Renault Samsung Motors and GM Korea could be severely hit by proposed French government action to invoke “safeguard” measures against cars produced in Korea, auto industry insiders said Thursday. The French government notified the Korean government of its move to take issue with vehicle trade imbalance and other matters under the Korea-EU Free Trade Agreement.“We’ve been informed of their policy through the French Embassy on July 24,” said an official of the Foreign Affairs and Trade Ministry.“T

Industry July 26, 2012

Nearly seven in 10 foreign companies in Korea said they would consider withdrawing from the country if their tax burden continued to grow, a poll showed Wednesday.According to a survey of 158 foreign businesses conducted by the Korea Chamber of Commerce and Industry, 69 percent of the respondents said “withdrawal could seriously be contemplated” if the nation chooses to levy heavier taxes.The KCCI reported that most of the respondents expressed unease about the nation’s corporate tax environment

Industry July 25, 2012

Antitrust watchdog poised to dispatch inspectors to officesSix import car brands in Korea are paying close attention to the antitrust regulator’s ongoing investigation into foreign carmakers on suspicion of price-fixing and irregular practices with dealerships.According to the Fair Trade Commission, the brands under investigation are BMW, Mercedes-Benz, Volkswagen, Audi, Toyota Motor and Lexus. Mercedes-Benz Korea recently enhanced its public relations in a move to prevent misinformation from be

Industry July 24, 2012

Cash flow problems hit conglomerate-based exporters on global factors such as euro crisisMore and more large-sized companies are facing risks of deterioration in financial soundness, mostly hit by external factors like the eurozone debt crisis.Among them are SK Telecom, SK Hynix, LG Display, LG Uplus, LG Innotek, LG International Corp., Cheil Industries, CJ CheilJedang Corp., Hanwha Chemical, Hyundai Hysco, Hyundai Merchant Marine and Doosan Heavy Industries, according to FnGuide, a financial in

Industry July 23, 2012

South Korean stocks closed 1.84 percent lower Monday as Spain’s call for a rescue fund spurred a new wave of fears that the eurozone debt crisis is deepening, analysts said. The local currency fell against the U.S. dollar.The benchmark Korea Composite Stock Price Index plunged 33.48 points to finish at 1,789.45. Trading volume was moderate at 491.3 million shares worth 3.55 trillion won ($ 310.5 million), with decliners far outstripping gainers 676 to 155.“Investors are unnerved by Spain because

July 23, 2012

The default rate on loans extended by South Korean insurers moved up in May from a month earlier mainly due to a rise in overdue household and corporate loans, the financial regulator said Sunday.The average ratio of overdue loans came to 0.83 percent of total lending by local life and non-life insurers, up 0.03 percentage points from the end of April, the Financial Supervisory Service said in a report.The May figure, however, marks a 0.22 percentage point dip from a year earlier when the defaul

July 22, 2012

South Korea’s leading mobile game maker Com2uS Corp. will benefit from the growing smartphone game industry, investment bank UBS said Sunday, offering a “buy” recommendation on the company.“We believe Com2uS will be a key beneficiary of the expansion of the global smartphone gaming market,” UBS said in its initial coverage report on the company.Com2uS is one of South Korea’s most successful makers of video games for mobile phones. The company is known for such mobile games as finger-wrenching Ho

Industry July 22, 2012

Sluggish business conditions have caused a sharp rise in layoffs and involuntary retirements in South Korea’s labor market, a government report showed Sunday.According to data by Statistics Korea, 27.0 percent of people who had to leave work this year cited downturns in the business environment and outright closures of workplaces because of poor sales and earnings.This is a rise of 7.8 percentage points from 19.2 percent who had to leave work for the same reasons in 2006.The latest findings also

Industry July 22, 2012

South Korean stocks are likely to be locked in range-bound trading this week as investors step to the sidelines over a lack of momentum, analysts said.The benchmark Korea Composite Stock Price Index rose 0.55 percent from a week earlier to finish at 1,822.93 last week, with the market fluctuating most of the week.The main index slumped 27.05 points to 1,794.91 on Wednesday as investor sentiment soured over U.S. Fed Chairman Ben Bernanke’s bleak economic outlook. But it bounced back to the psycho

July 22, 2012

Credit card installment purchases rose to a 15-year high in the first quarter of this year as households tried to reduce their repayment burden in the face of mounting debt, a report showed Sunday.The Credit Finance Association of Korea report showed 17.4 percent of all card purchases made in the January-March period were installments, the highest reached since 19.2 percent tallied for the whole of 1997, when the country was rocked by the Asian financial crisis.Reflecting this, credit card firms

July 22, 2012

The debt of South Korea’s public sector rose nearly 10 percent in the first quarter of this year from a year earlier due to increased spending on state projects and government efforts to curb public utility charges, data showed Sunday.The outstanding debt of the government and nonfinancial state-owned corporations came to 842.27 trillion won ($738.5 billion) as of the end of March, up 9.9 percent from a year earlier, according to the data by the finance ministry and the Bank of Korea.The figure

July 22, 2012

Financial authorities are scheduled to accept preliminary bids for tax money injected Woori Financial Group this Friday.The sale plan for the state-controlled financial company is drawing attention in the market while a group of lawmakers are calling on the Financial Services Commission to postpone the M&A competition for the next administration.Three months ago, the FSC made an official notification of the sale procedure, announcing that it would select preliminary bidders for Woori Financial b

July 22, 2012

Japanese vehicles to be assembled in Korea for first timeRenault-Nissan Alliance chairman & CEO Carlos Ghosn will make public the auto giant’s strategy to roll out Nissan models at Renault’s Korean unit at a news conference, slated for Friday, sources in Seoul said on Thursday.This will mark the first time that Seoul-based Renault Samsung Motors, whose parent group is Paris-based Renault, takes on production of Japan-based Nissan cars.“Apart from Renault Samsung, no Japanese car model has been p

Industry July 19, 2012

This is the first in a two-part series about economic democratization touted by political parties ahead of the December presidential election. ― Ed.About 70 percent of 1,200 global investors and traders told a survey that the present capitalist structure should be revamped during their participation in the last Davos Forum.The poll result seemingly reflected growing criticism of corporate greed in many countries, according to local research analysts.While international economists are suggesting

Industry July 18, 2012