The Korea Herald

KEPCO to acquire US solar power plant

[THE INVESTOR] Korea Electric Power Corp. plans to acquire a US solar power plant, the South Korean company said Aug. 22. According to KEPCO, it will sign a deal to acquire Cogentrix Energy Power Management’s Alamosa Solar Generating Plant in Alamosa, Colorado, at the end of the month.The deal is estimated to be worth about US$30 million. Alamosa Solar Generating Plant has a generation capacity of 30 megawatts and supplies power to about 10,000 homes, the company said. This is the latest move by

Aug. 22, 2016

Samsung Asset Management to set up two subsidiaries

[THE INVESTOR] Samsung Asset Management is to establish two spinoff subsidiaries on Jan. 1.Samsung Asset Management said on Aug. 19 that the move is aimed at increasing the efficiency of its businesses.One of the subsidiaries tentatively named Active Asset Management will be established with 30 billion won (US$ 26.76 million) capital, and it will specialize in collective investment and investment consultations, the company said. The other subsidiary, tentatively named Hedge Asset Management, wil

Aug. 19, 2016

Samsung Asset Management to set up two subsidiaries

Labor dispute costs Hyundai Motor

[THE INVESTOR] Hyundai Motor on Aug. 19 estimated that labor unions’ strikes have caused more than 1.13 trillion won (US$1.01 billion) in damages.The carmaker’s union on Aug. 19 staged partial strikes in protest of the company’s plans to expand the peak wage system. The union halted production for eight hours on Aug. 19, and plans to strike again on Aug. 22 for another eight hours. Hyundai Motor’s management and the union held their 18th round of talks in this year’s wages negotiations on Aug. 1

Aug. 19, 2016

Real income records zero growth in Q2

[THE INVESTOR] South Korean households’ real income remained the same from a year ago during the second quarter of the year, government data showed Aug. 19.According to Statistics Korea, although the second quarter saw household income grow by 0.8 percent from a year ago, real income remained the same. The data showed the second quarter’s sluggish growth was brought on mainly by the drop in capital income, which dropped 9.8 percent compared to the same period last year. Since dropping to below 1

Aug. 19, 2016

S. Koreans’ spending drops to record low in Q2

[THE INVESTOR] The ratio of South Korean households’ disposable income to consumption fell to a record low during the second quarter of the year, Statistics Korea said Aug. 19.According to Statistics Korea, South Korean households’ disposable income showed a 1 percent increase year-on-year in the second quarter of the year. However, consumer spending stayed unchanged over the same period, pushing down the proportion of disposable income to consumption to 70.9 percent. This is the lowest quarterl

Aug. 19, 2016

S. Koreans’ tobacco and alcohol spending rise in Q2

[THE INVESTOR] South Koreans cut back on education spending, but ponied more up for tobacco and alcohol products during the second quarter of the year compared to a year ago, data showed Aug. 19. According to Statistics Korea data, South Korean households’ education spending declined 0.7 percent on-year, but spending on alcoholic drinks and tobacco products rose 7.1 percent. For tobacco alone, spending increased 10.9 percent, as tobacco consumption recovered from a tax hike implemented last year

Aug. 19, 2016

S. Koreans’ tobacco and alcohol spending rise in Q2

Income inequality deepens in Q2

[THE INVESTOR] South Korea’s income inequality worsened in the second quarter of the year, Statistics Korea data showed on Aug. 19.According to the data, the income of households in the bottom 20 percent dropped 6 percent compared to the same period last year to come in at about 1.39 million won (US$1,240). In contrast, that of the top 20 percent of households increased 1.7 percent to come in at 8.21 million won per month. The drop in the lowest income households’ earnings was attributed to fall

Aug. 19, 2016

Samsung Heavy to raise 1.1 trillion won with new shares

[THE INVESTOR] Samsung Heavy Industries will issue 159.12 million new shares with the aim of raising about 1.1 trillion won (US$984 million).The plans were approved in a board of directors meeting held Aug. 19, following a shareholders meeting. The board set the issue price at 6,920 won, a discount of 20 percent from the current market price. The price will be finalized Nov. 2. The board also approved the plan to allocating 20 percent of the new shares to employee shareholders. The new shares wi

Aug. 19, 2016

Samsung Heavy to raise 1.1 trillion won with new shares

STX creditors deny sale rumors

[THE INVESTOR] The creditors of STX Corporation on Aug. 19 denied reports they are preparing to open bids for the company.STX Corporation was the holding company of STX Group, and is currently under creditors’ control. Korea Development Bank holds the largest share, 39.59 percent, of the company. Including stakes held by other creditor banks, STX Corporation is 70.55 percent controlled by creditor banks. In response to the Korea Exchange’s request for verification, the creditors said that althou

Aug. 19, 2016

S. Korean, Chinese business meeting called off over THAAD

[THE INVESTOR] A conference of South Korean and Chinese business leaders has been called off over issues surrounding a US missile defense system.According to the Federation of Korean Industries, the China International Council for the Promotion of Multinational Corporations demanded the Terminal High Altitude Area Defense missile system be included in the agenda. Seoul’s decision to bring in the US’s THAAD system has been met with criticism from China, and concerns have risen that China could re

Aug. 19, 2016

Samsung Heavy mulling project management, outsourcing shipbuilding

[THE INVESTOR] Samsung Heavy Industries CEO Park Dae-young said on Aug. 19 the company may offer project management and operating and maintenance services.Speaking at a shareholders meeting, Park said that such services are being considered as new business opportunities. “There were many requests for operating and maintenance services from shipowners, but a large part (of operating and maintenance services) is going to Singapore,” Park said. Samsung Heavy CEO Park Dae-young“If we, who know the

Aug. 19, 2016

Samsung Heavy mulling project management, outsourcing shipbuilding

Samsung Heavy preps for capital increase

[THE INVESTOR] Samsung Heavy Industries on Aug. 19 raised the ceiling on the number of shares it can issue by 200 million, in preparation for raising capital.With the changes, the maximum number of shares the company can issue has been raised to 500 million. Hit by the industry’s prolonged slowdown, Samsung Heavy plans to raise about 1 trillion won (US$900 million). According to a review by Samjong KPMG, Samsung Heavy could face a liquidity shortage of 1.6 trillion won in the worst-case scenario

Aug. 19, 2016

Samsung Heavy preps for capital increase

KB Investment to oversee Jeil Holdings’ IPO

[THE INVESTOR] KB Investment & Securities is to be selected to oversee the initial public offering of Jeil Holdings, local media reported Aug. 19.Jeil Holdings is the holding company of Harim Group, a South Korean livestock and animal feed group. Harim’s subsidiaries also include shipping line Panocean, formerly STX Panocean. According to reports citing unnamed finance industry sources, Harim Group will hold a board of directors’ meeting on Aug. 24 and confirm KB Investment & Securities for the

Aug. 19, 2016

KB Investment to oversee Jeil Holdings’ IPO

Samsung Life’s plans to raise stakes in affiliates fuel speculation

[THE INVESTOR] Samsung Life Insurance’s plans to raise its stakes in financial affiliates is again adding weight to speculation the company is seeking to become the holding firm for Samsung Group’s finance subsidiaries. Samsung Life plans to acquire 9 percent of Samsung Fire and Marine Insurance shares held by the company. The deal would raise Samsung Life’s stakes in Samsung Fire and Marine to about 24 percent. In addition, Samsung Life will acquire 9 percent of Samsung Securities currently hel

Aug. 18, 2016

Samsung Life’s plans to raise stakes in affiliates fuel speculation

Bids for Sambu Construction to be reopened

[THE INVESTOR] Sambu Construction is to be put up for sale within the month, local media reported Aug. 18.Reports citing unnamed finance industry sources said the company’s creditors are preparing to restart the process within the next two weeks. Sambu Construction and subsidiary Sambu Construction Industrial had been put up for sale as a package deal earlier this month, but the creditors failed to select a preferred bidder. At the time, the failure was attributed to the fact that Sambu Construc

Aug. 18, 2016

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