Korea’s potential growth rate could drop to 1.45% in 2050: think tank chief

[THE INVESTOR] Korea’s potential economic growth rate could fall to as low as 1.45 percent by 2050, Korea Economic Research Institute president Kwon Tae-shin warned on July 5. Speaking at a forum held at the National Assembly, Kwon said that Korea’s potential growth rate has plunged since the 1990s, and that a potential growth rate of 1.45 percent is possible by 2050. “One of the structural problems with the Korean economy is falling potential growth rate,” Kwon said. Saying that Korea’s potenti

July 5, 2016

[ANALYST REPORT] NCsoft: Momentum expected from new Lineage IP games

-2Q16 operating profit estimated at W72.7bn (+8.4% YoY), missing consensus by 6% ¨ -Momentum from release of new mobile games based on Lineage IP from July-Retain BUY for a target price of W320,0002Q16 operating profit estimated at W72.7bn (+8.4% YoY), missing consensus by 6%We expect NCsoft to report 2Q16 sales of W225.3bn (+3.6% YoY) and operating profit of W72.7bn (+8.4% YoY). Lineage sales are estimated at W85.6bn (+8.6% QoQ) backed by the dragon’s treasure chest event (May 25 - June 22). Sa

July 5, 2016

[ANALYST REPORT] Autos: Shipments up in June despite weak exports

Hyundai Motor (HMC) and Kia Motors saw their global shipments rise a respective 9.1% and 2% y-y in June as both firms offset weak exports with solid domestic sales and overseas plant shipments, while their global shipment volume fell a respective 0.9% and 4.6% y-y to 2.39m and 1.46m vehicles over January-June.● Domestic auto demand (excluding imports) grew 19.3% y-y in June—and 10.9% y-y to 812,000 vehicles in 1H—thanks to: 1) promotions with an excise tax cut expiring at month’s end; and 2) new

July 5, 2016

Gov’t hopes to attract more foreign students, institutions

[THE INVESTOR] International schools on Jejudo Island will to be allowed to send a part of their profits abroad from the first half of next year under the government’s service industry growth plans revealed on July 5. Under the plans, up to 40 percent of the profits will be allowed to be transferred abroad if the school’s debt to capital ratio and other conditions are met. In addition, the government will also review allowing student loans to be given to Korean students studying at foreign insti

July 5, 2016