Laptops poised to outsell desktops in 2009
Companies are expected to sell 2.2 trillion won ($1.57 billion) worth of notebook PCs in Korea this year, a 3.3 percent increase from last year`s 1.9 trillion won, the Korean unit of market research firm IDC said.
Conversely, sales of desktops are expected to decline 5.3 percent to 1.9 trillion won this year, according to IDC Korea.
In terms of sales volume, desktop shipments are expected to be eclipsed by laptop shipments for the first time in 2013.
Laptop shipments are expected to grow by an annual average of 5.6 percent to reach 2.2 million units in 2013. At the same time, desktop shipments are forecast to drop at an annual rate of 3.4 percent to reach 2.2 million units. In 2007, laptop shipments reached 1.7 million units compared with desktop sales of 2.6 million units.
The rise of laptops came as notebook PCs have been gaining market share with home PC buyers.
In the home PC market, 1.2 million laptops were sold, 100,000 more than the number of desktop PCs.
Still, desktop PCs will remain the mainstay of businesses, public and educational organizations.
"It is a worldwide trend that laptops are replacing desktops as the functions of notebooks are improved," an official of IDC Korea said.
The official added that desktops were expected to maintain a higher share of the PC market in Korea than in other countries, due to the widespread use of desktops at PC cafes and military bases.
The local PC market is expected to fall to 4,360 billion won in terms of revenue this year, from 4,370 billion won last year. But revenue is expected to grow in the long term by 0.8 percent per year to reach 4.5 trillion won in 2013.
PC sales volume is also expected to slip to 4.3 million units in 2009, from 4.5 million units in 2008. PC sales volume is expected to grow by an annual average of 0.7 percent to reach 4.6 million units in 2013.
By Jin Hyun-joo
(hjjin@heraldm.com)
Sale of baseball equipment surges at retail stores
Even though the Korean national team lost to the Japanese in the final round of the World Baseball Classic yesterday, baseball fever is likely to continue with the number of people looking for equipment rapidly growing, they said.
According to E-Mart, its sales of baseball equipment in January-March increased 170 percent from the same period a year ago. In particular, between March 7-22, when Korean TV stations broadcast WBC games, sales surged 310 percent higher than during the same period last year, the nation`s largest discount retail chain said.
The popularity of baseball equipment in its stores has surpassed that of soccer products, making it the best selling sports equipment for the first time in years, it added.
Until this year, baseball equipment ranked fifth on the list of sports items` sales in stores, E-Mart said.
The nation`s second-largest discount retailer Homeplus reported a 287 percent increase in the sale of baseball gear during the last two weeks. A majority of customers looked for gloves and balls, it added.
During the past two weeks of competition, the sales of beer and light snacks have also surged, the discount chain said.
The sale of beer increased 18 percent from a year ago while fried chicken showed a sales growth of 94 percent compared to the same period last year. The sale of peanuts grew 7 percent.
The retailer plans to promote the sales of baseball items next month when the new Korean Baseball League season begins.
"Thanks to the explosive popularity of the Korean baseball team, the number of customers looking for baseball items is rapidly increasing. We are going to run many promotional events on baseball products in April to satisfy the customers` interest in the sports," an executive of the retailer was quoted by Yonhap News agency as saying.
Lotte Mart, operated by Lotte Shopping Co., said the sale of baseball products surged sevenfold in the last two weeks. The discount retail chain saw a 313 percent increase in the sale of gloves and 270 percent in the sale of balls from a year ago.
By Cho Chung-un
(christory@heraldm.com)
POSCO awards TJ Park Prizes
The foundation, named after POSCO founder Park Tae-joon, awards the annual prize for outstanding achievement in the fields of science, education and social services since 2006. The TJ Park Prize comes with a cash endowment of 200 million won ($145,000).
This year`s education prize went to former principal of Sunrin Internet High School Cheon Kwang-ho for his contributions to transforming the school into a specialized high school, the foundation said.
The TJ Park Foundation also praised Cheon for establishing an environment that allows students to realize their potential.
The science prize went to Pohang University of Science and Technology`s professor of plant molecular biology and genetics Nam Hong-gil.
The foundation said that Nam was chosen for the prize for his work concerning the genetic causes of aging in plants that was published in international journals including the Science, Cell and Nature.
The social service prize was awarded to Abdul sattar Edhi for his work in Pakistan. Edhi began offering free medical services in Pakistan in 1949 and currently operates nine free hospitals in the former capital Karachi. Edhi also operates projects helping educate and house women and facilities for the disabled. He has also been discussed as a candidate for the Nobel Prize six times for helping 50,000 orphans.
The ceremony was attended by 200 dignitaries, including former National Assembly Speaker Park Kwan-yong, Sohn Kyung-shik, chairman of the Korea Chamber of Commerce and Industry and foreign diplomats including Indian Ambassador to Korea Skand Ranjan Tayal.
By Choi He-suk
(cheesuk@heraldm.com)
Kia unveils hybrid car, eco-friendly sub-brand
Eco Dynamics is a sub-brand that represents ecology and economics and the company`s aim of developing environmentally friendly automotive technologies, the logo for which will be used on hybrid, plug-in hybrid and hydrogen-powered vehicles to be launched in the future.
The hybrid Forte is equipped with a 1.6-liter LPG engine and an electric motor to support the internal combustion engine during acceleration and when the vehicle is started.
The vehicle`s maximum power output is 114 brake horsepower and fuel economy comes in at 17.2 kilometers per liter of LPG fuel, which is equivalent to 21.5 kilometers per liter fuel economy in terms of gasoline, the company said.
In terms of running costs, over the distance of 20,000 kilometers, the fuel costs of an LPI hybrid Forte is 980,000 won ($709) lower than that of the gasoline-powered model.
The LPI hybrid Forte is the world`s first hybrid vehicle to be fitted with a lithium-ion polymer battery, which is lighter and smaller but has higher output than nickel-metal hydride batteries. The company also altered the exterior and interior design of the hybrid Forte to set it apart from the normal version of the vehicle. The company said that it plans to develop a distinct tune that will be played when the hybrid Forte is started to further differentiate the car from conventional vehicles and use the tune in advertising campaigns.
The hybrid Forte will also be shown at the Seoul Motor Show that opens on April 2.
The company also revealed the hydrogen fuel cell version of the sport utility vehicle Mohave for the first time in Korea yesterday. The car is the first to have the fuel cell stack positioned on the floor of the vehicle. The hydrogen-powered Mohave has a driving range of 750 kilometers and can achieve speed of 160 kilometers per hour.
According to the company, the core components used in the vehicle were developed indigenously, allowing the company to reduce materials costs by about 50 percent.
By Choi He-suk
(cheesuk@heraldm.com)
Korea, Cambodia set up bourse
The Cambodian government will own 55 percent of the proposed exchange, with Korea Exchange Inc. holding the remainder under the agreement signed on Monday, the Korean bourse operator said in an e-mailed statement yesterday.
To have the stake, the Southeast Asian nation will provide the site and building for the exchange, while its Korean partner will offer information technology systems, the statement said. Financial terms of the agreement weren`t provided.
The Korean exchange is seeking more alliances to help its local companies expanding into these markets. The bourse is planning a similar agreement in Laos and may upgrade the information technology system for the Mongolian exchange. (Bloomberg)
Seoul to allow stock trading with credit cards
The Financial Supervisory Services, the nation`s top financial regulator, is likely to allow in June card companies to introduce products in affiliation with securities firms.
This means that credit cards would get new features such as transactions involving cash management accounts, equity funds, bonds, stocks, equity-linked securities and other products that brokerages service.
"The envisioned product will be a combination of a conventional credit card and a brokerage account debit card, offering holders purchases on credit, card advance services and trading of stocks," a brokerage official said.
"Major securities companies are already working together with card issuers to launch products," he said.
Stock trading using credit cards has been prohibited on grounds that allowing stock investment on credit could result in the rise in credit delinquents, incurring losses to card firms.
But the authorities now view that card firms should cope with the risk themselves, by setting aside enough money in bad-loan provisions and strictly review credit records of card applicants when issuing the envisioned product.
Securities companies in Korea have been allowed to offer new services under the Financial Investment Services & Capital Markets Act which became effective early last month.
They are now permitted to directly engage in retail payment services, which have been an exclusive domain of banks. This means that customers are able to pay public fees, insurance premiums and many other bills directly from their brokerage accounts.
By Lee Sun-young
(milaya@heraldm.com)
Korea`s extra spending is appropriate, Moody`s says
"It`s an appropriate response to the crisis and it could cushion the recession," Thomas J. Byrne, a Moody`s senior vice president, said in an interview from Seoul. "If it`s a one-time fiscal stimulus as the government notes, we think it doesn`t pose a risk on the long-term creditworthiness of South Korea."
Moody`s raised its rating on the nation`s long-term foreign-currency debt to A2, the sixth-highest investment grade, in July 2007. It has a "stable" outlook on the rating.
"We see signs the government is improving its policy responses and they`re becoming more cohesive," Byrne said. "In April, we`ll see whether it actually will be passed by parliament and implemented."
"We think Korea has the strength to get through this crisis," Byrne said.
As well as attempting to revive growth, the Korean government is stepping up measures to aid the financial system by replenishing banks` capital and encouraging lending.
"Our opinion is that the banking sector will be under stress but that`s not our foremost concern," Byrne said. "It`s interesting to see the government is taking the preemptive measures against possible stresses in the banking system."
The financial regulator said on March 13 it will create a 40 trillion won fund to buy distressed corporate bonds and assets from financial companies. Korea has set up a 20 trillion won fund to provide banks with capital as bad loans increase.
(Bloomberg)
Global rally, budget plan lift market mood
The local currency strengthened against the dollar, boosted by a global weakness of the greenback and a buoyant mood in the Korean financial markets. The won closed at 1,383 per dollar, down 0.63 percent from the previous day.
The benchmark stock index KOSPI rose to 1,221.70 points, moving closer to this year`s high of 1,228.56. The measure was up 1.85 percent or 22.2 points from a day earlier. Tech-loaded Kosdaq inched 3.17 percent up to 413.4 points.
Foreign investors bought more shares than they sold for the sixth consecutive session, as good news from the United States lifted the mood in Seoul.
On Monday, Washington announced a new bank rescue plan, which envisions the authorities providing private investors with financing to buy illiquid loans and securities held by banks. The Dow Jones industrial average jumped 6.84 percent on the announcement and the tech-heavy Nasdaq rose 6.76 percent.
Providing a further boost was the Korean government`s announcement of a plan to spend a record 17.7 trillion won in cash handouts, cheap loans, infrastructure and job training to stop its economy from slipping into its first recession in more than a decade.
The stimulus package will boost economic growth by 1.5 percentage points and help create 552,000 new jobs, the Finance Ministry said.
Also, Korean banks are preparing to launch a so-called "bad bank," which is expected to help the lenders clean up their balance sheets by allowing them to unload toxic assets into a separate institution.
"Stocks are likely to maintain their upward momentum, as measures from governments around the world gather pace," Shin Jae-yup, a researcher at Meritz Securities Co. in Seoul.
BNP Paribas said earlier this week that the KOSPI may rise to 1,450 in the next 12 months as stocks benefit from a strengthening won and the government`s fiscal stimulus. It`s previous estimate was 1,100 points.
The won is also expected to strengthen. The currency has appreciated about 10 percent against the dollar in the last two weeks since touching a low of 1,574 won per dollar.
"Direction-wise, we are quite confident that the won is toward appreciation, but the magnitude is questionable," Morgan Stanley`s Sharon Lam said in a report.
"Although our year-end won-dollar rate forecast is 1,250 won per dollar, we believe the appreciation path could be volatile with full-year average likely in the 1,300s, which is not offering too much appreciation from today`s level."
By Lee Sun-young
(milaya@heraldm.com)
Creditor banks to pick more firms for restructuring
Observers said creditors are tightening their evaluations since they received criticism that they were overly generous during the first round of corporate evaluation, in which only two companies were shut down.
"The number of companies graded as unviable will be increased from last time, because we are trying to be as objective as possible to clear the doubt about our will to bring fairness to the process," a source at a creditor bank told Yonhap News Agency yesterday.
The ongoing corporate evaluation covers four minor shipbuilders, as well as 70 small- and medium-sized construction companies. Out of the four, one is expected to be given the insolvent "D-grade," the banks predicted.
The lenders estimate 11 to 18 construction firms will receive a "C-grade," and consequently face comprehensive restructuring. Based on the evaluation result, the country`s financial authorities are scheduled to finalize the list of unviable companies at the end of this month.
In the first-phase restructuring, which ended in January, banks forced closure of C&Heavy Industries and Daeju Construction and put 14 others on bailout plans.
"The number of companies on the `unviable list` may be fewer than expected as the banks are tempted to give a B grade for a C-grade company, fearing the negative impact of such an evaluation result on the regional economy," another creditor bank official said.
Last week, the Financial Supervisory Service expressed dissatisfaction with the result of the previous corporate evaluation, as B- and C-rated companies had recently filed for court receivership.
By Lee Yong-sung
(danlee@heraldm.com)
Land Ministry, EUCCK agree to cooperate
The Land Ministry and the European Union Chamber of Commerce in Korea sought the initiative to promote investments in real estate and green-field projects amid waning foreign direct investment in Korea.
"Cooperative efforts would be through exchanging information related to laws, regulations and policies in real estate and green-field projects to bolster foreign investments," said Lee Jun-ho, director of the Real Estate Committee at the European Union Chamber of Commerce.
He noted that the lack of available and accessible information for foreigners is one reason to blame for blocking potential investments.
Lee said exchange visits and workshops with EUCCK members would be organized to promote Korea.
Activities would also include domestic and international exhibitions, he added.
The EUCCK stressed that investment inducements must go hand-in-hand with an investment friendly business environment.
"This MOU builds the foundation for establishing a solid communication and cooperation channel between the Central Government and the EUCCK which represents the foreign business community. Thereby, the EUCCK will play a central role in advising the Ministry on creating an environment based on international standards," the EUCCK said.
EUCCK chairman Jean-Marie Hurtiger signed the agreement with the Minister of Land, Transport and Maritime Affairs Chung Jong-hwan at the Central Government Complex in Gwacheon, Gyeonggi Province.
Inbound foreign direct investment plunged 44 percent on-year in the first quarter, exacerbated by the global economic crisis that has forced businesses to curb investments.
Vice Knowledge Economy Minister Kim Young-hak on Monday projected that figures for the first three months may hover around $1.5 billion, a sharp drop from $2.7 billion registered for the same period in 2008.
By Yoo Soh-jung
(sohjung@heraldm.com)
[NEWS ANALYSIS]Extra budget a double-edged sword
The government and the Grand National Party anticipate the stimulus package would slow a 2 percent contraction of the Korean economy to a 0.5 percent contraction or 0 percent growth.
"Of course we have to put out fire first when the house is in flames, rather than think about any side effects. When the economy is in bad shape and the poor are hit hard, the government`s stimulus package is justified," said Cho Gyeong-lyeop, senior research fellow and director of economic research division at the Korea Economic Research Institute.
"However, national debt will surely rise and dent the nation`s fiscal soundness for sure," he said.
The Finance Ministry said the ratio of national debt to GDP would rise to 38.5 percent in 2009 from 32.5 percent in 2008 owing to the extra budget spending.
Korea`s fiscal balance excluding social security funds, which is more reliable in gauging the fiscal balance, is expected to hit a record deficit of 5.1 trillion won, equivalent to 5.4 percent of GDP, the ministry said.
"A deficit of 5.1 trillion won in fiscal balance is the largest since the 1999 deficit, which was equivalent to 5.1 percent of GDP, then. But we had to accommodate fiscal deficit to revitalize the economy," Vice Finance Minister Lee Young-geol said at a press briefing.
Citibank Korea economist Oh Suk-tae also warned that fiscal health would be hurt down the road during the Lee Myung-bak administration, saying this administration would not be able to stop issuing treasury bonds even if the economy started to recover next year due to its trend toward growth.
"Historically, it has been proven that once a nation`s fiscal health worsens, it is almost impossible to reverse the trend. The ratio of national debt to GDP will reach the 40 percent level in several years," Oh said.
The government said the stimulus package from the extra budget would create 550,000 jobs for low-income people and another 40,000 to 70,000 jobs at SMEs.
However, experts and some civic groups said 400,000 of the public works jobs would last only six months at most, and the rest of the internship opportunities and assistant teaching vacancies were not conducive to boosting sustainable jobs.
"Out of the 4.9 trillion won for sharing and creating jobs, 2 trillion won goes to public works, 1.6 trillion won for unemployment benefits. Only 1.3 trillion won is set for other job creation and job training. The measures are ineffective and counterproductive in boosting quality jobs," said Ko Kye-hyun, head of the policy board at the Citizens` Coalition for Economic Justice.
Even GNP lawmaker Lee Han-koo had warned that job creation through extra spending could end up giving short-term jobs.
Experts said the government`s goal of lifting growth rate by 1.5 to 2 percentage points this year will not be really feasible because the performance of the economy so far this year has been too disappointing.
"The effect of the extra budget will start to appear next year. I forecast that the economy will contract 4.8 percent this year but expand 4 percent next year," Citi`s Oh said.
Tine Olsen, economist with Moody`s Economy.com said in a recent report that private consumption in Korea will not be as large as that of its Asia-Pacific counterparts, because private consumption`s share of the total GDP in Korea is smaller than in nations like the Philippines, Indonesia, New Zealand and India.
KERI`s Cho raised concerns over inflation risk due to the increased liquidity in the market after the extra budget spending.
"As major nations in the world are also increasing fiscal spending, market liquidity will grow fast, which poses a threat to commodities price hikes. We cannot rule out the possibility of stagflation in that case," Cho said.
By Kim Yoon-mi
(yoonmi@heraldm.com)
[HERALD INTERVIEW]North Korea to strengthen top defense commission
"North Korea will shift to a new government system with a stronger National Defense Commission as it sees the need for a more institutionalized political system," Lee Ki-dong, senior researcher with the Institute for National Security Strategy, said yesterday at a forum hosted by Kyungnam University`s Institute for Far Eastern Studies.
"The NDC could possibly become the highest guiding organ of national sovereignty by taking over the powers previously held by the Presidium of the Supreme People`s Assembly through a constitutional revision."
North Korean leader Kim Jong-il is the chairman of the NDC.
The constitutional amendment is expected to take place at the Supreme People`s Assembly which opens on April 9, according to Lee.
"The NDC will be expanded to include Kim Jong-il`s closest associates in the Workers` Party and the government as well as the military," he said.
"Kim Ki-nam, secretary of the Worker`s Party, could join the NDC to help straighten out the power succession system, but Chang Sung-taek, Kim Jong-il`s brother-in-law and first vice director of the Workers` Party, is unlikely to, considering the party`s possible intervention in the NDC."
First vice chairman Jo Myong-rok and vice chairmen Kim Young-chun and Oh Kuk-ryul will remain on the NDC, while army leaders such as General Hyon Chol-hae may join, according to Lee.
Chun Hyun-joon, a senior researcher at the state-run Korea Institute for National Unification, also said at the forum that the North was more likely to revise the constitution to strengthen Kim Jong-il`s powers than to take new steps regarding the succession at the assembly.
"There seems to be no major change within the North Korean power elite group this year," he said.
By Kim So-hyun
(sophie@heraldm.com
[HERALD INTERVIEW]Korea, Spain agree on closer cooperation
"We believe in spending more, we are against protectionism, so we both consider that in these difficult times it`s not a good idea to close the markets," Moratinos said on Monday.
He said both countries should have more influence in international decision making while at the same time supporting each other.
The Spanish minister arrived in Seoul on Monday for a two-day visit for talks with South Korean officials on how both countries can cooperate ahead of the G20 Summit in London next month.
"When we go to the next meeting in London, we will go in with the same views on many positions," he said.
"Countries in the G20 have a special responsibility to guarantee security, peace and create more investment possibilities and increase trade," he said. "In times of difficulties we don`t reduce spending, we have to spend more and invigorate the economy and of course, we have to maintain criteria not to overstretch the deficit."
Both countries will be playing important roles next year in the international community. Korea will host the G20 summit, and Spain will hold the European Union presidency for the first six months. Spain`s only presence at the G20 is via the EU representative.
During his stay here, he met with South Korean Foreign Minister Yu Myung-hwan to discuss measures for expanding mutual cooperation. They signed accords on judicial cooperation in criminal cases and protection of shared military information.
To help mark the 60th anniversary of diplomatic relations between the two countries next year, the Seoul government has invited Prince Juan Carlos and Princess Sofia to Korea.
Both countries are planning to celebrate the occasion with several cultural events.
In Seoul, the Spanish government will open the highly anticipated Cervantes Institute.
"What better gift for the 60th anniversary than the Cervantes Institute. This is a great present," Moratinos said.
The Spanish language has gained a lot of popularity in recent years, attracting more than 2,000 students at universities across the nation.
Moratinos also discussed how Spain can help Korea increase its use of renewable energy.
Spain is one of the leading countries in solar and wind power.
"Korea is getting more and more interested in the green revolution," he said. "They are committing themselves to upgrade their share of renewable energy to 12 percent in the near future so they need the support and assistance of countries like Spain who have been quite active in this area."
During their talks, Moratinos and Yu discussed how to promote substantial cooperation on the economy and trade, increase the amount of officials` visits between them, and joint businesses in Latin America and Africa.
While trade is increasing by leaps and bounds, Moratinos is also looking to expand Korean investment in Spain.
One investment opportunity that would bring any Korean firm more visibility internationally is the sponsorship of the new stadium for soccer powerhouse Atletico de Madrid.
Currently, Kia Motors is one of the main sponsors of the team.
Concerning the pullout of Spanish troops from Kosovo, Moratinos explained that he spoke to U.S. Secretary of State Hillary Clinton before coming to Seoul.
"She understood the reasons that I explained to her and welcomed Spain`s commitments on the international stage," he said.
Washington expressed deep disappointment last week after Spain announced they would withdraw its 632 troops from the NATO-led force in Kosovo.
Prime Minister Jose Luis Rodriguez Zapatero explained that the pullout was due to the improved security situation and made no sense to stay as it did not recognize the territory which proclaimed independence from Serbia in February 2008.
By Yoav Cerralbo
(yoav@heraldm.com)
Lawmaker: Seoul needs N.K. contingencies
"We need to map out contingency plans with the thought that given North Korea`s desperate situation, the chances are pretty slim that it will completely give up its nuclear weapons," said Chung Ok-nim, a legislator and security expert on inter-Korean relations.
She added that the North was likely to go ahead with a rocket launch in early April, and that it may combine it with ground provocations, as the Defense Ministry has recently predicted.
Defense Minister Lee Sang-hee said earlier this week that such provocations could occur if the North believes there would be a security loophole triggered by the launch. The military said it would maintain close surveillance with such a scenario in mind.
The communist nation has been particularly sensitive toward the South and its ally the United States, as the two have just recently wrapped up a joint military drill it vehemently opposed.
Pyongyang, in its latest saber-rattling, announced its intentions to launch a satellite between April 4-8. South Korea, the United States and many others, believe the North will actually be firing a long-range missile - the Taepodong-2. Seoul, Washington, Japan and even China have expressed concern, saying it would violate a United Nations resolution.
They also worried about the launch further delaying the six-nation talks for denuclearizing the North, which remain stalled over the second phase for disabling Pyongyang`s nuclear facilities. The other five nations have been discussing how to prevent the rocket launch and jumpstart the nuclear talks.
Chung pointed out that the missile and nuclear issue are the only leverage Pyongyang has against Washington and the international community as it seeks the Barack Obama administration`s support.
The lawmaker also stressed that while close coordination with Washington and the other partners of the six-party talks were critical, Seoul needed to remember that each nation prioritizes its own national interests.
"The United States, if it considers it to be more cost-effective, may indeed choose contain North Korea as the best policy, so we need to be prepared for possible shifts," Chung said.
There have been mixed messages coming from Washington of late, with the administration stressing it would not accept North Korea as a nuclear state, but various national intelligence and security reports recognizing it as such.
But upgrading the alliance with Washington remains the best defense toward the various security challenges coming South Korea`s way, she said, which is why Seoul must show stronger support for the U.S.-led war in Afghanistan.
To gain more influence in North Korea issues, Chung said Seoul must seek to facilitate strategic four-way talks with the United States, China and Japan, instead of letting the three to conduct discussions without it.
By Kim Ji-hyun
(jemmie@heraldm.com)
Trilateral nuke meeting likely this week
Consultation is under way to fix the itinerary, with a meeting between South Korea`s Wi Sung-lac and his Japanese counterpart Akitaka Saiki planned between March 27-28 when Wi is to visit Washington, a source said on condition of anonymity. From Washington, either Stephen Bosworth, special envoy on North Korean issues, or chief nuclear negotiator Sung Kim may take part, he added.
Pyongyang`s plans to conduct a controversial rocket launch between April 4-8 are likely to top the agenda for the conference between the three members of the six-nation talks aimed at ending North Korea`s nuclear ambitions, observers said.
Wi is currently in Beijing for a two-day visit to meet his Chinese nuclear counterpart Wu Dawei for both preventive and counter measures on the North`s rocket launch.
Members of the six-nation talks have repeatedly expressed concern about the imminent launch, saying that either a satellite or a missile would violate the United Nations Security Council Resolution 1718, banning Pyongyang from developing ballistic missile-related technologies.
Foreign Minister Yu Myung-hwan has warned that if the North pushes ahead with the launch, it would have a negative impact on the upcoming six-party talks aimed at completing North Korea`s stalled nuclear disablement process.
Washington and Tokyo, both of whom may be within the range of the missile, have indicated that they may intercept if the rocket heads their way.
The rocket launch is a part of North Korea`s latest attempts to grab international attention, particularly from the Barack Obama administration. The impoverished communist state also appears to be seeking regime stabilization with the launch, experts here said.
Wi, South Korea`s point man on the North, had indicated that the other members of the six-party talks have now shifted focus on how to cope with a post-missile situation. They also would discuss how they would jumpstart and conduct the six-nation talks in the aftermath of the launch.
The nation`s Foreign Minister forecasted that the U.N. Security Council would immediately convene following the rocket launch to discuss corresponding sanctions. But he added that the denuclearization talks would have to continue even after the rocket launch for the sake of regional and global security.
By Kim Ji-hyun
(jemmie@heraldm.com)
Korea, EU agree to provisional FTA deal
"We have reached a provisional agreement on almost all issues at the chief negotiator level but could not reach agreement on issues of a political nature, such as duty drawback and rules of origin," Lee Hye-min, Seoul`s chief FTA negotiator told reporters after wrapping up the eighth and final official round of negotiations at the Ministry of Foreign Affairs and Trade.
Lee and his EU counterpart Ignacio Garcia Bercero met for two days of negotiations in Seoul to draw up a basic draft of the accord, leaving more sensitive issues to be resolved by their trade ministers before sealing the deal.
The chief negotiators said the trade ministers will meet on April 2 to resolve differences and approve the agreement on the sidelines of the Group of 20 summit in London.
"I am convinced that this is an agreement that will bring tangible benefits to all sectors of our economies and also commitment towards an open market under very difficult circumstances," Bercero said. "I will not hide that there are still outstanding issues that are very difficult; success is not guaranteed."
Bercero stressed the "very ambitious" nature of the FTA on tariffs, services, investments, nontariff barriers and protection of intellectual property.
Lee emphasized that "nothing is agreed until everything is agreed," stressing the overall balancing act involved in trade negotiations.
The chief negotiators said the provisional agreement would remove 97 percent of tariffs on all goods traded between the two sides within five years of the accord. They said Korea would eliminate 99 percent of tariffs and the European Union 100 percent of tariffs on industrial goods within a five-year period.
The chief negotiators managed to find middle ground on the sticky area of autos. They agreed to slash tariffs on small-sized automobiles, or those with 1,500 cc engines or smaller, within three years. For larger vehicles like sedans it would be within five years.
Bilateral trade between Asia`s fourth-largest economy and the 27-member economic bloc reached $98.4 billion last year. Korea shipped $54 billion worth of goods, while it received $40 billion of goods from the EU.
By Yoo Soh-jung
(sohjung@heraldm.com)
Seoul bets on `huge` extra budget
The total sum of the supplementary budget consists of 17.7 trillion won in fiscal spending and 11.2 trillion won to make up for lost tax revenue.
"The Korean economy urgently needs aggressive fiscal spending more than ever, as our financial market has weakened and the private sector is losing its ability to recover," Finance Minister Yoon Jeung-hyun said.
"We have prepared an extra budget proposal to stabilize the livelihood of the public and overcome the economic crisis as quickly as possible."
The size of the supplementary budget, if passed by the National Assembly, would be the largest since the nation spent 13.9 trillion won in its supplementary budget in the aftermath of the Asian financial crisis in 1998.
The 17.7 trillion won is 6.2 percent of the initial 2009 budget spending plan of 284 trillion won, and equals 1.9 percent of an estimated 953 trillion won 2009 GDP, the ministry said.
Yoon said the extra budget alone is expected to lift the GDP growth rate by 1.5 percentage points and create 550,000 new jobs. If boosted by deregulation and an increase in private investment, the additional spending will boost the growth rate by up to 2 percentage points, he said.
The Finance Ministry had earlier projected in February that the economy is expected to shrink 2 percent in 2009, with 200,000 jobs lost and a 15 percent decline in exports year-on-year.
Yoon did not rule out the possibility of seeking a second extra budget in the second half, given the quick acceleration of the global economic downturn.
"The door is always open. I just hope that the extra budget could help the economy recover because 7.4 percent of the GDP has been poured in additional fiscal spending since last year," he said.
The ministry said it will finance the extra budget by selling 16.9 trillion won of treasury bonds. With the extra budget, national debt will increase to 366.9 trillion won, or 38.5 percent of the GDP, it said.
Out of the 17.7 trillion won increase in spending, 4.2 trillion won will go to subsidize an additional 1.2 million poor households, give unemployment benefits to an additional 380,000 jobless people, slash mortgage rates for state rental houses from 4.5 percent to 2 percent and cut the maximum student loan rate for university tuitions by the end of this year.
Another 3.5 trillion won has been set for retaining 220,000 jobs, creating 550,000 new jobs and 330,000 job training opportunities. Most newly created jobs will be in the public works sector and most job training opportunities will be given to jobless college graduates and daily workers for construction projects, the government said.
For small- and medium-sized enterprises, exporters and small private business owners, the government will spend 4.5 trillion won of the extra budget to boost credit guarantees at the Korea Credit Guarantee Fund and the KIBO Technology Fund, and invest more capital in state-run banks, including the Export-Import Bank of Korea, support venture startups and expand export insurance at the Korea Export Insurance Corp.
Another 3 trillion won will be spent to revitalize regional economies by supporting local governments` finances.
The remaining 2.5 trillion won has been set for investment in research and development of new growth engines, advancement of education environment by hiring assistant teachers and upgrading old facilities, and improving the waterways of four major rivers.
By Kim Yoon-mi
(yoonmi@heraldm.com
Poor to benefit from stimulus spending
The government yesterday earmarked 1.4 trillion won ($1.01 billion) to expand the nation`s social safety net and extend social service to the vulnerable and financially-troubled.
The sum, part of the 28.9 trillion won stimulus, will be used to offer temporary measures for the needy to deal with the economic meltdown, said officials at the Ministry for Health, Welfare and Family Affairs.
Five new projects are named specifically: a grant for economically inactive in the lowest income bracket; low-interest loans for 440,000 low-income earners with a certain level of assets; upgrading unsanitary health and welfare facilities; entrepreneurial support for graduates of provincial colleges; and constructing an information system for local healthcare and disease prevention.
The extra budget includes Health Ministry support of 5.3 billion won to promote the medical tourism industry in Korea.
"We have included attracting foreign patients in the funding because we should prepare for the future in the most difficult times," a ministry official said. "A total of 830 jobs are projected to be created per 10,000 foreign patients in Korea."
The extra budget also involved other projects like basic living support for 70,000 more households, expanding the emergency support system for those directly impacted by the economic downturn, and giving more funds to local daycare centers.
By Cho Ji-hyun
(sharon@heraldm.com)
Corruption scandal stirs politics
An explosive corruption scandal surrounding a friend of former President Roh Moo-hyun is roiling political circles, especially among liberals.
Five political associates of Roh have recently been investigated for allegedly taking money illegally from Park Yeon-cha, a businessman who was arrested for tax evasion and stock manipulation in December.
A former aide to President Lee Myung-bak was also arrested this week on charges of taking a bribe from the chairman of Taekwang Industry Co.
Prosecutors indicated more politicians are suspected of illegally receiving political donations from him.
The main opposition Democratic Party calls it a politically motivated investigation to undermine liberal forces.
The party raised suspicion that the ruling camp encouraged the prosecution to speed up the probe ahead of next month`s extraordinary session of the National Assembly and the parliamentary by-elections on April 29.
Members of a minority faction in the ruling Grand National Party are also uneasy, as the corrupt businessman was active in their political base in the southeastern parts of the country.
They are close to Park Geun-hye, who bitterly fought Lee during a 2007 party primary and are still at odds with GNP mainstreamers.
Prosecutors flatly denied any political motive, saying that they were only looking into all those illegally connected with Park.
The investigation is currently based on a diary kept by his secretary containing details of his relations with politicians and influential figures, Hong Man-pyo, a prosecution spokesman, said.
The GNP and Cheong Wa Dae are also nervous about the possibility that Park`s list may include key members of the ruling camp.
Already, Choo Boo-kil, formerly presidential public relations secretary, was arrested on Sunday on charges of receiving more than 100 million ($ 71,000) won from Park last September.
The businessman was asking Choo to pressure tax authorities and prosecutors to halt investigation into him and his company, according to prosecutors.
The presidential office and the GNP called for a thorough probe into the case and discarded the opposition claim about a political inquiry.
"This is a cleanup of a major corruption scandal through the Park Yeon-cha list. Talk of a targeted investigation is total nonsense and an unacceptable challenge to the state prosecution," said Hong Jun-pyo, floor leader of the GNP during a party meeting yesterday.
Some powerful ruling party members especially in South Gyeongsang Province are also rumored to be linked with Park.
The DP is alarmed about the impact of the probe, in which five politicians connected with the party already face charges. Several more are believed to be involved.
Among them, Lee Kwang-jae, one of the closest associates of Roh, faces arrest on charges of taking about 200 million won in illegal political funds from Park between 2004 and 2008.
He denied the claim. The law limits individual political donations to 1.2 million won.
Roh`s brother Roh Gun-pyeong was also arrested late last year for taking bribes from Park.
"The prosecutors should immediately stop politically retaliating against the former administration and oppressing opposition politicians," said party chairman Chung Sye-kyun said on Monday.
Since last September, prosecutors have focused on corruption and influence-peddling cases involving Roh`s allies including construction contracts, a casino business and a corporate takeover, which Park was embroiled in.
By Hwang Jang-jin
(jjhwang@heraldm.com)
Korea, EU Reach Tentative Free Trade Agreement
The Ministry of Foreign Affairs and Trade on Tuesday disclosed the result of the eighth round of Korea-EU FTA deal: “Except for issues over the duty drawback and the part of the rules of origin, the majority of the issues induced a provisional agreement at the delegate level.”
The two sides plan to declare a final compromise by reaching consensus on remaining issues at a trade ministerial-level talk to be held in London on April 2, the day when the G-20 Summit also takes place.
Once the negotiation is smoothly finalized as scheduled, the Korea-EU FTA is likely to effectuate early next year.
The EU is Korea’s second largest trading partner following China. Korea’s trade surplus from the EU totaled $19.2 billion, two-fold that of a trade surplus from the U.S. ($8.5 billion), and higher than that of a trade surplus from China ($19 billion).
The Korea Institute for International Economic Policy projected, once the Korea-EU FTA deal compromises, Korea’s domestic gross product to widen by a maximum 3.08 percent (2.4 trillion won) in the long term.
The two sides have promised a higher level of free trade compared to KORUS FTA -- Korea and EU have vowed to respectively eliminate tariffs on 91 percent of industrial products and 97 percent of items.
[Eun-jung Kim / JYJ]
Click on this link to read the full text of the Korean article:
http://news.mk.co.kr/newsRead.php?year=2009&no=183292
[ⓒ Maeil Business Newspaper & mk.co.kr, All rights reserved]
Korea`s WBC Final Loss Reflected in Equity Market
The Korea Composite Stock Price Index (KOSPI) started the trading with 73.153 million shares at 9:00 a.m., and steeply declined to 10 million shares at 10:30 a.m. with the start of the WBC final.
Since 12:30 p.m. when Choo Shin-soo of the Cleveland Indians hit the solo home run at the bottom of the fifth, the trading further dipped (in a unit of ten minute) to hover around merely 5 million shares.
Investors’ eyes and ears were fixed at the every pitch on TV screens instead of home trading system (HTS), an online stock trading system.
Though the trading started to rebound after 1:00 p.m., but fell to around 6 million shares at the bottom of the ninth of the final when Team Korea has dramatically tied the score 3-3.
Equity trading which has receded throughout the final was increased to 16.75 million shares at 2:40 p.m. when Korea’s loss was decided after the fierce combat that led to the tenth inning, and up to 23.43 million shares at 2:50 p.m., ten minutes before the market close.
In the meantime, the Japanese bourse kicked off the trading with 435 million shares at 9:00 a.m., and took a continuous uptrend to 2.6 billion shares at 3:00 p.m.
[Eun-jung Kim / JYJ]
Click on this link to read the full text of the Korean article:
http://news.mk.co.kr/newsRead.php?year=2009&no=183310
[ⓒ Maeil Business Newspaper & mk.co.kr, All rights reserved]
Compensation by Samsung Heavy Industries to Victims of Taean Oil Spill to be Limited to 5.6 billion won
The court accepted Samsung Heavy Industries’ request, permitting the company to commence the process of limiting the liability for compensation of damages caused by the ship owner on March 24.
Trial division disclosed that the Commercial law recognizes the right of the leaseholder of the ship to be able to limit the liability of the damages incurred by the ship during its navigation, and thus the amount of compensation filed by a group of fishermen and motel owners residing in the coast of Taean for the losses incurred by the oil spill exceeds well beyond the limitation.
Accordingly, Samsung Heavy Industries deposited total 5.63 billion won, a converted sum of 2.30 million Surface Damaged Region (SDR) plus the statutory interest added up since the oil spill, to the Supreme Court.
The Supreme Court will receive applications for restricted bond by June 19 followed by the investigation on filed applications until July 15. Residents whose lives have been damaged by oil spill in Taean will receive their duly share of compensation according to the ratio indicated in their restricted bonds based on the outcome of follow-up investigation and the trials conducted to grant leniency.
[Yen-mi Hong / JYJ]
Click on this link to read the full text of the Korean article:
http://news.mk.co.kr/newsRead.php?year=2009&no=182810
[ⓒ Maeil Business Newspaper & mk.co.kr, All rights reserved]
Lotte Group Aims to Reach 200 Trillion won in Revenue by 2018
Lotte Group held a ceremony to declare such a vision, which is to be listed with the top 10 businesses in Asia by 2018, at Lotte Hotel in Sogongdong, Seoul on March 24. Around 430 guests including 390 board members namely Lotte Group Vice Chairman Shin Dong-bin and representatives of Lotte Group’s affiliates and 40 guests from Vision Task Force Team attended the event on this day.
The vision aims to expand the size of the already large-sized group operating 50 affiliates by 4.5 folds in 10 years by boosting its total revenue to 200 trillion won in 2018 from 44 trillion won posted in 2008.
Retail division, Lotte Group’s core business, seeks to take a leap to enter the top 3 list in Asia by achieving 80 trillion won in revenue while chemical and construction divisions aim to make in the top 5 and the top 10 in the region, respectively.
Consequently, Lotte Mart aims to reap the most revenue of 37 trillion won by 2018 while Lotte Department store posting the highest revenue at the moment has a goal to rake in 15 trillion won, accounting for a mere 40 percent of Lotte Mart’s goal.
[Yen-mi Hong / JYJ]
[ⓒ Maeil Business Newspaper & mk.co.kr, All rights reserved]
Development of Core Technology Allows to Commercialize Amino Acid
Amino acid is the fundamental substance that is used in all sorts of medicine’s raw materials such as antibiotics, insecticide, disinfectant nutrient and animal food, to produce medicines.
Led by Professor Kim Kwan-mook, the research team from the Center for Intelligent NanoBio Materials at Ewha Womans University developed this new technology which makes it possible for the separation and conversion of amino acid, and the team was selected for their outstanding achievement during a presentation held at the Ministry of Education, Science and Technology’s research center on March 24.
[Hee-kyung Son / JYJ]
Click on this link to read the full text of the Korean article:
http://news.mk.co.kr/newsRead.php?year=2009&no=182095
[ⓒ Maeil Business Newspaper & mk.co.kr, All rights reserved]
Container Shipping Industry to Raise Freight Rates
Hanjin Shipping and Hyundai Merchant Marine Co,Ltd., the nation’s leading container shipping companies, sent an official document to shippers, announcing the increase in freight rates on a route between Asia and Europe to approximately $250 to $300 from April 1 this year. The world’s largest shipping companies such as Denmark-based Maersk Line, Tokyo-based Mitsui O.S.K Lines (MOL) and Taiwan-based Evergreen Line have all decided to raise their freight rates on the route between Asia and Europe to $300 starting the next month as well.
The decision was inevitable as the plunge in freight fees dropped to break-even point due to a sharp decline in cargo volumes. It has been conveyed that freight rate between Asia and Europe which is determined in every quarter has soared to around $500 per 1 twenty-foot equivalent unit (TEU).
A source from the container shipping industry cautiously warned the possible collapse of container shipping industry saying that, “If the current circumstance continues further, this industry will soon collapse, and thus raising the rates to reduce the burgeoning gap between the surging cost of shipping and the actual freight rates is the only way for the industry to survive.”
[Yen-mi Hong / JYJ]
Click on this link to read the full text of the Korean article:
http://news.mk.co.kr/newsRead.php?year=2009&no=183566
[ⓒ Maeil Business Newspaper & mk.co.kr, All rights reserved]
POSCO E&C Wins Vietnam’s Highway Construction Order
Noi Bai-Lao Highway, one section of a road connecting Hanoi in Vietnam and Kunming of Yunnan in China, stretches total 224 km from Hanoi to Lao Cai, the northern border province in Vietnam. The A1 section won by POSCO E&C, the first section of the highway, will begin from Noi Bai where the Hanoi International Airport locates, and be constructed into a 27km four-line highway with the investment of roughly $150 million (around 210 billion won). The construction, which will be underway for total 40 months, is planned to start in the upcoming April and finish in August, 2012.
[Eun-jung Kim / JYJ]
Click on this link to read the full text of the Korean article:
http://news.mk.co.kr/newsRead.php?year=2009&no=182808
[ⓒ Maeil Business Newspaper & mk.co.kr, All rights reserved]
SMEs Receive Not Much Help from Private Banks
After the global financial crisis triggered last year, private banks were rooted to the ground despite all sorts of measures taken by the government to help SMEs to receive loans.
According to financial institutions on March 24, between January and February this year, Kookmin Bank gave loans of 1.22 trillion won to newly-registered SMEs, while Shinhan Bank and Hana Bank allowed SMEs to borrow 994 billion won and 668 billion won from their banks, respectively. As for Kookmin Bank, the latest figure is only half of what was recorded during the same period last year, while Shinhan Bank and Hana Bank, this year, also posted figures around 30 percent lower than the numbers recorded from a year earlier.
Meanwhile, loans made to SMEs from Industrial Bank of Korea increased around 50 percent.
[Hee-kyung Son / JYJ]
Click on this link to read the full text of the Korean article:
http://news.mk.co.kr/newsRead.php?year=2009&no=183107
[ⓒ Maeil Business Newspaper & mk.co.kr, All rights reserved]
Superb Public Servants to be Promoted 2 Years in Advance
Ministry of Public Administration and Security disclosed that such revisions were applied to the Official Appointment Regulations and the provision of remuneration for public officials, and the National Assembly passed these revised regulations on March 24, which are slated to be implemented starting April this year.
The revised acts will shorten the time spent in mandatory training needed to qualify for promotion, which will eventually accelerate the promotion process for public officials with extraordinary achievement in the central government to be promoted two years earlier than other public servants.
To this end, level 4 and 5 public officials qualified for special promotion will be able to be promoted in three years instead of the current mandatory term of five years. Also, level 6 public officials with exceptional performance will be able to obtain promotion 1 year and 6 months earlier than other public servants who serve a mandatory 4 year term.
Furthermore, the ministry decided to increase the ratio for special promotion to 20 percent from the current 10 percent level following the revised regulation for hiring public officials.
[Yen-mi Hong / JYJ]
Click on this link to read the full text of the Korean article:
http://news.mk.co.kr/newsRead.php?year=2009&no=182203
[ⓒ Maeil Business Newspaper & mk.co.kr, All rights reserved]
Kia Motors Announces New Eco-friendly Brand ‘Eco Dynamics’
Kia Motors held a launching ceremony on March 24 to introduce ‘Eco Dynamics’ as the company’s new strategy and presented the blue print designed to develop eco-friendly cars in Kia’s domestic sales division located in Apgujeong-dong, Seoul.
The new strategy highlights the determination of Hyundai-Kia Automotive Group to realize Korea as the world’s fourth largest green car nation by boosting investment in Research and Development (R&D) sector relating to the development of eco-friendly cars and green technology, while promoting Kia Motor’s unique strategy and vision to manufacture eco-friendly cars to markets at home and abroad.
‘Eco Dynamics’ is a combination of ‘Eco’ which stands for both ‘Economy’ and ‘Ecology’ and ‘Dynamics’, stressing Kia motor’s strong will to become a green car giant.
Future Kia Motors’ cars built on environmentally friendly technologies including hybrids, plug-in hybrids and hydrogen fuel cell cars will be attached with a sticker bearing the emblem of Kia Motor’s ‘Eco Dynamics’ unveiled on this day.
[Yen-mi Hong / JYJ]
Click on this link to read the full text of the Korean article:
http://news.mk.co.kr/newsRead.php?year=2009&no=182070
[ⓒ Maeil Business Newspaper & mk.co.kr, All rights reserved]
KCC Plans to Reduce Mobile Charges for Disabled People
Chairman Choi See-joong of Korea Communications Commission visited Seoul Samsung School, a special institution that provides education for disabled students with hearing problems, on March 23 and disclosed that he plans to look into ways to reduce the mobile phone charges for disabled people.
Currently, disabled people are receiving a discount of 35 percent on both the basic monthly rate as well as voice data call charges.
KCC plans to lower fees charged for third generation (3G) visual services and Short Message Services (SMS) for disabled people.
KTF, a Korean telecommunications firm, specializing in mobile phones said it allows disabled people to receive a 35 percent discount on using SMS, rather then getting a 35 percent discount on voice calls when the exclusive call rate package is not selected.
LG Telecom, a Korean telecommunications and mobile phone operator, is currently offering a discount of 35 percent for disabled people with hearing problems.
[Hee-kyung Son /JYJ]
Click on this link to read the full text of the Korean article:
http://news.mk.co.kr/newsRead.php?year=2009&no=180349
[ⓒ Maeil Business Newspaper & mk.co.kr, All rights reserved]
Samsung Electronics Stages ‘1st Samsung European Forum’
Samsung Electronics revealed on Tuesday that its ‘1st Samsung Europe Forum’ began under the theme of ‘evolution’ on March 24 in Vienna, Austria and will be held until March 26. The ongoing forum, attended by around 900 major clients and media related officials, is Samsung Electronics’ first independent event in Europe and the first large-scale marketing event in the corporate Digital Media & Communications (DMC) sector launched last January with the organizational reshuffle.
At the forum, Samsung Electronics unveiled a large number of strategic products mainly targeting the future European market. Those products include Light-emitting Diode (LED) TV products, a wall-mountable 39mm-thick Blu-ray player, the world’s first home theater sound bar equipped with a Blu-ray player, compact digital camera (WB 500) that features 24mm ultra wide optical zoom with 10X zoom, and the world’s first camcorder with a 64 gigabyte (GB) SSD.
In particular, Samsung Electronics has decided to seize the needs of European consumers preferring premium TVs via accommodating all products for LED TV that has recently begun a full-fledged mass production in Korea.
[Eun-jung Kim / JYJ]
Click on this link to read the full text of the Korean article:
http://news.mk.co.kr/newsRead.php?year=2009&no=182513
[ⓒ Maeil Business Newspaper & mk.co.kr, All rights reserved]
25 percent of Small- and Mid-Sized Shipbuilders Likely to Receive C or D Grades
The figure accounts for nearly 25 percent of the group, indicating that creditors are imposing stricter standards compared to the first round of restructuring process where only 14 percent of the evaluated group received C or D grades.
The banking circle is currently in the process of the credit risk evaluation, planning to finalize the process as early as March 24.
Nonghyup Bank dealing with 15 prime creditor banks is conveyed to give out C or D grades to at least 4 to 5 companies. The bank is expected to go harsh on companies this time as it faced severe criticisms for conducting an unreliable evaluation on Sinchang Construction Co. Ltd., which applied for a legal management even after receiving B grade from Nonghyup Bank in the first round of restructuring process. To this end, an increasing number of companies are inevitably subjected to receive C or D grade in the final round.
[Yen-mi Hong / JYJ]
Click on this link to read the full text of the Korean article:
http://news.mk.co.kr/newsRead.php?year=2009&no=180631
[ⓒ Maeil Business Newspaper & mk.co.kr, All rights reserved]
KB Financial Group Agrees to Return ‘Stock Grant’
KB Financial Group Inc., Kookmin Bank’s financial holding company, announced on March 23 that the group decided to return all the stock options which were supposed to be granted to the management this year.
Stock grant is an incentive system that provides free shares of stock to employees after purchasing stocks from the market based on the company’s performance while stock option gives employees the right to buy stocks at a contracted price. Therefore, in the case of stock grant, the company’s poor performance means no stocks.
KB Financial Group introduced a system of stock grant in 2007 after the firm had discarded the stock option scheme. The board members of KB Financial Group returned 10 to 30 percent of stock grant and their paychecks in a bid to share the burden leveraged onto our society, while the company has been expanding such a trend into its entire affiliates.
KB Financial Group will hold a shareholders meeting on March 27 to discuss whether to distribute three year worth of stock grant for a period between September 2008 to September 2011 to the board members including CEO Hwang Young-key, CEO Kim Jung-hoe and President Kang Chung-won of KB Financial Group.
[Yen-mi Hong / JYJ]
Click on this link to read the full text of the Korean article:
http://news.mk.co.kr/newsRead.php?year=2009&no=180124
[ⓒ Maeil Business Newspaper & mk.co.kr, All rights reserved]
Bodies of S. Korean victims of Yemeni terrorism return to Seoul
SEOUL March 19
The bodies of four South Koreans killed in a weekend terrorist bomb attack in Yemen were returned here Thursday, as the South Korean government tried to determine whether the attack targeted South Koreans or random foreigners.
The bereaved family members of the victims also arrived in South Korea on the same plane after visiting the Middle Eastern nation to bring back the bodies. The weary family members gave no answers to reporters' questions.
The four South Koreans were killed and three others were injured when a suicide bomber blew himself up on Sunday night (Seoul time). The Koreans were on a group tour, taking photos at sunset in Yemen's ancient city of Shibam.
"I am very sorry for having not protected the tourists, and that they return here as cold bodies," Ma Kyoung-chan, president of the Seoul-based tour agency that organized their travel, said after arriving at the Incheon International Airport with the families.
Another suicide bomber on Wednesday attacked a convoy of vehicles carrying South Korean government officials visiting Yemen to help investigate the Sunday's blast. The bereaved families were also in the convoy, but no one was harmed.
The Yemeni government said those terrorist attacks were directed at South Koreans, but officials here were more cautious.
"It is still hard to say whether the attacks targeted South Koreans or were aimed at unspecified foreigners," a senior foreign ministry official said.
The ministry, meanwhile, is considering banning the country's citizens from traveling to the Arab nation, known as a hotbed of militant activity amid the local authorities' crackdown on al-Qaida operatives.
March 19, 2009
Seoul shares end 0.79 pct higher on shipyard, steel gains
SEOUL, Mar 21, 2009 (Asia Pulse Data Source via COMTEX) -- South Korean stocks closed 0.79 percent higher Friday as investors scooped up shipbuilders and steelmakers, analysts said. The local currency fell against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) advanced 9.13 points to 1,170.94. Volume was moderate at 369.6 million shares worth 4.17 trillion won (US$2.95 billion), with gainers outpacing losers 535 to 285.
"On news of rising commodity prices, steelmakers led the market's upward movement. However, the weaker won pulled the market lower, barely making above the 1,170-point mark," said Choi Jae-shik, an analyst at Daeshin Securities Co.
Shipbuilders and steelmakers advanced with the world's largest shipyard, Hyundai Heavy Industries, rising 1.58 percent to 172,500 won. Leading steelmaker POSCO gained 2.73 percent to 357,000 won on positive earnings forecasts.
Refineries ended higher on expectations that they might benefit from higher oil prices. SK Energy jumped 3.49 percent to 85,900 won.
After volatile trading, carmakers gained ground with industry leader Hyundai Motor advancing 0.78 percent to 52,000 won.
The local currency ended at 1,412.5 won to the dollar, down 16.5 won from Thursday's close, as importers bought dollars to pay bills, dealers said.
Bond prices, which move inversely to yields, closed mixed. The return on three-year Treasuries was steady at 3.49 percent and the benchmark yield on five-year government bonds rose 0.03 percentage point to 4.18 percent.
(URGENT) Al-Qaeda behind bombing that killed 4 S. Koreans: foreign ministry
SEOUL, March 22 (Yonhap) -- Two U.S. Aegis destroyers are continuing operations in Korea's East Sea despite the end of their joint exercise with South Korean forces in apparent preparation to intercept North Korea's long-range missile expected to be launched early next month, a South Korean official said Sunday.
North Korea has said it will launch April 4-8 a communications satellite, but the U.S. believes it will be a test of the country's long-range ballistic missile and has threatened to intercept any missiles fired from the communist nation.
"I understand two Aegis destroyers, including USS John McCain, will continue to stay in the East Sea in apparent preparation for the North's missile launch," the official said, asking not to be identified.
USS John McCain is a 9,200-ton Arleigh Burke-class guided missile destroyer, which is equipped with the Aegis combat system that allows it to simultaneously track over 100 targets from more than 190 kilometers.
The destroyer also carries a multiple number of Standard Missile-3 (SM-3), which makes up the backbone of the United States' naval missile defense or MD system.
Pyongyang has notified the international aviation organizations of its launch plans in an apparent attempt to legitimatize what it says will be a satellite launch.
Dennis Blair, head of the U.S. National Intelligence, has said that whether North Korea launches a long-range ballistic missile or a satellite differs little as there is no difference between the technologies used to launch the two.
Gen. Victor Renuart, commander of the U.S. Northern Command and the North American Aerospace Defense Command, last week said the U.S. is well capable of shooting down any North Korean ballistic missile.
North Korea says any attempt to intercept its missile will lead to serious consequences, including the outbreak of a war.
Washington currently maintains some 27,000 U.S. troops in South Korea, but no missile defense capabilities as Seoul has refused to take part in its MD system. (Yonhap)
S. Korea's nuke envoy to visit China, U.S. for talks
Wi Sung-lac will meet China's Vice Foreign Minister Wu Dawei on Tuesday to discuss preemptive and counter steps with regard to North Korea's planned missile launch, as well as ways to resume the six-way talks aimed at resolving Pyongyang's nuclear ambition, according to them.
"After visiting China, Wi will also visit the United States to hold talks with officials," an official said asking not to be named.
Wi also visited Japan last week to hold a series of meetings with Japanese Foreign Minister Hirofumi Nakasone and other officials in Tokyo, over Pyongyang's planned rocket launch and other issues.
The six-way talks on Pyongyang's denuclearization have been stalled for months over a dispute on verification of the North's nuclear inventory.
The outlook for the negotiations, also involving the U.S., China, and Russia, dimmed after North Korea announced earlier this month that it will fire a rocket carrying an "experimental communication satellite" some time between April 4-8.
South Korea and its allies regard the launch as a disguised long-range missile test and say it would violate U.N. Security Council Resolution 1718, which bans the North from engaging in any missile-related activities. They warn sanctions could follow should the North proceed with the launch.
sam@yna.co.kr
U.S. destroyers stay behind ahead of imminent missile launch
North Korea has said it will launch April 4-8 a communications satellite, but the U.S. believes it will be a test of the country's long-range ballistic missile and has threatened to intercept any missiles fired from the communist nation.
"I understand two Aegis destroyers, including USS John McCain, will continue to stay in the East Sea in apparent preparation for the North's missile launch," the official said, asking not to be identified.
USS John McCain is a 9,200-ton Arleigh Burke-class guided missile destroyer, which is equipped with the Aegis combat system that allows it to simultaneously track over 100 targets from more than 190 kilometers.
The destroyer also carries a multiple number of Standard Missile-3 (SM-3), which makes up the backbone of the United States' naval missile defense or MD system.
Pyongyang has notified the international aviation organizations of its launch plans in an apparent attempt to legitimatize what it says will be a satellite launch.
Dennis Blair, head of the U.S. National Intelligence, has said that whether North Korea launches a long-range ballistic missile or a satellite differs little as there is no difference between the technologies used to launch the two.
Gen. Victor Renuart, commander of the U.S. Northern Command and the North American Aerospace Defense Command, last week said the U.S. is well capable of shooting down any North Korean ballistic missile.
North Korea says any attempt to intercept its missile will lead to serious consequences, including the outbreak of a war.
Washington currently maintains some 27,000 U.S. troops in South Korea, but no missile defense capabilities as Seoul has refused to take part in its MD system.
(LEAD) N. Korea says it is holding, investigating two Americans
The Korea Central News Agency report, monitored in Seoul, said that authorities detained two Americans on March 17 while they were "illegally intruding the territory of the DPRK by crossing the DPRK-China border." DPRK stands for the North's official name, the Democratic People's Republic of Korea.
The report came as two female reporters from Current TV, an American Internet outlet, were reportedly taken by North Korean soldiers along the Tumen River on the Chinese border while filming the North Korean side early this week.
The brief report added that authorities were "investigating the case," but did not disclose the identities of the two detainees.
Robert Wood, the U.S. State Department spokesman, said Thursday in Washington that authorities will contact North Korea and China to secure the release of the two journalists. The U.S. has no official diplomatic ties with North Korea amid rancor over the six-party denuclearization talks and threats of a missile launch.
odissy@yna.co.kr
Obama
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Barack Obama, Michelle Obama
President Barack Obama, left, and first lady Michelle Obama, right, walk across the South Lawn of the White House in Washington, before their departure on Marine One helicopter, Saturday, March 21, 2009. (AP Photo/Pablo Martinez Monsivais)
ANGOLA POPE
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Pope Benedict XVI
In this photo provided by the Vatican newspaper L'Osservatore Romano, Pope Benedict XVI holds the pastoral as he blesses faithful during a mass at the Sao Paulo Church in Luanda, Angola, Saturday March 21, 2009. Pope Benedict XVI appealed to the Catholics of Angola on Saturday to reach out to and convert believers in witchcraft who feel threatened by ``spirits'' and ``evil powers'' of sorcery. (AP Photo/ L' Osservatore Romano, ho)
ANGOLA POPE
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Pope Benedict XVI
In this photo provided by the Vatican newspaper L'Osservatore Romano, Pope Benedict XVI kisses a child during his visit in Luanda, Angola, Saturday, March 21, 2009. Pope Benedict XVI appealed to the Catholics of Angola on Saturday to reach out to and convert believers in witchcraft who feel threatened by ``spirits'' and ``evil powers'' of sorcery. (AP Photo/ L' Osservatore Romano, ho)
ANGOLA POPE
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Pope Benedict XVI
In this photo provided by the Vatican newspaper L'Osservatore Romano, Pope Benedict XVI is presented with a flower during his visit in Luanda, Angola, Saturday, March 21, 2009. Pope Benedict XVI appealed to the Catholics of Angola on Saturday to reach out to and convert believers in witchcraft who feel threatened by ``spirits'' and ``evil powers'' of sorcery. (AP Photo/ L' Osservatore Romano, ho)
APTOPIX TURKEY KURDS
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Two masked men wave a poster of jailed Kurdish rebel leader Abdullah Ocalan during the Nowruz celebrations in southeastern city of Diyarbakir, Turkey, Saturday, March 21, 2009. The Nowruz, a spring festival traditionally used by Kurdish activists to stir anti-government sentiment and assert demands for political autonomy. Nowruz, the Farsi-language word for "new year", is an ancient Persian festival, celebrated on the first day of spring in Central Asian republics, Iraq, Turkey, Afghanistan and Iran. (AP Photo/Burhan Ozbilici)
Samsung Electronics Jumps into Content Business
Samsung Electronics Co., the second-largest maker of cell phones, became the first company in the industry to launch a service letting users to download or rent full-length movies and popular television shows such as 멏ark knight?and 멹riends?onto their mobile phones. Such a move signals Samsung Electronics?full-fledged advancement into the content business.
Samsung Electronics disclosed on March 20 that the company will launch Samsung뭩 Movie Store service (www.samsungmovies.com ) in U.K. and Germany, providing access to cell phone users of OMNIA HD and ULTRA Touch, its latest high-resolution Active-matrix OLEDs (AMOLED)-equipped handsets.
Samsung뭩 Movie Store will provide approximately 1,600 contents ranging from the recently released films from the famous Hollywood studios Warner Bros., Paramount and Universal along with popular television series such as 멑riends?and 멐.R.?
Samsung Electronics aims to expand the service to France and other European countries starting from Germany and U.K.
Through the Samsung Movie Store service, users will pay ?.49, or 4,976 won, for 24-hour rental and ?.99, or 9,950 won, to own. Samsung Electronics plans to give consumers access to the movie store on any of its portable gadgets such as laptops, netbooks, mp3s and televisions as well in the near future.
[Yen-mi Hong / JYJ]
Click on this link to read the full text of the Korean article:
http://news.mk.co.kr/newsRead.php?year=2009&no=175684
[ⓒ Maeil Business Newspaper & mk.co.kr, All rights reserved]
KEPCO to Pay out 10 Percent of Executive’s Annual Salary
The Korea Electric Power Corp. (KEPCO) disclosed on March 22 that it has decided to join in the job-sharing by returning 10 percent of executive’s annual salary for this year.
KEPCO suffered roughly 3 trillion won in net loss last year for the first time in the corporate history due to surged fuel prices and plunged local currency.
As KEPCO’s self-rescue efforts, KEPO’s executive employees have already paid out the entire amounts of increased wage, while general employees returned 50 percent of risen payments based on the management-labor agreement.
Subsequent to such movements, KEPCO executives have decided to pay back 10 percent of executive’s annual salary for this year. A KEPCO official said, “A measure on other executive employees’ participation in the job-sharing is under review.”
The Korea Gas Corporation (KGC) has also decided to pay out the portions of wages of 235 executive employees including its CEO Joo Kang-soo. Consequently, executives and first-grade executive employees will pay back 5 percent of their annual salaries while department manager-level employees plan to return 3 percent of their annual pays.
KGC plans to utilize those paid out wages as the funding for its ‘Love Sharing Project’ planned to be promoted as a move to create youth jobs and support the alienated class. Under the project, college students without jobs and housewives will be selected as rehabilitation assistants helping socially vulnerable people such as the disabled who have remarried.
[Eun-jung Kim / JYJ]
Click on this link to read the full text of the Korean article:
http://news.mk.co.kr/newsRead.php?year=2009&no=177860
[ⓒ Maeil Business Newspaper & mk.co.kr, All rights reserved]
HHI Cooperative Firms Decide to Freeze Contract Unit Prices
Representatives of around 200 internal cooperative companies at HHI decided to freeze contract unit prices for this year on March 19 at the HHI headquarter in Dong-gu, Ulsan, and conveyed the plan to HHI on this day.
Such a decision on a voluntary freeze on contract unit prices is considered as a significantly unprecedented move.
President Kim Young-jul of collaborative firm council sated, “Cooperative enterprises have decided to partake in the self-rescue efforts underway by the HHI management-labor to surmount the financial crisis such as entrusting wage negotiation to the company, and returning payments,” and added, “We will also put efforts in order for employees at cooperative companies to be treated same as before.”
Collaborative firms have also decided to overcome difficulties to be incurred by freezing contract unit prices via unfolding independent managerial reform strategies including removal of wasteful expenses, reinforcement in price reduction and reformation in workforce management.
These cooperative enterprises have earlier hosted an internal meeting to come up with solutions against the crisis, and reached consensus on a contract unit price freeze during a regular monthly meeting held on March 11 after undergoing discussion over each business sector from early this month.
[Eun-jung Kim / JYJ]
Click on this link to read the full text of the Korean article:
http://news.mk.co.kr/newsRead.php?year=2009&no=172539
[ⓒ Maeil Business Newspaper & mk.co.kr, All rights reserved]
March Trade Surplus Likely to Post Record High
According to the Korea Customs Service on March 22, the nation’s trade balance saw a $2.601 billion surplus from March 1 to 20. During the same period last year, the country had displayed a trade deficit of $5.098 billion.
The exports, from March 1 to 20, fell 13.4 percent to $18.156 billion from $20.973 billion a year earlier. Such a decline is regarded as a relatively favorable figure compared to those of key competitive nations. Imports plummeted 40.3 percent to $15.555 billion from $26.071 billion a year ago. Korea was conveyed to have posted a trade surplus of more than $2.5 billion in the recent ten days.
Given that exports are concentrated and the size of the trade surplus is growing at month’s end, a trade balance is projected to witness a huge surplus in March.
The Ministry of Knowledge Economy (MKE) also predicted a trade surplus to hit an all-time high figure in March. Chief Lee Dong-geun of MKE’s Office of International Trade & Investment said, “A monthly trade surplus is expected to hit the highest of $4 billion in March buoyed by the exports of two large scale vessels last week.”
A monthly trade surplus climaxed to $3.852 billion won in April 1998 immediately after the financial crisis.
[Eun-jung Kim / JYJ]
Click on this link to read the full text of the Korean article:
http://news.mk.co.kr/newsRead.php?year=2009&no=177729
[ⓒ Maeil Business Newspaper & mk.co.kr, All rights reserved]
Korea Secures Huge Coal Mine Lots from Pakistani Government
Pan Energy Development (PEDCO) disclosed on March 22 that it has signed a contract with the Pakistani government to secure a huge coal mine lot in Tar region, Pakistan, with an approximate 2.56 billion tons being reserved. Such a scale is 40 times larger than the combined import coals used for development and industrial purposes.
PEDCO is a newly launch firm in which the former Korea Electric Power Corp. CEO Lee Won-geol is in a post of advisor, and the former CEO Lee is said to have actively led the contract.
Tar region, which is located in 410km east of the Pakistan’s largest city Karachi, is known to be storing the world’s largest scale of more than 100 billion tons of coals.
PEDCO has acquired the coal mine lot in Pakistan via a joint investment with Arab Emirates’ Binh Dinh Group, which is currently implementing a project constructing 1 million housings in Pakistan.
Upon the completion of building two plants, 3 to 4 million tons of coals to be annually produced can be utilized. Such an amount is expected provide electricity to 200 households and six industrial complexes.
A PEDCO official said, “After a precise drilling from April to the year-end and development and mine construction by 2010, we plan to output 2 million tons of coal from 2011, and more than 10 million tons from 2013.”
[Eun-jung Kim / JYJ]
Click on this link to read the full text of the Korean article:
http://news.mk.co.kr/newsRead.php?year=2009&no=177624
[ⓒ Maeil Business Newspaper & mk.co.kr, All rights reserved]
CJ Home Shopping to Penetrate into Indian Market
CJ Home Shopping disclosed on March 20 that the company concluded a contract to establish Star-CJ Network (SCN), a joint-venture between CJ Home Shopping and Star.
SCN will begin its service starting in the latter half of this year, running a 24 hour service identical to that of a Korean home shopping channel with programs presenting the products and a call center that receives orders and answers product inquiries and a delivery service to the door-step.
The company highlights the significance of being the first Korean home shopping brand to the Indian market with a population of 1.1 billion following its advancement into the Chinese market.
CJ Home Shopping explains that the company was able to achieve its entries into the Chinese and Indian market by putting utmost efforts in pursuing globalization to acquire new growth engines amid a deteriorating domestic market due to a sharp fall in the number of cable television subscribers.
[Yen-mi Hong / JYJ]
Click on this link to read the full text of the Korean article:
http://news.mk.co.kr/newsRead.php?year=2009&no=176159
[ⓒ Maeil Business Newspaper & mk.co.kr, All rights reserved]
