The Korea Herald

Chaebol’s economic dominance increases

IndustryFeb 6, 2012

Top 10 conglomerates take up 52.8% in listed firms’ output: reportKorea has seen an unprecedented concentration of wealth in the nation’s top 10 family-owned conglomerates since the global financial crisis in 2008, industry reports showed Monday.Their combined market capitalization and sales reached their highest-ever last year, according to separate reports by Chaebul.com, FnGuide and the Economic Reform Research Institute. The top 10 owner groups saw the market cap of their 90 listed affiliate
Shares inch up on better U.S. data

Feb 6, 2012

Korean stocks closed a tad higher Monday, lifted by improved U.S. economic data, but the gains were limited on renewed concern over Greece’s default, analysts said. The local currency fell against the U.S. dollar. The benchmark Korea Composite Stock Price Index gained 0.79 points, or 0.04 percent, to finish at 1,973.13. Trading volume was heavy at 515.3 million shares worth 7.21 trillion won ($6.43 billion) with decliners outpacing gainers 433 to 400. The KOSPI opened 1.10 percent higher but los
Retirement pension market grows 71%

IndustryFeb 6, 2012

Korea’s pension industry grew 71 percent last year after more retirees-to-be subscribed to pension funds in one of the world’s fastest-aging societies, the financial regulator said Monday. The size of retirement pension reserves came in at 49.92 trillion won by December 2011, posting a 71.3 percent jump from 29.15 trillion won a year earlier, the Financial Supervisory Services said. “The flock to the pension market is creating a heated competition to introduce pension funds and insurance,” a FSS
Retailers move to boycott Shinhan Card

Feb 6, 2012

About 1 million stores participate in protest to demand reduction of service chargesA million retailers nationwide are set to boycott payment via Shinhan Card from Feb. 20.Their protest against the nation’s largest credit card firm is due to the card industry’s lukewarm attitude toward cutting settlement service charges on retailers.Members of the retailer association notified consumers on Monday that they will not accept Shinhan Card for payment of goods.The retailers reportedly demanded cuttin
Korean cosmetics use Canadian clay

Feb 6, 2012

A business relationship that started two decades ago is moving to the next stage as Ironwood Clay Company hooked up with three major local firms to create all-natural skin care products.Company president Rodger Upton first hooked up with Ilyang Pharmaceutical in 1992, but due to poor marketing, the stars did not shine on both parties and Upton’s Nena skincare product exited the country only to be replaced by Nu Skin’s own clay masks.“We are the only certified organic skin care company in Canada,
Former tax official indicted on charges of helping SK Group evade

Feb 6, 2012

A convicted former senior tax official has been additionally indicted on charges of receiving a massive amount of money in return for helping South Korea's third-largest industrial conglomerate SK Group evade tax audits, prosecutors said Monday. Lee Hee-wan, a former director at the Seoul Regional T
Sony, Panasonic expect larger losses as Samsung dominates

IndustryFeb 6, 2012

Japan’s biggest makers of TVs, phones and chips say they will lose about $17 billion this year, about three-quarters of what Samsung Electronics Co. will spend on research to lengthen the lead over its competitors.Sony Corp. more than doubled its annual loss forecast for the year ending March 31 as it announced a new chief executive officer, while Panasonic Corp. and Sharp Corp. predicted the worst losses in their histories. Their combined losses compare with the $22 billion that Samsung, Asia’s
Korea, Turkey to sign MOU on $2b power plant

IndustryFeb 6, 2012

ISTANBUL (Yonhap News) -- South Korean firms will sign a preliminary agreement to build a thermal power plant in southern Turkey on the sidelines of President Lee Myung-bak's trip to the Eurasian nation, officials said Sunday.A consortium of SK E&C and the state-run Korea South-East Power Co. will s
KRX decides not to suspend trading of Hanwha shares

Feb 6, 2012

Korea Exchange, the country’s bourse operator, announced on Sunday it has normalized the trading of Hanwha Corp. shares after deciding not to subject the company to a delisting review in connection with the ongoing probe into alleged embezzlement. The move will allow the stock to be traded without any restriction on Monday, but investors are likely to see a turbulent ride due to the nature of the problem plaguing the holding firm of Hanwha Group, one of the country’s major conglomerates. Hanwha
Four companies fined for cartel in submarine project

Feb 5, 2012

Korea’s four major defense manufacturers have been fined for allegedly forming a cartel in a 2.7 trillion won ($2.41 billion) project to build next generation submarines, the country’s antitrust watchdog said Sunday.The four defense contractors ― LIG Nex1, Samsung Thales, Hanwha Corp. and STX Engine Co.― were imposed with a combined fine of 5.99 billion won, according to the Fair Trade Commission.Samsung Thales was fined 2.68 billion won with LIG Nex1 ordered to pay 2.47 billion won in penalties
Local fashion brands breathe fresh air into luxury trend

IndustryFeb 5, 2012

When Seok Jeong-hye launched her accessory brand Couronne back in 2009, the Los Angeles-based designer said she once considered hiding its Korean origin. In Korea, where people are very conscious about brand names, especially those of European fashion houses, many were doubtful about the likelihood of success of a home-grown handbag brand.“There were some people who called to ask about the brand and just hung up after realizing it’s a Korean brand. But I had confidence in product quality,” Seok
LGE tops U.S. drum washer market

TechnologyFeb 5, 2012

LG Electronics Inc., South Korea’s leading consumer electronics maker, remained the top seller of drum washing machines in the U.S. market for the fifth straight year in 2011, a market researcher said Sunday.LG Electronics dominated the U.S. drum washer market last year in terms of sales, number of products sold and market share, according to Stevenson Company.By sales, LG Electronics claimed a 20.7 percent share of the U.S. drum washer market, outstripping Samsung Electronics Co.’s 17.4 percent
’Drug makers offered W100b in rebates over 5 years’

IndustryFeb 5, 2012

FTC last year slapped fines on Korean units of Sanofi-Aventis and JanssenDrug makers in Korea have offered nearly 100 billion won ($89.4 million) in rebates between 2006 and 2010, a report showed Sunday, pointing to a rampant illicit practice that has long dragged on one of Asia’s fastest growing pharmaceutical markets. Last year, 17 local and multinational firms were fined 14.3 billion for having offered cash, gift cards, lavish entertainment and other kickbacks to nearly 8,700 hospitals, docto
KNOC sells part of stake in U.S. oil field

IndustryFeb 5, 2012

Korea National Oil Corp. the state-run oil developer, said Sunday it has sold 29 percent of its 80 percent stake in a Gulf of Mexico oil field to a domestic consortium for $308 million.The sale came six months after KNOC selected the consortium of Korea Investment Management Co., Samsung Securities Co. and Daewoo Securities Co. as the preferred bidder for the stake in the Ankor field.KNOC purchased the 80 percent interest in 2008. The state oil developer was entitled to receive 4.47 million barr
Chaebol subsidiaries dwindle amid criticism

IndustryFeb 5, 2012

Samsung and some major conglomerates in Korea have seen the number of their subsidiaries decline over the past seven months amid escalating criticism over their excessive expansion, data showed Sunday.Samsung Group, the country’s largest family-controlled conglomerate, known as chaebol, had 79 affiliates under its wing as of Sunday, down four from July last year, according to the data by industry sources and the Fair Trade Commission, the corporate watchdog.Samsung, whose flagship is tech giant