The Korea Herald

S. Korean insurers’ RBC ratio rises for second consecutive quarter

[THE INVESTOR] South Korean insurance companies’ rick-based capital ratio increased for the second consecutive quarter, data showed Aug. 24.According to the Financial Supervisory Service, the average RBC ratio of local insurers came to 288 percent at the end of the second quarter, up 14.1 percent from the previous three-month period. The average RBC ratio of local insurers had been declining since September 2014, when it stood at 305.7 percent. However, the average began to pick up this year, ri

Aug. 24, 2016

Hyundai Life and Heungkuk Fire’s RBC ratios lowest in industry

[THE INVESTOR] Hyundai Life Insurance and Heungkuk Fire & Marine Insurance have the lowest risk-based capital ratio among South Korean life and nonlife insurers, government data showed Aug. 24. According to the Financial Supervisory Service, Hyundai Life’s RBC ratio came in at 179 percent at the end of June. Although the figure is 5.3 percentage points higher than that recorded at the end of March, it was the lowest among the 25 life insurance companies operating in Korea.As for Heungkuk Fire an

Aug. 24, 2016

POSCO chief rules out use of business revitalization act

[THE INVESTOR] POSCO has no plans to capitalize on the new law facilitating business restructuring, the company’s CEO said Aug. 24. Speaking at the Steel Korea conference held in Seoul, POSCO CEO Kwon Oh-joon said that the company is carrying out restructuring regardless of the new act. The Special Act of Corporate Revitalization act came into force on Aug. 13 and allows companies working in industries with oversupply problems to alter their business portfolio more easily. “(The company) has no

Aug. 24, 2016

POSCO chief rules out use of business revitalization act

S. Korea’s intellectual property trade deficit narrows in Q1

[THE INVESTOR] South Korea trade deficit from intellectual property rights came to US$780 million in the first quarter of the year, down US$410 million from the previous quarter, Bank of Korea announced Aug. 24.The central bank’s tentative intellectual property trade balance showed that South Korean exports came to US$2.8 billion, while imports came to US$3.58 billion in the first three months of the year. By category, deficits regarding patents and utility model were the highest at US$630 milli

Aug. 24, 2016

KEPCO’s venture posts losses from the get-go

[THE INVESTOR] State-run electricity provider Korea Electric Power Corp..’s gasification joint venture has built up over 5.4 billion won (US$4.81 million) in operating loss since 2011, a National Assembly Budget Office report shows. According to the report, KEPCO-UHDE, a joint venture established with Germany’s ThyssenKrupp Industrial Solutions, has posted annual operating losses ranging between 492 million won and 1.77 billion won. During the period, the company’s net deficit ranged from 277 mi

Aug. 24, 2016

State power companies’ profits soar on higher charges, lower fuel costs

[THE INVESTOR] The operating profits of state-run power companies have increased 841 percent in two years, data showed on Aug. 24. The seven companies are Korea Electric Power Corp., Korea South-East Power, Korea Western Power, Korea East-West Power, Korea Midland Power, Korea Southern Power and KEPCO KPS. According to market researcher CEO Score, the seven state-run power companies’ first-half operating profits came to over 4.23 trillion won (US$3.77 billion) and net profits to 3.92 trillion wo

Aug. 24, 2016

S. Korea sets up hydrogen power organization

[THE INVESTOR] A government-private sector body for facilitating the spread of hydrogen energy was launched Aug. 24.State organizations taking part in the newly formed body include the Ministry of Trade, Industry and Energy and Ministry of Environment, and the governments of Ulsan, Gwangju and South Chungcheong Province. From the private sector, makers of hydrogen cars and parts and companies involved in hydrogen production and distribution have joined the organization. Those involved in the org

Aug. 24, 2016

Shinhan Card keeps Wi Sung-ho as CEO

[THE INVESTOR] Shinhan Card announced on Aug. 24 that CEO Wi Sung-ho will maintain his position for another year. The company said the decision was approved at the shareholders meeting Aug. 23.Wi was appointed CEO in August 2013. “Wi has shown rational leadership based on his strategic thinking and communication skills, and has shown good performance and maintained Shinhan Card’s position in the market,” the company said. By Choi He-suk (cheesuk@heraldcorp.com)

Aug. 24, 2016

SK to raise W300b with new bonds

[THE INVESTOR] SK Holdings C&C will issue 300 billion won (US$269 million) in bonds in September. According to finance industry sources, the company will issue 2-, 5- and 7-year bonds to raise funds to cover the costs of maturing bonds. About 350 billion won worth of bonds will mature by the end of next month. This will be the company’s third bond issue this year. The company issued 800 billion won in bonds in March and June. By Choi He-suk (cheesuk@heraldcorp.com)

Aug. 23, 2016

Shin Dong-bin’s closest aide to be grilled in corruption probe

[THE INVESTOR] Hwang Gak-kyu, a close aide to Lotte Group Chairman Shin Dong-bin, is to be questioned as a suspect in the ongoing corruption probe, the Seoul Central District Prosecutors Office said Aug. 23. Hwang will be summoned on Aug. 25. Hwang is one of Shin’s closest aides, and has been serving under him since 1990. Lotte Group Chairman Shin Dong-bin[Investigators plan to question Hwang on a range of allegations, including the Shin family’s slush funds, tax evasion and unfair trading pract

Aug. 23, 2016

Shin Dong-bin’s closest aide to be grilled in corruption probe

S. Korea’s exports volume index growth slows in July

[THE INVESTOR] The growth rate of South Korea’s export volume index dropped in July, Bank of Korea said Aug. 23. According to the central bank, Korea’s exports volume index recorded 0.8 percent on-year growth in July, falling from 3.6 percent on-year growth recorded in June. The data showed that exports of transportation equipment, machinery and fabrics fell, but electronics, electric equipment and chemicals increased. The BOK data does not include ships, weapons, works of art or aircrafts. In t

Aug. 23, 2016

S. Korea’s exports volume index growth slows in July

Korea's KNOC to begin gas production at Donghae-2 field in October

[THE INVESTOR] Korea National Oil Corporation will begin producing natural gas from the Donghae-2 gas field from October, a local daily reported Aug. 22.According to the report, KNOC completed test drilling and plans to begin production in October. The daily quoted an unnamed government official as saying that production will begin once the pipelines are relocated. Donghae-2 field is located 60 kilometers off the coast of Ulsan, and is estimated to contain about 566 million cubic meters of natur

Aug. 23, 2016

Ruling party lawmaker proposes Korean ‘Lemon law’

[THE INVESTOR] A revised Motor Vehicle Management Act dubbed the Korean version of the US’ “lemon laws” was proposed on Aug. 23. Proposed by Rep. Shim Jae-cheol of the ruling Saenuri Party, the revision stipulates that refunds or replacements must be provided when a new vehicle experiences defects. If approved, the revised act would enable consumers to demand a refund or replacement if a new vehicle experiences severe faults within 30 days of delivery on two or more occasions. In addition, four

Aug. 23, 2016

Ruling party lawmaker proposes Korean ‘Lemon law’

Shinhan BNP Paribas, VinaCapital launch investment fund

[THE INVESTOR] Shinhan BNP Paribas Asset Management will launch a stock investment fund in collaboration with Vietnam’s VinaCapital, the company said Aug. 23. The product will invest in stocks traded in markets in Indonesia, the Philippines and Vietnam.Shihan BNP Paribas and VinaCapital will also collaborate in developing additional products investing in Vietnamese securities and real estate. VinaCapital is Vietnam’s second-largest provider of asset management services. By Choi He-suk (cheesuk@h

Aug. 23, 2016

Shinhan BNP Paribas, VinaCapital launch investment fund

Korea's state oil company KNOC shuts down US$130m Iraq project

[THE INVESTOR] Korea National Oil Corporation will pull out of Iraq’s Sangaw South oil field project. The state-run company has injected about US$130 million into the project since 2008.At the time, the company acquired 50 percent stake in the project, expecting large oil reserves. However, the company decided the project has little merit to continue.As recently as March 2015, the KNOC had expected to strike oil, and claimed at a National Assembly audit that the Sangaw South project would enable

Aug. 23, 2016

Korea's state oil company KNOC shuts down US$130m Iraq project

Articles by Choi He-suk