[THE INVESTOR] Most of Korea’s key industries will continue to face difficulties in the second half of the year, the largest business group in Korea said on June 16. In a seminar organized by the Federation of Korean Industries, participants projected that the conditions are unlikely to improve significantly in the second half with the exception of construction and petrochemical industries.  The Federation of Korean Industries.According to FKI’s projections, the shipbuilding industry -- hit hard

[THE INVESTOR] The top management of Samsung C&T, Samsung Group vice chairman Lee Jae-yong and the National Pension Service have been sued by an alliance of civic groups on charges of malpractice and stock price manipulation during the merger of then Cheil Industries and Samsung C&T in 2015.People’s Solidarity for Participatory Democracy, one of the civic groups participating in the lawsuit, claimed that the merger between Cheil Industries and Samsung C&T in July 2015 was made to benefit the Sam

20 public firms clinch top grades in gov’t grading[THE INVESTOR] Twenty public companies and state-run agencies were recognized for their efforts to revamp balance sheets in the government-led annual management assessment, the Finance Ministry said on June 16.Of the 116 institutions evaluated by the test’s criteria, the number of A-grade institutions increased from 15 selected a year earlier, followed by 53 B-grade companies and 30 C-grade, the ministry said.The 20 leading companies included the

[THE INVESTOR] LG Chem, the chemicals and battery unit of LG Group, on June 16 refuted that it was considering sale of the fertilizer business of FarmHannong, an agrochemical firm it recently acquired. The company said it would pour resources into the fertilizer business that is highly likely to see synergies with its basic material business. LG Chem acquired FarmHannong, formerly owned by Dongbu Group, for about 424.5 billion won ($363 million) in April. LG Chem CEO and vice chairman Park Jin-s

[THE INVESTOR] Hyosung Corp. on June 16 said that the company showcased light-weight bullet resistant helmet produced with the trademarked ALKEX material at the Eurosatory 2016.Eurosatory is a military and security industry show held every two years in Paris. ALKEX is an aramid fiber developed by Hyosung. Aramid fibers are heat-resistant fibers with high tensile strength, used in aerospace and military applications. The company said that introduction of the ALKEX product and other aramid product

[THE INVESTOR] The retained earnings of Korea’s top 500 companies fall far behind that of top 25 U.S.-based companies, a new report showed on June 16. Retained earnings refer to assets after dividends are paid out. The funds and other assets included in retained earnings are then used for investment, debt repayment and other management activities. The report compiled by the Korea Economic Research Institute showed that Korea’s top 500 companies by market capitalization had combined retained earn

[THE INVESTOR] Embattled Samsung Heavy Industries came out with a heavy-duty restructuring plan that involves drastic measures including cutting up to 1500 payrolls by the end of this year.Eventually, the firm plans to reduce the workforce by up to 40 percent over the next three years.Samsung executives also agreed to pay cuts starting in July until the company returns to normal. “As CEO, I will forgo my entire salary until a business turnaround,” said Park Dae-young, head of Samsung Heavy. Park

[THE INVESTOR] The online shopping business in Korea has expanded more than 16-fold over the past 15 years due to the rapid development of online transactions, government data showed on June 16.Total online sales reached 53.9 trillion won ($46.1 billion) last year, compared with 3.3 trillion won in 2001, with an average 22 percent on-year growth every year, according to Statistics Korea.Mobile shopping amounted to 24.5 trillion won in 2015, more than tripling from 6.6 trillion won in 2013 when t

[THE INVESTOR] A $6.04 billion refinery project being undertaken by a Korean consortium in Iraq has effectively come to a stop due to late payments from the Iraqi government. The Hyundai Engineering and Construction Co.-led consortium began the multibillion-dollar project to construct a refinery in Karbala in April 2015. The consortium also including GS Engineering and Construction Co., SK E&C Co. and Hyundai Engineering Co. Officials from companies engaged in the project pose for a photograph i

[THE INVESTOR]  Hyundai Steel Co. is likely to post significant jump in operating profits for the second quarter of the year, HMC Investment Securities projected on June 16.Saying that Hyundai Steel is likely to have gained momentum in the second quarter and that the price increased projected for the second half of the year will further improve performance, HMC maintained the “buy” rating and the target price at 73,000 won ($62).On June 16, Hyundai Steel opened at 47,350 won, up 150 won from mar

[THE INVESTOR]  POSCO Engineering Co. announced on June 16 that it has been awarded an LPG plant construction project from Indonesia’s state-run oil company. The subsidiary of Korea’s largest steelmaker POSCO specializes in building industrial plant and infrastructure facilities. The $140 million project, awarded to POSCO Engineering-Wijaya Karya (WIKA) consortium, will see the construction of LPG-related facilities including two storage tanks. POSCO Engineering holds 50 percent stake in the con

[THE INVESTOR] Korea Electric Power Corp. is reviewing plans for launching solar power projects in Jordan, local news outlets reported on June 16.A team from KEPCO had been dispatched to the United Arab Emirates and Jordan last month to seek out potential new projects in the region. The overseas expansion drive is thought to be fueled by uncertainties the company faces as an electricity supplier. With the government announcing plans for opening up the market to private sector, KEPCO is expected

[THE INVESTOR] The probe into bribery allegations against Daewoo Shipbuilding and Marine Engineering has expanded with authorities looking at the role of former CEO Nam Sang-tae. According to reports, the investigators have found evidence that Nam received bribes in return for awarding contracts to HUMEX Shipping & Air Freight Corp.On June 15, the prosecution applied for an arrest warrant on HUMEX chairman, who is said to be a close acquaintance of Nam. The chairman, identified by his surname Ch

[THE INVESTOR] Seoul has requested Interpol to put out a red notice alert on a key suspect in Daewoo Shipbuilding and Marine Engineering corruption case. A red notice alert is placed on suspects wanted in Interpol member nations. According to the investigators, Seoul’s Ministry of Justice requested the alert on a suspect identified by his surname Lee, who is the elder brother of architect Lee Chang-ha.Lee Chang-ha, who held an executive level position at DSME from 2006 to 2009, was indicted in 2

[THE INVESTOR] KB Kookmin Bank shortened the maturity on short term loans to Samsung Heavy Industries on June 15. In giving the shipbuilder an extension on 1-year maturity loans, the bank cut the payback period to three months. Samsung Heavy’s loan from KB Kookmin is 100 billion won ($85.2 million).The move is thought to reflect the difficulties the shipbuilder has been facing as orders dry up for some of Korea’s largest shipyards.  Samsung Heavy Industries.Shinhan Bank is also reported to be co