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Key suspect allegations surrounding Hyundai Group training center arrested

Oct 12, 2016

[THE INVESTOR] A key suspect in the embezzlement case regarding Hyundai Group’s training center has been arrested and indicted, the Seoul Central District Prosecutors’ Office said on Oct. 11. The suspect, the chief of a construction company identified by the surname Chung, is alleged to have embezzled 1.9 billion won (US$ 1.69 million) while taking part in the construction of Hyundai Group’s training center in Yangpyeong, Gyeonggi Province, in 2012. Chung was recently arrested after having disap
KIC fails to measure up to foreign counterparts

Oct 11, 2016

[THE INVESTOR] The Korea Investment Corporation had the lowest profitability among major state-run investment funds, data showed on Oct. 11. Rep. Kim Song-sik of the minor opposition People’s Party said, the KIC recorded a profit rate of minus 3 percent, coming in last among comparable state-operated investment funds. The data obtained by Kim showed that the KIC’s profit rate came to 4.02 percent in 2014, making it the least profitable among compared organizations for two consecutive years. Stat
Transport Ministry issues warning on Galaxy Note 7 use on aircrafts

Oct 11, 2016

[THE INVESTOR] The Ministry of Land, Infrastructure and Transport on Oct. 11 issued a statement warning against the use of Samsung Electronics Galaxy Note 7 onboard aircrafts. The ministry’s warning follows the Korean Agency for Technology and Standard’s recommendation that the company halt the use, sales and replacement of the device. In its statement, the Transport Ministry said that the device should be switched off in aircrafts, and should not be recharged while onboard. The warning also sa
KEXIM’s loans fueled shipbuilding industry’s difficulties: lawmaker

Oct 11, 2016

[THE INVESTOR] The Export-Import Bank of Korea’s subprime loans hampered the restructuring of the shipbuilding industry and fed the industry’s difficulties, a ruling party lawmaker claimed on Oct. 11. According to a KEXIM report obtained by Rep. Shim Jae-cheol of the ruling Saenuri Party, the bank’s subprime loans went from 555 billion won (US$497.73 million) in 2012 to 5.4 trillion won at the end of August this year. Of the 5.4 trillion won, 4 trillion won was shown to have been lent to compani
NPS to seek compensation from Hanmi Pharma

Oct 10, 2016

[THE INVESTOR] The National Pension Service has decided to file a compensation suit against Hanmi Pharmaceutical should its alleged wrongdoings be proven true.Speaking at the parliamentary audit, NPS’s Chief Investment Officer Kang Myeon-wook said that the agency will seek compensation if it is proven that Hanmi’s irregular dealings led to any losses for it. Hanmi is alleged to have delayed in disclosing the fact that its contract with Boehringer Ingelheim has been terminated. Following the disc
Gov’t to analyze Hyundai Motor engine for faults

Oct 10, 2016

[THE INVESTOR] South Korean authorities are looking into Hyundai Motor’s Theta II engine over complaints of engine failure, and abnormal levels of noise. According to local news reports, the Ministry of Land, Infrastructure and Transport ordered the Korea Transport Safety Authority to analyze the Theta II engine on Oct. 4. Since 2012, five complaints concerning the engine have been filed with the recall center operated by the Korea Transport Safety Authority. Complaints regarding the Theta II en
Hyundai Motor Group fined the most for unfair trade practices

Oct 10, 2016

[THE INVESTOR] Hyundai Motor Group has been fined the most among South Korean conglomerates for breaking fair trade regulations since 2012, antitrust agency data showed on Oct. 9.According to the Fair Trade Commission report obtained by Rep. Park Yong-jin of the main opposition Minjoo Party of Korea, Hyundai Motor Group has been fined more than 349.58 billion won (US$ 314.65 million) between 2012 and September this year. Hyundai Motor Group was followed by Samsung Group and POSCO. During the sam
Hyundai to be probed over faulty air bag in SUVs

Oct 10, 2016

[THE INVESTOR] Hyundai Motor will come under a criminal probe following charges filed by the Ministry of Land, Infrastructure and Transport. The ministry reported the carmaker to the prosecution on Oct. 5, alleging that it failed to follow protocol when a serious fault was found in the air bag system in the Santa Fe SUV.The Seoul Central District Prosecutors’ Office plans to assign the case on Oct. 10, and begin a criminal investigation. According to the ministry, the air bag sensor on the pass
Lawmaker accuses Hanmi, Drug Ministry of falsehoods

Oct 7, 2016

[THE INVESTOR] Hanmi Pharmaceutical was aware of the negative side effects of targeted cancer therapy Olmutinib in August, an opposition lawmaker claimed on Oct. 7.Rep. Jung Choun-sook of the main opposition Minjoo Party of Korea revealed a document from Boehringer Ingelheim informing Hanmi of canceling all clinical trials sent on Aug. 23. In the statement, Boehringer Ingelheim stated that patients will not be recruited for tests, and that ongoing tests will be halted according to recommendation
Large companies’ loan default rate rises to new high

Oct 7, 2016

[THE INVESTOR] Large corporations default rate on bank loans reached a new high in August, data showed on Oct. 7. The default rate is the ratio between banks’ outstanding loans and loans on which payments have delayed by more than a month. According to the Financial Supervisory Service, large corporations default rate came to 2.59 percent at the end of August. The figure is the highest on record since related data started being compiled in 2008. Large corporations’ default rate has been rising t
S. Korean gov’t promises W4tr ship orders

Oct 6, 2016

[THE INVESTOR] The government will place orders for ships ahead of schedule as part of support measures for smaller shipbuilders, Minister of Trade, Industry and Energy Joo Hyung-hwan said on Oct. 6.The minister said that the orders for 4.2 trillion won (US$ 3.77 billion) worth of ships will be placed ahead of schedule. Ships the government plans to place orders for include ships used by government organizations, and military vessels. “(The government) will help the shipbuilding industry overcom
FKI faces increasing heat

Oct 6, 2016

[THE INVESTOR] Criticism against the Federation of Korean Industries is growing, with the opposition parties going as far as to call for it to be disbanded. The increasing criticism come in the wake of allegations that the lobby group of conglomerates has been involved in politically motivated activities. It has been accused of supporting a right-wing civic group. The FKI has also been implicated in irregularities in raising funds for two nonprofit foundations under pressure from Cheong Wa Dae.
Hyundai Steel to issue W200b bonds

Oct 5, 2016

[THE INVESTOR] Hyundai Steel will issue bonds to the value of 200 billion won (US$ 179.49 million) on Oct. 18. According to finance industry sources, Hyundai Steel will issue 100 billion won 5-year bonds, and equal amount of 7-year bonds. KB Investment and Securities will oversee the sale. Hyundai Steel said that the bonds are being issued in advance to take advantage of the low interest rates to raise funds for the 280 billion won worth of bonds maturing in January 2017. By Choi He-suk (cheesuk
Hyundai Motor recalls city car in India

Oct 5, 2016

[THE INVESTOR] Hyundai Motor is recalling 7,657 units of the city car Eon produced at its plant in India in January 2015. The company said that faults have been found in the clutch and battery cables used in the vehicles. The Eon is a city car fitted with an 814cc gasoline engine designed for the Indian market. By Choi He-suk (cheesuk@heraldcorp.com)
Labor dispute weighs down Hyundai Motor

Oct 5, 2016

[THE INVESTOR] Hyundai Motor may fall short of its production target this year, weighed down by the ongoing labor dispute. The union has halted walkouts until Oct. 11, with only the union leaders staging demonstrations. However, the union has stated that industrial actions will again be taken unless an agreement is reached before the date. According to the Ministry of Employment and Labor, Hyundai Motor’s union has staged 24 partial and full strikes. The strikes have cost the company 131,000 veh