POSCO Engineering wins $140 million contract in Indonesia

[THE INVESTOR]  POSCO Engineering Co. announced on June 16 that it has been awarded an LPG plant construction project from Indonesia’s state-run oil company. The subsidiary of Korea’s largest steelmaker POSCO specializes in building industrial plant and infrastructure facilities. The $140 million project, awarded to POSCO Engineering-Wijaya Karya (WIKA) consortium, will see the construction of LPG-related facilities including two storage tanks. POSCO Engineering holds 50 percent stake in the con

June 16, 2016

KEPCO looks to Jordan for further overseas expansion

[THE INVESTOR] Korea Electric Power Corp. is reviewing plans for launching solar power projects in Jordan, local news outlets reported on June 16.A team from KEPCO had been dispatched to the United Arab Emirates and Jordan last month to seek out potential new projects in the region. The overseas expansion drive is thought to be fueled by uncertainties the company faces as an electricity supplier. With the government announcing plans for opening up the market to private sector, KEPCO is expected

June 16, 2016

Investigators close in on ex-DSME chief

[THE INVESTOR] The probe into bribery allegations against Daewoo Shipbuilding and Marine Engineering has expanded with authorities looking at the role of former CEO Nam Sang-tae. According to reports, the investigators have found evidence that Nam received bribes in return for awarding contracts to HUMEX Shipping & Air Freight Corp.On June 15, the prosecution applied for an arrest warrant on HUMEX chairman, who is said to be a close acquaintance of Nam. The chairman, identified by his surname Ch

June 16, 2016

Seoul seeks Interpol aid to track key suspect in DSME case

[THE INVESTOR] Seoul has requested Interpol to put out a red notice alert on a key suspect in Daewoo Shipbuilding and Marine Engineering corruption case. A red notice alert is placed on suspects wanted in Interpol member nations. According to the investigators, Seoul’s Ministry of Justice requested the alert on a suspect identified by his surname Lee, who is the elder brother of architect Lee Chang-ha.Lee Chang-ha, who held an executive level position at DSME from 2006 to 2009, was indicted in 2

June 16, 2016

Banks cut maturity on loans to Samsung Heavy

[THE INVESTOR] KB Kookmin Bank shortened the maturity on short term loans to Samsung Heavy Industries on June 15. In giving the shipbuilder an extension on 1-year maturity loans, the bank cut the payback period to three months. Samsung Heavy’s loan from KB Kookmin is 100 billion won ($85.2 million).The move is thought to reflect the difficulties the shipbuilder has been facing as orders dry up for some of Korea’s largest shipyards.  Samsung Heavy Industries.Shinhan Bank is also reported to be co

June 15, 2016

Facebook, Microsoft to help local start-ups’ global expansion

[THE INVESTOR] Major American companies such as Facebook, Microsoft and IBM as well as the South Korean government have joined in efforts to help local start-ups gain a foothold in the U.S.  　Members of the American Chamber of Commerce in Korea held a ceremony on June 14 to mark the launch of the “Global Leading Companies Mentoring Startups” campaign, in partnership with the Ministry of Science, ICT and Future Planning. 　A total of 33 companies participated in the event, including 19 AMCHAM memb

June 15, 2016

Hanjin chairman asks Seaspan’s Wang for price cut

 [THE INVESTOR] Hanjin Group chairman Cho Yang-ho sat down with Gerry Wang, the owner of the world’s largest container firm Seaspan Corp., to persuade him to cut chartering prices. Wang reportedly responded “positively” to Cho’s overtures, according to Hanjin Shipping executives. This is the first time that Cho stepped up to directly intervene in ship charter cost issues. Cho met with Wang on June 14 at the Korean Air headquarters in downtown Seoul.  Cho Yang-ho(left) and Gerry Wang.In May, Wang

June 15, 2016

KDB’s neglect fueled Daewoo Shipbuilding crisis

[THE INVESTOR] Daewoo Shipbuilding and Marine Engineering’s current difficulties were fueled by neglect by its biggest shareholder Korea Development Bank, the Board of Audit and Inspection announced on June 15. According to the BAI, the state-run bank neglected its duty in monitoring the shipbuilder’s accounts and financial stability. The KDB holds 49.7 percent of DSME, making it the biggest shareholder as well as the shipbuilder’s main creditor. According to BAI, KDB did not analyze the shipbui

June 15, 2016

New tank will bring changes to raw material prices: Hanwha Total

[THE INVESTOR] Hanwha Total Petrochemical Co. announced on June 15 the completion of a large propane storage tank at its plant in Daesan, South Chungcheong Province. The tank has a storage capacity of 40,000 metric tons and will be used to store propane gas. Hanwha Total said that the large storage tank will enable it to respond effectively to changes in raw material prices. Liquefied petroleum gas consists mainly of propane and butane. In Korea, the gas is used for a wide range of purposes incl

June 15, 2016

DSME confirms ex-employee stole 18 billion won

[THE INVESTOR] Daewoo Shipbuilding and Marine Engineering Co. confirmed that a former employee had embezzled 18 billion won ($15.3 million), in a disclosure notice on June 15. The notice confirmed news reports that a former employee had embezzled a total of 18 billion won and that the suspect is currently in custody of the authorities. The company said that it filed a criminal complaint against the suspect in January over the alleged embezzlement of 6 billion won, and that evidence implicating t

June 15, 2016

Samsung C&T accused of penalizing child care leave takers

[THE INVESTOR] Samsung C&T Corp. is in hot water over alleged discrimination of employees who take child care leave. According to a report by a local broadcaster, the company has been forcing workers who take child care leave to sign a document that frees the company from responsibility should the employee be penalized for taking such leave. The document, which was allegedly signed by an in-house lawyer at Samsung C&T, apparently states that an employee taking child care leave will not take issu

June 15, 2016

[ANALYST REPORT] Cheil Worldwide: End of uncertainty and start of recovery

Talks with global advertising agencies end without any agreementDiscussions on cooperation between Cheil Worldwide’s major shareholders and global ad agencies ended without any agreement, according to the Data Analysis, Retrieval and Transfer (DART) System of the Financial Supervisory Service. Publicis and Samsung ended talks for the acquisition of Cheil Worldwide. The company also said that no talks are underway with a third party on the majority stake sale, dismissing rumors about disposal to

June 15, 2016

Hyundai Steel says no plans for 4th furnace at Dangjin plant

[THE INVESTOR] Hyundai Steel Co. is not reviewing plans to build another furnace at its Dangjin Steel Mill, the company said June 15. A local daily had reported that the company was reviewing plans to build another furnace, and that the plans could be put into action within two or three years. Citing unnamed Hyundai Steel officials, the report claimed that the related plans were under review due to the maintenance needs of the existing three furnaces.Hyundai Steel Co.An official with the company

June 15, 2016

Samsung Heavy plans drastic labor cut by 2018

[THE INVESTOR] Samsung Heavy Industries Co. will cut its workforce by up to 40 percent by 2018 as part of restructuring plans, its CEO Park Dae-young revealed on June 15. At present, the company’s regular workforce stands at about 13,000 workers. Speaking on the company’s internal broadcasting network, Park said that between 30 to 40 percent of the workforce will be cut by the end of 2018. He also said that the company will begin a voluntary redundancy campaign this year aiming to cut the workfo

June 15, 2016

DSME unionists vote to strike over self-rescue plan

[THE INVESTOR] Unionized workers at Daewoo Shipbuilding & Marine Engineering, one of the country‘s top shipyards, voted Tuesday in favor of a strike at the debt-ridden company’s restructuring plan. YonhapIn a vote asking 6,980 unionists whether to go on strike, 85 percent, 6,127 out of 5,207 who cast ballots, voted yes, according to the labor union. Unionists also demanded DSME to include them when the company holds talks with creditors over rehabilitation schemes. “The result shows that the wor

June 14, 2016

Hanjin chair sells unlisted stock to buy up Hanjin KAL shares

[THE INVESTOR] Hanjin Group chairman Cho Yang-ho sold shares in an unlisted company on June 14 to purchase new stocks that will be issued by Hanjin KAL.Hanjin KAL is a holdings firm affiliated to Hanjin Group.  The Investor.Cho sold 84,530 shares of Jungseok Enterprise Co. for 25.1 billion won ($21 million). Jungseok Enterprise is a property management company also affiliated to the group. Following the sale, Cho’s stake in the company fell from 27.21 percent to 20.34 percent. As for Hanjin KAL,

June 14, 2016

Top financial regulator to closely monitor shipbuilders’ restructuring

[THE INVESTOR] Korea’s top financial regulator will closely oversee the ongoing industry-wide restructuring process of the country’s debt-laden shipbuilders to ensure that the companies fully implement their overhaul plan worth over 10 trillion won. Financial Services Commission Chairman Yim Jong-yong said Tuesday he will hold a biweekly meeting to check whether top local shipyards are making sufficient efforts to normalize their businesses.  Daewoo Shipbuilding & Marine Engineering.“In the firs

June 14, 2016

Ex-civil servants a favorite for large firms’ outside directors

[THE INVESTOR ] A large proportion of outside directors at large enterprises are former civil servants, a recent report showed, raising concerns that the system may be being abused to gain advantage in dealings with government bodies. According to a report by the Economic Reform Research Institute, about a third of outside directors employed between 2006 and 2015 were former civil servants.  Civil servants enter the government complex in Seoul. The InvestorThe report analyzed the backgrounds of

June 14, 2016