics gained 0.24 percent, while top auto parts maker Hyundai Mobis added 0.62 percent. (Yonhap)Leading carmaker Hyundai Motor shed 0.37 percent, while its smaller affiliate Kia Motors advanced 0.32 percent.The local currency was trading at 1,

May 20, 2016

Hotel Lotte IPO expected to become S. Korea's biggest offering

South Korean retail giant Lotte Group's hotel unit said Thursday it will go public on the KOSPI market on June 29, which is expected to fetch over 5 trillion won ($4.19 billion) to mark as the nation's largest-ever initial public offering.Hotel Lotte Co. said in a regulatory filing that it will offer 47.85 million shares at a range between 97,000 won to 120,000 won per share. Hotel Lotte (Yonhap)The offering is estimated to be around 4.6 trillion to 5.7 trillion won, and its medium range of pric

May 19, 2016

Hanjin Shipping bondholders agree to debt maturity extension

Bondholders of Hanjin Shipping, Korea’s biggest container carrier, agreed to extend the maturity of debts for four months, in a major step to help the company avoid bankruptcy. Hanjin Shipping's container ship (Yonhap)During a meeting on Thursday, bondholders gave the nod to the firm’s proposal to roll over 35.8 billion won ($30 million) in bonds due next week. On May 5, creditors of the Cash-strapped Hanjin Shipping agreed to offer financial assistance to the company and initiate a corporate re

May 19, 2016

State-run oil company faces business restructuring

The market was unnerved Thursday with the report by a management consultancy firm that proposed restructuring state-run Korea National Oil Corp.’s money-losing overseas crude oil development business. The report by Deloitte Anjin -- Korean member firm of Deloitte Touche Tohmatsu -- on reforms in the overseas businesses of state-run energy companies was commissioned by the Ministry of Trade, Industry and Energy.The offshore oil drilling facility of Dana Petroleum, the U.K. explorer focusing on th

May 19, 2016

Yoo calls for key stakeholders to share restructuring pain

Korea’s top economic policymaker said Thursday the government will make sure the major stakeholders of companies undergoing restructuring share in the burden of the revamp of the troubled shipping and shipbuilding industries. 　　“Spearheaded by creditors, we will take their liquidity conditions and industry outlook into account, but (the government will) manage and supervise (the process) in accordance with a pain sharing principle of the parties immediately interested in the companies.” said Fin

May 19, 2016

Korea to consider direct, indirect bank recapitalization for restructuring

South Korea’s Ministry of Finance said Thursday that it has agreed with the central bank to consider deploying a mix of fiscal and monetary measures that will enable them to flexibly recapitalize policy banks through direct and indirect financing.In their second task force meeting presided over by Vice Finance Minister Choi Sang-mok in Seoul on Thursday, officials from the Finance Ministry, the Bank of Korea and the Financial Services Commission saw the need to inject capital both directly and i

May 19, 2016

Korean stocks dip to over 2-month low on U.S. rate concerns

Korean shares dropped to an over two-month low Thursday as concerns over a possible U.S. rate hike continued to weigh down on investor sentiments here. The local currency sharply fell against the U.S. dollar for a second straight day.The benchmark Korea Composite Stock Price Index (KOSPI) lost 0.51 percent, or 9.95 points, to 1,946.78. Trading volume was moderate at 500 million shares worth some 5.22 trillion won ($4.38 billion), with losers outnumbering winners 556 to 252.  (Yonhap)Thursday mar

May 19, 2016

Seoul mulls all viable means to finance corporate overhaul

The South Korean government and the central bank agreed to review all viable measures, including the launch of a recapitalization fund, to finance the ongoing corporate restructuring, the finance ministry said Thursday.In the second meeting of a special task force between the Ministry of Strategy and Finance and the Bank of Korea, the two shared the view that the lending resources of policy lenders, such as the Korea Development Bank, should be increased to help facilitate much-needed corporate

May 19, 2016

Make-or-break negotiations continue at shipper HMM

Hyundai Merchant Marine is putting all its efforts in last-ditch negotiations with foreign shipowners to cut leasing fees as the heavily indebted shipper is desperate to avoid court receivership.Korea’s second-largest shipping operator is facing a tentative deadline Friday set by the government, which has threatened to put the firm under court receivership unless it successfully completes negotiations with shipowners to cut charter rates by 28-30 percent.HMM’s conference call with bulk charterer

May 19, 2016

[Market Now] Teachers pension to invest in Samsung Fire & Marine’s building

The Korea Teachers Pension, the nation’s No. 2 retirement pension, said it will invest 45.2 billion won ($38 million) in the building of Samsung Fire & Marine in southern Seoul.The investment will be made through KB Real Estate Trust’s real estate investment vehicle REITs, the pension said in a statement. National Pension Service (Yonhap)The building of the nation’s top nonlife insurer is on Teheranno, a street in the affluent Gangnam district.The pension said it expects to reap a 7.5 percent an

May 19, 2016

NPS bolsters expat support services

The National Pension Service is providing a ‘Total Care Service’ to foreign residents in Korea that allows them to receive the same national pension provided to Korean nationals. The service includes educating foreigners about the national pension scheme at various counseling centers operated by the NPS. These are located in areas where many foreigners live such as Ansan in Gyeonggi Province. Foreigners receive counselling on their pension at the Ansan Foreign Counseling Center. (NPS)There were

May 19, 2016

Enhancing consumer goods, service sectors needed to boost growth

It seems only a matter of time for Korea’s economic policymakers to revise down the country’s growth target for this year below 3 percent. This downward revision may come next month when the Ministry of Strategy and Finance announces directions of policies to be pursued in the latter half of the year.The Organization for Economic Cooperation and Development this week cut its 2016 growth forecast for Korea to 2.7 percent from 3.1 percent, citing sluggish global trade and a slowdown in China. It w

May 19, 2016

Korean shares open lower on Wall Street losses

Korean shares opened slightly lower Thursday, tracking overnight losses on Wall Street.The benchmark Korea Composite Stock Price Index (KOSPI) lost 0.27 percent, or 5.35 points, to 1,951.38 in the first 15 minutes of trading.(Yonhap)On Wednesday, the Dow Jones industrial average slipped 0.02 percent to 17,526.62.Most large caps were in negative terrain.Cosmetics giant AmorePacific plunged 1.31 percent, with top portal operator Naver tumbling 1 percent.Top cap Samsung Electronics added 0.08 perce

May 19, 2016

[Market Now] Logen Logistics may find new owner in June

Logen Logistics, Korea’s fourth-largest package delivery firm, may find a new owner in early June, as its main bidding has been set for later this month, local news reports said Thursday.The company is currently owned by Hong Kong-based Baring Private Equity Asia, which acquired 100 percent stake from Mirae Asset Private Equity in 2013 for 158 billion won ($132 million).Deal manager JP Morgan is expected to complete due diligence and hold the main auction in late May, they said.Earlier in March,

May 19, 2016