Hyundai Merchant Marine strives to cut charter fees to stay afloat

Hyundai Merchant Marine, the nation’s second-largest shipping company, said Thursday it is striving to lower freight rates on chartered fleets in a desperate move to stay afloat. Hurt by the slowing global trade, particularly from falling demand in China, the debt-ridden operator has been negotiating with overseas ship owners to cut rates since February, the outcome of which could affect the ailing firm’s fate. Creditors, including Korea Development Bank, are keenly watching the negotiations to

March 24, 2016

Kakao to raise W270b through bond sale

Korean Internet giant Kakao plans to raise 270 billion won ($231 million) through bond issuance to pay off debt it borrowed to acquire the country’s top music streaming service provider Loen Entertainment, sources said Thursday. On Wednesday, Kakao issued three-year bonds worth 70 billion won in private placements with a coupon of 2.08 percent. It hopes to raise another 200 billion won through a public offering in April. The money will be used to repay 800 billion won in loans that Kakao borrowe

March 24, 2016

Pulmuone buys part of Vitasoy USA for $50m

Pulmuone, Korea’s top tofu brand, has agreed to acquire part of Vitasoy USA in a deal valued at $50 million, the Korean firm said Thursday. Pulmuone will take over all Vitasoy operations and brands, except its soybean milk business. Based in Ayer, Massachusetts, Vitasoy USA holds a 60 percent share of the U.S. tofu market with the Nasoya and Azumaya brands. “(We) expect the acquisition to help boost Pulmuone’s presence in the U.S. market,” the Seoul-based Pulmuone said in a filing.Pulmuone enter

March 24, 2016

Public debt collector to open overseas offices

Korea’s state debt collector, the Korea Deposit Insurance Corp., plans to open overseas offices to help locate slush funds or other illegal money hidden outside the country by companies and businesspeople. Preparations have been underway since the beginning of the year, with the United States, Cambodia and Australia, as likely candidates for the new offices, KDIC officials said Thursday. Korea Deposit Insurance Corp. headquarters in Seoul. (Yonhap)The agency handles seizing properties of individ

March 24, 2016

Fiscal spending, tax increase touted as ways to prop up Korean economy

Economic policymakers here have lately dismissed rising concern over the country’s slowing economy, calling such worries overblown.In the latest rebuff, Finance Minister Yoo Il-ho claimed this week that some skeptics have wrongly interpreted indicators to paint a gloomy picture of the Korean economy, which he said has made remarkable progress. Finance Minister Yoo Il-hoAt a meeting of economy-related ministers, he recalled that Korea last year achieved the highest-ever sovereign credit rating an

March 24, 2016

Seoul stocks open lower on large cap losses

South Korean share prices opened lower Thursday on losses in large cap shares.The benchmark Korea Composite Stock Price Index slipped 5.93 points, or 0.30 percent, to 1,989.19 in the first 15 minutes of trading. As of 10:40 a.m., the index was trading half a percent lower at 1983.26.  Seoul share prices are displayed at the Korea Exchange. (Yonhap)The decline followed overnight losses in the U.S. The Dow Jones industrial average inched down 0.45 percent to 17,502.59, while the tech-laden Nasdaq

March 24, 2016

[Market Now] Korean Air’s Hanjin Shipping considers selling overseas assets

Hanjin Shipping, a listed subsidiary of Korean Air, said in its disclosure report Wednesday that it has been considering selling assets including the company’s office building in London and some of its overseas terminals in an effort to improve finances. Hanjin Shipping's container ship (Yonhap)It added that the company will disclose further information in detail after it decides on the matter within six months. This comes as the Korea Exchange demanded the listed Korean shipping company to veri

March 23, 2016

KRX to beef up monitoring of stocks with small floats

Korea’s bourse operator said Wednesday it will strengthen monitoring of stocks with small number of shares available for trading on the market in a bid to prevent speculative investments and high volatility. According to Korea Exchange, it will halt trading of stocks when their floats come below a certain level after filing a change in the number of shares following capital reduction.  KOSPI (Bloomberg)Starting March 28, the bourse operator will suspend trading of stocks in which the number of t

March 23, 2016

[Market Now] SK Telecom’s Iriver lowers price value of convertible bonds

SK Telecom’s Iriver, a KOSDAQ-listed audio device-maker, has lowered the value of bonds convertible to equities from 5,162 won to 4,422 won per share, it said in a regulatory filing Wednesday.The company said that this was due to a decline in its share price, which ended at 4,300 won on Wednesday, down more than 2 percent. It shares reached a 52 week high of 9,980 won, and low of 3,605 won.Holders of Iriver bonds worth an aggregate of 5 billion won ($4.3 million) could convert them to 1,130,780

March 23, 2016

[Market Now] FSC plans new policy to spur reverse mortgages

The Financial Services Commission said Wednesday that it would introduce a new set of policies aimed at spurring reverse mortgages in an effort to help the elderly to better prepare for their post-retirement.In a meeting with officials from the housing sector, FSC chairman Yim Jong-yong said the regulatory body would offer the public the so-called “three sets of housing pension” in order to change the negative perception of home ownership. FSC chairman Yim Jong-yong (Yonhap)He hinted that those

March 23, 2016

[Market Now] Leenos acquires manicure maker SUR

Leenos, a KOSDAQ-listed fashion and information technology solutions company, has acquired a 66.67 percent stake in SUR Korea, a nail polish cosmetics maker, according to a regulatory filing Wednesday.Leenos reported that it financed the acquisition of SUR’s new shares worth 2 billion won ($1.7 million) in cash as part of its efforts to “diversify its business and seek new growth.”Leenos imports fashion bag brands of Kipling and Eastpak for the local retail market, and provides communication sol

March 23, 2016

[Market Now] Hanwha Asset increases stake in Wonik Materials

Wonik Materials, a KOSDAQ-listed gas materials company, said in its disclosure report Wednesday that Hanwha Asset Management has purchased 64,487 shares of Wonik Materials.The share purchase has increased Hanwha Asset’s stake in Wonik from 7.48 percent to 8.52 percent, the company said.Wonik IPS, a semiconductor equipment maker, has a 46.5 percent stake in Wonik Materials, which supplies gas materials to Samsung Electronics and SK Hynix for the manufacturing of chips and flat-panel displays. Han

March 23, 2016

NH Investment partners with Yozma for start-ups

NH Investment & Securities will join hands with Yozma Group, Israel’s venture capital fund, to support Korea-based start-ups with their global ventures, according to the securities company Wednesday.Their partnership will include NH providing financial consulting and investment banking services to start-ups operating at the Yozma Campus in Pangyo, Gyeonggi Province.Yozma recently opened its campus in the region. The VC group is well known for investing in start-ups with technologies and applicat

March 23, 2016

[Market Now] Hyundai Development’s Young Chang borrows W4.5b from affiliate

HDC Young Chang Music, a privately held piano maker of Hyundai Development Company, reported in its disclosure on Wednesday that it has borrowed 4.5 billion won from its affiliate HDC I & Cons. (HDC Young Chang Music)The inter-affiliate loan’s maturity period is March 23, 2018 with an annual interest rate of 3.7 percent, the piano maker said. Young Chang said this loan was the extension of its previous borrowing from HDC I & Cons, a real estate development company.Hyundai Development Company, a

March 23, 2016

[Market Now] SM Group nearing deal to buy part of SPP Shipbuilding

Samla Midas Group, or SM Group, is nearing a deal to take over one of the three dockyards of SPP Shipbuilding, as it has reached an agreement with the ailing shipbuilder’s creditor banks to clear a key hurdle in the acquisition, local news reports said Wednesday.SM Group, which owns shipper Korea Line Corp., had been selected early this year as the preferred bidder for SPP’s yard in Sacheon, South Gyeongsang Province, but SPP’s creditor banks, led by Woori Bank, refused to issue refund guarantee

March 23, 2016

Mirae Asset decides not to bid for Hyundai Securities: report

Mirae Asset Financial Group will not make a bid for Hyundai Securities, the fourth-largest brokerage with 3.2 trillion won in assets, a local report said Wednesday. Mirae Asset decided to turn down a proposal from LK Investment Partners to join forces to acquire the 22.56 percent stake in Hyundai Securities, the Korea Economic Daily reported, citing an unidentified source at Mirae Asset. LK is among the six suitors for Hyundai Securities shares, being sold by Hyundai Group. The group is to open

March 23, 2016

[Market Now] SK Telecom’s investment funds consider ‘options’ to exit Candle Media

Candle Media, a KOSDAQ-listed mobile content producer, said in its disclosure report Wednesday that its largest shareholders are considering “various options” with regards to their ownership in the company.It added, however, that no decisions have been made. This statement comes as the Korea Exchange sought clarification from the company to verify rumors that the company’s largest shareholders -- SK Telecom’s investment funds -- will sale their shares and exit the company on Tuesday.SK Telecom’s

March 23, 2016

[Market Now] Pan Ocean secures shipping contract with Vale

Pan Ocean, a listed bulk carrier services company, said in its disclosure report Wednesday that it has secured a long-term contract to ship iron ore for Vale, Brazil’s metals and mining giant.The contract is worth some 419 billion won ($362 million), accounting for about 25 percent of Pan Ocean’s sales, the shipping company reported. Pan Ocean will start shipping iron ore for Vale from October this year to October 2036 via destinations including China, Malaysia and Brazil.Jeil Holdings is the la

March 23, 2016

[Market Now] Korea Investment & Securities invests in Hyundai Capital bonds

Korea Investment & Securities has purchased bonds issued by Hyundai Capital Services, according to the auto financing company’s disclosure filing Wednesday.Hyundai Capital said that it has issued bonds worth 10 billion won through its manager Standard Chartered Bank Korea, and Korea Investment & Securities acquired all the bonds with a yield of 2.058 percent. The bonds’ maturity date is Dec. 21, 2020. Buildings of securities firms in Seoul (Yonhap)Korea Investment can demand a “put option” by re

March 23, 2016

Outside directors prefer scholars, entrepreneurs

South Korea’s major business groups picked scholars and corporate figures over retired public officers as outside directors this year, data showed Wednesday.According to corporate researcher CEO Score, 43.2 percent of 125 outside directors newly appointed at 94 listed firms affiliated with the nation’s top 30 conglomerates, came from academic and business circles. Entrance to the Seoul Bar Association (Yonhap)The number was up eight from last year’s figure. The data also showed that 40.8 percent

March 23, 2016