State-run conglomerates that have been given enhanced management independence are about to bear bigger burdens to meet high expectations this year as the government wants them to maintain their leadership through profit increase and new business development.The Ministry of Strategy and Finance said Friday that it will keep its hands-off approach with Korea Gas Corp, Korea District Heating Corp, Incheon International Airport Corp. and Korea Airports Corp.The ministry has added Busan Port Authorit

Industry Feb. 15, 2013

Boo-Kang Tech, an environmental tech company, is seeking to list on the tech-heavy KOSDAQ possibly in the first half of this year with Mirae Asset Securities as its lead underwriter, a BKT official said.BKT is looking to raise around 30 to 40 billion won via an initial public offering. The IPO proceeds will be used to finance environment and energy plant engineering projects both at home and abroad.Also, the stock floatation will help the company secure funding from banks for further project inv

Feb. 14, 2013

Currency devaluation and exit strategies for monetary easing are expected to top the agenda among financial policymakers at the upcoming G20 meeting of finance ministers and central bankers, Korean officials said Wednesday. The meeting is scheduled for Feb. 15-16 in Moscow.Korea’s Finance Minister Bahk Jae-wan and Bank of Korea Governor Kim Choong-soo will be attending the two-day meeting to share their views, especially on the global foreign exchange market, which has been prone to increased vo

Feb. 13, 2013

Korea’s employment rate continued to drop for the third straight month, hitting a one-year low of 57.4 percent in January, according to Statistics Korea.Data released Wednesday showed that Korea’s employment rate is below the OECD-member average of 63 percent.January’s job rate was unchanged from the same period a year ago, and the youth unemployment rate continues to show no signs of improvement.The jobless rate for those aged between 15 and 29 reached 7.5 percent in January for the second mont

Feb. 13, 2013

Korean exporters may need to brace for rough sailing in overseas markets earlier than expected as Japan prepares to accelerate the depreciation of its currency to jumpstart its economy, analysts said.Foreign investment banks and domestic securities companies have drawn their outlooks for the Japanese yen to further weaken faster than their initial estimation, forecasting its value to drop over 100 yen to the dollar as early as the second half of this year.The general consensus among investment b

Feb. 11, 2013

Korea posted record tourism revenue last year, thanks to the popularity of hallyu, or the Korean Wave, and aggressive marketing, according to the Bank of Korea.The country’s inbound tourism brought in more than $14.2 billion in 2012, up 13.6 percent from $12.5 billion a year earlier.This means that the tourism sector was earning more than $1 billion monthly for the first time.The record high earning has contributed to decreasing the travel account deficit to some $5.9 billion last year, from $7.

Feb. 7, 2013

Low investment and consumption are further weighing on the Korean economy, said the Korea Development Institute, a state-run think tank, in a report.Signs show that industrial production has been improving and exports maintaining resilience since last month.However, slow investment, especially in the construction sector, which is leading to a stagnant real estate market, is projecting a bleak outlook for the economy.Although the consumer sentiment index is above 100, showing more optimism than p

Feb. 7, 2013

Korea’s services sector growth outpaced the manufacturing sector last year, another sign of a sluggish economy continuing.The manufacturing sector expanded 2.2 percent in 2012, slower than the 2.4 percent growth in the services sector, according to the Bank of Korea.This is the first time in 11 years that the services sector has grown more than manufacturing, which has traditionally been the main driver of exports, Korea’s main source of growth.Data also showed that the services sector contribut

Feb. 5, 2013

Downsizing is sweeping the securities industry with firms tightening management and costs amid the slowdown in the manufacturing sector, the Korea Financial Investment Association and analysts said.Some 60 brokerage houses have reduced the number of their retail branches by almost 100 nationwide to 1,681 over the last year, with some 720 executives being let go. Mirae Asset Securities closed down the most retail branches at 39, followed by Tongyang Securities shutting down 20 of its offices. Han

Feb. 4, 2013

Hankook Tire, Korea’s biggest tire maker, posted record global sales in 2012, thanks to brisk sales of its premium tires to luxury automobile manufacturers worldwide.Revenue of Hankook Tire reached over 7 trillion won in 2012, up 8.3 percent from 6.4 trillion won a year earlier, according to consolidated financial statements.Its operating profit reached some 913 billion won, up 57.9 percent from 578 billion won in the same period.The company attributes its record-breaking revenue to increased su

Industry Feb. 1, 2013

Korea Hydro & Nuclear Power, a state-run nuclear power plant operator, said on Friday that it submitted its bid for a nuclear power project launched by TeollisuudenVoima, a Finland-based utility company.This marks the first time for a Korean power company to seek a nuclear power deal in Europe that has been traditionally dominated by advanced European players. Korea Hydro will be competing to build TVO’s Olkiluoto-4 plant with KEPCO Engineering & Construction, Doosan Heavy Industries & Construct

Industry Feb. 1, 2013