[THE INVESTOR] Hyundai Motor said on Oct. 26 that meeting the 2016 sales target will be difficult. At the investor relations event, Hyundai officials said that the target is unlikely to be met citing slowing sales in advanced and emerging markets, and the recently concluded labor dispute here.The company estimates that this year’s labor dispute cost more than 140,000 units in lost production and trillions of won in lost sales. Hyundai Motor Group’s automobile sales target for this year, includin

Oct. 26, 2016

[THE INVESTOR] The Fair Trade Commission’s review of the Volkswagen emmissions-rigging case will be concluded by end-November, according to industry and government sources. They noted that the FTC is expected to review the report on the case on Nov. 30, and decide the amount of fines, and whether to refer current and former Volkswagen Korea officials to the investigative authorities. At present, filing criminal complaints against former chief of Volkswagen’s Korean operations Park Dong-hoon, Joh

Oct. 26, 2016

[THE INVESTOR] Hyundai Motor on Oct. 25 stressed that there will be no problems with the Theta II engine fitted in the latest version of the Grandeur sedan. The Theta II engine produced in the US were found to have developed faults, leading to a large-scale recall of Sonata sedans in the US. The company, however, has maintained that the same engine model produced at its South Korean facilities would not develop same faults. A teaser rendering of Hyundai's new Grandeur sedan. Hyundai MotorThe car

Oct. 25, 2016

[THE INVESTOR] Samsung Life Insurance disclosed on Oct. 24 that it has purchased more than 6.13 million shares of Samsung Securities.The purchase was made outside of trading hours for 38,200 won (US$33.58) per share. Samsung Securities closed at 35,800 won Oct. 24. With the latest purchase, Samsung Life’s stake in its affiliate rose to 19.16 percent from 11.14 percent. Samsung Life has explained the move as part of plans for creating more synergy with its affiliates, market watchers say that it

Oct. 25, 2016

[THE INVESTOR] KG Group and NHN Entertainment have dropped out of the race for acquiring McDonald’s South Korean operations. On Oct. 25, KG Group said in a regulatory filing that it is dropping its bid due to differences with McDonald’s.NHN Entertainment, which partnered with KG Group in the bid, also confirmed the development, saying that related procedures cannot be taken further. Industry sources say a consortium formed by Maeil Dairies and Carlyle Group is most likely to be named preferred b

Oct. 25, 2016

[THE INVESTOR] South Korea’s top 10 conglomerates’ contribution to employment has shrunken although their assets reached a record high, data showed on Oct. 23.According to Chaebul.com that specializes in information regarding family-led conglomerates, the 10 largest conglomerates’ employees accounted for 3.59 percent of the country’s working population at the end of last year. In comparison, the figure stood at 3.63 percent at the end of 2014.In contrast, the value of their assets rose to over 1

Oct. 24, 2016

[THE INVESTOR] The controlling stake in Daewoo Engineering and Construction could be put on the market early next year, according to local news reports citing unnamed finance industry sources on Oct. 24The Korea Development Bank reportedly plans to put the issue to the board of directors this week, and sound out potential buyers by the end of the year. The state-run bank owns 50.75 percent of the construction firm through its private equity fund KDB Value Private Equity Fund VI, and the price is

Oct. 24, 2016

[THE INVESTOR] STX Offshore and Shipbuilding has filed for bankruptcy protection in the US, the Wall Street Journal reported on Oct. 20. According to the report, STX Offshore filed for bankruptcy protection saying that it would sustain unrecoverable damage should creditors seize its assets. The report also said that the bankruptcy court granted a temporary restraining order to prevent STX Offshore’s creditors from seizing assets. By Choi He-suk (cheesuk@heraldcorp.com)

Oct. 21, 2016

[THE INVESTOR] Kia Motors’ first sports car is to be named K8, and will hit the roads during the first half of next year.According to reports, Kia Motors has registered a number of names including K8, K8 GT and K8 GT-Line with the Korean Intellectual Property Office, but plans to name the vehicle K8. Kia GT concept carThe vehicle is currently in development under the project name CK. The vehicle is Kia Motor’s first sports coupe based on the GT concept car unveiled at the Frankfurt Motor Show in

Oct. 21, 2016

[THE INVESTOR]  Korea Electric Power Corperation has won a contract to operate a nuclear power plant in Barakah, United Arab Emirates.South Korea’s state-run power provider said that the contract was signed with the Emirates Nuclear Energy Corporation. Under the contract, KEPCO will operate the four APR1400 nuclear reactors in cooperation with ENEC for 60 years. It is estimated to generate revenues of US$49.4 billion for the South Korea firm. KEPCO headquartersThe reactors are being built by KEP

Oct. 20, 2016

[THE INVESTOR]  The National Tax Service on Oct. 20 launched a special audit on troubled shipbuilder Daewoo Shipbuilding and Marine Engineering. According to DSME, NTS investigators secured finance and accounting-related information from the company’s office in Seoul. The NTS department involved in the audit is known to specialize in special cases, prompting pundits to speculate that it may be related to DSME’s accounting fraud. DSME had initially posted profits in 2013 and 2014, but later corre

Oct. 20, 2016

[THE INVESTOR]  Stemming oversupply is key to overcoming the shipbuilding industry’s difficulties, according to global industry leaders. Speaking at the meeting of shipbuilders’ CEOs from Japan, Europe, China, Korea and the US (JECKU), industry leaders pointed to regulation and oversupply as key factors in the current difficulties, and that recovery will take some time. “In the recent few years, a much larger number of ships have been built than the increase in the volume of shipping, this overs

Oct. 20, 2016

[THE INVESTOR]  CJ CGV has come under investigation over allegations that the company gave unfair advantage to members of CJ Group Chairman Lee Jay-hyun. The Seoul Central District Prosecutors’ Office revealed on Oct. 20 that it has begun investigations into CJ CGV following a report from the Fair Trade Commission. CJ Group Chairman Lee Jay-hyunThe antitrust watchdog said it has found that JS Communications, an ad unit 100 percent owned by the CJ's younger brother Lee Jay-hwan, has enjoyed unfai

Oct. 20, 2016