The Korea Herald

Korean exporters’ Q3 outlook remains cold

IndustryJun 29, 2012

A majority of South Korean companies see business conditions for their exports will continue to stagnate in the third quarter of the year mainly due to global economic uncertainties triggered by the European debt crisis, a poll showed Friday.The export business survey index came in at 87.5 for the July-September period, the lowest level in 13 quarters since it hit 66.1 in the second quarter of 2009, according to the poll of 964 companies by the Korea International Trade Association.The latest nu
Samsung Display to relaunch as world’s biggest display maker

IndustryJun 29, 2012

Samsung Display is poised to become one of the world’s largest display makers, following a trilateral merger among the company, Samsung Mobile Display and S-LCD Corp. Its parent Samsung Group said that the merger, first approved in April by its board of directors, will see the creation of a new company specializing in display technologies, including LCDs and OLEDs. The merged entity will officially launch on July 1. According to company executives, this new corporate body will operate under the
Seoul shares rally 1.91% on EU summit progress

Jun 29, 2012

South Korean stocks rallied 1.91 percent on Friday as European leaders reportedly decided to ease bailout rules for debt-ridden governments, analysts said. The local currency gathered ground against the U.S. dollar.The Korea Composite Stock Price Index climbed 34.83 points to finish at 1,854.01. Trading volume was moderate at 309.8 million shares worth 4.29 trillion won ($3.73 billion) with gainers far outpacing losers 578 to 248.“Extreme fears over the eurozone seem to have been lifted. Germany
Eximbank vows more support for firms entering emerging markets

Jun 29, 2012

Export-Import Bank of Korea will step up support for companies entering emerging markets in the Middle East, Africa and Central and South America, the bank’s chairman and president Kim Yong-hwan said Friday.“In order to secure future growth engines for Korea, we will expand support for businesses advancing into emerging markets with high growth potential,” Kim said in a speech during an event to celebrate the bank’s 36th anniversary of its foundation.The state-controlled bank plans to bolster pu
Insurance firms told to cut auto premiums

Jun 29, 2012

Financial Supervisory Service Gov. Kwon Hyouk-se on Friday expressed his regulatory policy direction toward inducing a further slash in automobile insurance premiums. “The insurance loss ratio could go up in July and August as accidents tend to increase during vacations and rainy seasons,” Kwon said during a breakfast meeting with the chief executives of 16 insurance companies and heads of their trade associations in Seoul.“The industry should come up with measures to reduce the loss ratio.”The
Kia’s 3rd China plant to produce tailored cars

IndustryJun 29, 2012

Hyundai-Kia chief Chung vows to gain confidence via vehicle quality-oriented salesKia Motors broke ground at its new third plant in an eastern coastal province of China on Friday, aiming at doubling the company’s production capacity in the world’s largest automotive market.On the extension of Kia’s localization strategy, the new factory will be in charge of manufacturing Chinese consumer-oriented sedans to fully reflect customers’ needs, company spokespeople said Friday. Korea’s second-largest a
SK Hynix opens new manufacturing line

IndustryJun 29, 2012

SK Hynix said Friday that it has completed construction on a new manufacturing line in Cheongju, North Chungcheong Province, pledging to turn its memory chip manufacturing factory into a key global production base.The manufacturing line named “M12” will be an addition to the already-existing M8 and M11 within the plant and it is planned to produce NAND Flash and dynamic random access memory chips, SK Hynix officials said during a celebratory event. Although the M12 was mainly built to make NAND
Seoul shares rally 1.91 percent on EU summit progress

Jun 29, 2012

South Korean stocks rallied 1.91 percent on Friday as European leaders reportedly decided to ease bailout rules for debt-ridden governments, analysts said. The local currency gathered ground against the U.S. dollar.The Korea Composite Stock Price Index (KOSPI) climbed 34.83 points to finish at 1,854.01. Trading volume was moderate at 309.8 million shares worth 4.29 trillion won (US$3.73 billion) w
Seoul shares open lower on EU summit concern

Jun 29, 2012

South Korean stocks got off to a weak start Friday as investors avoided risky bets pending the outcome of a European summit aimed at addressing the region's fiscal crisis, analysts said.The Korea Composite Stock Price Index (KOSPI) lost 9.37 points, or 0.52 percent, to 1,809.81 in the first 15 minutes of trading.Tech blue-chips and chemical issues led the decline, with market bellwether Samsung El
S. Korea's industrial output grows 2.6 pct on-year in May

Jun 29, 2012

South Korea's industrial output grew in May from a year earlier despite persistent eurozone debt problems and market uncertainties, a government report showed Friday.According to the report by Statistics Korea, production in the mining and manufacturing industries expanded 2.6 percent last month from a year earlier. In April, the output remained unchanged from the same month in 2011.Industrial pro
Korea adds 8.5 trillion won to fiscal spending

Jun 28, 2012

The Finance Ministry said Thursday that it has revised its projection for the nation’s economic growth for this year down to 3.3 percent, from its earlier forecast of 3.7 percent.In its unveiling of the second-half economic policy direction, the Finance Ministry cited external factors including the eurozone fiscal crisis for the revision.Earlier, the International Monetary Fund and the Organization for Economic Development and Cooperation also lowered their respective forecasts for Korea’s GDP g
Korea-EU FTA effect limited by eurozone crisis

Jun 28, 2012

Since it took effect one year ago, FTA helps attract foreign investment, but product price cuts imperceptibleThe effect of the free trade agreement between Korea and the European Union has been meager in its first year as the eurozone fiscal crisis dampened the region’s demand for imports. The FTA, however, appears to have helped attract foreign investment to Korea.Korea’s exports to the EU since the FTA took effect in July 1 last year through June 15 dropped 12.1 percent from the year before la
EU FTA has silver lining for big firms

Jun 28, 2012

One year has passed since the much-lauded Korea-EU Free Trade Agreement went into effect on July 1 last year.However, high expectations that the tariff-cutting pact would give Korea’s exporters a boost into the European market have been lowered over the year as the sovereign debt crisis in the eurozone continues to weaken the region’s overall demand, said an economist.While 13.8 percent of Korea’s exports were sent to the EU in 2008, that share actually slid to 9.4 percent this year amid the eur
Cheil Industries, YG Entertainmentb to ride Korean fashion wave together

IndustryJun 28, 2012

Samsung affiliate Cheil Industries and YG Entertainment are set to target the global fashion market with the launch of a new, “total lifestyle” Korean brand.Cheil Industries said Thursday that it has entered into an agreement with YG Entertainment, one of Korea’s leading record labels and talent agencies, to develop a new brand for the global teens and 20s market. According to company officials, the new brand, whose name has yet to be decided, will be launched some time in the spring of 2013, an
Business leaders call for deregulation

IndustryJun 28, 2012

Korean conglomerates brace for tough times in second half of yearChiefs of the nation’s major business groups called on the government to put more efforts into revitalizing the economy through deregulations at a meeting in Seoul on Thursday.Seoul members of the Korea Chamber of Commerce and Industry shared the view that “the corporate sentiment has been worsening since the second half of 2010 and exports are in a declining mode.”The participants including KCCI chairman Sohn Kyung-shik expressed