The Korea Herald

Potential bidders for KAI to be picked

Aircraft maker selling 42 percent of its stake; Korean Air interested in acquisitionPotential bidders for Korea Aerospace Industries will be unveiled on Thursday, while Korean Air has already expressed its willingness to take over the nation’s sole aircraft maker.A shareholders’ committee of KAI, led by the state-run Korea Finance Corp., announced last month that it would invite letters of intent to sell off their 41.75 percent stake in the company by Aug. 16.While Korean Air is poised to make b

Industry Aug. 15, 2012

Foreign car firms look beyond Seoul

Regional cities see import car sales increase rapidlyForeign automakers in Korea are expanding their businesses in the nation’s major provincial cities as import vehicle sales continue to hit all-time highs.The trend follows the growing percentage of sales in big regional cities. The proportion of import car sales in Seoul among the total in the nation stood at 19.2 percent in July, down from 21.7 percent a year before.Gyeonggi Province and South Gyeongsang Province held the second and third pos

Industry Aug. 7, 2012

GM may produce Cadillacs in Korea

U.S. carmaker strives to find breakthrough amid sagging sales of AlpheonGM Korea is seeking a breakthrough to boost the sluggish sales of its premium sedan Alpheon that debuted in the Korean market in 2010.One scenario could be the introduction of the Cadillac brand, also under its parent U.S.-based General Motors, like the current Chevrolet series of which several models are being produced in Korea, industry sources said.The Korean unit of GM had pinned hopes on the Alpheon in terms of sales c

Industry Aug. 6, 2012

Foreigners dump local stocks for 4th month

Foreign investors offloaded local stocks for a fourth consecutive month in July mainly due to continuing external uncertainties stemming from the debt-mired eurozone, the financial regulator said Friday.Overseas investors sold off a net 710 billion won ($627.2 million) worth of local equities last month, with their shareholdings reaching 379.9 trillion won as of the end of July, the Financial Supervisory Service said.Foreign stock ownership inched up to 31.6 percent of the market cap last month

Aug. 3, 2012

Average monthly import car sales top 10,000

Import car sales in the local market continued their boom last month although Korean automakers and three foreign companies that operate production factories in Korea are still suffering sluggish vehicle sales.According to the Korea Automobile Importers & Distributors Association, the nation’s import car sales exceeded 10,000 units for the fifth consecutive month.“Sales of import cars came to 10,768 units in July, up 21.5 percent from a year before,” a KAMA spokesman said on Friday. “After posti

Industry Aug. 3, 2012

Home prices drop for 1st time in 2 years

The average price of houses in South Korea dropped for the first time in two years, related data showed Thursday, offering another clear indication of the country’s struggling housing market.The average price of homes across the country dropped 0.1 percent from a month earlier in July, according to the data released by Kookmin Bank, the largest bank in South Korea. July marks the first time since July 2010 the average price of houses dropped from the previous month.The drop was partly led by a d

Aug. 2, 2012

Seoul shares down 0.56% on Fed disappointment

South Korean stocks fell 0.56 percent Thursday following the U.S. Federal Reserve’s announcement of no fresh action to boost the slowing economy, analysts said. The local currency fell against the U.S. dollar.The benchmark Korea Composite Stock Price Index lost 10.53 points to 1,869.4. Trading volume was light at 267.4 million shares worth 3.35 trillion won ($2.96 billion), with losers outnumbering gainers 446 to 342.“The meeting of the Federal Open Market Committee’s was somewhat disappointing

Aug. 2, 2012

Credit card spending up

Growth of South Koreans’ credit card spending decelerated in the first half from a year earlier mainly due to the local economy’s slowdown, a trade association said Thursday.Purchases made with credit cards totaled 253.2 trillion won ($224.8 billion) in the January-June period, up 6.9 percent from a year earlier, according to the Credit Finance Association.When adjusted for inflation, the increase rate was less than 6 percent, the association added. The figure lags behind 17.7 percent on-year gr

Aug. 2, 2012

Korea to cushion grain prices: minister

The government will play a role in cushioning risks from a possible failure to purchase sufficient grain products in the face of concerns that rising international crop prices could increase food costs and overall inflationary pressure here, the finance minister said Thursday.“As international crop prices are recently spiking in the wake of droughts that hit the United States and South America, fears are rising over agflation,” Finance Minister Bahk Jae-wan told a price stabilization meeting.“We

Aug. 2, 2012

Hyundai, Kia’s car sales inch up in July

GM Korea, Renault Samsung, Ssangyong post sagging salesHyundai Motor and Kia Motors saw their year-on-year vehicle sales increase last month on the back of robust performance overseas.Hyundai-Kia’s overseas factories in particular led the affiliated carmakers’ sales growth. They operate manufacturing plants in countries such as the U.S., China, Turkey, the Czech Republic and Slovakia.Hyundai Motor said it posted sales of 332,027 units in July, up 3.1 percent a year earlier.The nation’s largest a

Industry Aug. 1, 2012

KB Kookmin vows ethical business

KB Kookmin Bank pledged to reinforce sincere business activities in a bid to regain customer confidence by eliminating practices with ethical breach.The commercial bank said Wednesday that it has formed a task force aimed at enhancing social responsibility, ethical management and customer-oriented business.The bank mapped out the new business policy after being criticized by the public when irregularities involving fabrication of its loan screening documents were revealed in the financial market

Aug. 1, 2012

Business uncertainties likely to raise M&A opportunities

But analysts say supply may exceed demand in auction marketResearch analysts predict some large local enterprises will be put on the market for mergers or acquisitions in the coming months.They cite worsening financial situations for some companies, hit by the eurozone debt crisis and global uncertainties, for a possible vitalization of the nation’s M&A market.According to brokerage industry data, three sectors ― construction, shipping and shipbuilding ― have been hit severely by rapidly declini

Industry July 31, 2012

Business uncertainties likely to raise M&A opportunities

Renault Samsung sees customer satisfaction as winning path

Renault Samsung Motors has gained popularity in the local market with its SM sedan series over the past decade.Of the automaker’s lineup, the mid-sized sedan SM5 and compact SM3 have long been among the top sellers in their respective segments.The mid-sized and compact sedan segments collectively account for about 50 percent of Korea’s passenger car market.Company executives say that the quality of its vehicles is the secret of its success, and a string of awards and consumer survey results back

Mobility July 29, 2012

Renault Samsung sees customer satisfaction as winning path

Shares jump 2.62% on ECB chief’s pledge

South Korean stocks rallied 2.62 percent Friday as cheering remarks by the European Central Bank chief offered investors a sense of reassurance against the persistent eurozone crisis, analysts said. The local currency gathered ground against the U.S. dollar.The benchmark Korea Composite Stock Price Index rose 46.69 points to close at 1,805.92. Trading volume was moderate at 393.4 million shares worth 4.54 trillion won ($3.95 billion) with gainers far outstripping losers 641 to 186.The ECB Presid

July 27, 2012

Kia sees earnings surge by 25 percent

Kia Motors reported an operating profit of 2.3 trillion won ($2 billion) during the first half of 2012, up 25 percent on the same period last year.The automaker also saw its sales increase by 9.5 percent to 24.3 trillion won and net profit rise by 10.4 percent to 2.2 trillion won, posting all-time high figures on its financial statements.Despite global economic uncertainties, Kia recorded sales growth of 17.8 percent in the United States, 24.5 percent in Europe and 16.3 percent China.It sold 289

Industry July 27, 2012

Articles by Kim Yon-se