Hanjin Shipping sells W60b on operating rights to secure liquidity

[THE INVESTOR] Hanjin Shipping sold 60 billion won (US$51 million) worth of operating rights on Southeast Asian routes to its affiliate in order to secure liquidity, local news reported on June 24. Citing an official from the shipping industry, the shipper sold part of its rights to Hanjin Transportation, which runs the land transport service under Hanjin Group, during an emergency meeting of the board. The move came after the government and creditors, led by state-run Korea Development Bank, pu

June 24, 2016

Air Busan opens Busan-Ulaanbaatar route

[THE INVESTOR] Air Busan began flying the Busan-Ulaanbaatar route on June 24, becoming the first Korean carrier to operate the route between the two cities. For Air Busan, this is the 17th international route. Air Busan is a budget carrier subsidiary of Kumho Asiana Group's Asiana Airlines.Air Busan operates Busan-Ulaanbaatar flights on Tuesdays at 10:35 a.m. and Fridays at 8:35 a.m. Ulaanbaatar-Busan flights will take off at 3:40 p.m. on Tuesdays and 1:40 p.m. on Fridays. By Choi He-suk (cheesu

June 24, 2016

Hyundai Rotem to recover US$66m outstanding fees

[THE INVESTOR] Hyundai Rotem will collect 76.3 billion won (US$66 million) outstanding fees from Iran, the company announced on June 24. Hyundai Motor Group’s defense and railway equipment maker said that the Iranian government has approved related plans, and the payment will be made in three installments.  Hyundai Rotem had been contracted to supply 150 diesel-powered train cars to Iran in 2004. The company began shipping the vehicles in 2007, but the project was cut off due in part to economic

June 24, 2016

Seoul approves 2 new nuclear reactors

[THE INVESTOR] The Nuclear Security and Safety Commission on June 23 approved the construction of two nuclear reactors in Ulsan.The plans for the two reactors -- Shin-Kori 5 and 6 -- were submitted by Korea Hydro & Nuclear Power in September 2012. The state-run KHNP plans to begin work immediately, and complete Shin-Kori 5 in March 2021, and Shin-Kori 6 in March 2022. The two reactors are estimated to cost about 8.6 trillion won (US$7.4 billion). By Choi He-suk (cheesuk@heraldcorp.com)

June 24, 2016

Gloomy outlook for Hanjin Shipping

[THE INVESTOR] On news that ailing Hyundai Merchant Marine is likely to join the prestigious vessel-sharing 2M Alliance, all the attention is now focused on its bigger local rival Hanjin Shipping, to see whether the shipper can normalize its business to stave off bankruptcy. Hanjin Shipping, which joined a new alliance named The Alliance in May along with five shippers including Germany’s Hapag-Lloyd, Japan’s Nippon Yusen Kaisha and Taiwan’s Yang Ming, took the early lead on the industry-wide re

June 24, 2016

Hyundai Rotem banned from making new bids

[THE INVESTOR] South Korea’s leading train manufacturer Hyundai Rotem was banned from making new bids for government-run projects for 10 months after it was sanctioned by Daegu Metropolitan Transit Corp. for malpractice.The company will not be permitted to submit bids from July 1 to April 30, 2017, according to the Daegu metropolitan authorities. Hyundai Rotem is charged wth violating local subcontractor laws by adopting a turnkey approach for the entirety of a 23.3 billion won (US$20.1 million)

June 23, 2016

Cosmax inks MOU with US skincare firm

[THE INVESTOR] Cosmetics maker Cosmax has signed an agreement with US-based skincare firm Nerium International to develop new products related to bio-health and cosmetics, a spokesperson for the Korean company said on June 23. Through the newfound partnership, Cosmax hopes to widen its laboratory research of ingredients and development of fresh products. The results of the collaboration will be sold in the US and Korea, and eventually the potential markets of Japan, Hong Kong, and Australia.  Co

June 23, 2016

Korea to increase flights to France

[THE INVESTOR] Korea and France have reached an agreement to increase flights between the two countries, allowing more visitors to travel easily, the Transport Ministry said on June 23. The number of flights from Seoul’s Incheon International Airport to Paris’ Charles de Gaulle Airport will be increased to 14 from 12 every week, the ministry said. The agreement was reached during the bilateral aviation talks in Paris from June 21-22. As to the exact timing of increased flights, the two cities wi

June 23, 2016

Samsung SDS shareholders call on NPS for support

[THE INVESTOR] Minor shareholders of Samsung SDS are reaching out to the National Pension Service in their fight against the company’s reorganization plans. Samsung SDS is reviewing plans to spin off some of its businesses including the logistics operations. Since Oct. 19, Samsung SDS stock has been on a downward slope with prices down by half since then. The minor shareholders’ association has put the blame squarely on the company’s spin-off plans, and has been demanding action from Samsung SDS

June 23, 2016

HMM mulls joining 2M Alliance

[THE INVESTOR] Hyundai Merchant Marine is considering joining the 2M Alliance, a vessel-sharing agreement between Denmark’s Maersk Line and Switzerland’s Mediterranean Shipping Company -- the world’s first and second largest container carriers. Amid growing speculation that Korea’s second-largest shipping company is set to join the alliance, a HMM official confirmed that discussions are ongoing with the alliance parties on June 23. A container vessel is displayed at Hyundai Merchant Marine's hea

June 23, 2016

Economy minister to meet with US business leaders in Korea

[THE INVESTOR] Deputy Prime Minister for Economy Yoo Il-ho will meet with representatives of US businesses in Korea to seek ways to improve economic cooperation, the Ministry of Strategy and Finance said on June 23. At the June 30 conference organized by the American Chamber of Commerce in Korea, Yoo will give a special address and hold meetings with GM Korea chief James Kim to discuss ways to improve Korea-US cooperation and economic issues in the two countries.Deputy Prime Minister for Economy

June 23, 2016

Samsung SDS shareholders send open letter to Lee Jae-yong

[THE INVESTOR] Minor shareholders of Samsung SDS are raising the heat, accusing the firm of neglecting profits to ensure Lee family’s control over the group. In a letter addressed to Samsung Electronics vice chairman Lee Jae-yong, minor shareholders of Samsung SDS called on him to take steps for improving the share price. Samsung Electronics vice chairman Lee Jae-yong.“A decision to improve stock prices is needed. Restore the property rights of the minor shareholders that was lost (by the decisi

June 23, 2016

SK hynix's Q2 operating profit to fall: analyst

[THE INVESTOR] SK hynix’s second quarter operating profit is likely to decrease 20 percent on-year, according to analyst forecasts, with the target market price maintained at 37,000 won (US$32.15).　The chipmaker’s revenue will amount to 3.89 trillion won while operating profit will be 4.6 billion won, a rise of 7 percent and decline of 19 percent over the previous year, respectively,” said Do Hyun-woo, analyst at Mirae Asset Securities. 　He noted that DRAM prices in the second quarter kept decre

June 23, 2016