Most Popular
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10-man S. Korea lose to Indonesia to miss out on Paris Olympic football qualification
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Hybe-Ador feud should have limited effect on Hybe's overall performance: analysts
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Second Gimpo civil servant found dead, after apologizing for not finishing work
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DP leader says he will meet Yoon without conditions
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First-ever meeting of president, opposition chief set to finally happen
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NewJeans' singles, Japanese debut to proceed as planned, despite Hybe-Ador feud
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Experts raise concerns about Japan putting pressure on Naver over Line
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Samsung mobile chief, Google device head meet in Seoul
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Ship linked to NK arms shipments to Russia is moored in China: State Dept.
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[Kim So-hyun] The quiet taxi driver from Paris
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Restructuring of ailing sectors will take toll on SMEs
[THE INVESTOR] South Korea’s ongoing restructuring of financially troubled sectors like shipbuilding could put a damper on the country’s small and medium enterprises, a think tank’s report showed on July 5. According to a report published by IBK Economic Research Institute, bank loans extended to SMEs in so-called “vulnerable industries,” designated by the government, amounted to some 62.5 trillion won (US$54 billion). The government has singled out five industries -- shipbuilding, shipping, con
IndustryJuly 5, 2016
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[ANALYST REPORT] Autos: Shipments up in June despite weak exports
Hyundai Motor (HMC) and Kia Motors saw their global shipments rise a respective 9.1% and 2% y-y in June as both firms offset weak exports with solid domestic sales and overseas plant shipments, while their global shipment volume fell a respective 0.9% and 4.6% y-y to 2.39m and 1.46m vehicles over January-June.● Domestic auto demand (excluding imports) grew 19.3% y-y in June—and 10.9% y-y to 812,000 vehicles in 1H—thanks to: 1) promotions with an excise tax cut expiring at month’s end; and 2) new
July 5, 2016
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Gov’t hopes to attract more foreign students, institutions
[THE INVESTOR] International schools on Jejudo Island will to be allowed to send a part of their profits abroad from the first half of next year under the government’s service industry growth plans revealed on July 5. Under the plans, up to 40 percent of the profits will be allowed to be transferred abroad if the school’s debt to capital ratio and other conditions are met. In addition, the government will also review allowing student loans to be given to Korean students studying at foreign insti
July 5, 2016
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Tax cuts, financing support planned for cultural contents
[THE INVESTOR] Tax cuts and state financing will be introduced for cultural contents producers as part of the Korea’s service sector growth plans, government ministries revealed on July 5. The plans are aimed at facilitating the growth of Korea’s domestic market for cultural contents to 135 trillion won (US$ 116.8 billion) and contents trade balance to US$ 8 billion by 2020. The country’s contents market came in at 100 trillion won last year, and trade balance was US$ 4.6 billion. Under the plan
IndustryJuly 5, 2016
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KT unveils self-developed ICT solutions for maritime safety
Korea’s second-largest network operator KT unveiled a range of new ICT-based solutions and technologies Tuesday geared at improving maritime security. The telecom firm’s standout technologies include a Long-Term Evolution network able to cover remote locations, as far as 200 kilometers away from land, a life jacket that can be tracked via Internet of Things technology and the creation of a new network designed for IoT devices. Oh Sung-mok, vice president of KT’s network division, introduces a ne
TechnologyJuly 5, 2016
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Software on top of South Korean gov’t agenda
[THE INVESTOR] Large companies will face lower barriers in bidding for the public sector’s software development projects, and more educational institutions will be made to offer specialized software-related education. The government aims to raise software exports from US$ 6 billion last year to US$ 10 billion by 2020.As part of its service sector development strategy announced on July 5, the government said that the barrier for large companies in conducting government projects will be lowered. T
IndustryJuly 5, 2016
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[Newsmaker] SK-CJ HelloVision merger faces disapproval
SK Telecom faced a major setback on Tuesday over the Fair Trade Commission’s rejection of its request to take over CJ HelloVision -- a 1 trillion won deal that was widely expected to give a major boost to the nation’s leading mobile carrier in expanding its media platform business.The watchdog has notified SK Telecom that it will not permit the merger plan, saying the deal impedes fair market competition. The FTC also told the telecom giant that the two should neither carry out a merger, nor any
IndustryJuly 5, 2016
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[Photo News] Watchdog and foreign financial firms
Zhin Woong-seob (second from right), governor of the Financial Supervisory Service, meets with a group of heads of foreign financial companies at a hotel in Seoul on Monday. Zhin called on foreign financial institutions to cooperate with the government in responding to any fallout from the U.K.’s departure from the European Union. (Yonhap)
July 5, 2016
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Korea seeks to create 250,000 jobs in services
The South Korean government seeks to boost the services sector through tax breaks in an effort to increase jobs amid high youth unemployment.The Finance Ministry said Tuesday that it seeks to create 250,000 jobs through such fiscal measures aimed at increasing productivity in the services industry. The government aims to uplift the value of its services sector on par with the average of the Organization for Economic Cooperation and Development in five years. This is also in line with efforts to
July 5, 2016
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Who’s who in Korean private-equity world
This is the first in a series of articles looking into Korea’s private equity market and its key players. -- Ed.When the National Pension Service announced last month its choice of fund managers to run large-cap equity investments, the market saw the return of the VOGO Fund, Korea’s oldest private equity house. Renamed VIG Partners, the firm was chosen as one of two firms to each invest a total of 250 billion won ($216 million) in domestic companies, winning a competition that is often likened
July 5, 2016
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Gov’t seeks service-manufacturing convergence
[THE INVESTOR] The government will facilitate the convergence of service and manufacturing industries through tax breaks and establish a supervisory body for aiding service sector’s overseas expansion, it announced on July 5. Through the measures, Korea hopes to raise the average intermediate input ratio to 25 percent by 2020. According to government data, the figure for Korea stood at 20 percent in 2011. In comparison the figure for the UK stood at 55 percent, and 34 percent for Japan in the sa
IndustryJuly 5, 2016
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Commercial banks mull merit-based pay amid low growth
Korean commercial banks will consider adopting the performance-based pay system in a move to strengthen competitiveness amid low growth and low margins, a banks' lobby group said Tuesday. "We will announce the guidelines this month to help our 17 member banks introduce the performance-linked pay system. Most banks will wait and see what the guidelines will be about before they introduce or consider introducing the system," said Lee Kyung-hee, a spokeswoman for the Korea Federation of Banks. The
July 5, 2016
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SKT seeks countermeasures after failed merger
[THE INVESTOR] SK Telecom on July 5 expressed regrets at the antitrust watchdog’s disapproval of its planned merger with the nation’s No. 1 cable TV operator CJ HelloVision. The company had planned to merge its Internet TV affiliate SK Broadband with the CJ unit, becoming the nation’s second-largest paid TV operator and the No. 1 in the long term. The deal price was estimated at 1 trillion won (US$823 million). “The watchdog’s decision comes as a shock,” the company said in a statement. “We expr
TechnologyJuly 5, 2016
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Samlip GFS sales more than triple in 2 years
[THE INVESTOR] Samlip GFS, an affiliate of Korean food giant Samlip General Foods, said on July 5 that its sales have been more than tripled in two years. According to the firm specialized in food distribution and logistics, its revenue surged 315 percent to 553.1 billion won (US$478.7 million) last year from 133 billion won in 2014 when the company was established. Its first-quarter sales grew 35 percent year-on-year to 167 billion won this year. Samlip GFS was spun off from Samlip General Food
IndustryJuly 5, 2016
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Hyundai Motor union seeks alliance with HHI union for strike
[THE INVESTOR] Hyundai Motor’s union is preparing to stage a strike, and to this end has sought an alliance with workers from Hyundai Heavy Industries.The carmaker’s union announced on July 5 that a vote will be held on July 13 to decide whether to take industrial action over failed wages negotiations. Hyundai Motor union is also hoping to form an alliance with HHI union. If successful, it will be the first time the unions of the two companies will go on strike simultaneously. According to the u
MobilityJuly 5, 2016
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Public outcry over nickel in Coway’s ice makers
Coway, which rents out household products, has reportedly kept consumers in the dark for an entire year regarding nickel found in its ice makers, causing outrage and fears about health risks. On Monday, Coway posted an official apology on its website regarding the controversy. The statement said that the company had found that if the nickel coating on its products’ tubes had worn off, nickel might have been mixed with the ice and water produced. “(Nickel has been found in) some of the ice makers
IndustryJuly 5, 2016
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Lotte Group women rise to the surface due to scandal
[THE INVESTOR] Now that an arrest warrant has been issued for Lotte Foundation chief Shin Young-ja -- the first Lotte founding family member to face imprisonment in the firm’s latest embezzlement scandal -- all eyes are on the women of Lotte Group who have so far stayed behind the scenes. In addition to Young-ja, there are her daughters including Jang Sun-yoon, senior vice president of Hotel Lotte, and also Lotte founder Shin Kyuk-ho’s third wife Seo Mi-kyung and her daughter Shin Yu-mi who are
CompaniesJuly 5, 2016
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RGBW TV panel sales soar in UHD TV market
TV flat panels that enhance colors and brightness for display have become more crucial than ever in the global ultra-high definition TV market, a report showed this week.The number of UHD TV panels with RGBW technology is expected to increase from 6.6 million to 16 million, according to market research institute IHS’ report.Among all UHD TV panels, RGBW panels are expected to account for 24 percent of market share this year, from 16 percent in 2015.The RGBW panel is a new type of TV panel that a
IndustryJuly 5, 2016
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NHN Comico starts Chinese service via Baidu
[THE INVESTOR] NHN Entertainment ’s Japanese operation NHN Comico said July 5 it has signed a memorandum of understanding with China’s largest search engine Baidu. Under the agreement, Comico has already started distributing a total of 52 webtoons through Baidu’s popular Tieba, an online community-based group discussion service. Seven Korean webtoons, including “To a lower place,” “World where everyone has become beautiful,” and “Brave civilian,” have also been included in the Chinese service. C
TechnologyJuly 5, 2016
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EU-Korea FTA more beneficial for European automakers
[THE INVESTOR] European carmakers benefited more from the EU-Korea free trade agreement than their Korean counterparts, according to industry data on July 5. Data from the Korea Automobile Manufacturers Association showed that domestic car manufacturers exported 383,698 units of cars to EU countries in 2015, reflecting a 28.6 percent increase from the 298,263 units in 2010. The EU-Korea FTA went into effect in 2011. In 2010, a total of 59,242 European cars were sold in Korea according to the Kor
MobilityJuly 5, 2016