Buyout deals surface amid Qoo10 affiliates' exit rush

The local units of the cash-crunched Singapore-based Qoo10 group are scrambling to escape the sinking boat, with possible acquisition deals coming onto the table. Among the speculations was Chinese e-commerce platform AliExpress' buyout of the Korean online marketplace WeMakePrice, yet AliExpress Korea denied the rumor Thursday. "We are not considering acquiring WeMakePrice, and we confirm that we have not been contacted by the company," said an official from AliExpress Korea. Ear

Aug. 1, 2024

Overdue wages hit all-time high in H1: data

South Korea recorded an accumulated over 1.04 trillion won ($764 million) in overdue wages in the first half of this year, marking the highest-ever figure in either half of a year, government data showed Thursday. It marked the first time that overdue wages across the country had surpassed 1 trillion won, according to the Ministry of Employment and Labor. In total, 150,503 employees had overdue wages between January and June of this year. Last year's overdue wages had already marked an al

Aug. 1, 2024

Exports extend gains to 10th straight month in July

South Korea's exports extended on-year gains to the tenth straight month in July on the back of the robust performance of semiconductors, data showed Thursday. Outbound shipments rose 13.9 percent on-year to $57.4 billion last month, according to the data compiled by the Ministry of Trade, Industry and Energy. Imports added 10.5 percent on-year to $53.8 billion, resulting in a trade surplus of $3.62 billion. South Korea has been maintaining a trade surplus for 14 consecutive months. The com

Aug. 1, 2024

US mulling restrictions to keep Samsung, SK hynix, Micron from supplying HBM chips to China: Bloomberg

The United States is considering a new measure meant to prevent Samsung Electronics Co., SK hynix Inc. and Micron Technology Inc. from supplying high-bandwidth memory (HBM) chips to Chinese firms, Bloomberg reported Wednesday. Citing people familiar with the matter, the news outlet said that the US is weighing the unilateral restrictions on China's access to artificial intelligence (AI) memory chips and equipment capable of making those chips "as soon as next month," though no fin

Aug. 1, 2024

Fed freezes key rate for 8th straight time, hints at September cut possibility

The US Federal Reserve on Wednesday held its benchmark lending rate steady for an eighth consecutive time, while its chair said a rate cut could be "on the table" as soon as September if conditions are met. After the two-day Federal Open Market Committee meeting, the central bank announced the decision to maintain the rate in the 5.25 to 5.50 percent range, a 23-year high, and pointed out "some further progress" toward its inflation target of 2 percent. Albeit in a cautious t

Aug. 1, 2024

Regulators look into shady cash flow within Qoo10

Once a prominent figure in the Korean e-commerce sector, Qoo10 Group's CEO Ku Young-bae is now facing allegations of a Ponzi scheme involving delayed payments amounting to thousands of billions of won for vendors on local online marketplaces Tmon and WeMakePrice. These accusations emerged after Ku disclosed during a National Assembly hearing on Tuesday that the Singapore-based parent company used assets from its Korean subsidiaries to acquire American e-commerce platform Wish in February. Ku dis

July 31, 2024

Bankruptcy fears loom large over Tmon, WeMakePrice

Qoo10 CEO Ku Young-bae pledged a "complete recovery of damages" related to the payment delays affecting its struggling e-commerce affiliates, Tmon and WeMakePrice, with government support. Addressing the National Assembly’s Political Affairs Committee on Tuesday, Ku's commitment followed the companies' court receivership filing the previous day. "We will be at a standstill if business operations halt now," Ku said, adding that, with minimal assistance, complet

July 30, 2024

Cash-strapped Tmon, WeMakePrice file for court receivership

Cash-strapped e-commerce platforms Tmon and WeMakePrice filed for corporate rehabilitation on Monday. The Seoul Bankruptcy Court announced that the two companies, embroiled in controversy over delayed payments amid a liquidity crisis at their Singapore-based parent, Qoo10 Group, have sought court-supervised restructuring. Corporate rehabilitation allows financially distressed companies to restructure their debts and operations. While this process enables the companies to continue their business

July 29, 2024

Industry minister vows to expand free trade portfolio for export target of $700b

Industry Minister Ahn Duk-geun on Monday pledged to make efforts to secure additional free trade agreements with more partners to achieve the annual export target of $700 billion, and offer tailored support for key products including chips and automobiles. Ahn made the remarks during a meeting of the parliamentary committee on trade, industry, energy, SMEs and startups, noting that such measures will help the country enhance its economic security. "We will expand the export market for South

July 29, 2024

Korea unveils tax reform bill to spur economy

South Korea unveiled its tax code revision bill Thursday, featuring a major overhaul of the outdated inheritance tax system and new measures to boost investment and encourage marriage. Featuring tax cuts and incentives, the plan is expected to reduce tax revenue by approximately 4.4 trillion won ($3.17 billion) over the next five years. However, the government projects that economic recovery later this year will improve revenue conditions and offset this reduction. "This year's tax rev

July 25, 2024

Chief financial regulator nominee says to manage rising household loans

The nominee to head the Financial Services Commission said Monday that the authorities would manage rising household loans amid concerns that such fast-rising loans could hurt economic recovery and the financial system. "We are in a situation to remain guarded (against the pace of household loans)," Kim Byoung-hwan, a former vice finance minister who was nominated as the FSC chief, said during a parliamentary confirmation hearing. "Authorities will thoroughly manage such loans.&qu

July 22, 2024

Biden's withdrawal sparks mixed outlook for Kospi

Analysts here took a mixed view on how US President Joe Biden’s withdrawal from the November presidential race would affect South Korean shares, with growing uncertainty expected to hurt investor sentiment. Some brokerages expected the benchmark Kospi index to dip below the 2,650 level due to heightened short-term volatility. Others anticipated the main bourse would rise to 2,900 thanks to the recovery of shares in the semiconductor, automobile and rechargeable battery industries. These

July 22, 2024

Exports rise 18.8% during first 20 days of July

South Korea's exports rose 18.8 percent on-year in the first 20 days of July, data showed Monday, on the back of the robust performance of chips and cars. Outbound shipments reached $37.17 billion in the July 1-20 period, compared with $31.2 billion tallied a year earlier, according to the data from the Korea Customs Service. Imports grew 14.2 percent on-year to $37.2 billion during the period, resulting in a trade deficit of $50 million. By sector, outbound shipments of semiconductors jump

July 22, 2024

Record-high college graduates not working or looking for jobs

The number of South Koreans without a job or seeking a job marked an all-time high in the first half of this year, government data showed Sunday. According to Statistics Korea, there were 4.058 million people in the country with a college degree who were considered an "economically inactive population," which refers to those aged 15 or over who are unable to or unwilling to work. This includes students, homemakers, those preparing for state exams for government official posts and peo

July 21, 2024

Korea logs record US trade surplus in 1st half amid surging Trump risks

South Korea logged an all-time high trade surplus with the United States in the first half of this year based on strong auto exports, as the country monitors the US presidential race carefully and the chances of a second Donald Trump administration’s heavy protectionism. According to the Ministry of Trade, Industry and Energy and Korea International Trade Association on Sunday, Korea posted a record US trade surplus of $28.7 billion from January to June this year, up 55.1 percent from the

July 21, 2024

S. Korea-Turkey revised double taxation treaty to take effect next week

A bilateral double taxation avoidance treaty between South Korea and Turkey was to come into force next week, Seoul's finance ministry said Friday. The revised convention, set to take effect Sunday, sets the maximum rate of withholding tax in the source country on income payments at 15 percent, compared with the current 20 percent, according to the Ministry of Economy and Finance. The revision aims at easing the tax burden on companies doing business in the other country, and better prevent

July 19, 2024

S. Korea's unemployment up 16.9 percent on-year: report

Recent government data showed Thursday that the number of involuntarily unemployed people in South Korea reached 1.24 million in June, marking a 16.9 percent increase from the same month last year. According to a report by Rep. Hwang Jung-a of the main opposition Democratic Party of Korea, the figure for June actually marked a substantial decrease compared to 1.89 million in January, and a slight increase from 1.23 million in May. But this year's monthly figures have risen considerably

July 18, 2024

Czech bid paves way for S. Korea's advance into nuclear energy market in Europe: industry minister

South Korean Industry Minister Ahn Duk-geun said Thursday that the country's recent winning of a nuclear power project in the Czech Republic will pave the way for its active advance into the broader European nuclear energy market. On Wednesday, the state-run Korea Hydro & Nuclear Power was selected as a preferred bidder to build two reactors at the Dukovany power plant by beating France's EDF. "We were able to secure a bridgehead to export nuclear reactors to Europe, which is

July 18, 2024

S. Korea, India hold fresh round of trade talks

South Korea's industry ministry said Wednesday it held a fresh round of trade talks with Indian officials to improve a bilateral partnership agreement. Director General of FTA Negotiations Ryu Peob-min and his Indian counterpart, Anant Swarup, started the three-day session in Seoul to discuss the agenda, including goods, services and investment, according to the Ministry of Trade, Industry and Energy. South Korea and India implemented the CEPA in 2010 and have been carrying out negotiations

July 17, 2024

Govt. asks refiners for efforts to stabilize oil prices

The industry ministry said Tuesday it has asked the country's four major oil refiners to refrain from excessive price increases as part of efforts to combat lingering inflation. Second Vice Industry Minister Choe Nam-ho made the remark during his meeting with representatives from SK Energy Co., GS Caltex Corp., S-Oil Corp. and HD Hyundai Oilbank, according to the Ministry of Trade, Industry and Energy. "Although consumer prices have slowed to some extent since April, perceived inflatio

July 16, 2024