Trade deficit hits $5.6b on decline in exports

SEJONG -- South Korea’s trade deficit, posted over the past five months on a cumulative basis, expanded during the first 10 days of June due to a decline in exports as well as a spike in import prices of raw materials including crude. The nation’s exports fell more than 12 percent during the June 1-10 period, compared to the same period of 2021, while imports increased by more than 17 percent, state data showed Monday. Korea recorded a trade deficit of $5.59 billion for the first 1

June 13, 2022

Food packages get smaller for customers weary of inflation

Amid price hikes and rising food bills, retailers in South Korea have come up with a new marketing strategy to keep customers satisfied. Convenience store chain CU has launched packages of vegetables, meat and fruit that are smaller and less expensive than the ones they usually sell. The store chain also offers packaged Korean pork belly, jowl meat, false lean, and flat iron steak in 200-gram packages. The company said it has cut margins by directly purchasing vegetables from distribution cen

June 13, 2022

[Newsmaker] [Herald Interview] ‘Even in bearish market, K-pop-themed ETF will shine’

Unlike stocks, it is rare for an investment like an exchange-traded fund (ETF) to draw global attention. But KPOP ETF went viral in April when plans for the fund hit the news, reflecting the popularity of one of South Korea’s most high-profile exports. The orchestrator behind the ETF -- set to debut in the US market on July 5 – is Seoul-based intellectual property mogul, and Contents Technologies CEO, Lee Jang-won who recently sat down with The Korea Herald to discuss whether the K

June 13, 2022

AMD’s next-gen server CPU standard signals ties with Samsung

The latest announcement of US logic chip designer Advanced Micro Devices’ next-generational processor standard for data center servers indicates that a collaboration with South Korean tech giant Samsung Electronics is imminent. This comes as AMD’s chip architecture in the making is to be compatible with the groundbreaking Samsung-backed memory standard Compute Express Link, in order for the chip platform to go full throttle. AMD hinted at heterogeneous computing by opening up to in

June 13, 2022

Samsung Biologics boasts top-tier production capacity at BIO International

SAN DIEGO -- Samsung Biologics is showcasing its top-tier production capacities at the world’s largest biopharmaceutical exhibition, the South Korean company said Monday. Taking part in the BIO International Convention for the 10th consecutive year, Samsung Biologics has set up a sizable 140-square-meter booth to represent its world-leading production capacity as one of the largest contract and manufacturing organization businesses across the globe. According to Samsung Biologics, the

June 13, 2022

Seoul shares open sharply lower on inflation, recession woes

Seoul shares opened sharply lower Monday, as the higher-than-expected inflation in the United States renewed concerns over more aggressive monetary tightening and a global economic slowdown. The Korea Composite Stock Price Index (KOSPI) fell 57.04 points, or 2.2 percent, to 2,538.83 points in the first 15 minutes of trading. On Friday, US shares tumbled after the US' consumer price index for May rose 8.6 percent, the highest level in 40 years. The Dow Jones Industrial Average retreated 2.73

June 13, 2022

Exports down 12.7% during first 10 days of June

South Korea's exports fell 12.7 percent on-year in the first 10 days of June due largely to fewer working days, and the country suffered a trade deficit due to high fuel costs, data showed Monday. The country's outbound shipments stood at $15.07 billion in the June 1-10 period, compared with $17.3 billion a year earlier, according to the data from the Korea Customs Service. The fall in exports came as the number of working days in June was fewer than a year earlier due to public holida

June 13, 2022

Renault Korea Motors vows to stay committed to Korea

With big is beautiful still the mantra for many Korean drivers, small-car specialist Renault Korea Motors faces a challenge in the local market. So as the carmaker commits to the Korean market, new CEO Stephane Deblaise’s priority is designing a new car that suits Korean tastes and taking it to foreign markets with similar preferences. “Korean customers prefer big cars over small cars, and there are no such cars in our lineup. So we are thinking about making a big car here in Kore

June 12, 2022

Cargo truckers’ strike deepens inflation, supply chain woes

South Korea’s unionized cargo truckers continued their sixth day of a general strike on Sunday, posing a fresh threat to the local economy amid lingering woes over higher inflation and supply chain disruptions.  Cargo truckers here began a nationwide indefinite strike on Tuesday, urging the government to extend a freight rate system that guarantees a basic level of pay. Drivers say that without the higher rate, they feel under pressure to drive dangerously fast to make ends meet.&nb

June 12, 2022

[Newsmaker] McDonald’s Korea back on sale after six years

McDonald’s Korea, the local unit wholly owned by the US fast-food giant, is seeking a new owner -- joining the latest burger chain sales rush here. The company confirmed Friday that its US headquarters is selling its entire stake in the Korean unit as well as its business license after its first failed attempt six years ago. According to news reports, Mirae Asset Securities, the deal’s lead manager, plans to send letters as early as next month to invite potential bidders. With

June 12, 2022

Kakao Pay employees each lose W20m over stock dip

Kakao Pay employees who own shares in their own company each lost an average 20 million won ($15,600) due to the mobile payment firm’s stock price plunge since January, reports said Sunday. The company’s employee stock ownership association purchased a total 3.4 million shares in Kakao Pay at the price of 90,000 won per share prior to its initial public offering on Nov. 3 last year, according to a regulatory filing. Documents show that some 800 employees received an average 4,005

June 12, 2022

Kakao, Shinhan dive into online, mobile insurance market to lure millennials, Gen Z

South Korea’s tech giant Kakao and financial giant Shinhan are set to launch online- and mobile-only insurers by next month to attract millennial and Generation Z customers with affordable and simple products. Kakao’s mobile payment arm, Kakao Pay, is slated to launch its first general insurance unit called Kakao Pay Insurance in July, adding competition to the online-only insurance market here currently dominated by three existing insurers – Kyobo Life Planet, Hana Insurance

June 12, 2022

[Weekender] Metaverse technologies bring health care to doorsteps

South Korea’s health care sector is breaking physical barriers with the rise of the metaverse and its core technologies -- virtual reality and artificial intelligence. As the COVID-19 pandemic has limited most offline interactions for the past two years, metaverse technologies that ultimately envision a shared virtual space where people can interact with each other and carry out lifelike activities and tasks have been brought to the fore. Unlike the traditional health care sector that

June 11, 2022

BOK chief signals July rate hike amid soaring inflation

Bank of Korea Gov. Rhee Chang-yong on Friday backed a “timely” rate hike to avoid fallout from a belated decision, ahead of a policy board meeting in July, in an address to mark the 72nd anniversary of the bank’s founding. The central bank has already lifted interest rates three times this year, doing so at every policy meeting except for the one in February -- a decision experts say demonstrates the central bank’s determination to alleviate the increasing burden on

June 10, 2022

Samsung chief’s brother-in-law elected first Asian ISU President

Kim Jae-youl, a council member of the International Skating Union, was elected president of the organization at the ISU Congress held on Friday in Phuket, Thailand. Kim, the brother-in-law of tech giant Samsung’s de facto leader Lee Jae-yong, has become the first non-European to lead the ISU since its foundation in 1892. The candidate from South Korea is a short-track speed skating powerhouse who won 77 out of 119 possible votes. Kim will serve as ISU president until 2026. He earlier p

June 10, 2022

[Newsmaker] McDonald’s seeks to sell Korean branch again

McDonald’s, the world’s largest burger chain by revenue, is seeking a buyer to take over the Korean business it wholly owns, six years after its first attempt, which fell apart after a local dairy company backed out. “We’re looking for a strategic partner who could help our business here grow. We’re looking at several options with outside advisers,” a McDonald’s Korea official said Friday, declining to elaborate on details. Mirae Asset Securities will

June 10, 2022

Police decline to refer Samsung chief to prosecution for alleged employment violation

Samsung Electronics Vice Chairman Lee Jae-yong has steered clear of a legal risk involving his alleged violation of a restriction on his employment that is effective until 2026. The Seoul Metropolitan Police decided not to refer the case involving the 53-year-old de facto leader of the South Korea-based tech giant to the prosecution, considering he was not paid for his casual work as an unregistered director, according to activist groups on Friday. Seven civil activist groups, including the C

June 10, 2022

Gas prices likely to hit record-high in weeks

SEJONG -- Gasoline prices in South Korea are likely to hit an all-time high in the coming weeks in the wake of another spike in international crude prices, with prices climbing for more than 30 consecutive days. According to the Korea National Oil Corp., the nation’s benchmark gasoline price reached 2,055.11 won ($1.62) per liter on Friday. After posting 1,931.86 won on May 6, its price tag rose for the 35th consecutive day. Some market insiders are issuing the possibility that the price

June 10, 2022

Lotte taps former Samsung Biologics exec to lead bio business

Lotte Biologics has picked Lee Won-jik, a former Samsung Biologics executive, to lead its bio business as the company’s CEO. Born in 1977, Lee has over two decades of experience in global biologics and the pharmaceuticals industry, including working at the US Department of Health and Human Services and Bristol Myers Squibb. Before he joined Lotte in August, Lee was the head of Samsung Biologics’ drug product business unit. Lotte Biologics and its new CEO will officially debut at

June 10, 2022

KB chief, Danish envoy discuss finance industry’s role in carbon neutrality

KB Financial Group Chairman Yoon Jong-kyoo and Tomas Anker Christensen, Denmark’s ambassador for climate change, discussed the role of the financial sector in achieving carbon neutrality, officials said Friday. In the meeting held Thursday, Yoon explained KB’s efforts in promoting awareness of a low-carbon economy and shifting the group’s strategy in line with carbon neutrality. KB is currently pursuing its net-zero goals with a strategy called “KB Net Zero S.T.A.R,&rdq

June 10, 2022