SK Innovation to beef up ceramic coated LiBS

[THE INVESTOR] SK Innovation, the energy solution arm of SK Group, has decided to increase facility investments for the production of lithium-ion battery separator or LiBS, a key part of electric vehicles. The company said on June 20 it will set up two assembly lines at its production plant in Jeungpyeong, North Chungcheong Province, with aims to complete the facilities by the first half of next year. A company official holds LiBS produced at SK Innovation’s Jeungpyeong, North Chungcheong Provin

June 20, 2016

Kolmar Korea under tax investigation

[THE INVESTOR] Beauty and pharmaceutical company Kolmar Korea is under investigation by tax authorities in what appears to be a targeted probe into the controlling family.Dozens of employees of the National Tax Service raided the firm‘s headquarters on June 9, seizing financial records.The NTS investigation comes a year before Kolmar Korea’s scheduled regular tax audit. Industry watchers say the sudden investigation is closely linked to allegations that CEO Yoon Dong-han misappropriated the hold

June 20, 2016

WeMade struggles to launch next big hit

[THE INVESTOR] WeMade Entertainment, once a dominant game developer and publisher, is facing a slowdown as it struggles to release a game that can be a hit at home and abroad. The KOSDAQ-listed gamer, which brought fans blockbuster games such as “Candy Pang” and “Wind Runner,” performed below expectations in the first half of this year, with its highly anticipated role-playing action game “Soul & Stone” flopping early this year.Wemade‘s “Wind Runner” (WeMade)The company spent about 6 billion won

June 20, 2016

Coreana signs W285b supply deal with Chinese retailer

[THE INVESTOR] Korean cosmetics maker Coreana on June 20 signed a 285 billion won (US$ 245 million) supply deal with China’s Y&F.Under the contract, the Chinese firm will import and market Coreana’s Orthia brands cosmetics products over the next five years. Korean retailer Songjung will act as Y&F’s import channel for the cosmetics. Coreana said that the deal will provide the company with diverse marketing channels in China. By Choi He-suk (cheesuk@heraldcorp.com)

June 20, 2016

Ratings agency downgrades major shipping companies and shipyard

[THE INVESTOR] Korea Investors Service, one of the big three rating agencies here, downgraded the credit ratings of Hanjin Shipping, Hyundai Merchant Marine and Daewoo Shipbuilding & Marine Engineering on June 20. The agency lowered DSME from BB+ to BB, with its rating outlook also remaining negative. HMM received a downgrade from A+ to A, citing its continuous deficit, while Hanjin Shipping, struggling container operator who recently sought creditor-led restructuring to avoid bankruptcy, also f

June 20, 2016

Samsung Electronics adopts new appellation system

[THE INVESTOR] Samsung Electronics plans to transform its appellation system starting next month under the slogan “Start-up Samsung,” according to local reports on June 20. The initiative aims to get rid of designations and boost the atmosphere to share ideas freely among workers. The company is currently conducting a survey on employees regarding the new system. The survey provides four alternatives: adding “Nim” -- which refers to “sir” in Korea -- “pro” or “manager” at the end of a name, or u

June 20, 2016

Hallyu contents to be hit by tougher Chinese regulations

[THE INVESTOR] China has officially announced plans to strengthen regulations on imports of overseas contents, according to China Daily on June 20.The directive issued by the State Administrator of Press, Publication, Radio, Film and Television focuses on producing media embodying “Chinese spirit and value” starting July 1, and is expected to deal a blow to the spread of hallyu, or Korean Wave, contents that have been steadily gaining popularity in the country. Poster of KBS2 drama “Descendants

June 20, 2016

Hanwha begins shipping K9 hulls to Poland

[THE INVESTOR] Hanwha Techwin, Hanwha Group’s weapons and surveillance systems affiliate, announced on June 20 that it began shipping the hull of the K9 self-propelled gun to Poland. K9 self-propelled gun.Hanwha Techwin signed the contract to supply 120 units of K9’s hull to Poland’s state-run defense contractor HSW in December 2014. HSW will attach its own turret to the body to produce the AHS Krab 155-mm self-propelled gun. Six K9 hulls were shipped to Poland on June 20, Hanwha Techwin said. A

June 20, 2016

Corporate Korea lacks antitakeover measures

[THE INVESTOR] Only 1 percent of Korean companies have set up defense mechanisms against hostile takeovers in recent years, indicating that they are still vulnerable to such threats and shows the lack of corporate governance. Daeshin Economic Research Institute on June 19 looked into 600 listed companies and conglomerate affiliates in Korea where institutional investors or the pension fund hold more than 5 percent stake in the company. Only six of 600, or 1 percent, have established measures aga

June 20, 2016

Korea, Israel to develop amphibious drone, high-tech farming technology

[THE INVESTOR] Korea and Israel will collaborate in developing amphibious unmanned aerial vehicles, Korea’s Ministry of Trade, Industry and Energy announced on June 20. The project will be conducted by Korea’s KEVA Drone and Israel’s Aerodrome with the support of both governments through the Korea-Israel Industrial R&D Foundation.The two companies plan to develop light drones that can land on both land and water fitted with water-resistant imaging equipment. Founded in 2001, Korea-Israel Industr

June 20, 2016

Hanwha Defense eyes global armored vehicle market

Eurosatory defense exposition.[THE INVESTOR] Hanwha Defense Systems announced on June 17 that it has signed a 7.5 million euro (US$ 8.4 million) gun turret supply deal with CMI Defence at the Eurosatory defense exposition. CMI Defence is a Belgium based military equipment maker that specializes in weapons systems for armored vehicles.Under the contract, Hanwha will be supplied with 105 mm gun turret, which will then be used in building light infantry fighting vehicle based on the K21. The K21-ba

June 17, 2016

Hyundai Mipo Dockyard sees May sales drop 13.5% year-on-year

[THE INVESTOR] Hyundai Mipo Dockyard on June 17 revealed that May sales dipped 13.5 percent from a year ago, in a preliminary regulatory filing. The company’s May sales came in at 281.9 billion won ($US 240.9 million), down 13.5 percent from a year ago, and lower by 0.27 percent compared to the previous month. By Choi He-suk (cheesuk@heraldcorp.com)

June 17, 2016

Hyundai Heavy posts drop in May sales

[THE INVESTOR] Hyundai Heavy Industries posted May sales of 1.64 trillion won (US$ 1.4 billion), down 13.96 percent compared to the same month last year. For the year so far, Hyundai Heavy’s sales came in at just under 9 trillion won, down 16.48 percent compared to the same period last year. Hyundai Heavy, the country’s largest shipbuilder, has been plagued by falling orders and rising costs, pushing it to draw up tough revival plans.Hyundai Heavy shares closed at 104,000 won, down 0.95 percent

June 17, 2016

Lotte hires major law firms for defense as probe widens

[THE INVESTOR] Lotte Group said Friday that it has hired South Korea’s mega law firms to represent and defend its position as Seoul prosecutors widen their probe into the country’s fifth-largest conglomerate over alleged embezzlement and slush fund creation.Korea’s top law firms including Kim & Chang, Bae, Kim & Lee (Taepyeongyang), Lee & Ko (Gwangjang) and Shin & Kim (Sejong) are set to represent Lotte Group’s headquarters and its major affiliates which are currently under heavy investigation,

June 17, 2016

Hanjin Shipping gets 3-month extension on W190b bonds

[THE INVESTOR] Hanjin Shipping on June 17 received a three-month extension on corporate bonds with a combined value of 190 billion won (US$ 161.9 million).The bondholders’ decision gives Hanjin Shipping until Sept. 27. Hanjin Shipping had been at risk of defaulting had the bondholders rejected its request and kept the original June 27 maturity date.By Choi He-suk (cheesuk@heraldcorp.com)

June 17, 2016

Seaspan refuses to cut costs for Hanjin

[THE INVESTOR] The world’s largest containership owner Seaspan Corp.’s CEO Gerry Wang indicated he would not be accepting charter rate cuts requested by South Korean shipping line Hanjin Shipping.Wang told London-based journal Lloyd’s List that he would “withdraw the tonnage than agree to any concessions.”These comments run counter to what Hanjin Group said regarding a meeting between its chairman Cho Yang-ho and Wang on June 14.Hanjin spokespeople had hinted the discussions went well, and that

June 17, 2016

Low oil prices cast deep shadow on Korean builders

[THE INVESTOR] Local construction firms are facing growing risks in oil producing countries. On June 16, Hyundai Engineering and Construction Co. disclosed that a US$6 billion project in Iraq had to be halted due to late payments. Although the company said that it is seeking other means of payment, the move sparked concerns that similar developments could occur in other oil producing countries. The concern is further fueled by the fact that a large chunk of Korean construction firms’ unclaimed f

June 17, 2016

Prosecutors make first arrest in the DSME case

[The Investor] The first arrest in the widening Daewoo Shipbuilding and Marine Engineering corruption probe was made on June 17, fueling speculations that the investigators are closing in on former CEO Nam Sang-tae. Prosecutors arrested the chairman of HUMEX Shipping & Air Freight, identified by his surname Chung, on charges of bribing former DSME CEO Nam Sang-tae, in exchange for obtaining an exclusive contract.  Main office of DSME. The InvestorAccording to investigators, Chung, who is Nam’s c

June 17, 2016

Asiana’s accumulated passenger figure tops 300m

[THE INVESTOR] The number of paying passengers of Asiana Airlines broke the 300 million mark, industry data showed on June 17.According to the data, Asiana flights carried more than 300 million passengers as of May 20.The company was founded in 1988. It broke the 100 million milestone in 2001, and the 200 million mark in 2009. The company will celebrate the landmark event by reducing the price of return trips on select domestic and international routes. By Choi He-suk (cheesuk@heraldcorp.com)

June 17, 2016