Kakao's Q2 net dips 38% on slumping ad biz, increased costs

Kakao Corp., the operator of South Korea's top mobile messenger KakaoTalk, on Thursday said its second-quarter net profit plunged 38 percent from a year earlier, as its advertisement business suffered from falling seasonal demand and it spent big on new businesses.Net profit reached 13.2 billion won ($12 million) on a consolidated basis in the April-June period, compared with 21.4 billion won the previous year, the company said in a regulatory filing. Operating income surged 133 percent on-year

Aug. 11, 2016

Samsung acquires U.S. premium kitchen appliance maker

South Korea's tech giant Samsung Electronics Co. on Thursday said it has signed a contract to acquire a U.S. premium kitchen appliance maker, Dacor, in a move to bolster Samsung's presence in the American luxury home-appliance market. The financial terms of the contract were not revealed, but Yoon Boo-keun, head of Samsung's consumer electronics business, said the deal allows Samsung to own a luxury brand that "gets recognition by the American people." Samsung plans to make "steady investments t

Aug. 11, 2016

Former chief of Lotte's ad firm summoned over alleged slush fund

Prosecutors summoned a former chief of Daehong Communications Inc., Lotte's advertisement affiliate, on Wednesday for questioning over the alleged creation of a slush fund, as they widened their probe into the country's fifth-largest conglomerate.The Seoul Central District Prosecutors' Office said it summoned Choi Jong-won over suspicions the ad firm funneled more than 1 billion won ($880,000) into a slush fund by faking deals or exaggerating unit prices.The 58-year-old is also accused of siphon

July 27, 2016

Nexon Japan’s major shareholders are at tax havens: Chaebul.com

[THE INVESTOR] Many of Nexon Japan’s major shareholders were found to be offshore firms located in tax havens, according to data from conglomerate tracker Chaebul.com on July 27. In addition, a local brokerage -- Samsung Securities -- was discovered holding the third-largest stake in the gaming company through an overseas bank account. Nexon Japan is the headquarters of the South Korean gaming company Nexon Group founded by Kim Jung-ju who is currently being questioned for charges of bribery. Ki

July 27, 2016

Nexon founder tops list of stock rich among self-made entrepreneurs

The founder of leading online game maker Nexon Co. is South Korea's richest man among 50 self-made entrepreneurs ranging in age from the 30s to 50s, data showed Wednesday.Kim Jung-ju, the chairman of Nexon's holding firm NXC Corp., holds stock assets worth 2.87 trillion won ($2.5 billion), according to the data compiled by CEOSCORE, a website that tracks conglomerates, financial firms and state-run companies.Kim was summoned by prosecutors for the second time last week over his alleged involveme

July 27, 2016

Park Sam-koo out to rebuild Kumho Asiana Group

[THE INVESTOR] Kumho Asiana Group chairman Park Sam-koo is seeking to buy back Kumho Buslines that was sold to a private equity fund in 2015 in a move to rebuild the company. Park is also said to be pushing to buy back Kumho Tire, another Kumho affiliate that is crucial for him to reclaim control of the group. He is expected to create a 1 trillion won consortium when the creditors put the company’s 42 percent stake up for sale in September. Kumho Industrial, Kumho Tire and Asiana Airlines repres

July 25, 2016

Chaebols contribute less on job growth: report

[THE INVESTOR] South Korea’s top five conglomerates have grown even bigger in terms of assets they hold and revenue they produce in the past three years, but their contribution to creating new jobs is lagging, a report showed Sunday.According to conglomerate tracking research firm Chaebul.com, the combined assets of the top five largest companies -- Samsung, Hyundai Motor, SK, LG and Lotte -- recorded about 930 trillion won ($817 billion) last year, a 15.5 percent rise from 2012. This accounted

July 24, 2016

Samsung chairman Lee Kun-hee mired in sex scandal

[THE INVESTOR] Korean news outlet NewsTapa reported on July 21 that Samsung Group chairman Lee Kun-hee has been paying for sex for years.NewsTapa aired video clips showing a group of women enter a house in southern Seoul where the chairman is waiting. The dialogue between Lee and the women indicates that illegal sexual services were provided. The women are also shown accepting envelopes from Lee that allegedly contained 5 million won (US$4,400) each. Samsung Group chairman Lee Kun-hee (center).F

July 22, 2016

S-Oil starts supporting students from orphanage

S-Oil, one of Korea’s top oil refiners, launched a scholarship program to help college students lacking in family support, the company said Tuesday.Chief Executive Officer Nasser Al-Mahasher visited “Seondeokwon” in northwestern Seoul to award “S-Oil Dream Scholarship” to 40 students from the orphanage.   S-Oil CEO Nasser Al-Mahasher (center) poses after delivering scholarships to support students from orphanage “Seondeokwon” in noerthwestern Seoul on Tuesday.(S-Oil)The selected students current

July 19, 2016

Chance for pardon puts CJ chairman in dilemma

South Korean conglomerate CJ Group is in a deep dilemma with the ongoing court appeal by its chairman complicated by chances that he will be pardoned next month, group insiders said Friday.Lee Jay-hyun, who controls the group's businesses that sprawl from food and pharmaceuticals to entertainment and home shopping, is awaiting the Supreme Court's ruling on charges against him that include embezzlement, tax evasion and breach of trust. His confinement is currently suspended because of deteriorati

July 15, 2016

[Super Rich] Beauty success through social media

When L’Oreal acquired NYX Cosmetics for a whopping $500 million in 2014, the world’s largest cosmetics company likely had its eyes set on NYZ’s large social media following. NYX is known for its effective use of social media to connect with consumers, including Facebook, YouTube and Instagram. Toni Ko’s InstagramAs of early June, NYX has over 7.3 million followers on Instagram while L’Oreal has 2.5 million followers. When L’Oreal acquired NYX, it did not even have 10,000 followers. 　The person b

July 14, 2016

GS’s 4th generation owners increase stake

[THE INVESTOR] The great-grandchildren of GS Group(chairman Huh Chang-soo) are steadily increasing their stake in the family business. On July 13, GS announced that GS Caltex executive vice president Huh Joon-hong has purchased 52,000 shares on July 7 and 8. He had the largest stake in the holding company among the fourth generation with 1.64 percent (1,556,327 shares) as of February 2016.GS Caltex executive vice president Huh Joon-hongHe is the great-grandson of GS Group founder Huh Man-jung an

July 14, 2016

Korean Air heiress promoted to executive vice president

[THE INVESTOR] Cho Hyun-min, youngest daughter of Hanjin Group chairman Cho Yang-ho was promoted to executive vice president at Jin Air, the group’s flagship Korean Air’s budget airline. Cho will remain as Jin Air’s marketing chief even after the promotion. Cho Hyun-minOn July 8, Jin Air announced a modest reshuffle, elevating the status of its maintenance team to a division with aims to put more focus on aviation safety. In April, the chairman’s only son Cho Won-tae was named as new president o

July 8, 2016

Lotte group chairman, founder placed under travel ban

Prosecutors said Friday they have put travel bans on the chairman of embattled South Korean retail giant Lotte Group and its founder as they widened their probe into allegations of corruption in the conglomerate.The Seoul Central District Prosecutors' Office has barred Chairman Shin Dong-bin and his father and Lotte founder Shin Kyuk-ho from leaving the country, according to the sources. Prosecutors have been widening their investigation into the country's fifth-largest conglomerate since early

July 8, 2016

Lotte founder and son banned from leaving Korea

 [THE INVESTOR] Lotte Group founder Shin Kyuk-ho and his son Shin Dong-bin who is the group chairman have been banned from leaving South Korea, according to court sources on July 8.The ban comes less than a month since the prosecution initiated an all-out probe into South Korea’s fifth-largest conglomerate on June 10 on charges of embezzlement and breach of trust.   Shin Kyuk-ho (left) and Shin Dong-bin (right)Industry watchers said the move indicates that the authorities have gathered enough ev

July 8, 2016

CJ Group chairman recovering from surgery for lung cancer

[THE INVESTOR] CJ Group chief Sohn Kyung-shik is recovering from surgery to treat lung cancer, according to company sources. Sohn, who was diagnosed with the cancer this May, is said to be in a stable condition.The CJ chairman is uncle to Lee Jay-hyun, the CJ group heir. CJ Group chairman Sohn Kyung-shikSohn has been heading Korea’s largest food and entertainment company since 1995 when CJ split from Samsung. After spending some time outside the company in early 2000s, he made a comeback at CJ w

July 7, 2016

Celltrion chairman pushes to build theme park in Incheon

[THE INVESTOR] South Korean pharmaceutical firm Celltrion ’s chairman Suh Jeong-jin has kicked off plans to build a large-scale theme park in Incheon’s Yeongjong-do, according to an exclusive news report here. The park would be a personal project, with a handful of investors taking part, according to Incheon Free Economic Zone authorities and the Incheon Development & Tourism Corp. “A group of investors including Suh has already invested around 1 billion won (US$86,930) to initiate the plan. The

July 6, 2016

Lotte Group women rise to the surface due to scandal

[THE INVESTOR] Now that an arrest warrant has been issued for Lotte Foundation chief Shin Young-ja -- the first Lotte founding family member to face imprisonment in the firm’s latest embezzlement scandal -- all eyes are on the women of Lotte Group who have so far stayed behind the scenes. In addition to Young-ja, there are her daughters including Jang Sun-yoon, senior vice president of Hotel Lotte, and also Lotte founder Shin Kyuk-ho’s third wife Seo Mi-kyung and her daughter Shin Yu-mi who are

July 5, 2016

Lotte’s Shin Young-ja faces criticism for funneling company funds to her children

[THE INVESTOR] Embattled Lotte Foundation chief Shin Young-ja and her children are expected to face public scrutiny over some 4 billion won (US$3.47 million) worth of corporate funds they are suspected to have embezzled.  Shin is elder sister of Lotte Group chairman Shin Dong-bin.And the bigger issue is that Shin funneled most of the money to her kids to be used as their personal allowances. Lotte Foundation chief Shin Young-ja /The Investor(Park Hyon-koo)Through a small company formed by Young-

July 5, 2016

South Korean tycoons’ stock value falls

[THE INVESTOR] The majority of South Korean business tycoons saw a fall in the value of their stock assets this year, an analysis by a think tank showed on July 1. According to the think tank specializing in Korea’s largest companies, the value of stocks held by 13 of 19 leaders of major businesses fell during the first half of this year. The data showed that the value of 46 of 61 listed companies held by the 19 individuals fell between Jan. 4 and June 30. Samsung Electronics vice chairman Lee J

July 1, 2016