[THE INVESTOR] Prosecutors on July 27 filed for an arrest warrant for Park Dong-hoon, Volkswagen Korea’s former chief executive officer, over the German automaker’s emission rigging scandal. Park has been charged with fabrication of private documents, obstruction of justice and violation of the Clean Air Conservation Act. The 63-year-old headed the Korean unit from its initiation in 2005 to 2013 before moving to Renault Samsung Motors as sales chief. He took helm of the Korean unit of France’s R

Mobility July 28, 2016

[THE INVESTOR] Hyundai Heavy Industries bounced back into profit in the second quarter, driven by cost-cutting efforts under the industry-wide restructuring program and strong performance in its non-shipbuilding sectors. The world’s largest shipbuilder posted operating profit of 557.2 billion won (US$490.70 million), a huge turnaround from a loss of 171 billion won from a year earlier, the company said in a regulatory filing on July 27.  Hyundai Heavy's shipyardIn the April-June period, the ship

Industry July 27, 2016

[THE INVESTOR] Samsung C&T, a construction and trading affiliate of Samsung Group, bounced back into profit in the second quarter, on the back of its construction and resort segments. In the April-June period, the company posted operating profit of 176.81 billion won (US$158.88 million), reversing a loss of 434.81 billion won in the previous quarter, it said in a regulatory filing on July 27. Net profit came to 134.58 billion won, a turnaround from 516.63 billion won loss from the January-March

Industry July 27, 2016

[THE INVESTOR] LG Innotek, the electronics parts unit of LG Group, suffered an operating loss of 34 billion won (US$30 million) in the April-June period, the company said in its quarterly earnings report on July 27. Revenue stood at 1.12 trillion won, down 22.6 percent from a year ago.The company said the slowing demand for smartphones has affected its overall sales negatively, adding that it would making a big push on the more lucrative automotive parts business as its new growth engine.In the

Technology July 27, 2016

[THE INVESTOR] Kia Motors, a Hyundai Motor's smaller affiliate said on July 27 it plans to roll out a new sport utility vehicle in China in response to stagnating car sales in the world’s second largest economy. “In China, we will unveil a new SUV, similar to Sorento, next year,” Han Chun-soo, Kia’s chief financial officer, said at the conference call after announcing the Q2 results. “Besides SUVs, we will also include compact cars and the K5 hybrid model in the new lineup to increase presence i

Mobility July 27, 2016

[THE INVESTOR] Kia Motors posted an 18.5 percent increase in second-quarter operating profit, driven by newly launched cars and solid demand in its major markets including the US and Europe. South Korea’s second largest automaker on July 27 reported the April-June operating profit of 770.9 billion won (US$679.20 million), compared with the 650.7 billion won from the same period last year. It is the first time that the company’s operating profit has exceeded the 700 billion-won mark since the sec

Mobility July 27, 2016

[The INVESTOR] The Ministry of Environment said it will revoke certification of Audi and Volkswagen cars that cheated on emission tests on Aug. 2, which would ultimately lead to a sales ban.The Korean unit could also face a hefty penalty of up to 320 billion won (US$281.46 million), the authorities said. A Volkswagen store in southern SeoulAccording to the ministry, the German automaker was able to manipulate the test documents because the VW models that were sold in Korea were different from th

July 26, 2016

[THE INVESTOR] Kia Motors, South Korea’s second-largest automaker, released its new version of compact minivan Carens that features more power, dynamic exterior and affordable price tag on July 26. The new Carens, better known as Ronda in overseas markets, shares the same external dimension with the older model launched in June 2015. “We improved the design of the radiator grille, head lamps, rear lights and wheels to emphasize strong appearance and voluminous body,” a company official said. Kia

Mobility July 26, 2016

 [THE INVESTOR] The import volume of German-made cars in South Korea dropped for the first time in 13 years amid an emission-rigging scandal involving Volkswagen and Audi cars, industry data showed on July 26. The number of German vehicles imported in the January-May period came in at 51,736 units to reflect a 12.7 percent decrease from the same period in 2015, according to the Korea Automobile Importers and Distributors Association. Volkswagen cars are lined up at Pyeongtaek Port. / The Investo

Mobility July 26, 2016

[THE INVESTOR] South Korean shipbuilders are likely to see a profit downturn in the second quarter of the year, hit by the ongoing industry-wide restructuring. Local securities said the nation’s largest three shipyards -- Hyundai Heavy Industries, Samsung Heavy Industries and Daewoo Shipbuilding & Marine Engineering -- will record lackluster quarterly revenues.  DSME headquater in Seoul / The InvestorHyundai Heavy Industries, scheduled to announce its earnings on July 27, is forecast to post an

Industry July 25, 2016

[THE INVESTOR] The Ministry of Environment held a public hearing on July 25, attended by Audi Volkswagen Korea.The hearing -- which was held at the National Institute of Environmental Research -- is to offer Volkswagen’s Korean unit a chance to explain itself regarding the ministry’s recent decision to ban the sales of 79 models of Audi and Volkswagen cars that cheated on emission tests, and also cancel their registration here.The decision, however, has yet to go into effect and will be finalize

Mobility July 25, 2016

[THE INVESTOR] Vietnam’s minimum wage hike is expected to take a heavy toll on big Korean firms such as Samsung and LG that have been beefing up production there due to low labor costs. Currently, the minimum wage for Vietnamese workers ranges between US$108-157 across regions. In the latest wage talks, labor groups asked for an 11 percent increase from next year, while employers resisted, proposing a moderate 4.62 percent raise. LG Electronics Vietnam Haiphong campus“There are over 4,000 Korean

Technology July 25, 2016

[THE INVESTOR] Hanwha Group has launched a new research complex in Seosan, South Chungcheong Province, to nurture local small and medium-sized firms in the field of solar energy. The company, in partnership with the South Chungcheong Creative Economy Innovation Center, jointly opened the Seosan Solar Energy-Specialized Venture Complex on July 22. With an area of 16,529 square-meter, the new center will attract SMEs in the field of solar energy to foster their R&D activities and commercialize its

Industry July 22, 2016

[THE INVESTOR] Audi Volkswagen Korea has decided to stop selling certain vehicles that cheated on emission tests in South Korea, local news reported Thursday. The Korean unit informed local dealers of its decision to suspend from Monday the sales of 79 models of cars,  including top-selling ones such as the Volkswagen Golf, Jetta and the Audi A4. Volkswagen GolfThe Ministry of Environment had earlier issued an order to ban sales and cancel the registration of VW’s diesel and gasoline engine vehi

Mobility July 22, 2016