Tension between the government and foreign carmakers appeared to deepen on Monday following audit results on fuel mileage from the Ministry of Trade, Industry and Energy on the top imported carmakers in the country, including Chrysler.The 2013 fuel efficiency test that is arousing controversy in the automotive sector found Chrysler’s 2013 Jeep Grand Cherokee to have inflated its fuel efficiency, a key indicator influencing car purchases.“It is hard to accept the results as Chrysler’s 2013 Jeep G

Industry June 30, 2014

South Korean stocks finished lower on Friday as weak U.S. data prompted foreign investors to sell, analysts said. The Korean won rose against the U.S. dollar.The benchmark Korea Composite Stock Price Index fell 6.54 points, or 0.33 percent, to 1,988.51. Trading volume was low at 212.7 million shares worth 2.96 trillion won ($2.92 billion), with gainers outpacing decliners 424 to 359. “Institutions continued to buy. Foreigners, who have been shifting in and out of selling mode, turned to selling

June 27, 2014

Korean Air, the nation’s largest air carrier, said Friday it would receive its ninth A380 superjumbo jet and use it to service the Atlanta route starting next month.The Airbus’s jumbo passenger jet, to arrive in Incheon International Airport on Saturday, is configured to carry 407 passengers overall, of which 301 are economy seats.The airline said the 84 centimeters of space between economy seat rolls is the widest among any operator of the A380, making Korean Air jets more comfortable for passe

Industry June 27, 2014

South Korea extended its current surplus streak for the 27th consecutive month in May as exports continued to remain solid, central bank data showed Friday. The current account surplus reached $9.3 billion last month, compared with $7.12 billion in April, according to the preliminary data by the Bank of Korea. The current account is the broadest measure of cross-border trade.The May figure, without seasonal adjustments, marks the highest level since October last year when the country’s current s

June 27, 2014

The South Korean won advanced sharply to the U.S. dollar on Friday, hitting a fresh yearly high as the country’s current account surplus widened to a seven-month high in May.The local currency was quoted at 1,014.30 won as of 11 a.m., up 1.90 won from the previous session’s close. The country’s current account surplus reached $9.3 billion last month, compared with $7.12 billion in April, according to preliminary data by the Bank of Korea. The current account is the broadest measure of cross-bord

June 27, 2014

A state-funded local fisheries cooperative has been reprimanded for extending billions of won in loans to a church by inflating its financial status and the number of members, the watchdog agency said Friday. A branch of the National Federation of Fisheries Cooperatives in 2008 allegedly raised the church’s credit rating without carrying out due diligence on the debtor’s repayment ability, according to the Financial Supervisory Service. The NFFC extended an additional 15 billion won ($14.79 mill

June 27, 2014

The cash-starved Dongbu Group, the country’s 18th-largest conglomerate by assets, is at risk of falling into a deeper hole as its affiliates are likely to face hurdles in refinancing maturing debts following the failure of a deal to sell its key assets, analysts said Friday.Dongbu, whose business portfolio ranges from insurance and construction to steelmaking, has been under pressure from its creditors to beef up its worsening financial status. Late last year, Dongbu said it would raise 3 trilli

Industry June 27, 2014

Hyundai Mobis, the nation’s largest auto parts maker under the Hyundai-Kia Automotive Group, was found to be increasingly pressuring its suppliers to cut prices amid the strengthening South Korean currency. “Even the top-tier auto parts suppliers (for Hyundai Mobis) are feeling the pinch of price cuts this year,’’ a source close to that matter told The Korea Herald. “The suppliers believe things will only get worse.”Further, Hyundai Mobis has to deal with the fact that it is heavily reliant on i

Industry June 26, 2014

The top management at POSCO, the nation’s top steelmaker, on Tuesday said it has decided to pull out of a package bid for Dongbu Group’s Incheon Steel Plant and a coal-fired thermal power plant in Dangjn. POSCO had been conducting due diligence on the request of the Korea Development Bank, the main creditor of the financially faltering Dongbu Group. “Based on the results, we concluded that the synergy effect from the deal would not be big enough, considering the financial burden,’’ POSCO chairma

Industry June 24, 2014

South Korea’s non-life insurer Dongbu Insurance acquired a stake in a Chinese non-life insurance firm in an effort to tap overseas business opportunities beyond the saturated local market, the company said Sunday.Dongbu Insurance said it has received approval from the financial authorities of South Korea and China to acquire a 15 percent stake in Ancheng Property & Casualty Insurance, becoming the third-biggest shareholder of the Chongqing-based firm.It is the first time for a South Korean insur

June 22, 2014