KAI, Airbus Helicopters to collaborate on choppers for marine operations

[THE INVESTOR] Korea Aerospace Industries is to enter the market for choppers designed for maritime operations in collaboration with Airbus Helicopters, the Korean company said June 17. The arrangement was announced at the Eurosatory defense exposition held in Paris.  For the project, the two companies will build maritime operations helicopters based on the KAI KUH-1 Surion. Surion is a transport utility helicopter developed by KAI and Airbus Helicopters. According to KAI, the market for maritim

June 17, 2016

Naver, Kakao earnings to improve in Q2: report

[THE INVESTOR] Korea’s top Internet companiesKakao Corp. and Naver Corp. are expected to see their earnings improve in the second quarter of the year, according to a report on June 17.Naver is the leading Internet portal operator while Kakao runs the nation’s top mobile messenger KakaoTalk. Kakao CEO Rim Ji-hoon.The net profit of Naver is likely to soar 46 percent on-year to 181 billion won (US$155 million) in the April-June period, according to a report by online financial information provider

June 17, 2016

Hyundai Motor, HHI unions warn of ‘all-out July strike’

[THE INVESTOR] Concerns are growing about widespread strikes in July as major labor unions are forming alliances to take industrial action. On June 16, the unions of Hyundai Motor and Hyundai Heavy Industries said that they would work together for an “all out strike” in July. The unions of both Hyundai affiliates warned of a strike should this year’s wage negotiations spill over into July.  “Walkouts will be conducted alongside the negotiations this year, together with the 150,000 members of the

June 17, 2016

Hyundai Steel output to be normalized by July

[THE INVESTOR] Hyundai Steel Co.’s production capacity will be normalized by early July, the company said on June 17.The production capacity of the company’s mill in Dangjin, South Chungcheong Province, had been affected with one of its three furnaces experiencing problems since May 12. The furnace, the first of the three to go on line in January 2010, had experienced trouble in maintaining temperature, reducing its daily out to about 3,000 metric tons. Before the fault developed, its daily outp

June 17, 2016

Labor dispute adds to Hyundai Heavy’s troubles

[THE INVESTOR] Ailing Hyundai Heavy Industries Co. faces tough challenges ahead with the union likely to resort to “powerful” strikes.On June 17, the union announced that industrial dispute has occurred, opening the way for industrial action in negotiating with the management. Although the union has cited slow progress in the negotiations, pundits say that the move is likely to be aimed at meeting the legal requirements for industrial action before the restructuring measures are executed. Hyunda

June 17, 2016

Hyundai E&C scraps US$720m East Timor project

[THE INVESTOR] Hyundai Engineering & Construction Co. disclosed on June 16 that it has pulled out of the US$720 million project in East Timor. In a regulatory filing, the builder said that the decision was made due to delays in the project receiving approval from East Timor courts. The company had won the project last year in collaboration with Hyundai Engineering Co. The contract was for building a seawall and supply facilities to be used for oil development efforts off the southern coast town

June 17, 2016

Hanwha Thales to kick off radar development for KF-X jets: CEO

[THE INVESTOR] Defense manufacturer Hanwha Thales plans to kick off the process to develop an advanced radar system for Korea’s indigenous fighter jets next month, the company’s CEO said on June 16.In April, the defense unit of conglomerate Hanwha Group was picked as the preferred bidder to build active electronically scanned array radars for some 120 fighter jets that South Korea seeks to develop by the mid-2020s. (Hanwha Thales)CEO Chang Si-kwontold reporters in Paris that his company plans to

June 16, 2016

Investors file class-action suit against GS Engineering

[THE INVESTOR] Investors have filed a class-action suit against GS Engineering & Construction for allegedly concealing losses.According to law firm Hannuri, the nation’s highest court confirmed a lower court ruling allowing 15 people who invested in the construction arm of GS Group to file a class-action suit. GS Group is Korea’s seventh-largest conglomerate. The suit is demanding GS to pay for damages worth 46.5 billion won (US$ 39.5 million) to 10,399 investors.In 2013, GS failed to disclose i

June 16, 2016

Hyundai Glovis rejects US request to use home-registered vessels

[THE INVESTOR] Hyundai Glovis has once again turned down proposals by the US government to use US-registered ships for its car shipments to the nation, according to company sources on June 16. US government officials including maritime administrator Paul Jaenichen recently came to Korea to discuss marine policies with Korean officials from the Ministry of Oceans and Fisheries, sources said.In the latest meeting at Sejong City, South Chungcheong Province, representatives from Hyundai Glovis, a lo

June 16, 2016

4 state firms receive lowest grades in evaluations

[THE INVESTOR] Four state-run corporations -- Korea Resources Corp., Korea National Oil Corp., Korea International Broadcasting Foundation and Facility Management System -- have received the lowest marks in their work performance evaluation for last year. Announcing the results of its assessment on June 16, the panel, under the Ministry of Strategy and Finance, evaluated 116 state-run corporations and institutions based on their management performance last year. A total of 161 experts, including

June 16, 2016

Difficulties to continue for major Korean industries: FKI

[THE INVESTOR] Most of Korea’s key industries will continue to face difficulties in the second half of the year, the largest business group in Korea said on June 16. In a seminar organized by the Federation of Korean Industries, participants projected that the conditions are unlikely to improve significantly in the second half with the exception of construction and petrochemical industries.  The Federation of Korean Industries.According to FKI’s projections, the shipbuilding industry -- hit hard

June 16, 2016

Samsung Group Lee Jae-yong sued over alleged malpractice

[THE INVESTOR] The top management of Samsung C&T, Samsung Group vice chairman Lee Jae-yong and the National Pension Service have been sued by an alliance of civic groups on charges of malpractice and stock price manipulation during the merger of then Cheil Industries and Samsung C&T in 2015.People’s Solidarity for Participatory Democracy, one of the civic groups participating in the lawsuit, claimed that the merger between Cheil Industries and Samsung C&T in July 2015 was made to benefit the Sam

June 16, 2016

20 public firms clinch top grades in gov’t grading

20 public firms clinch top grades in gov’t grading[THE INVESTOR] Twenty public companies and state-run agencies were recognized for their efforts to revamp balance sheets in the government-led annual management assessment, the Finance Ministry said on June 16.Of the 116 institutions evaluated by the test’s criteria, the number of A-grade institutions increased from 15 selected a year earlier, followed by 53 B-grade companies and 30 C-grade, the ministry said.The 20 leading companies included the

June 16, 2016

LG Chem denies sell-off rumors of fertilizer business

[THE INVESTOR] LG Chem, the chemicals and battery unit of LG Group, on June 16 refuted that it was considering sale of the fertilizer business of FarmHannong, an agrochemical firm it recently acquired. The company said it would pour resources into the fertilizer business that is highly likely to see synergies with its basic material business. LG Chem acquired FarmHannong, formerly owned by Dongbu Group, for about 424.5 billion won ($363 million) in April. LG Chem CEO and vice chairman Park Jin-s

June 16, 2016

Hyosung showcases hi-tech fiber at military show

[THE INVESTOR] Hyosung Corp. on June 16 said that the company showcased light-weight bullet resistant helmet produced with the trademarked ALKEX material at the Eurosatory 2016.Eurosatory is a military and security industry show held every two years in Paris. ALKEX is an aramid fiber developed by Hyosung. Aramid fibers are heat-resistant fibers with high tensile strength, used in aerospace and military applications. The company said that introduction of the ALKEX product and other aramid product

June 16, 2016

Korean firms lack ability to mobilize cash: report

[THE INVESTOR] The retained earnings of Korea’s top 500 companies fall far behind that of top 25 U.S.-based companies, a new report showed on June 16. Retained earnings refer to assets after dividends are paid out. The funds and other assets included in retained earnings are then used for investment, debt repayment and other management activities. The report compiled by the Korea Economic Research Institute showed that Korea’s top 500 companies by market capitalization had combined retained earn

June 16, 2016

Samsung Heavy Industries to nearly halve workforce

[THE INVESTOR] Embattled Samsung Heavy Industries came out with a heavy-duty restructuring plan that involves drastic measures including cutting up to 1500 payrolls by the end of this year.Eventually, the firm plans to reduce the workforce by up to 40 percent over the next three years.Samsung executives also agreed to pay cuts starting in July until the company returns to normal. “As CEO, I will forgo my entire salary until a business turnaround,” said Park Dae-young, head of Samsung Heavy. Park

June 16, 2016

Korea's online shopping sales surge 16-fold in 15 years

[THE INVESTOR] The online shopping business in Korea has expanded more than 16-fold over the past 15 years due to the rapid development of online transactions, government data showed on June 16.Total online sales reached 53.9 trillion won ($46.1 billion) last year, compared with 3.3 trillion won in 2001, with an average 22 percent on-year growth every year, according to Statistics Korea.Mobile shopping amounted to 24.5 trillion won in 2015, more than tripling from 6.6 trillion won in 2013 when t

June 16, 2016

Hyundai E&C halts Iraqi project over late payment

[THE INVESTOR] A $6.04 billion refinery project being undertaken by a Korean consortium in Iraq has effectively come to a stop due to late payments from the Iraqi government. The Hyundai Engineering and Construction Co.-led consortium began the multibillion-dollar project to construct a refinery in Karbala in April 2015. The consortium also including GS Engineering and Construction Co., SK E&C Co. and Hyundai Engineering Co. Officials from companies engaged in the project pose for a photograph i

June 16, 2016

HMC Investment projects large jump in Hyundai Steel performance

[THE INVESTOR]  Hyundai Steel Co. is likely to post significant jump in operating profits for the second quarter of the year, HMC Investment Securities projected on June 16.Saying that Hyundai Steel is likely to have gained momentum in the second quarter and that the price increased projected for the second half of the year will further improve performance, HMC maintained the “buy” rating and the target price at 73,000 won ($62).On June 16, Hyundai Steel opened at 47,350 won, up 150 won from mar

June 16, 2016