[THE INVESTOR] Hanjin Shipping on June 17 received a three-month extension on corporate bonds with a combined value of 190 billion won (US$ 161.9 million).The bondholders’ decision gives Hanjin Shipping until Sept. 27. Hanjin Shipping had been at risk of defaulting had the bondholders rejected its request and kept the original June 27 maturity date.By Choi He-suk (cheesuk@heraldcorp.com)

[THE INVESTOR] The world’s largest containership owner Seaspan Corp.’s CEO Gerry Wang indicated he would not be accepting charter rate cuts requested by South Korean shipping line Hanjin Shipping.Wang told London-based journal Lloyd’s List that he would “withdraw the tonnage than agree to any concessions.”These comments run counter to what Hanjin Group said regarding a meeting between its chairman Cho Yang-ho and Wang on June 14.Hanjin spokespeople had hinted the discussions went well, and that

[THE INVESTOR] Local construction firms are facing growing risks in oil producing countries. On June 16, Hyundai Engineering and Construction Co. disclosed that a US$6 billion project in Iraq had to be halted due to late payments. Although the company said that it is seeking other means of payment, the move sparked concerns that similar developments could occur in other oil producing countries. The concern is further fueled by the fact that a large chunk of Korean construction firms’ unclaimed f

[The Investor] The first arrest in the widening Daewoo Shipbuilding and Marine Engineering corruption probe was made on June 17, fueling speculations that the investigators are closing in on former CEO Nam Sang-tae. Prosecutors arrested the chairman of HUMEX Shipping & Air Freight, identified by his surname Chung, on charges of bribing former DSME CEO Nam Sang-tae, in exchange for obtaining an exclusive contract.  Main office of DSME. The InvestorAccording to investigators, Chung, who is Nam’s c

[THE INVESTOR] The number of paying passengers of Asiana Airlines broke the 300 million mark, industry data showed on June 17.According to the data, Asiana flights carried more than 300 million passengers as of May 20.The company was founded in 1988. It broke the 100 million milestone in 2001, and the 200 million mark in 2009. The company will celebrate the landmark event by reducing the price of return trips on select domestic and international routes. By Choi He-suk (cheesuk@heraldcorp.com)

[THE INVESTOR] Korea Aerospace Industries is to enter the market for choppers designed for maritime operations in collaboration with Airbus Helicopters, the Korean company said June 17. The arrangement was announced at the Eurosatory defense exposition held in Paris.  For the project, the two companies will build maritime operations helicopters based on the KAI KUH-1 Surion. Surion is a transport utility helicopter developed by KAI and Airbus Helicopters. According to KAI, the market for maritim

[THE INVESTOR] Korea’s top Internet companiesKakao Corp. and Naver Corp. are expected to see their earnings improve in the second quarter of the year, according to a report on June 17.Naver is the leading Internet portal operator while Kakao runs the nation’s top mobile messenger KakaoTalk. Kakao CEO Rim Ji-hoon.The net profit of Naver is likely to soar 46 percent on-year to 181 billion won (US$155 million) in the April-June period, according to a report by online financial information provider

[THE INVESTOR] Concerns are growing about widespread strikes in July as major labor unions are forming alliances to take industrial action. On June 16, the unions of Hyundai Motor and Hyundai Heavy Industries said that they would work together for an “all out strike” in July. The unions of both Hyundai affiliates warned of a strike should this year’s wage negotiations spill over into July.  “Walkouts will be conducted alongside the negotiations this year, together with the 150,000 members of the

[THE INVESTOR] Hyundai Steel Co.’s production capacity will be normalized by early July, the company said on June 17.The production capacity of the company’s mill in Dangjin, South Chungcheong Province, had been affected with one of its three furnaces experiencing problems since May 12. The furnace, the first of the three to go on line in January 2010, had experienced trouble in maintaining temperature, reducing its daily out to about 3,000 metric tons. Before the fault developed, its daily outp

[THE INVESTOR] Ailing Hyundai Heavy Industries Co. faces tough challenges ahead with the union likely to resort to “powerful” strikes.On June 17, the union announced that industrial dispute has occurred, opening the way for industrial action in negotiating with the management. Although the union has cited slow progress in the negotiations, pundits say that the move is likely to be aimed at meeting the legal requirements for industrial action before the restructuring measures are executed. Hyunda

[THE INVESTOR] Hyundai Engineering & Construction Co. disclosed on June 16 that it has pulled out of the US$720 million project in East Timor. In a regulatory filing, the builder said that the decision was made due to delays in the project receiving approval from East Timor courts. The company had won the project last year in collaboration with Hyundai Engineering Co. The contract was for building a seawall and supply facilities to be used for oil development efforts off the southern coast town

[THE INVESTOR] Defense manufacturer Hanwha Thales plans to kick off the process to develop an advanced radar system for Korea’s indigenous fighter jets next month, the company’s CEO said on June 16.In April, the defense unit of conglomerate Hanwha Group was picked as the preferred bidder to build active electronically scanned array radars for some 120 fighter jets that South Korea seeks to develop by the mid-2020s. (Hanwha Thales)CEO Chang Si-kwontold reporters in Paris that his company plans to

[THE INVESTOR] Investors have filed a class-action suit against GS Engineering & Construction for allegedly concealing losses.According to law firm Hannuri, the nation’s highest court confirmed a lower court ruling allowing 15 people who invested in the construction arm of GS Group to file a class-action suit. GS Group is Korea’s seventh-largest conglomerate. The suit is demanding GS to pay for damages worth 46.5 billion won (US$ 39.5 million) to 10,399 investors.In 2013, GS failed to disclose i

[THE INVESTOR] Hyundai Glovis has once again turned down proposals by the US government to use US-registered ships for its car shipments to the nation, according to company sources on June 16. US government officials including maritime administrator Paul Jaenichen recently came to Korea to discuss marine policies with Korean officials from the Ministry of Oceans and Fisheries, sources said.In the latest meeting at Sejong City, South Chungcheong Province, representatives from Hyundai Glovis, a lo

[THE INVESTOR] Four state-run corporations -- Korea Resources Corp., Korea National Oil Corp., Korea International Broadcasting Foundation and Facility Management System -- have received the lowest marks in their work performance evaluation for last year. Announcing the results of its assessment on June 16, the panel, under the Ministry of Strategy and Finance, evaluated 116 state-run corporations and institutions based on their management performance last year. A total of 161 experts, including