Banks' average capital adequacy ratio gains in Q1

South Korean banks saw their financial health improve in the first quarter from three months earlier as they recorded high net profits and raised capital amid the COVID-19 pandemic, data showed Tuesday. The average capital adequacy ratio of 16 commercial and state-run banks stood at 15.34 percent as of end-March, up 0.34 percentage point from the end of last year, according to the data from the Financial Supervisory Service (FSS). A key barometer of financial soundness, the ratio measures the

June 1, 2021

Korea Shipbuilding bags W1.36tr order for 12 ships

Korea Shipbuilding & Offshore Engineering Co. (KSOE) said Tuesday that it has a combined 1.36 trillion won ($1.2 billion) of orders from five customers to build 12 ships. Under a deal with an Oceanian company, four liquefied natural gas (LNG) carriers and a 40,000-cubic meter liquefied petroleum gas (LPG) carrier will be delivered by the first half of 2024, KSOE said in an emailed statement. Another deal with an African company calls for KSOE to deliver four 50,000-ton petrochemical carrie

June 1, 2021

Samsung Heavy wins W529b order for 4 container carriers

Samsung Heavy Industries Co. said Tuesday it has signed a 529 billion-won ($477 million) deal with an Asian company to construct four container carriers. The 13,000 twenty foot equivalent unit (TEU) container carriers will be delivered to the Asian company by February 2024, Samsung Heavy said in a regulatory filing. With the latest deal, Samsung Heavy has achieved 65 percent of its annual target of $9.1 billion, by winning orders worth $5.9 billion for 48 ships, the company said. As new orde

June 1, 2021

LG converting smartphone production lines to make home appliances

LG Electronics Inc. is fast converting its overseas smartphone manufacturing lines into facilities that produce home appliances, industry insiders said Tuesday, following its decision to withdraw from the mobile business. LG said the Brazilian government last month approved its plan to expand its Manaus plant in Amazonas, northwestern Brazil, in a move to shift its production lines from the Taubate site on the east coast. When the $62 million project is completed, LG Electronics will have ne

June 1, 2021

Seoul stocks open nearly flat on inflation woes

South Korean stocks opened nearly flat Tuesday as investors are keeping an eye on signs that may stoke inflation fears. The benchmark Korea Composite Stock Price Index (KOSPI) traded down 1.36 points, or 0.04 percent, at 3,202.56 points in the first 15 minutes of trading. The KOSPI got off to a muted start on investor concerns over early post-pandemic inflation that may trigger tapering talks in the United States. Key Federal Reserve officials are set to comment on the state of the US economy

June 1, 2021

Exports recovery extended to 7th month in May on rebounding global economy

South Korea's exports jumped 45.6 percent on-year in May to extend their gains to a seventh consecutive month due to strong demand for chips amid the global economic recovery, underscoring a rebound from the pandemic-caused slump, data showed Tuesday. Outbound shipments came to $50.7 billion last month, compared with $34.8 billion a year earlier, according to the data compiled by the Ministry of Trade, Industry and Energy. Imports rose 37.9 percent to $47.8 billion, resulting in a trade surplu

June 1, 2021

Homegrown app market operator draws funding from Microsoft, Deutsche Telekom

ONE store, a South Korean app market operator, said Tuesday it received a combined 17 billion won ($15 million) in funding from Microsoft Corp. and the venture capital arm of Deutsche Telekom as it prepares to go public later this year. Microsoft will invest 11.3 billion won in the app market company, a subsidiary under major mobile carrier SK Telecom Co., while Deutsche Telekom Capital Partners will chip in 5.5 billion won, according to ONE store. The move comes after local telecom operators

June 1, 2021

May inflation rate probably remained high due to base effect: senior official

The growth rate of South Korea's consumer prices for May is estimated to have remained high due largely to last year's low base, a senior government official said Tuesday, amid concerns about growing inflationary pressure. First Vice Finance Minister Lee Eog-weon said the growth of consumer inflation is likely to surpass 2 percent in the second quarter, but annual inflation is not likely to top the central bank's target of 2 percent. He said the government will unveil a set of measures to help

June 1, 2021

Insurers' lending grows 7% in Q1

Loans extended by insurance companies in South Korea rose 7 percent on-year in the first quarter, led by gains in home-backed lending and corporate loans, the financial watchdog said Tuesday. Insurers' outstanding loans totaled 255.1 trillion won ($229 billion) as of end-March, compared with 238.4 trillion won the previous year, according to the Financial Supervisory Service (FSS). Their loans to households rose 3.6 trillion won on-year to 124.9 trillion won as of end-March, as the extension

June 1, 2021

S. Korea, Mercosur bloc hold 6th round of FTA talks

South Korea on Tuesday held the sixth round of free trade talks with a group of South American countries, after around a year of hiatus amid the COVID-19 pandemic. The two parties kicked off the four-day meeting virtually to set details on the pending trade agreement, according to the Ministry of Trade, Industry, and Energy. The previous meeting was held in Uruguay in February 2020. South Korea launched its first talks with the four member states of the South American trade block Mercosur -- B

June 1, 2021

Several investors submit LOIs for budget carrier Eastar

Financially troubled budget carrier Eastar Jet Co. has received letters of intent (LOIs) from some investors for its stake up for sale and will select a final bidder next month. Easter Jet, currently under a court-led rehabilitation scheme, has received LOIs from several companies, including a consortium led by Kanglim, a local equipment maker under underwear company Ssang Bang Wool, and other private equity funds, according to industry sources.   The budget carrier selected a preli

May 31, 2021

OECD upgrades South Korea’s GDP growth forecast to 3.8%

The South Korean economy is forecast to grow 3.8 percent this year on the back of strong export growth and expansionary macroeconomic policy, the Organization for Economic Cooperation and Development said Monday, ramping up its previous projection of 3.3 percent. “Strong overseas demand for IT products, which account for about a fifth of total exports and automobiles is lifting exports. A gradual easing of distancing measures and government relief packages have helped vulnerable household

May 31, 2021

Number of locally produced medical devices surpasses imports

The number of medical devices produced by local companies has surpassed those imported from other countries for the first time since 2011, according to a report released by the government, Monday. The number of local companies’ medical devices reported to the government last year reached 4,222, accounting for 51.6 percent in the market, according to the Ministry of Food and Drug Safety. The total number of reported medical devices here, including imports, reached 8,183, slightly down fr

May 31, 2021

1st NFT marketplace launches in S. Korea

South Korean cryptocurrency exchange Korbit has launched a nonfungible token trading platform for the first time in the local crypto sector, the company said Monday. An NFT is a unit of data on a blockchain and represents ownership of unique digital items, such as images, sound files or text. An NFT contains data of the ownership history and the original author. As it offers royalty to the original author every time the asset is traded, the NFT technology is being increasingly utilized in the

May 31, 2021

Record Q2 forecast puts LG on path to world top spot in home appliances

LG Electronics is on path to take the crown of the world’s No. 1 home appliance maker by sales, as it continues a stellar performance this year, local analysts predicted. According to market reports from securities companies here, the home appliance and air solution unit of LG Electronics is expected to post record high sales of around nearly 7 trillion won ($6.3 billion) in the second quarter, claiming the world’s top spot in terms of quarterly sales for a second consecutive quar

May 31, 2021

Hanwha to localize laser beam tech to shoot down drones

Hanwha Group has won a 24.3 billion-won ($21.8 million) deal from the Agency for Defense Development to develop a key device that helps laser beam weapons target drones flying several kilometers away, the company said Monday. Over the next four years, Hanwha will develop a prototype of an amplification device that magnifies the output and travel distance of laser beams. “Laser weapons can shoot down fast-flying objects at the speed of light. Based on 20 years of research into laser t

May 31, 2021

Samsung Heavy fights hard despite shipbuilding boom

Fueled by the recovery of global trade volume and increasing demand for advanced eco-friendly vessels, South Korea’s main shipbuilders have seen business boom recently, with benefits spilling over to related sectors such as steel. But Samsung Heavy Industries, the shipbuilder under the nation’s top conglomerate, Samsung Group, continues to reel under troubled finances and weak recovery scenarios. Some critical hits to the company’s accounting books, according to market ob

May 31, 2021

Seoul stocks gain for 2nd day on eased tapering jitters

South Korean stocks advanced for a second straight day Monday after a choppy session, as investors lean towards belief that the price hike is likely temporary. The Korean won rose against the US dollar. The benchmark Korea Composite Stock Price Index (KOSPI) rose 15.19 points, or 0.48 percent, to close at 3,203.92 points. Trading volume was moderate at about 1.1 billion shares worth some 13.8 trillion won ($12.4 billion), with gainers outnumbering losers 505 to 342. Foreigners bought a net 52

May 31, 2021

Retailers roll out paid vaccine leave as vaccine rollout speeds up

Retail giants such as Shinsegae Group and Lotte Group are rolling out paid vaccine leave for staff as the country’s vaccine rollout gathers speed. Shinsegae Group, the retail giant behind Shinsegae Department Store and Emart, said on Monday it would provide two days off work to those who get vaccinated. The group said one additional day off will be provided to those who have side effects from vaccination. “We are actively providing our employees with an environment where they can

May 31, 2021

FTC orders Ford to correct false marketing claim

Ford Sales and Service Korea received a correction order from the Fair Trade Commission for misrepresenting one of its vehicles as having a rear braking support system, the watchdog agency said Monday. According to the FTC, the importer and seller of the US-based Ford advertised in 2019 that its sport utility vehicle the Ford Explorer Limited was equipped with a reverse braking system, which was not true. In brochures and on its official website, the automaker had said the function helped t

May 31, 2021