The Korea Herald

[Graphic News] Household debt grows to W1,100tr

May 15, 2013

Korea’s household debt has increased by 52 trillion won in just a year, according to a government figure, ringing alarm bells about the nation’s economy.The Financial Supervisory Service revealed Wednesday that the nation’s total household debt amounted to 1,100 trillion won last year from 1,046.4 trillion in 2011. The household debt puts together outstanding household debt and personal business loans.The financial authorities expressed concerns that the current situation would get worse, since
CJ couriers’ strike drags on

IndustryMay 15, 2013

Couriers employed by CJ Korea Express are unlikely to end their strike anytime soon, drawing attention to their worsening labor conditions amid cutthroat competition in the fast growing market. Around 1,000 delivery drivers have joined the strike so far, demanding the nation’s largest parcel delivery company sit down for talks to raise their wages.The couriers claim that CJ lowered the delivery commission by about 100 won to around 800 won per parcel after merging with Korea Express, causing the
Korean firms’ rating outlook remains stagnant: Moody’s

May 15, 2013

The credit rating for South Korean firms is anticipated to remain stagnant this year due to challenging external factors that weigh down exporters, Moody’s Investors Service Inc. said Wednesday. The global credit appraiser said 38 percent of the country’s private companies received a negative credit outlook at end-April this year, compared to 32 percent tallied at end-2012.“As for the outlook on South Korean corporate ratings for over the next 12-month period, the most important key word is that
Korea facing another summer of electric power shortages

May 15, 2013

Despite the planned resumption of construction for 52 high-voltage transmission cable towers in Miryang, South Gyeongsang Province, next week, Korea is highly likely to again face power shortages this summer and winter, according to industry watchers. The construction, which is essential to transmit and distribute power generated from the newly-built unit 3 of the Shin Gori nuclear power plant to the North Gyeongsang Province region, has been suspended since January this year when a farmer in hi
Ministry to raise fund to help Korean firms win overseas plant orders

May 15, 2013

The Ministry of Trade, Industry and Energy will raise up to 1 trillion won ($898 million) to support the overseas expansion of energy-related public firms and their subcontractors, officials said Wednesday.The ministry held a forum for plant business CEOs on Wednesday, under the chairmanship of Vice Minister Kim Jae-hong, and pledged to raise the nation’s total overseas plant order value to $70 billion, according to officials.The country’s overseas plant construction orders rose steeply until 20
Samsung to spend W170b on software

TechnologyMay 15, 2013

Samsung Group, South Korea’s top family-owned conglomerate, said Wednesday that it plans to spend 170 billion won ($153 million) in training software engineers and nurturing the related industry over the next five years.The group also said it plans to hire over 2,000 software engineers every year through 2017, up almost 30 percent from an average seen in the past few years.Samsung will also offer software-related training courses for 50,000 students over the next five years.“The plans will help
Seoul sets up new FTA support center for local firms

May 15, 2013

The government opened a new support center Wednesday that will help local companies take full advantage of the country’s free trade agreements.The center will be part of an FTA support center established early last year, but will specifically help local companies prepare for post-hoc analysis of their outbound shipments, under which the companies may be asked to verify the origin of their products.“The center will help make sure that no company will shun from utilizing benefits of an FTA because
KEB makes inroads into Istanbul

May 15, 2013

Korea Exchange Bank said Wednesday that it opened a branch in Istanbul, Turkey, becoming the first in the nation’s banking industry to enter the country.The commercial bank said it planned to offer funding to Korea’s big firms operating in the city such as Hyundai Motor, Samsung Electronics and POSCO.It is also pinning hopes on the free trade agreement between South Korea and Turkey, which took effect on May 1, 2013.KEB chief executive Yun Yong-ro stressed that the lender had advanced into its f
‘Naver too dominant’

TechnologyMay 15, 2013

Choi Mun-kee, the minister of science, ICT and future planning, on Wednesday said the nation’s most influential Web portal Naver was too dominant.“(Naver) seems to have too much of the market,” Choi said, saying that when companies go over the line, they should switch modes to focus more on social contribution.“Naver, however, still seems to be concentrating to much on making the pie bigger,” the minister said in a press conference. He added that the “young CEO” ― Kim Sang-hun, CEO of NHN, which
Samsung, LG execs receive recognition on Invention Day

TechnologyMay 15, 2013

Samsung Electronics’ mobile chief Shin Jong-kyun was awarded the distinguished Gold Tower Order of Industrial Service Merit by the Korean Intellectual Property Office on Wednesday, which was national Invention Day.At LG Electronics, a senior researcher, Ahn Joon-ki, was crowned as this year’s invention king.The Gold Tower Order is awarded to individuals and companies that have shown outstanding performance in contributing to national interests. Shin of Samsung was recognized for his role in help
Korea to expand sales network for MVNOs

TechnologyMay 15, 2013

The government said Tuesday that it will allow so-called mobile virtual network operators (MVNOs) to sell their mobile phone services through the country’s state-run postal service provider starting from September, in a bid to help lower mobile rates and households’ communication bills.MVNOs borrow networks from existing mobile carriers at wholesale prices, thus offering their services at cheaper rates compared to existing mobile operators.They can offer cheap mobile rates because they do not sp
Minister calls for lower communication costs

TechnologyMay 15, 2013

Choi sees expensive smartphone handsets as core of problem
U.S. envoy says Korea investment attractive despite N. Korea threats

May 15, 2013

U.S. ambassador to Korea Sung Kim said South Korea is a safe and attractive business venue despite North Korea’s military threats.“The very fact that we are gathered here this evening to celebrate this anniversary of AMCHAM is sending a strong message that despite North Korea’s provocations, Korea is a safe and attractive place to do business,” he said in the ceremony to mark the 60th anniversary of the American Chamber of Commerce in Korea on Tuesday evening. Leaders of the two countries’ busin
Seoul shares almost flat amid lack of momentum

May 15, 2013

South Korean stocks closed 0.12 percent higher on Wednesday, as investors stayed on the sidelines amid a lack of market momentum and concerns over the weak yen, analysts said. The local currency lost ground against the U.S.dollar. The benchmark Korea Composite Stock Price Index (KOSPI) added 2.43 points to finish at 1,971.26. Trading volume was light at 238.6 million shares worth 3.63 trillion won (US$3.25 billion) with gainers outpacing decliners 510 to 301. "The market showed little movemen
NongHyup Financial head offers to resign

May 15, 2013

The head of NongHyup Financial Group Inc. on Wednesday offered to resign following the massive hacking attack in March that paralyzed the network of its banking unit and the group's weaker earnings.Shin Dong-kyu, the president of the group, said in a statement that he offered to step down from the top post as he believed it would be desirable for a new head to lead the group, given "an array of difficulties facing the group."His resignation came as computer networks at Korea's major broadcasters