‘Next global crash could come next year’

Despite the continued economic stimulus policies across the world since the 2008 financial crisis, the global economy is likely to face another crash next year, according to U.S.-based economic forecaster Harry Dent. He says the world faces three major short-term risks: falling commodity prices, a depression in southern Europe and the bursting of China’s real estate bubble.Regarding the outlook for the U.S. economy, Dent, who has for decades followed the booms and busts of the global economy, re

Aug. 13, 2013

Samsung’s two units compete for overseas construction

The nation’s top conglomerate Samsung Group, in addition to its already-flourishing electronics business, has made visible achievements in the overseas construction and engineering sectors so far this year.Behind such success, however, was an unseen yet intense power grab between two rivaling subsidiaries ― Samsung Construction & Trading and Samsung Engineering.Samsung C&T has recently risen as a hot topic in the local construction industry since achieving $10.8 billion in overseas construction

Aug. 6, 2013

‘Strong brand value propositions behind success of Samsung, Hyundai’

Following is an excerpt of an interview between brand marketing guru Kevin Lane Keller and SERI Quarterly. Q: Korean global brands like Samsung Electronics and Hyundai Motor have become globalized and more interested in brand marketing. There are many definitions of brand marketing. What is yours?A: Brand marketing is not very different from marketing. The reality is brands are often the focus of what marketing is for, whether it is a corporate brand or product brand. Marketing is about satisfyi

July 30, 2013

Questions posed over Arctic seaway’s viability

The North Pole marine route has become a key concern for the world’s shipping industry and top priority of Korea’s Ministry of Oceans and Fisheries due to global warming and consequent melting of Arctic ice.But skepticism exists about the viability of plans to harness the route.The ministry recently announced its master plan to seek new economic opportunities in the Arctic region, placing special focus on the development of a new shipping route passing between Russia and Greenland, through the B

July 30, 2013

Mentally healthy workforce critical for business success: Jung

“Healing” has become a buzzword in Korea following the “well-being” trend. Despite Korea’s economic success in a short period of time, many people are reluctant to say they are happy. Korea’s suicide rate has remained the highest among the nations of the Organization for Economic Cooperation and Development for eight years in a row from 2005 to 2012. Experts said too much competition is a main factor for Koreans’ poor mental health. All age groups say they feel stressed in daily life, for differ

July 23, 2013

‘Korean real estate market highly attractive for investors’

Korea’s real estate market is still caught in a protracted stagnancy, but in fact, the country’s properties are highly attractive targets for overseas investors, according to a global real estate expert.“Low vacancy rates and high demand, that is how you objectively judge a real estate market,” Jeremy Helsby, CEO of global real estate services provider Savills, said in an interview with The Korea Herald.“Based on this principle, Korea, especially the central business district in Seoul, is a phen

July 16, 2013

2013 summer reading recommendations for CEOs

Samsung Economic Research Institute’s summer reading recommendations were selected based on four criteria including recommendations by CEO members’ at SERI’s Korean website and SERICEO.Based on these criteria, the theme for 2013’s recommended summer reading list in economy and management was the changes in business and society from digital technology and leadership capabilities, while the theme in humanities and culture was self-cultivation, including preventing thought errors and forming good h

July 16, 2013

Innovative steelmaker to vie with luxurious interior brands

The steel industry usually stays out of public interest as it is typically traded in the B2B or business-to-business sector. This, however, is soon to change, according to Union Steel, a runner-up steelmaker specializing in treating high-quality special purpose steel sheets.“We may be a steel company but our key rivals in the future will be luxury interior material makers such as Italian wallpaper or marble manufacturers,” said Chang Sae-wook, CEO of Union Steel.The medium-sized company, since 1

July 2, 2013

Top shipbuilder buoyed by offshore plant orders

ULSAN ― The offshore yard in Ulsan run by Hyundai Heavy Industries, the nation’s top shipbuilder, is a surprisingly interesting place to explore. The focus on offshore plants makes for a much more diverse range of construction than at conventional shipyards, and increased orders in recent years have the place buzzing.According to HHI, as of June, seven different offshore plants are being built in the world’s largest offshore yard, which covers 215 acres. Those include modules for the Barrow Isla

June 25, 2013

Corporate farms face tough future

The debate on whether or not to cultivate corporate farms has heated up in Korea since a Dongbu Group subsidiary decided to pull out of its tomato production business in March, under pressure from farmers’ interest groups. Dongbu Farm Hannong, a leading crop producer in Korea, invested about 40 billion won ($36 million) to build and operate a 150,000-square-meter greenhouse farm for tomato production in Hwaong, an area of reclaimed land in Hwaseong, Gyeonggi Province. The government removed barr

June 18, 2013

Seven trends in global business management

Heightened uncertainty will continue, as the conditions contributing to the global business difficulties are unlikely to subside soon. Most of the key global economies are facing prolonged sluggish or contracting growth prospects along with fiscal debt and political gridlock over structural reforms needed for sustained momentum.Korea’s major companies must prepare for greater pressure and devise preemptive measures. In particular, Japan’s currency depreciation has removed the favorable foreign e

June 18, 2013

KITA kicks off sourcing fair for major buyers

Amid the prolonged slowdown of the manufacturing industry, the Korea International Trade Association has looked to the service industry for growth.The association kicked off the Korea Grand Sourcing Fair 2013 on Tuesday at COEX in Samseong-dong, southern Seoul, and at Kin’s Tower in Bundang, Gyeonggi Province.Some 56 potential purchasers from China, ASEAN member states and the European Union were invited to the event and to meet with local small and medium-sized companies involved in the service

June 11, 2013

Steelmakers spearhead energy-saving campaign

When the government announced a national electricity crisis late last month, following the sudden shutdown of two nuclear reactors, the heaviest burden was immediately placed on the steel industry.In response to the nationwide energy-saving campaign and in preparation of a possible blackout situation, major companies set up emergency action plans.The steel industry, which largely contributed to the country’s industrial growth over the past decades, is a massive energy consumer, and accounts for

June 11, 2013

[Meet the CEO] Communication is key to brewery crown

For Oriental Brewery Co., October 2011 is a month the nation’s No.1 beer maker cannot forget: It recaptured the title of top brewery by finally edging out its archrival Hite Jinro, which dominated the beer market for about 15 years.Behind OB’s success, company officials agree, was an aggressive marketing push by CEO Jang In-soo, who was nicknamed by news media the “master of sales.” Speaking in an interview with The Korea Herald last week, the 58-year-old CEO picked his “communication” with sale

June 4, 2013

LH secures management stability through reforms

When the Korea Land & Housing Corp. was established in 2009 as a result of the merger of the Korea National Housing Corp. and the Korea Land Corp., the public was more concerned than hopeful about the organization’s future.The integrated land and housing developer was then in a seemingly irretrievable situation, holding 109 trillion won ($97.6 billion) in total debt, which amounted to 525 percent of its total assets.Things worsened in the following year, when the figure soared to 560 percent, wh

May 21, 2013

Chaebol search for new business areas

South Korean conglomerates are facing a crisis of stagnant growth, squeezed by falling domestic demand and a prolonged global economic downturn. The chaebol are actively searching out new business beyond their core to survive. According to FnGuide, a local financial information provider, about 63 percent of 41 companies listed on the main stock bourse posted an on-year drop in their first-quarter operating profit. “Aside from those in such areas as electric, electronics and pharmaceuticals, cong

May 7, 2013

Encouraging international business of SMEs

There has been considerable discussion time devoted throughout the economic downturn to the importance of small and medium enterprises to the global economy. They account for more than 30 percent of U.S. merchandise exports, and generate over 50 percent of the added value created by EU businesses. In parallel, a World Economic Forum report released at Davos revealed that if countries went halfway toward the best global practices in reducing their supply chain barriers, global GDP could increase

April 9, 2013