The Korea Herald

Samsung puts Q3 operating profit at record 8.1 trillion won

IndustryOct 5, 2012

Samsung Electronics Co., the world's largest technology company by revenue, estimated Friday that it posted a record operating profit of 8.1 trillion won (US$7.3 billion) in the third quarter of the year.The preliminary estimate for the July-September period marked a 90.6 percent surge from 4.3 trillion won a year earlier and a 20.5 percent gain from the previous quarter, the company said in a reg
Overdue loan payments reach W8.5tr

Oct 4, 2012

Overdue loan payments from local companies marked 8.5 trillion won ($7.6 billion) as of August, an increase of 13.1 percent compared to the previous month, according to Bank of Korea’s report submitted to the Democratic United Party’s Rep. Jeong Seong-ho on Thursday. BOK analyzed firms’ overdue repayment at 10 local banks and four specialized lenders including Korea Development Bank. The arrearage per month rose to 8-10 trillion won in 2009 right after the financial crisis, but fell to 5-7 trill
Shares inch down on investor caution

Oct 4, 2012

South Korean stocks slipped 0.17 percent on Thursday as investors remained cautious following mixed economic data from global economies, analysts said. The local currency fell against the U.S. dollar.After rangebound trading, the benchmark Korea Composite Stock Price Index slipped 3.35 points to 1,992.68. Trading volume was moderate at 577.8 million shares worth 4.8 trillion won ($4.3 billion), with decliners outnumbering gainers 410 to 399.The South Korean stock market was closed Wednesday for
KCC says nationwide TV digitalization successful

Oct 4, 2012

The Korea Communications Commission announced Thursday that about 98.6 percent of all government-supported households had their TV successfully digitalized. The KCC said in a media briefing that the nationwide digitalization operation has been going smoothly so far and the remaining 1.4 percent of all households which currently own the old analog-type TVs will be provided with satellite receivers free of charge from the government to watch digital broadcasts.About concerns that the forcible digi
Korea to host conference on African cooperation

Oct 4, 2012

Economic leaders of dozens of African countries will gather in South Korea this month to discuss cooperation and joint business opportunities, the Finance Ministry said Thursday.The Korea Africa Economic Cooperation Conference will be held in Seoul from Oct. 15-18, bringing in economic ministers and heads of 39 African countries and international organizations, according to the ministry.Jointly organized by the African Development Bank and the Export-Import Bank of Korea along with the finance m
Banks give out too much in dividends: lawmaker

Oct 4, 2012

Thirteen local banks last year recorded a total net profit of 8.4 trillion won ($7.5 billion) and paid out 3.4 trillion won in dividends in March, said Rep. Kim Young-hwan of the opposition Democratic United Party on Wednesday. Kim, a member of the National Policy Committee, said that, based on the reports he received from the Financial Supervisory Service, greed was prevailing among the banks that paid record-high dividends despite the shaky economy and high household debt. The payout ratio of
Builders suffer from debt, capital erosion

IndustryOct 4, 2012

Builders here appeared to be facing an uphill battle to stay afloat amid worsening industry and economy conditions. According to the Financial Supervisory Service’s public disclosure system on Thursday, 16 percent of the country’s 50 top construction companies were found to be suffering from capital erosion due to snowballing deficits as of June this year.Skyrocketing debt was another problem, as the builders had a combined outstanding debt of 157.9 trillion won ($141.6 billion), which compares
EU disputes France’s complaint against Korean carmakers

IndustryOct 4, 2012

The European Union rejected French authorities’ claim that the Korea-EU Free Trade Agreement brought rapid import growth of automobiles produced by Korean companies.EU Trade Commissioner Karel de Gucht said “it is not true” that European countries’ imports of cars produced in Korea posted a sharp increase under the bilateral FTA.He said that the sales growth of Hyundai Motor and Kia Motors in Europe was not primarily due to the trade pact but their manufacturing at localized plants in European c
Samsung’s record profits likely to continue

IndustryOct 4, 2012

Smartphones have again driven up the operating profit of Samsung Electronics in the third quarter of this year with the firm expected to break its highest quarterly earnings figure for the fourth consecutive time.With Samsung planning to release its tentative quarterly earnings for July-September on Friday, the securities firms estimated that the company would record 7.5 trillion won ($6.73 billion) in operating profit.Samsung is also projected to reach 51.6 trillion won in total sales, which wo
FSC to overhaul system of corporate restructuring

Oct 4, 2012

South Korea‘s financial regulator said Thursday it will step up moves to revamp the procedures for the corporate restructuring system in a bid to prevent moral hazard often incurred by company owners. Under the envisioned plan, the regulator will strengthen creditors’ rights by giving them more power to engage in the process of court receivership and debt workouts, according to the Financial Services Commission. “We will look into improving the overall process so to avert moral hazard by stakeho
Domestic car monthly sales show new sign of recovery

IndustryOct 4, 2012

Korean carmakers saw moderate growth in domestic sales in September, indicating a further sales boom in the fourth quarter following the introduction of new versions of flagship models and the government’s tax cuts.Hyundai Motor, the nation’s largest auto company, said Thursday it sold a combined 371,743 vehicles at home and abroad last month, a 3.4 percent increase from a year ago. Driven by strong sales of flagship models such as Sonata, Avante and Grandeur, the carmaker delivered 57,559 units
Incentives lure Korean SMEs overseas to return home

Oct 4, 2012

The Ministry of Knowledge Economy said on Thursday that it will provide support packages to Korean small and medium enterprises doing business overseas that return to their homeland. The plan came as part of the government’s efforts to create jobs at home and to stimulate domestic consumption. “The package will include administrative support, benefits for land rental and tax incentives,” said Kim Sang-woo, an official from the ministry.He added that the ministry will treat those companies as for
Fall of Woongjin casts doubt on solar energy business

IndustryOct 4, 2012

Major solar power investments are put on hold amid growing uncertaintiesThe solar energy business has long been touted as one of Korea’s future growth engines. Major conglomerates have started related businesses or taken over firms with solar power technologies at home and abroad. But doubts over the profitability of solar energy are growing fast, following the recent fall of Woongin Group, which runs two solar energy-related arms. Woongjin Holdings, the holding company of the nation’s 32nd-larg
Study: Cellphones contain toxic chemicals

TechnologyOct 4, 2012

Thirty-six cellphone models, including the iPhone 5 and Samsung Galaxy S III, contain toxic chemicals from their manufacture, a U.S. study found.Researchers from the Ecology Center of Ann Arbor, Mich., and www.ifixit.com said their study did not examine whether there is a danger of exposure for cellphone users but focused instead on analyzing how chemicals used in cellphones can pollute throughout their life cycle, the Detroit Free Press reported Wednesday.“We‘re not making any claim that there
Foreign investors in politics-driven stocks may face probe

Oct 3, 2012

KRX looks into possible involvement of local cartels in election-themed stock riggingThe Korea Exchange said on Wednesday that it will look into a possible stock price rigging scheme, regarding recent mass purchases of stocks linked to key politicians by foreign investors.Foreigners made net purchases worth 37 billion won in eight trading days between Sept. 19 and 28 of so-called “politically-themed” stocks linked to presidential election frontrunners such as Ahn Cheol-soo and Park Geun-hye. Obs