Korean, Spanish construction firms join hands for expansion

[THE INVESTOR] Korean and Spanish construction companies are working together in efforts to expand trade and gain a foothold in new markets. Korea’s trade promotion agency KOTRA held a forum in Madrid, Spain, with Association of National Field Construction Companies in Spain (SEOPAN) on June 22 (local time). A total of 13 companies participated in the forum, including Korea’s Hyundai Engineering & Construction and Daechang Corporation, and Spain’s Groupo ACS, the world’s leading construction fir

June 23, 2016

Seaspan chairman demands liquidity injection from Hanjin

[THE INVESTOR] The world’s largest container ship operator Seaspan has demanded Hanjin Group chairman Cho Yang-ho to dip into his private coffers to normalize Hanjin Shipping.“Hanjin Shipping without a liquidity injection from controlling shareholder, the Cho family and the Korea Development Bank will have a very challenging road ahead,” Seaspan CEO Gerry Wang told Splash 24/7 in an interview on June 21. “It is a well run company which hit liquidity snags due to market conditions.” Splash 24/7 i

June 22, 2016

LG eyeing STX Namsan Tower

[THE INVESTOR] LG Group is in talks with KORAMCO REITs Management and Trust over purchasing STX Namsan Tower near Seoul Station. According to industry sources, KORAMCO is negotiating the sale of the 23-story building to LG Group. Details about the negotiations remain unknown, but the property is estimated to fetch about 300 billion won (US$260 million) for KORAMCO. KORAMCO had selected Korea Investment Management as the preferred bidder in September, but the deal fell through when the latter fai

June 22, 2016

Hanjin family draws millions in dividends despite massive losses

[THE INVESTOR] The Cho family of Hanjin Group received about 1.1 billion won ($954,000) in dividends from Hanjin Kal although the company posted 205.2 billion won net loss in 2015.Hanjin Kal is the holdings company of Hanjin Group that counts Korean Air among its subsidiaries. The company posted a large deficit for 2015, but paying out total of 4.01 billion won in dividends was approved at the general shareholders meeting in March.Hanjin Group chairman Cho Yang-ho and his three children, includi

June 22, 2016

Hyundai Samho completes Panama Canal contract

[THE INVESTOR] Hyundai Samho Heavy Industries announced on June 22 that its US$210 million Panama Canal contract has been completed. In 2010, Hyundai Heavy won the contract to build and install 158 small floodgates and 158 sets of hydraulic systems for the Panama Canal expansion project. An aireal view of the Panama Canal. Panama Canal AuthorityThe US$5.25 billion project will increase Panamax by a factor of about 1.5. The expansion project is set for completion on June 26. By Choi He-suk (chees

June 22, 2016

Asiana Airlines considering JV for in-flight food service

[THE INVESTOR] Asiana Airlines, the nation’s second-largest air carrier, is mulling a joint venture for in-flight catering, local news reported on June 22. Citing sources from the airline industry, the report indicated that Asiana has been discussing the plan with various companies here and abroad. “Asiana, which has outsourced catering, is planning on establishing a new JV,” a source was quoted as saying. Asiana began in-flight catering business in 1994 and continued until 2003 when it sold 80

June 22, 2016

Korea’s speed of innovation 70% that of China: survey

[THE INVESTOR] Korean manufacturers consider the country far behind China in terms of speed of innovation, a Korea Chamber of Commerce and Industry survey showed on June 22. In the survey on 300 manufacturing firms, local companies rated Korea’s speed of innovation as being 71 percent that of China. The respondents were asked to estimate the country’s speed of innovation in relation to China, whose speed of innovation was set at 100 kilometers per hour. The average Korea industries came in at 70

June 22, 2016

Korea’s top four conglomerates focused in China

[THE INVESTOR] South Korea’s top four conglomerates -- Samsung, Hyundai Motor, SK and LG -- were found to be focusing their overseas operations in China. One out of four of their offshore companies are located in China as of March this year, according to a local think tank on June 22.In contrast, only 2.1 percent are located in the United Kingdom, which is set to vote June 23 whether to stay in the European Union.Samsung affiliates, such asSamsung Electronics, Samsung C&T and Samsung SDS have 18

June 22, 2016

KT&G boosted by overseas sales

[THE INVESTOR] Korean cigarette maker KT&G’s performance will continue to improve buoyed by overseas sales, local brokerages projected. On June 21, NH Securities and Investment projected that KT&G’s second quarter sales will come in at over 1.12 trillion won (US$968.7 million), up 8.7 percent from the same period last year. For second quarter operating profits, NH Securities projected a figure of 340.4 billion won, up 12.3 percent over the same period.Other securities firms also projected a posi

June 22, 2016

Korea FTC probes e-commerce firms, Coupang and Ticket Monster

[THE INVESTOR] The Korea Fair Trade Commission is probing e-commerce firms on suspicion of unfair trade practices, according to sources familiar with the issue on June 21.The antitrust agency conducted a field investigation on Coupang and Ticket Monster and secured evidence of unfair transactions of the two, including delayed payments to suppliers and unissued supply contracts.Jeong Jae-Chan, chairman of FTC, has said last month that the agency would start cracking down on social commerce and on

June 22, 2016

Top 30 Korean groups suffered 7.4% decline in overseas sales

[THE INVESTOR] Overseas sales at 20 of South Korea’s top 30 industrial groups suffered a fall in 2015, according to CEO Score, a website specializing in corporate data. A total of 1,022 firms affiliated with the 30 groups saw their combined overseas sales decline 7.4 percent to 586.4 trillion won (US$503 billion) from the previous year, CEO Score said on June 22. Overseas sales also fell by a larger clip than domestic sales, which dropped by 5.2 percent. In particular, companies showed lackluste

June 22, 2016

POSCO eyes quake-proof steel

[THE INVESTOR] Korea’s top steelmaker POSCO plans to expand production of its quake-proof steel products in light of growing awareness that the peninsula is no longer safe from major seismic jolts following the Japan earthquake and tsunami of 2011. POSCO has set its goal to expand production and sale of quake-proof steel products by 30 percent year-on-year, local news reported on June 21.Dongdaemun Design Plaza in Seoul built with POSCO’s TMCP steel Under the plan, the steelmaker plans to expand

June 21, 2016

China’s slowdown opportunity for Korean products: report

[THE INVESTOR] China’s slowing economic growth has given Korean products’ global market share room to grow, LG Economic Research Institute said in a report on June 21. According to the report, China’s slowing growth rate has curbed the rate at which Chinese products have taken up global market share, and damaged their price competitiveness. The LGERI report said that China’s rising labor and land costs coupled with falling raw materials costs brought on by slowing domestic consumption has narrow

June 21, 2016

Korea’s competitiveness in advanced manufacturing drops

[THE INVESTOR] Korea’s competitiveness in advanced manufacturing sector has declined over the past years, due mainly to sluggish performance in semiconductor and mobile industry, according to a report by Hyundai Economic Research Institute released on June 21. From 2010 to 2014, added value in Korea’s advanced manufacturing industry -- which includes aerospace, semiconductor, IT and pharmaceutical, among others -- declined by 4.7 percent. Japan is the only other major country that dropped, by 9.

June 21, 2016

Labor union opposes Hyundai Heavy’s spin-off plans

[THE INVESTOR] Hyundai Heavy Industries’ labor union is strongly opposing the company’s move to spin off its facility-assistance business unit, industry sources said on June 21.Although it is one of Hyundai Heavy’s key promises to its creditors, unionists claim that the move would lead to a rise in nonregular workers -- mostly the 994 employees who are currently working at the division. The union’s representatives decided to propose a general strike last week, denouncing the shipbuilder’s latest

June 21, 2016

Loss of Hanjin, Hyundai shipping firms will cause US$19 billion damages

[THE INVESTOR] Hanjin Shipping and Hyundai Merchant Marine disappearing from the market will result in loss of 5,400 jobs and damages of US$19.13 billion on the Korean economy, the Korea Shipowners’ Association projected on June 20. According to the association’s calculations, the two shipping firms being pushed out of the market will also prompt major global shipping companies to take their operations out of Korea’s Busan Port. Busan is currently ranked the world’s fifth largest port in terms o

June 20, 2016

Samsung SDS small shareholders demand action

[THE INVESTOR] Samsung SDS’ small shareholders are demanding Samsung Group to take measures to boost the company’s stock prices. On June 20, an online association of Samsung SDS shareholders posted a letter addressed to Samsung Future Strategy Office chief and Samsung Electronics vice chairman Choi Ji-sung.In the letter, the shareholders criticized the company’s plans to separate its logistics business, and called on him to show the company’s plans for buoying stock prices. Samsung SDS closed at

June 20, 2016