Opposition seeks tougher rules to monitor business leaders

[THE INVESTOR] The main opposition The Minjoo Party of Korea is seeking ways to reinforce the role of outside directors on corporate boards. Rep. Byun Jae-il, chief of the party’s policy committee, said on June 30 that he will propose revisions to the Commercial Act to toughen rules regarding outside directors. Saying that the outside directors are failing to serve their purpose, Byun said that tougher rules will be stipulated in the proposal. “There has been criticism that the system introduced

July 1, 2016

Hanwha denies acquiring global aircraft engine maker

[THE INVESTOR] Hanwha Group on June 30 denied a news report that the the company was seeking to acquire a global aircraft engine manufacturer in the latter half of this year. Earlier in the day, the Maeil Business News reported that the nation's No. 1 defense manufacturer is contacting with five companies  with 500 billion won to 1 trillion won (US$430 million to US$870 million) in sales that are supplying parts to top defense companies. Hanwha Group chairman  Kim Seung-younThe nation’s 10th lar

June 30, 2016

High Q2 performance projected for refiners

[THE INVESTOR] South Korean refineries are expected to post healthy results for the second quarter of the year, buoyed by improving market conditions. Local refiners and securities firms are in agreement that good second quarter results are likely for the industry. Analysts’ consensus on SK Innovation, the industry leader, stands at 10.41 trillion won (US$9 billion) for second quarter sales, and operating profit of 829.7 billion won. The figures fall short of those posted for the same period las

June 30, 2016

Overseas construction contracts fall 40%, outlook remains dark

[THE INVESTOR] South Korean construction firms’ overseas contracts won in the first half of the year plunged 40 percent from a year earlier, industry data showed on June 30.According to the International Contractors Association of Korea, the value of overseas contracts awarded to local builders during the first half of the year came in at US$15.2 billion. By region, Middle Eastern contracts dropped 32 percent to come in at about US$4.7 billion, while the figure for Asia was US$6.9 billion, down

June 30, 2016

SsangYong Cement Industrial’s largest shareholder consolidates grip

[THE INVESTOR] SsangYong Cement Industrial’s largest shareholder Hahn & company has acquired the entire stake owned by the second largest stakeholder Taiheiyo Cement, it announced on June 29. 　The investment company established by a private equity fund manager purchased 25,989,010 shares from the holding company of the Japanese cement company for 450 billion won ($388.6 million), increasing its stake to 79.2 percent from 46.8 percent. 　This transaction will prevent any possibility of conflict ov

June 30, 2016

Asiana Airlines’ 2nd budget carrier ready for take-off

[THE INVESTOR] Asiana Airlines ’ second budget carrier, Air Seoul, could receive the green light for take-off as early as next month. The Korean flag carrier also operates budget airline Air Busan. According to industry sources, Air Seoul will receive the final assessment in the air operator’s certification process on June 30, and become certified early next month if all goes according to plan.Air Seoul has completed test flights on domestic routes between June 15 and 28, and will now be tested

June 29, 2016

South Korean businesses see gloomy July

[THE INVESTOR] South Korean businesses project difficult economic conditions in July, a survey showed on June 29. The business survey index or BSI for July outlook compiled by the Federation of Korean Industries came in at 90.5, down from 94.8 for June. BSI measures businesses’ assessment of economic conditions, and figures below 100 show negative assessment. For the latest figures, the FKI surveyed Korea’s top 600 companies by revenue. The FKI cited international uncertainties brought on by UK’

June 29, 2016

Hyundai Rotem wins W158b tank maintenance contract

[THE INVESTOR] Hyundai Rotem announced on June 29 that it has signed a 158.5 billion won (US$135.7 million) depot maintenance contract for K1 and K1A1 main battle tanks.Hyundai Rotem is the manufacturer of the tanks. K1 battle tank.The contract, issued by Defense Acquisition Program Administration, will require Hyundai Rotem to perform overhaul maintenance on the tanks by June 2017. The contract for K1 tank depot maintenance is 95 billion won, and that for K1A1 is 63.5 billion won. By Choi He-su

June 29, 2016

KEPCO E&C to take part in international reactor project

[THE INVESTOR] KEPCO E&C is to take part in the International Thermonuclear Experimental Reactor project as part of the MOMENTUM joint venture, the company announced on June 29. According to KEPCO E&C, the value of the contract is 230 billion won (US$197 million).International Thermonuclear Experimental Reactor project KEPCO E&CThe JV, led by UK’s Amec Foster Wheeler, has been signed on as a construction management-as-agent, KEPCO E&C said. The JV also includes the French engineering firm Assyst

June 29, 2016