[THE INVESTOR] Water purifier rental company Coway has decided to recall its ice water purifiers amid public outcry over the company’s cover-up of defective products containing nickel. “We deeply apologize to consumers regarding some of the ice water purifiers,” the company said in a statement on July 6. “We decided to compensate all buyers of the products to alleviate their concern.”The official apology posted by Coway on its website.The company said it will recall all three disputed models --

Industry July 7, 2016

[THE INVESTOR] Over 24,000 construction workers staged a strike in central Seoul on July 6 to demand better working conditions and revision of laws to protect their rights.  The Korean Construction Workers Union gathered at the Seoul Plaza at 4 p.m. to protest/ The InvestorMembers of the Korean Construction Workers Union, under the South Korea’s second largest umbrella labor union Korea Confederation of Trade Unions, gathered at the Seoul Plaza in central Seoul at 4 p.m. for a walkout that will

Industry July 6, 2016

[THE INVESTOR] South Koreans have declared a record amount of inheritance, gift tax last year, the National Tax Service said on July 5. According to the NTS’ report, Korean people filed a total of 2.189 trillion won (US$ 1.9 billion) in inheritance tax in 2015, a 32.5 percent increase from the previous year. A total of 5,452 people received inheritance, an increase of 13.8 percent on-year.The gift tax stood at 2.362 trillion won last year, up 25.8 percent from the previous year. A total of 98,04

July 6, 2016

[THE INVESTOR] Volkswagen’s sales in South Korea in the first six months slipped from a year ago, hit by the widening investigations into the German automaker’s emission scandal, industry data showed on July 6. The number of VW vehicles sold in January-June came in at 12,463 units, a 33.1 percent decrease from the same period last year, according to data from the Korea Automobile Importers and Distributors Association.  Volkswagen store in Seoul, South Korea/ The InvestorJune sales plummeted by

Mobility July 6, 2016

[THE INVESTOR] The Asian Infrastructure Investment Bank plans to finance a SK Engineering and Construction-led infrastructure project, the Ministry of Land, Infrastructure and Transport said on July 5. The AIIB is considering lending US$ 75 million to the South Korean consortium to build a peripheral ring road in Almaty, Kazakhstan. During the AIIB’s first annual meeting held in Beijing in June, the bank announced its plan to finance the Almaty highway, along with four other projects The bank wi

Industry July 6, 2016

[THE INVESTOR] Prosecutors summoned former head of Volkswagen Korea Park Dong-hoon on July 5, to question him over the German automaker’s emission scandal that hit the customers here and around the world. Park, who headed the company from its initiation in 2005 to 2013 before moving to Renault Samsung as the chief executive, appeared before the Seoul Central District Prosecutors’ Office as a key witness in the ongoing case over VW cheating emission tests for defective units. The prosecutors, how

Mobility July 5, 2016

[THE INVESTOR] Angry Pizza Hut franchisees have once again sued the company for its unfair practice of collecting marketing and management fees outside of the contract, local news reported on July 5. The 25 owners of Pizza Hut outlets filed a suit with the Seoul Central District Court, demanding the global pizza house’s Korean unit pays back the amount it collected under “admin fee,” totaling around 760 million won (US$ 658,015). The owners claim that the company made them pay an additional 0.55

Industry July 5, 2016

[THE INVESTOR] European carmakers benefited more from the EU-Korea free trade agreement than their Korean counterparts, according to industry data on July 5. Data from the Korea Automobile Manufacturers Association showed that domestic car manufacturers exported 383,698 units of cars to EU countries in 2015, reflecting a 28.6 percent increase from the 298,263 units in 2010. The EU-Korea FTA went into effect in 2011. In 2010, a total of 59,242 European cars were sold in Korea according to the Kor

Mobility July 5, 2016

[THE INVESTOR] Air Seoul, Asiana Airline’s new low-cost carrier, has passed all government safety inspections and will begin services next week. The Ministry of Land, Infrastructure and Transport said on July 5 that it has given its final approval to Air Seoul and will issue an Air Operator Certificate the following day. The ministry had formed a team for document-screening and onsite inspection to check the airline’s facilities and other operational capabilities for the past five months. Starti

Industry July 5, 2016

[THE INVESTOR] Coway, a Korean water purifier-maker, officially apologized over harmful substances found inside its ice-water purifier products. “We deeply apologize for the contaminant found inside the water purifier, which is designed for consumers to drink clean water safely,”Coway said in a statement released on July 4 and offered full refund or exchange of the affected products. On July 3, local broadcaster SBS reported that Coway received complaints from consumers that some metal powder wa

Industry July 4, 2016

[THE INVESTOR] CJ Foodville, a food services company under Korean conglomerate CJ Group, will step up its global expansion led by its bibimbab-themed restaurant Bibigo, bakery Tous Les Jours and Twosome Cafe, the head of the company said Monday. “Our goal is to become a top 10 global food services company, beating McDonald’s and Starbucks,” Jung Moon-mok, CEO of CJ Foodville said at a press conference for the opening of its restaurant complex CJ FoodWorld inside the COEX Mall in southern Seoul. 

Industry July 4, 2016

[THE INVESTOR] Jeju Air, Korea’s largest low-cost carrier, will launch new routes and expand the number of airplanes in the third quarter to meet demand in the busiest time of the year. The air carrier on July 20 will launch three new routes leaving from Incheon International Airport. They are to Sapporo in Japan, Kota Kinabalu in Malaysia, and Phuket in Thailand, the company said on July 4. With the new addition, Jeju Air will serve six Japanese cities, including Tokyo, Osaka, Nagoya, Fukuoka,

Industry July 4, 2016

[THE INVESTOR] With Volkswagen’s decision not to offer further compensation to the Korean consumers hit by the emission-rigging scandal, a local consumer rights agency is taking action on behalf of any VW owners who were hit by the carmaker’s false advertisements, local news reported on July 4. Korea Consumer Association announced that it will begin consumer redress activities for VW owners who were deceived by the carmaker’s false advertising that promoted the cars as low-emission and environme

Mobility July 4, 2016

[THE INVESTOR] With the deterioration of manufacturing sector here, industry experts are concerned that producers may opt for low-cost facilities overseas with local jobs fleeing to other developing countries. According to a report by Hyundai Research Institute, the contribution level of the manufacturing industry to the country’s economic growth has decreased from 3.5 percent in 1970s to 1.4 percent most recently. Experts cite that the decreasing measure of the added value in manufacturing as t

Industry July 4, 2016

[The INVESTOR] South Korea’s leading cosmetics brand Hera opened its first store in China on July 1, its parent company AmorePacific said on July 4. The first store opened at an upscale department store Shin Kong Place in Beijing, with the second one to follow at Hanguang Department Store in the same city on July 28. Hera, which was launched in 1995, has become one of the most popular cosmetics brands in South Korea and other Asian countries, especially in China. Hera’s first store in Beijing /

Industry July 4, 2016