The Korea Herald

Car insurance fees must be revised: association chief

The new chief of the General Insurance Association of Korea said he would make it his goal to improve the business environment for automobile insurance in the domestic insurance industry. “An accumulated deficit and an excessive loss ratio has put undue pressure on insurance companies since the early 2000s,” said Chang Nam-sik, the former CEO of LIG Insurance, who took office as the association chairman early this month.The new chief said it is necessary to readjust automobile insurance fees so

Industry Sept. 11, 2014

Car insurance fees must be revised: association chief

[Herald Interview] Korea faces household debt crisis

The vexing debt problem has come back to haunt the Korean economy. Back in the late 1990s, the economy suffered from humongous corporate debts, but this time, the mounting household debt has set alarm bells ringing. “South Korea’s surging household debt can trigger serious economic crisis,’’ Jun Sung-in, an economics professor at Hongik University told The Korea Herald in an interview Thursday.“The government’s latest push to ease regulations on home mortgage will increase household debts, which

Industry Sept. 5, 2014

[Herald Interview] Korea faces household debt crisis

Samsung’s IT affiliates lose nearly W20tr in market cap

Korea’s largest conglomerate Samsung Group’s IT affiliates lost nearly 20 trillion won ($19.6 billion) from falls in their share prices since July, data showed Thursday, amid worries that the lagging performance of the group’s mainstay unit, Samsung Electronics Co., may continue this year. The combined market capitalization of Samsung Group’s four listed IT firms totaled 214 trillion won as of Wednesday, down 8.4 percent from 233.7 trillion won registered on July 1, according to the data compile

Industry Sept. 4, 2014

Lotte Duty Free launches in Japan with Kansai outlet

Lotte Duty Free Shop, the world’s fourth-largest duty-free chain, said Thursday it has opened a store in Japan’s Kansai International Airport as part of its global expansion drive.Lotte Duty Free and Kansai Airport Agency will jointly operate a 330-square-meter store at the regional airport near Osaka, Japan, until March 2020, the company said in a statement.The duty free store operator said it has merchandised its first Japanese outlet with a focus on Korean cosmetics brands to cater to Chinese

Industry Sept. 4, 2014

Korea’s automobile exports plunge in August

South Korea’s auto exports dropped sharply from a year earlier in August as output equally fell, the trade ministry said Thursday.Outbound shipments of cars fell 18.8 percent on-year to 182,795 units last month, according to the Ministry of Trade, Industry and Energy.“Exports plunged on-year due to a drop in supplies caused by a cut in the number of working days, as well as labor strikes in August,” it said in a press release.The ministry earlier said that automobile exports, in terms of value,

Industry Sept. 4, 2014

Korean economy grows 0.5% in Q2: BOK

South Korea’s economy expanded 0.5 percent in the second quarter from three months earlier but at the slowest pace in over a year, central bank data showed Thursday.Korea’s gross domestic product, the broadest measure of economic performance, slowed from a 0.9 percent growth logged in the previous quarter, according to the revised data by the Bank of Korea.The seasonally adjusted figure also slipped from an earlier estimate of a 0.6 percent growth made in late July.Asia’s fourth-largest economy

Industry Sept. 4, 2014

Korean households earn less from interest profit

South Korean households saw their income from interest-paying financial products drop by 13 trillion won ($13 billion) over the last nine years, data showed Thursday, reflecting the country’s low interest rate and ballooning household debt.Households’ net interest income, the excess earned from the spread between their interest income and interest payments, came in at 4.3 trillion won in 2012, shrinking from 17.4 trillion won in 2003, according to the data compiled by the Bank of Korea.The sharp

Industry Sept. 4, 2014

Agriculture, forestry output inches up in 2013

Overall output by the country’s agriculture and forestry industries moved up slightly from a year earlier in 2013, with a rise in agriculture production more than offsetting a drop in the production of forestry goods, the government said Thursday.The combined output by the agriculture and forestry industry came to about 46.65 trillion won ($45.79 billion) in 2013, up 0.6 percent from that of 2012, according to the Ministry of Agriculture, Food and Rural Affairs.Such growth marks a significant sl

Industry Sept. 4, 2014

Industry, green groups slam emissions policies

Both industry and environmental groups have criticized the government’s latest road map for emissions reduction.The government said Tuesday that it would begin its carbon emissions trading scheme from next year as planned, but would delay the incentive system for low-emission cars by a few years. Under the government’s emissions reduction scheme, the low-carbon vehicle incentive system, which had initially been slated to go into effect in January 2015, will be put on hold until 2020, apparently

Industry Sept. 3, 2014

Korea to delay low-carbon car incentive plan

South Korea will delay implementing its low-carbon vehicle incentive system until 2020 to minimize the fallout for customers and the automobile industry, government policymakers said Tuesday.The announcement, reached at a meeting of economic ministers, indicated that while the government would avoid burdening carmakers and consumers, it would encourage people to buy green cars by offering various incentives.The move will help improve the average greenhouse gas emission mileage standard for the c

Industry Sept. 2, 2014

Korea to delay low-carbon car incentive plan

[Graphic News] Korea’s household debt continues to rise

South Korea’s household debt is increasing on account of the government’s latest push to boost the housing market and due to a rate cut, according to industry watchers. The total mortgage loans issued by the nation’s seven major banks rose to 301 trillion won ($296 billion) last month, marking a 4 trillion won increase from 297 trillion won in July, according to data from the banking sector. This was more than a twofold increase, compared to an average monthly increase of 1.6 trillion won since

Industry Sept. 1, 2014

[Graphic News] Korea’s household debt continues to rise

Former Shindongbang Group chairman dies of caner

Shin Myung-soo. (Yonhap)Former Shindongbang Group chairman Shin Myung-soo, 73, died last Saturday from colorectal cancer. Shin was a well-known entrepreneur who contributed to the growth of South Korea’s food processing industry. He started his career at Shindongbang Corp. in 1967 and served as a chief executive of the company until 1999. Hit by the Asian currency crisis, the company faced financial difficulties and units of the company were merged into Sajo Haepyo in 1999 and CJ Group in 2002.B

Industry Aug. 31, 2014

Former Shindongbang Group chairman dies of caner

[Herald Interview] ‘Security concerns should not delay mobile messenger payment’

The Korean government is advised to push for the growth of the mobile payment market, not to hold back on security concerns. “Too many concerns over security online may hamper the mobile massenger payment market in an infant stage of growth,” Kim Yeong-rin, president of the Financial Security Agency, told The Korea Herald in a recent interview.His remark came amid growing security concerns over the financial services to be offered by the nation’s most-used mobile messenger, Kakao Talk.Kim Yeong-

Industry Aug. 31, 2014

[Herald Interview] ‘Security concerns should not delay mobile messenger payment’

KDB helps finance high-tech start-ups

The state-run Korea Development Bank is actively promoting technology financing in a bid to keep up with the government’s latest efforts to boost high-tech start-ups that have trouble securing funds. Technology financing involves loans secured on a borrower’s technology. Despite South Korea’s reputation as an IT powerhouse, start-ups still find it difficult to raise capital. To provide better support, the Financial Services Commission, the local financial watchdog, announced a plan in April to s

Industry Aug. 28, 2014

Korea’s duty-free allowance raised to $600

The duty-free allowance for travelers entering South Korea will be raised to $600 from the current $400 on Sept. 5, the Ministry of Strategy and Finance said Wednesday. This is the first time that the ceiling has been raised since 1988. The government also plans to reduce taxes on travelers who voluntarily report items they are bringing in. They are expected to have a 30 percent tax deduction of up to 150,000 won ($147). However, those who report untruthfully will have to pay additional tax. The

Industry Aug. 27, 2014

Articles by Shin Ji-hye