ANDALUSIA, Spain -- The growing importance of 5G, artificial intelligence, voice recognition and connectivity may be a double-edged sword for South Korean tech companies -- it allows them to maintain the upper hand in the sector but also provides room for a growing number of competitors, according to organizers of IFA Berlin, Europe’s largest consumer electronics show.In an advance press meeting ahead of IFA Berlin 2019, officials acknowledged the competitive edge Asia’s fourth-largest economy h

Industry April 28, 2019

Intellectual property is perceived as an essential tool for knowledge-based innovation, especially in the context of the “fourth industrial revolution,” but when it comes to actual legislation, the lack of quantitative information has often acted as an obstacle for policymakers and market players. In light of this limitation, a think tank of South Korea’s IP office has compiled an extensive study on the impact that IP-intensive industries have on the economy, measuring the tangible benefits of I

Industry April 24, 2019

The South Korean government has drawn up an extra budget of 6.7 trillion won ($5.9 billion) in an effort to alleviate the fine dust problem and respond to economic downside risks, the country’s top fiscal policymaker said Wednesday.The budget, though it fell short of the 9 trillion won recommended by the International Monetary Fund, came as a response to the government’s struggles to achieve the targeted growth range of 2.6-2.7 percent amid a slowing economy and export challenges. &l

Economy April 24, 2019

The Korea Herald is publishing a series of articles to review South Korea’s position in industry-specific intellectual property rights, in the light of mounting challenges. This is the second installment. -- Ed.The seven-year patent dispute between smartphone giants Samsung Electronics and Apple has thrown the spotlight on intellectual property rights -- the big elephant in the room that will likely determine the fate of market front-runners.The next big buzzword now is “foldable smartphones,” k

Industry April 21, 2019

The Bank of Korea on Thursday revised down its economic growth forecast for this year to 2.5 percent, amid economic uncertainties and weakening exports.The nation’s base rate was frozen at 1.75 percent, as the central bank suggested a rate cut would be inconsistent with the government’s expanded fiscal spending later in the year.“The slowing trend of the global economy has prolonged, while the volatility of policy rates and exchange rates has expanded in the financial market,&r

Economy April 18, 2019

With people becoming more aware of health and weather conditions, weather reports such as concerning the levels of fine dust have also become influential in consumer choices in South Korea, a report showed Wednesday.Resorts and amusement parks, for instance, saw sales figures slip 30 percent or more on days with weather forecasts of fine dust, according to a report from Hana Institute of Finance. The report found a significant correlation between daily credit card sales per industry sector and t

Industry April 17, 2019

Kim Jae-chul, chairman and founder of Dongwon Group, on Tuesday announced his resignation after 50 years of leadership, the group said in a press release.Taking over management control of the food and logistics conglomerate is Kim’s younger son Kim Nam-jung, who has been serving as the group’s vice chairman. Dongwon Group founder Kim Jae-chul (left) and his younger son Kim Nam-jung (Dongwon Group)“Trusting your capacities, I now plan to step down from the chairmanship,” the 84-year-old business

Industry April 16, 2019

Large-sum savings deposits over 1 billion won ($880,000) increased at the fastest pace in eight years in 2018, central bank data showed Sunday.According to the Bank of Korea, such accounts topped 565.8 trillion won, up 66.6 trillion won, or 13.3 percent from a year earlier.This marked the steepest on-year increase since 79.4 trillion won in 2010. Also, the superrich accounts expanded at almost double the pace of savings accounts in general, indicating the polarization in cash savings.The on-year

Market April 14, 2019

South Korea’s Deputy Prime Minister and Finance Minister Hong Nam-ki has asked the US government for an exemption from a new tariff on imported vehicles, the Ministry of Economy and Finance said Sunday.He also met with representatives of major credit ratings agencies, to persuade them to reflect the peninsula’s eased geopolitical risk in their upcoming sovereign rating adjustments.The fiscal chief met US Treasury Secretary Steven Mnuchin on Saturday, on the sidelines of the Group of

Economy April 14, 2019

Korea’s tallest skyscraper is a double-edged sword for its owner, as the building could either become a landmark that adds value or end up being a costly, low-liquidity asset.South Korea’s fifth-largest conglomerate Lotte Group has bet on its building becoming a landmark. Lotte World Tower, which came about from a long-held dream of Lotte Group founder Shin Kyuk-ho, was completed in December 2016, after yearslong disputes over its height, safety and profitability, just to name a few.The tower wa

Industry April 14, 2019

Kumho Asiana Group, South Korea’s 28th-largest conglomerate, stands on the brink of selling off Asiana Airlines -- the group’s flagship unit and the nation’s second-largest air carrier -- as financial authorities and creditors voiced disapproval over the group’s latest self-rescue proposal.Main creditor state-run Korea Development Bank on Thursday denied the cash-strapped conglomerate’s request for financial help and a grace period.“Creditors found Kumho’s self-rescue plan insufficient to restor

Industry April 11, 2019

Despite slow gross domestic product growth and weak interest rates throughout the year, as well as the dampening impact on consumer sentiment, South Korea’s market is likely to see visible growth in smarter office space business, according to the world’s largest commercial real estate services firm.CBRE Korea, the local subsidiary of the US-based real estate service provider, Wednesday held an annual forum to present its market outlook for 2019, focusing on the Asia-Pacific region that includes

Industry April 10, 2019

South Korea’s financial authority has fined a Goldman Sachs affiliate 72 million won ($63,000) for naked short selling, marking the third case of the US-based investment bank facing sanctions here.The Securities and Futures Commission of the Financial Services Commission judged earlier this year that Singapore-based Goldman Sachs India Investments conducted short selling without securing underlying assets, officials said Monday.Naked short selling refers to the sale of borrowed shares in o

Market April 9, 2019

Following the shocking news of Hanjin Group Chairman Cho Yang-ho’s death on Monday morning, speculations immediately arose over the family-controlled group’s succession and inheritance plans.Cho’s death, which came less than two weeks after his removal from the company’s board of directors, leaves behind a huge inheritance tax for his three children, including his only son and successor Cho Won-tae -- estimated at around 172.7 billion won ($151 million).“The entire Hanjin Group has swung into an

Industry April 8, 2019

South Korea’s major companies saw their exports drop last year, amid sluggish global growth and US-China trade tension, but banks enjoyed record-high revenue on the back of interest earnings, data showed Sunday.The contrast was all the more conspicuous during the fourth quarter, when banks -- commercial, provincial and internet-only -- marked a record-high figure in net profit, while key exporters turned into the red. According to data compiled by the Financial Supervisory Service and the

Economy April 7, 2019