Virtual reality cluster planned for Seoul

[THE INVESTOR] A virtual reality cluster will be formed in western Seoul, and up to 30 percent of related R&D costs will be tax exempt, government plans showed on July 7.According to the plans drawn up as part of the government’s strategy for boosting trade and investment, a VR cluster will be set up in Seoul’s Digital Media City and 60 billion won (US$ 51.8 million) will be invested in the field until the end of next year. The fund will be raised in equal parts by the government and the private

July 7, 2016

Hyundai Rotem’s trains decommissioned over suspension defect in US

[THE INVESTOR] Trains produced by Hyundai Rotem have been decommissioned in the US over defects in the suspension. Hyundai Rotem is subsidiary of Hyundai Motor Group that specializes in railroad vehicles and defense equipment. According to the company on July 7, 120 trains supplied to Southeastern Pennsylvania Transportation Authority were decommissioned on July 1 following the discovery of problems in suspension parts. The trains were supplied to SEPTA in a US$ 270 million contract signed in 20

July 7, 2016

Higher fines for accounting fraud

[THE INVESTOR] South Korean companies committing accounting fraud will face much heavier fines in the future, the top financial regulator said on July 7. The Financial Services Commission noted that related regulations have been changed to enable the authorities to levy much higher fines that the current 2 billion won (US$ 1.7 million). FSC chief Lim Jong-ryong/ The InvestorUntil now, a company proven to have committed accounting fraud was fined once regardless of the duration of fraudulent acti

July 7, 2016

Construction workers embark on indefinite strike

[THE INVESTOR] Over 24,000 construction workers staged a strike in central Seoul on July 6 to demand better working conditions and revision of laws to protect their rights.  The Korean Construction Workers Union gathered at the Seoul Plaza at 4 p.m. to protest/ The InvestorMembers of the Korean Construction Workers Union, under the South Korea’s second largest umbrella labor union Korea Confederation of Trade Unions, gathered at the Seoul Plaza in central Seoul at 4 p.m. for a walkout that will

July 6, 2016

Strikes loom over shipbuilders

[THE INVESTOR] South Korea’s top three shipbuilders’ troubles are set to deepen with their unions gearing up for strikes. Samsung Heavy Industries labor organization was on July joined by the union of Daewoo Shipbuilding and Marine Engineering on the stage for strikes. Samsung Heavy’s labor organization is set to stage a 4-hour strike on July 7 from 1 p.m. Daewoo Shipbuilding and Marine Engineering headquarters/ The InvestorAs for DSME, its union approved the plans to strike with 88.3 percent su

July 6, 2016

Gov’t seeks W20tr private sector investment in rail networks

[THE INVESTOR] The government will open rail network projects in Korea to the private sector, and attract nearly 20 trillion won (US$ 17.1 billion) private sector funds into the field over the next 10 years. According to the plans revealed by the Ministry of Land, Infrastructure and Transport, rail projects across the country will be opened to the private sector. Until now, the majority of rail projects open to the private sector have been concentrated in Seoul and surrounding regions. A train o

July 6, 2016

AIIB considers financing SK E&C-led consortium

[THE INVESTOR] The Asian Infrastructure Investment Bank plans to finance a SK Engineering and Construction-led infrastructure project, the Ministry of Land, Infrastructure and Transport said on July 5. The AIIB is considering lending US$ 75 million to the South Korean consortium to build a peripheral ring road in Almaty, Kazakhstan. During the AIIB’s first annual meeting held in Beijing in June, the bank announced its plan to finance the Almaty highway, along with four other projects The bank wi

July 6, 2016

Restructuring of ailing sectors will take toll on SMEs

[THE INVESTOR] South Korea’s ongoing restructuring of financially troubled sectors like shipbuilding could put a damper on the country’s small and medium enterprises, a think tank’s report showed on July 5. According to a report published by IBK Economic Research Institute, bank loans extended to SMEs in so-called “vulnerable industries,” designated by the government, amounted to some 62.5 trillion won (US$54 billion). The government has singled out five industries -- shipbuilding, shipping, con

July 5, 2016

Tax cuts, financing support planned for cultural contents

[THE INVESTOR] Tax cuts and state financing will be introduced for cultural contents producers as part of the Korea’s service sector growth plans, government ministries revealed on July 5. The plans are aimed at facilitating the growth of Korea’s domestic market for cultural contents to 135 trillion won (US$ 116.8 billion) and contents trade balance to US$ 8 billion by 2020. The country’s contents market came in at 100 trillion won last year, and trade balance was US$ 4.6 billion. Under the plan

July 5, 2016