BOK chief sees faster-than-expected economic recovery in 2021

South Korea's economy is expected to recover from the COVID-19 pandemic at a faster pace than expected this year as the US economic recovery gathers steam, the head of the Bank of Korea (BOK) said Wednesday. BOK Gov. Lee Ju-yeol, however, said the central bank has no plan to normalize its monetary policy earlier than anticipated, even though the nation's economy is predicted to grow at a faster pace in 2021. His remarks came as US President Joe Biden's $1.9 trillion aid package is expected to

March 24, 2021

Asset managers' 2020 profits surge on stock rally

The combined net profit of asset management companies in South Korea surged 62.4 percent in 2020 from a year earlier due to a strong gain in commission fees amid a bullish stock market, data showed Wednesday. The combined net profit of 326 asset management firms came to 1.33 trillion won ($1.17 billion) last year, up 511.8 billion won from a year ago, according to the Financial Supervisory Service (FSS). Analysts attributed the jump in their earnings to the bullish run of the South Korean stoc

March 24, 2021

Producer prices up for 4th month in February

South Korea's producer prices rose 0.8 percent on-month in February on a modest rise in oil prices, extending their monthly gains for the fourth straight month, central bank data showed Wednesday. The producer price index, a barometer of future consumer inflation, stood at 105.85 in February, compared with 105.05 a month earlier, according to the Bank of Korea (BOK). The index gained 2 percent from the previous year, the BOK data showed. The prices of agricultural goods gained 5.1 percent on-

March 24, 2021

S. Korea to spend W1.1tr for Level 4 self-driving technology

South Korea said Wednesday it plans to spend 1.1 trillion won ($974 million) by 2027 to speed up the development of Level 4 self-driving vehicles and boost related technologies. At Level 4, one stage before full autonomy, the vehicle can drive itself under limited conditions and does not require human intervention. Under the plan, South Korea will support 84 projects to develop vehicle convergence, information and communication and road traffic technologies, as well as self-driving services an

March 24, 2021

Kumho Tire to sell rubber processing plant in Vietnam

Kumho Tire said Tuesday it will sell its natural rubber processing plant in Vietnam to focus on its core business. The second-largest tire maker in South Korea said it has struck a deal with a joint venture between Korean automaker Hyundai Motor and Thanh Cong Group of Vietnam to sell its rubber factory. It plans to finalize the deal by May. The company opened the $4 million factory in southeastern Vietnam in 2007, which can supply rubber for 6 million tires a year.  The tire maker has b

March 23, 2021

SsangYong Motor's 2020 financial report rejected by auditor

SsangYong Motor's annual financial report was rejected by its external auditor due to its heavy debt, the cash-strapped automaker said Tuesday. SsangYong Motor, the South Korean unit of Indian carmaker Mahindra & Mahindra, said in a regulatory briefing that Samjong KPMG gave a disclaimer of opinion for its 2020 financial report, questioning its ability to continue its business. The SUV-focused automaker logged 449.4 billion won ($398 million) in operating losses last year, increasing

March 23, 2021

S. Korea to ‘flexibly’ intervene in bond market if necessary: vice minister

Nodding toward the latest global market jitters caused by a sudden spike in US bond yields, South Korea’s vice finance minister vowed Tuesday to “flexibly intervene” if market volatility increases. “Recently a dampened investor sentiment and increased volatility have been observed in the Treasury bond market,” Vice Finance Minister Kim Yong-beom said in a macroeconomics meeting. “We will make our best effort to stabilize the market, including making an adju

March 23, 2021

LG Chem launches door-to-door plastic retrieval service

LG Chem said Tuesday it is working with a local start-up to launch a door-to-door plastic retrieval service. South Korea’s leading petrochemical company signed an agreement with zero-waste packaging provider Innerbottle to start a service where residents can simply put plastic waste inside a bag outside their doors and let a worker pick them up. “For example, if a customer orders a cosmetic product from a brand that uses Innerbottle’s plastic container, an eco-bag will be s

March 23, 2021

KT aims to produce 100 blockbuster dramas by 2023

KT, South Korea’s second-biggest mobile carrier by subscribers, will invest big in content to seek growth beyond the platform business, its chief executive said Tuesday. In a press conference held virtually, CEO Ku Hyun-mo said the telecom firm had taken its first major step in January already, setting up KT Studio Genie, which will serve as the control tower of all media and content related businesses within KT. “Media platform is an important business for KT, which can bring ta

March 23, 2021

Experts say guidelines missing for new rule on crypto asset trade

Blockchain industry experts urged the government to introduce detailed guidelines on real-name accounts required for all cryptocurrency exchanges under implementation of a new law known as the Specific Financial Transactions Act. Slated to take effect Thursday, the new rule obligates registration of all virtual asset operations, making it only possible for operators to conduct trades carried out with the real-name accounts opened via local banks. The new rule is introduced to prevent money l

March 23, 2021

Hyundai Motor to build its own EV-charging station brand

South Korea’s auto giant Hyundai Motor Group on Tuesday unveiled a plan to build its own high-speed charging infrastructure for electric vehicle models under the new independent brand “E-pit.” Under the new system, electric cars embedded with Hyundai Motor’s exclusive platform may operate for up to 100 kilometers upon a single five-minute charge at E-pit stations. E-pit was inspired by pit stops where motorsports race cars pause for refueling, tire replacement, repairs

March 23, 2021

[Newsmaker] Kia union fears job cuts over online preorders

Like many global carmakers, Kia Corp. plans to take preorders online for EV6, its first all-electric vehicle built on an exclusive EV platform, slated for release here in July. But its labor union is opposing the idea, sensing a potential threat it poses to the job security of conventional sales staff. “The online preorder system introduced for the upcoming EV6 will infringe on the employment security of the sales workforce,” the Kia branch of the Korean Metal Workers’ Uni

March 23, 2021

LG Group could face legal action over naming of its new holding company

LG Group’s plan to name its new holding company “LX” faces a setback as another company threatens legal action to stop the move, claiming rights over the name. The state-run Land and Geospatial Informatix Corporation announced Tuesday that it would take legal action against LG Group to prevent the South Korean conglomerate from using its trade name, which it has used for around 10 years. The Land and Geospatial Informatix Corp.’s steering committee met Friday to discu

March 23, 2021

[News Focus] Should ban on short selling be lifted?

SEJONG -- Short selling, which is under a provisional ban in South Korea, has been a core issue in the local financial market since the novel coronavirus initially hit the nation 14 months ago. Short selling is a trading strategy in which investors are entitled to sell “borrowed” stocks at particular prices. They can reap gains by repurchasing the stocks -- which is dubbed “short covering” -- at lower prices later. Before COVID-19 dealt a blow to the country, local and

March 23, 2021

Boardrooms at banking groups under pressure for change

Boardrooms of South Korea’s financial groups are facing criticism for defying pressures for change despite their failure in holding top executives responsible for exposing their operations to legal and financial risks. Creating headwinds for Shinhan Financial Group and Woori Financial Group, which will vote on reappointments of inside and outside directors during shareholders meetings scheduled this week, are accusations that the current board members have been negligent in their oversig

March 23, 2021

Why develop in-house game engines?

In the world of games, game engines are the ready-made architecture that developers use to design and run their games. So choosing what game engine to use from a list of readily available options from world-renowned firms is often the first step of game development. Yet, some South Korean game firms are taking a different path, choosing to spend money and resources on building their own game engines. At the forefront is Pearl Abyss, which scored 488.8 billion won ($432.5 million) and 157.3

March 23, 2021

KAI to launch 4 more midsize satellites by 2025

After the successful launch of South Korea’s next-generation midsize satellite Monday, Korea Aerospace Industries will be in charge of sending a second one into orbit next year, the company said Tuesday. The launch of the midsize satellite No. 1 was led by the Korea Aerospace Research Institute and KAI participated as a co-developer. KAI will lead the launch of satellite No. 2 scheduled for January next year, with the help of technology transfers from the KARI. KAI will be responsible fo

March 23, 2021

S-Oil upgrades Ulsan plant to curb sulfur and harmful vapor

S-Oil said Tuesday it has completed the upgrade of its Ulsan petrochemical plant to prevent sulfur and harmful vapor from being emitted into the air as part of an effort to accelerate the company’s environmental, social and governance efforts. According to the refinery, it has injected some 73 billion won ($64.9 million) into the expansion of its residue hydro-desulfurization capacity and the construction of a vapor combustion unit. The residue hydro-desulfurization unit, or RHDS unit,

March 23, 2021

SK Innovation to split-off battery biz: report

SK Innovation will split off its battery unit into a wholly-owned subsidiary, a local media reported Tuesday. According to Herald Business, the Korean-language sister paper of The Korea Herald, SK Group chose a split-off over a spin-off to carve out the battery business, in a CEO meeting held earlier this year. In a spin-off scenario, the envisioned business would have become a subsidiary under SK Group, with SK Holdings and SK Innovation each holding a 33.4 percent stake in it. SK Innovat

March 23, 2021

Seoul stocks down for 3rd day on concerns over US bond yields, US-China relations

South Korean stocks slumped for the third consecutive session Tuesday amid uncertainties related to the longer-term US Treasury yields and US-China political ties. The Korean won fell against the US dollar. The benchmark Korea Composite Stock Price Index (KOSPI) fell 30.72 points, or 1.01 percent, to close at 3,004.74 points. Trading volume was moderate at about 1.3 billion shares worth some 15.9 trillion won ($14.1 billion), with gainers outnumbering losers 653 to 216. Foreigners sold a net

March 23, 2021