[THE INVESTOR] Teaser images of the new i30 hatchback was released by Hyundai Motor on Aug. 11. The company also posted a video of the company’s design chief Peter Schreyer explaining the design concept on YouTube.In the video, Schreyer says that the new i30 is a European car developed and designed in Europe, and that the design is an expression of “new spirit” of Hyundai Motor. The new i30, which will hit the domestic market in September, is the third generation of Hyundai Motor’s compact hatch

Aug. 11, 2016

[THE INVESTOR] The Bank of Korea held the benchmark rate at 1.25 percent on Aug. 11.The decision is thought to have been fueled by concerns over rising household debt, and to gauge the effect of the supplementary budget before making changes. Bank of Korea Governor Lee Ju-yeolIn July, household debt shot by 6.3 trillion won (US$5.7 billion) despite the government’s efforts to curb the rise with tougher loan regulations. Of the rise in July, home-backed loans accounted for 5.8 trillion won. The r

Aug. 11, 2016

[THE INVESTOR] Potential new owners of Hanjin Heavy Industries’ three energy subsidiaries have been narrowed down to six, local media reported on June 10. The final bids have to be submitted on Sept. 26, and finalized the following month. The shortlisted bidders are IMM Investment, Keystone Private Equity, KDB Infrastructure Investments Asset Management, Meritz Securities PE, Hana Financial Investment PE and Mirae N. Hanjin Heavy's Suvic shipyard in Philippines. The deal would see 100 percent of

Aug. 11, 2016

[THE INVESTOR] With the South Korean won strengthening against the dollar concerns are rising that if the trend continues it could damage the country’s economy. On Aug. 10, the won closed at 1,098.6 won to the dollar, falling below the 1,100-won line since the rate hit 1,097.5 won on June 22, 2015.According to LG Economic Research Institute’s analysis, the won has appreciated 3.3 percent since UK’s referendum on leaving the European Union on June 23.  An employee of Korea Exchange Bank counts US

Aug. 10, 2016

[THE INVESTOR] Home-backed loans increased by the largest margin this year in July, fueling concerns about household debt that continues to grow despite government efforts.According to the data released by the Bank of Korea on Wednesday, home-backed loans taken out from banks rose 5.8 trillion won ($5.30 billion) in July to come in at 506.6 trillion won.Household loans in general rose 6.3 trillion won from June to come in at 673.7 trillion won, the BOK said. The BOK attributed the rise in home-b

Aug. 10, 2016

[THE INVESTOR] South Korean government will inject 570 billion won (US$521.25 million) over the course of eight years to develop autonomous vehicle technologies. These and other plans were revealed at the science and technology meeting held by President Park Geun-hye on Aug. 10.  A driver sits behind the wheel of Hyundai Motor`s self-driving Genesis sedan during a road testing event. Hyundai MotorThe government estimates that autonomous vehicles will account for 4 percent of the market in 2025,

Aug. 10, 2016

[THE INVESTOR] Hyundai Motor’s labor union resumed partial strikes on Aug. 10, staying off work in two groups for four-hour stretches. The union will continue the partial strike following the same pattern on Aug. 11-12. The union and management continued negotiations through the nine-day summer vacation, but failed to narrow their differences.  Hyundai Motor's labor unionOne of the key sticking points is the company’s plans to expand the wage peak system. The company currently freezes the salari

Aug. 10, 2016

[THE INVESTOR] Samsung Heavy Industries is mulling plans to issue more shares to raise up to 1.5 trillion won (US$1.37 billion), local media reported on Aug. 10.According to reports, the company is reviewing such plans in preparation for expected delays in delivery of, and payment for, offshore drilling facilities. Samsung Heavy has missed the deadline for delivering a semisubmersible drilling rig to Sweden’s Stena Group, and is now said to be negotiating a new delivery date.  Samsung Heavy's sh

Aug. 10, 2016

[THE INVESTOR] The Fair Trade Commission is investigating Toyota Motor Korea over allegations that the safety of the RAV4 SUV has been exaggerated. According to the FTC, reports of Toyota Motor Korea violating advertising regulations were filed, and it is now investigating the claims.  RAV4The reports concern the claim that the RAV4 has obtained the top safety rating from the US Insurance Institute for Highway Safety. The complaints claim that the RAV4 vehicles sold here are different from RAV4

Aug. 10, 2016

[THE INVESTOR] South Korea's retail giant Eland has put up real estate in Seoul for sale, as it seeks to reduce its debt-equity ratio. On Aug. 9, Eland put up two plots in western Seoul, and a commercial property in Gangnam area for sale. The company had initially planned to build hotels in the two plots in western Seoul. The combined minimum bid price for the three properties is 300 billion won (US$272.47 million). The company said that the decision is unrelated to its efforts to improve financ

Aug. 10, 2016

[THE INVESTOR] Audi Volkswagen Korea chief Johannes Thammer is to be questioned as a suspect in the emissions-rigging scandal, the prosecutors’ office said on Aug. 9.Thammer, who has been in charge of Audi Volkswagen’s operations in Korea since December 2012, will be questioned on Aug. 11. Audi Volkswagen Korea chief Johannes Thammer.The investigators suspect that Thammer was closely involved in the process of marketing the seventh generation Golf 1.4 TSI despite being aware that it falls below

Aug. 9, 2016

[THE INVESTOR] Hyundai Motor is considering halting the production of the large sedan Aslan due to slow sales, local media reported on Aug. 9.The Aslan, launched in late 2014, has seen sales plunge 80 percent this year with customers opting for Kia Motors K7 and other rival models. According to the company, Aslan sales have dipped to a monthly average of 168 units this year. In comparison, at its peak, monthly sales had surpassed 1,000 units. Hyundai Motor, however, said that the company has not

Aug. 9, 2016

[THE INVESTOR] Novartis Korea executives have been indicted on charges of providing billions of won in rebate, the Seoul Western District Prosecutors’ Office said on Aug. 9.According to the investigators, six former and current Novartis Korea officials including former CEO Moon Hak-sun, have been indicted without detention for providing 2.59 billion won (US$2.34 million) to doctors in return for choosing the company’s products. In addition, six publishers of medical publications, and 15 doctors

Aug. 9, 2016

[THE INVESTOR] The National Pension Service plans to exercise dissenters’ rights should Mirae Asset Daewoo's shares drop below 8,000 won (US$7.30), local news reported on Aug. 9. The pension fund is also reportedly planning to forfeit its rights in the vote on Mirae Asset Daewoo and  Mirae Asset Securities' merger, should the price drop below the 8,000-won mark. The shares have been trading in the upper 7,000 won and low 9,000 won range since July. If NPS, which is Mirae Asset Daewoo’s second-la

Aug. 9, 2016

[THE INVESTOR] South Korean government is pushing to bring limited companies under closer scrutiny, but issues remain. The government plans to propose revisions to the External Audit of Stock Companies Act that will bring limited companies -- both foreign and domestic – to tighten monitoring.Under current regulations, limited companies are not required to receive external audits. In addition, they are not obligated to disclose periodic reports. The planned changes, prompted by the rising number

Aug. 9, 2016