[THE INVESTOR] The Bank of Korea may consider altering the benchmark rate by smaller increments. In a report submitted to Rep. Park Joo-hyun of the minor opposition People’s Party, the BOK said that smaller changes could be considered in situations that require a more cautious approach. At present, the BOK alters the benchmark rate by 0.25 percentage points, and has been against making smaller changes saying that such changes would have limited impact.  The Bank of Korea governor Lee Ju-yeolIn t

Oct. 4, 2016

[THE INVESTOR] The economic participation rate of Koreans in their 20s hit a decade-high in the second quarter of the year, data showed on Oct. 4. According to Statistics Korea, the economic participation rate of those in their 20s rose 1.3 percentage points from the second quarter of last year to come in at 65.7 percent. The figure is the highest seen since the final quarter of 2005 when it came to 65.8 percent. However, the data also showed that the number of unemployed in their 20s has risen

Oct. 4, 2016

[THE INVESTOR] Mirae Asset Daewoo will invest 20 billion won (US$18.15 million) in Celltrion GSC, a subsidiary of Celltrion – which supplies it materials and is an unlisted company held 71.01 percent by the Korean drug maker's Chairman Seo Jung-jin.In the move, Mirae Asset Daewoo will purchase 20 billion won worth of convertible bonds Celltrion GSC will issue. Celltrion GSC is planning to raise 100 billion won with the issuance. Of the total, 60 billion won will be taken by IMM Investment, and i

Sept. 30, 2016

[THE INVESTOR] China imported record amount of coal from North Korea in August despite the international sanctions, data showed on Sept. 30.According to the Korea International Trade Association, Pyongyang’s coal exports to China in August came to 2.46 million metric tons. This is an increase of 35 percent on-year, and the highest monthly volume recorded since North Korea-China trade data was first compiled in 1998. The rise is thought to have been fueled in part by North Korea’s lowering of pri

Sept. 30, 2016

[THE INVESTOR] Accounting firm Deloitte Anjin has come under scrutiny in the expanding Daewoo Shipbuilding and Marine Engineering corruption case, the prosecutors’ office revealed on Sept. 29. The investigators suspect that Deloitte Anjin turned a blind eye to DSME’s fraudulent accounting. For 2013 and 2014, DSME posted profits. However, it was revealed that the company had been manipulating the books, and had amassed about 5.5 trillion won (US$ 5 billion) losses. Deloitte Anjin, which had appro

Sept. 29, 2016

[THE INVESTOR]  Two third generation members of chaebol families accused of assaulting their chauffeurs have been questioned by prosecutors in the past week. Lee Hae-wook, vice chairman of Daelim Industrial, was questioned on Sept. 28, and Hyundai BNG Steel CEO Jeong Il-seon was questioned on Sept. 23, the Seoul Central District Prosecutors’ Office said. Daelim Industries Vice Chairman Lee Hae-wook apologizes to the public for physically and verbally abusing his personal driver in June. Lee and

Sept. 29, 2016

[THE INVESTOR] GS Caltex on Sept. 29 began work on the world’s first biobutanol production facility. Located in the company’s complex in Yeosu, South Jeolla Province, the new facility is a pilot project for commercial production of butanol using non-food plant materials. The 50 billion won (US$45.59 million) plant will be able to produce 400 metric tons of biobutanol on an annual basis. The facility is scheduled for completion during the second half of next year.  A rendering image of GS Caltex'

Sept. 29, 2016

[THE INVESTOR] The government on Sept. 28 called for a restructuring of the petrochemicals industry to reduce oversupply and streamline businesses. “According to a consultation report, a rapid business restructuring should be implemented with regards to four of the 33 key (petrochemicals) products are in oversupply,” Minister of Trade, Industry and Energy Joo Hyung-hwan said at a meeting with chiefs of petrochemical companies. “It is important that (concerned businesses) shed unnecessary weight

Sept. 28, 2016

[THE INVESTOR] October will see the largest number of initial public offerings this year, but there are concerns that the volume could pose an obstacle for the companies. Next month, three companies are planning to be listed on the KOSPI and 12 are preparing to go public on the KOSDAQ. Of these, Doosan Bobcat, a unit of power and construction equipment conglomerate Doosan, will be the largest with the company hoping to raise about 2 trillion won (US$1.82 billion. The remainder are eyeing a combi

Sept. 28, 2016

[THE INVESTOR] The dispute over performance-based salary system is growing with South Korea’s largest umbrella labor unions set to stage mass rallies and strikes. The hardline Korean Confederation of Trade Unions will hold a rally in Seoul on Sept. 28. The Federation of Korean Trade Unions will follow suit the next day. The KCTU will rally in Seoul’s Yeouido with 16,000 members marching to the ruling Saenuri Party’s. In addition, unions belonging to the Korean Metal Workers’ Union will strike ac

Sept. 28, 2016

[THE INVESTOR] Korea Federation of SMEs Chairman Park Sung-taek said on Sept. 28 that he is considering launching a boycott campaign on Hyundai Motor products. Speaking to the media, Park said that Hyundai Motor union’s strike was causing massive damages to small and medium enterprises and that a boycott could be launched. “Hyundai Motor is the key culprit for causing the pay gap between large companies and SMEs,” Park said. “Hyundai Motor grew into a global company with the support of the gover

Sept. 28, 2016

[THE INVESTOR]  Dongbu Steel’s creditors plan to complete the sale of the company’s electric arc furnace within the year, with two Iranian steelmakers showing interest in the facility. According to reports citing unnamed South Korean finance industry sources, two Iranian steelmakers submitted letters of intent earlier this month. The final biddings will take place at the end of October, and the creditors hope to select the preferred bidder in November, to seal the deal within the year. The elect

Sept. 28, 2016