The Korea Herald

BMW grabs US luxury car crown

TransportJan 6, 2012

BMW overtook Mercedes-Benz in a surprise upset Thursday to grab the crown of best-selling luxury brand in the United States after an incentive-fueled race to the finish of 2011. Bayerische Motoren Werke AG ( BMW) vehicles are displayed at the Tokyo Motor Show 2011 in Tokyo, Japan. (Bloomberg)Th
Samsung puts Q4 operating profit at record 5.2 trillion won

IndustryJan 6, 2012

Samsung Electronics Co., the world's largest maker of memory chips and smartphones, estimated on Friday that it had posted a record operating profit in the fourth quarter on the back of strong sales of smartphones.Operating profit estimated for the October-December period reached 5.2 trillion won (U
Business asks Lee to clear uncertainties

Jan 5, 2012

The Korea Chamber of Commerce and Industry on Thursday invited about 1,300 leaders from all sectors, including President Lee Myung-bak, emphasizing greater growth in terms of exports, new jobs and bigger investments at its New Year’s greetings in southern Seoul. The event, which was organized by the country’s largest business lobby and participated by leaders from the business, government, societal and diplomatic circles, was the first meeting between the president and business heads in 2012.“I
Eximbank raises $2.25b via debt sale

Jan 5, 2012

The state-run Export-Import Bank of Korea said Thursday it has issued dollar-denominated bonds worth $2.25 billion, the single biggest debt sale by a Korean institution excluding the government.The debt is composed of two-tranche global bonds maturing in five years and 10 years and three months, respectively, the policy lender said.The five-year bonds worth $1.25 billion carry an interest rate 3.15 percent above the corresponding U.S. state bond yields. The other tranche, worth $1 billion, are p
Brokerages’ foreign units’ losses increase

Jan 5, 2012

Korean securities firms saw losses at their foreign operations widen in the first half of fiscal 2011 from a year earlier due mainly to heightened market uncertainties, the financial regulator said Thursday.The 93 foreign units of 19 local brokerages saw their combined net loss reach $43.3 million in the April-September period of last year, compared with $17.3 million a year earlier, according to the Financial Supervisory Service. The firms close their books on March 31.The weak bottom line came
IT exports top record $156 billion in 2011

Jan 5, 2012

Korea’s information technology exports reached a record high of $156.97 billion in 2011 mainly due to strong overseas demand for smartphones and system semiconductors, a government report showed Thursday.The figure is a 2 percent gain from the $153.94 billion tallied in 2010 and marks the second year in a row that outbound shipments of IT products set new records, the report by the Ministry of Knowledge Economy said.Imports grew 7.8 percent to $81.52 billion with the country posting a trade surp
Dispute rises over plan to transfer KTX operation to private firms

IndustryJan 5, 2012

A government plan to introduce competition to train operations and end the monopoly held by state-run KORAIL is stirring a heated debate as critics say for-profit businesses would endanger safety and public interests.The Transport Ministry said last week it will open bidding this year to operate new bullet-train routes connecting Suseo in southern Seoul to the southern part of the country, which will open in 2015. KORAIL will continue to manage the other sections.The ministry expects the change
Hyundai-Kia ranks sixth in U.S. sales

IndustryJan 5, 2012

Both carmakers post record sales of over 1.13m units in U.S. last yearHyundai Motor Co. and Kia Motors Corp. posted record sales in the United States last year, together ranking sixth in sales volume after GM, Ford, Toyota, Chrysler and Honda.With over 1.13 million cars sold, Hyundai-Kia overtook Nissan for the first time by about 90,000 units in the world’s largest auto market.Models that can run more than 40 miles per gallon such as the Elantra, Sonata Hybrid and Accent accounted for about a
Stephanie Choi named Johnson & Johnson’s North Asia head

IndustryJan 5, 2012

Johnson & Johnson Korea said Wednesday that the company’s managing director Stephanie Choi has been recently named the North Asia area managing director. Choi, 42, will be responsible for the U.S.-based consumer goods giant’s operations in Hong Kong and Taiwan as well as Korea. Choi joined Johnson & Johnson as a brand manager in 1991 and became the Korean branch’s first female head in 2008. She has been recognized for her contribution to the successful settlement of brands such as Johnson’s Baby
LH CEO gives up stock options worth W13 billion

IndustryJan 5, 2012

Korea Land & Housing Corporation CEO Lee Ji-song has recently given up stock option rights worth 13 billion won ($11 million) that he was awarded while working for Hyundai Engineering in 2005. According to the country’s state-run land developer, Lee told Hyundai Engineering at the end of last year that he would not exercise 50,000 shares of stock options at the company. The stock options were given to him in late 2005 when he served both as the chairman of Hyundai E&C and as an outside board dir
Samsung looks to grow 15% globally with air conditioner

IndustryJan 5, 2012

By Cho Ji-hyunSamsung Electronics on Thursday released its new air conditioner model for this year, unveiling its plan to expand its sales of air conditioners by up to 15 percent in the global market.Dubbed “Smart air conditioner Q,” the product emphasizes the cooling system as well as the air purifier and dehumidifier functions, according to company officials.“We’re expecting to meet a globally sluggish economy this year, but we plan to grow by more than 15 percent in the air conditioning marke
SK Group vows to invest biggest-ever W19tr this year

IndustryJan 5, 2012

SK Group on Thursday unveiled its largest-ever investment and recruitment plans just ahead of the prosecution’s announcement of its plan to indict chairman Chey Tae-won without physical detention on embezzlement charges. The conglomerate said it would more than double investment to 19.1 trillion won ($16.6 billion) including 3.4 trillion won to acquire Hynix Semiconductor and 2.1 trillion won in resource development.About 10 trillion won will be invested in facilities and another 2 trillion won
Banks pay generous bonus to workers

Jan 5, 2012

Major banks are poised to pay large-scale performance bonuses to employees, despite the difficult situation in the wider economy.The banking sector posted record-high earnings in 2011, while many households and small- and mid-sized enterprises are saddled with snowballing debts.As a year-end compensation for the performance, four major commercial banks ― KB, Woori, Shinhan and Hana ― have offered or plan to offer workers extra payments.Kookmin Bank provided employees with a bonus, which is equiv
Korea’s equity market has fewer foreign firms than Asian peers

Jan 5, 2012

The proportion of foreign firms on the South Korean stock market is relatively small compared with other Asian equity markets, which is largely due to the local stock market’s low global reputation and strict listing rules, data showed Thursday. Only 17 firms out of 1,822 companies listed on the main bourse and the secondary market, or 0.93 percent, were foreign-based as of end-November last year, according to the data by the Korea Exchange and the Korea Capital Market Institute.The Korean marke
Food price hike second highest in OECD

Jan 5, 2012

South Korea’s food prices rose at the second highest rate among Organization for Economic Cooperation and Development members in 2011, mainly due to unfavorable weather conditions, a report showed Thursday.The report by the Paris-based organization showed the country’s food prices jumping an average 7.9 percent in the January-November period, with only Estonia’s growth being steeper at 9.9 percent among the 32 countries checked.South Korea’s consumer prices rose 4 percent on-year in 2011, which