South Korean conglomerates are facing a crisis of stagnant growth, squeezed by falling domestic demand and a prolonged global economic downturn. The chaebol are actively searching out new business beyond their core to survive. According to FnGuide, a local financial information provider, about 63 percent of 41 companies listed on the main stock bourse posted an on-year drop in their first-quarter operating profit. “Aside from those in such areas as electric, electronics and pharmaceuticals, cong

Business May 7, 2013

Korea will eye overseas infrastructure development projects, armed with local experience and know-how accrued over the past half century, the nation’s chief construction policymaker said. “Korea is one of the few countries that have risen from recipient to donor in just half a century,” Land, Infrastructure, and Transport Minister Suh Seoung-hwan said in a written interview with The Korea Herald. “This rapid growth largely took place in line with strategic infrastructure development, a model whi

May 6, 2013

DONGHAE, Gangwon Province ― The new free economic zone to be established on the east coast will focus on attracting foreign materials and parts companies toward the goal of building an industrial cluster in Korea, officials said.The East Sea Free Economic Zone Authority, which will oversee the massive project, was launched on Tuesday with the aim of completing the construction of the East Sea (Donghae) FEZ by 2024.An FEZ refers to a specially designated economic zone intended to attract foreign

Industry May 2, 2013

Most of Korea’s billionaires accumulated their wealth through inheritance, while the Japanese superrich built up their wealth by creating their own business, according to a recent survey by CEO Score, a local online corporate management evaluator.In the survey of the top 50 richest people in Korea and Japan based on their stock ownership, 78 percent of Korea’s richest are second and third generation chaebol chiefs. In contrast, 60 percent of the top 50 richest Japanese are entrepreneurs. In Kore

May 1, 2013

Ahn Soong-bum, 53, former chairman of Royal Dutch Shell Korea, will lead General Electric’s global growth offshore and marine business, whose global headquarters will be stationed in Korea, GE said. He was also named general manager for GE’s power conversion business in Korea. The company said in a statement that it expects Ahn to create synergy effects with other regional headquarters by using the competitiveness of the power conversion business in Korea and to build strategic relationships wit

Industry April 30, 2013

Hanwha Group promoted Kim Chang-beom, executive vice president of Hanwha L&C, a construction material processing firm, to president, company officials said on Tuesday.The nation’s 10th-largest conglomerate by assets carried out its annual executive-level reshuffle of 139 personnel. The reshuffle had been delayed due to the top management vacuum caused by the imprisonment of group chairman Kim Seung-youn.“The group will call for new executives to drive its new growth engines as planned and to tap

April 30, 2013

Kang Duck-soo, 63, chairman and founder of STX Group, the nation’s 13th-largest conglomerate by assets, is facing his biggest-ever crisis as some of the company’s major affiliates are suffering from financial crunches. Cornered by liquidity problems, Kang has handed over his controlling stakes in STX Offshore & Shipbuilding, a core affiliate of STX Group, to creditors. “His decision came amid creditors’ due diligence on the group’s money-losing shipbuilding unit before the creditors decide wheth

Industry April 29, 2013

The debt of the nation’s top 28 state-owned companies whose assets exceed 2 trillion won ($1.8 billion) swelled to equal the national debt last year, posing a major threat to the Korean economy.The combined debt of large public companies such as Korea Land & Housing Corp. and Korea Electric Power Corp. reached 392.96 trillion won in 2012, up 8.7 percent from 361.4 trillion won a year earlier, the data compiled in accordance with each firm’s regulatory filings said. Meanwhile, the national debt r

April 25, 2013

Korea ranked 21st for food security in a global survey of 105 countries, posting a score of 77.8 out of 100, according to the Korea Rural Economic Research Institute on Monday. The index was created by the U.K.-based Economist Intelligence Unit, using data on food affordability, availability, quality and safety of each country surveyed. The U.S. topped the index, securing a score of 89.5, followed by Denmark (88.1) and Norway (88.0). The survey, however, didn’t use food self-sufficiency data to

Industry April 22, 2013

In times past, trains served as the backbone of the nation’s economic development, delivering freight and coal to inland cities. As the coal industry declined and other forms of transport came into being, demand for industrial trains dwindled. So KORAIL, the state-run railroad operator, turned the existing rail network into a tour train line in the mid-2000s. “We paid attention to rising demand for rail tours, which offer room to think for people who live busy modern lives as they take in the be

Travel April 19, 2013

High 1 Country Club, a public golf course in Korea, started its 2013 season on April 4, and the season will last until Nov. 7, according to the company. Run by High 1 Resort, the club is located between Gohan and Sabuk in Jeogseon County, Gwangwon Province, and surrounded by beautiful mountain scenery throughout the year. The mountains are part of the “Baekdu-daegan,” chain that forms the backbone of the Korean Peninsula. The 6,517-meter course is 1,137 meters above sea level and is a par 72 ove

April 18, 2013