Following is the second in a series of articles on President-elect Park Geun-hye’s key policies ― Ed.Revamping the conglomerate sector was one of main campaign issues among presidential hopefuls amid the widening profit gap among industries and irregularities by their mammoth business groups.Most candidates designated their proposed reform of chaebol ― Korea’s family-owned conglomerates ― “economic democratization.” While liberal candidates had pledged to overhaul family-owned ownership structur

Industry Dec. 23, 2012

The burden of small and mid-sized retailers will be eased as the Financial Supervisory Service has instructed credit card companies to slash their transaction service fees.Over the past few years, some 1 million retailers continued to demand credit card issuers to cut the service charge for consumers’ payments for goods with their credit cards.After talks between the regulator FSS and the credit card industry, about 2 million retailers will see service fees lowered to a level deemed more reasona

Dec. 20, 2012

South Korean stocks are predicted to undergo correction this week as they had risen too much in the short term last week, analysts said Saturday.The benchmark Korea Composite Stock Price Index finished at 1,995.04 on Friday, up 1.92 percent from a week earlier.The KOSPI moved in a tight range earlier this week as investors sat on their hands ahead of the U.S. Federal Reserve’s policy-setting Federal Open Market Committee meeting.North Korea’s long-range rocket launch in the middle of the week al

Dec. 16, 2012

South Korea’s major financial holding companies are expected to fare worse in 2013 than this year due mainly to a decline in interest income amid persistent low interest rates, a financial information provider said Sunday.The combined net income of the four major bank holding companies ― KB Financial Group Inc., Woori Finance Holdings Co., Shinhan Financial Group and Hana Financial Group ― is predicted to reach 7.32 trillion won ($6.82 billion) next year, down 9.5 percent from this year’s estima

Dec. 16, 2012

Sales of wine at local discount chains outstripped those of soju for the first time, data showed Sunday, mirroring a changing trend in South Korea’s drinking culture.Wine sales surpassed those of the local alcoholic drink by 4.6 percent this year, according to the data by Lotte Mart, a discount chain arm of retail giant Lotte. Last year, sales of wine lagged behind those of soju by roughly 6 percent.Wine sales stood at around 25 percent of soju sales in the first half in the early 2000s, but jum

Industry Dec. 16, 2012

Lottery sales in South Korea surpassed an annual government-set limit for the second straight year as more people bought tickets amid an economic recession, data showed Sunday.Sales of lottery tickets totaled 2.91 trillion won ($2.71 billion) in the January-November period, exceeding the 2.87 trillion won ceiling recommended by the National Gambling Control Commission, according to the data by government agencies.If the trend continues, this year’s lottery sales are expected to surpass 3 trillio

Industry Dec. 16, 2012

South Korea’s household debt has been rising at a faster rate than its economic growth, data showed Sunday, raising concern it could put the economy in jeopardy unless proper measures are taken.According to the data by the Bank of Korea, South Korea’s household credit totaled 937.5 trillion won ($873 billion) as of the end of September, up 5.6 percent from a year earlier.Household credit refers to credit purchases and loans for households extended by financial institutions, including commercial

Dec. 16, 2012

An investigation into complaints that loose floor mats in some Ford Motor Co. Fusion, Lincoln MKZ and Mercury Milan cars may jam accelerator pedals was upgraded by U.S. regulators. The National Highway Traffic Safety Administration, which regulates auto safety, today said it intensified a probe opened in May 2010 to an engineering analysis after receiving 52 complaints. The investigation covers about 480,000 cars from model years 2008 to 2010, NHTSA said today on its website. Accelerator pedals

Mobility Dec. 16, 2012

The Korea International Trade Association awarded Oriental Brewery Co. for the company’s record-breaking export performance this year.OB’s yearly exports surpassed $100 million for the first time in history among beer producers in Korea.OB said it posted exports totaling $106.6 million per annum between July 2011 and June 2012. It sold about 15.7 million boxes, with 20 0.5-liter bottles, in the overseas market during the period.While the liquor industry calculates a fiscal year from July to June

Industry Dec. 12, 2012

The Financial Supervisory Service is taking stern regulatory measures against the insurance sector as some businesses have seen their financial status worsen from low returns.As a remedy, the regulator instructed some insurance firms to raise their capital base. It has found that some non-life insurers are suffering weak capability for insurance payments to policyholders.Those that will be under close monitoring of the FSS include players whose “risk-based capital” ratio stayed below optimum lev

Dec. 11, 2012

The earnings gaps between the nation’s top two conglomerates ― Samsung and Hyundai Motor ― and other major business groups are widening, data showed on Monday.Samsung Group and Hyundai Motor Group are expected to take up about 70 percent of earnings reaped by the nation’s 10 largest conglomerates this year, according to chaebul.com, a conglomerate-tracking website.In terms of operating profit, Samsung Group accounted for 46.2 percent (17.5 trillion won) of the collective 37.9 trillion won by the

Industry Dec. 10, 2012