The Korea Times

Naver to invest W40 bil. in CJ's OTT service

By Kim Jae-heunTving's corporate logo / Courtesy of CJ ENMLocal IT giant Naver has decided to invest 40 billion won into CJ ENM's over-the-top (OTT) service Tving as part of its strategic partnership signed with the entertainment firm last year. This will make Naver the second-largest shareholder of Tving with a 15 percent stake. “Naver plans to invest in Tving. We will continue to strengthen our cooperation for the growth of Tving,” a CJ ENM official said.Naver and CJ ENM signed a stock-swap agreement last October. The two firms then launched an event utilizing Naver Plus membership and Tving in March as their first collaborative project. The IT giant's investment in the OTT service can be seen as its commitment to bolster its profile in original content, which is key to success in that field. CJ ENM has strengths in content planning and production, while Naver holds the rights to various intellectual properties of webtoons and web novels. The two companies believe their expertise in the respective fields can maximize the synergy effect in the local and global entertainm

Jun 30, 2021By Kim Jae-heun

Naver to invest W40 bil. in CJ's OTT service

Companies

Daewoo E&C to bolster safety system

Daewoo E&C CEO Kim Hyung, third from left, talks to managers at a construction site near Maegyo Station in Bundang, Gyeonggi Province, on March 17. Courtesy of Daewoo E&C By Kim Jae-heunDaewoo Engineering & Construction (Daewoo E&C) will increase its commitment to strengthening worksite safety by establishing a smart safety system.The firm, in February, held a meeting to discuss various ways to reduce worksite accidents and how to improve the safety system it already has in place. In addition to the existing safety-related departments within different operational headquarters, the company recently established a safety committee directly under the chief financial officer.Daewoo E&C plans to increase the number of safety managers at construction sites this year and will continue to increase the number in the near future. All staff at the construction firm will have to take mandatory safety-related educational programs twice a year. This is expected to promote safety a

Jun 30, 2021By Kim Jae-heun

Companies

GS to compete with Shinsegae to acquire Hugel

GS to seek new growth engine with biopharmaceutical businessBy Kim Jae-heunGS Chairman Huh Tae-sooGS Group (GS) has joined the bidding process for Hugel, the country's No.1 medical botulinum toxin (botox) maker, as part of efforts to seek new growth engines. The conglomerate is the latest in a string of business groups that have joined the competition to acquire 44 percent of Hugel. The successful bidder will also be able to claim management rights. Competitors include retail giant Shinsegae Group.The American private investment firm, Bain Capital, is the largest shareholder of Hugel, with a 42.9-percent share. It is considering selling the biopharmaceutical firm privately rather than through an open bid.GS has said that nothing has been confirmed about its acquisition of Hugel, although it has admitted that it is interested in the biopharmaceutical business.“The biopharmaceutical industry is one of the candidates for future business for GS Group, so we are interested in it,” a GS official said.GS Group's main business is oil refining, and it has reached its limit for gro

Jun 30, 2021By Kim Jae-heun

GS to compete with Shinsegae to acquire Hugel

Companies

Labor union demands Naver Financial chief resign after bullying incident

Former Naver COO Choi In-hyuk speaking about the seller support program at Naver Partner Square in Gwangju in this 2018 file photo. Courtesy of NaverBy Kim Jae-heunThe union of IT giant Naver has urged the firm to remove its chief operating officer (COO), Choi In-hyuk, from all his positions for bullying a programmer in his 40s, who took his own life last month.Choi offered to resign as COO position last week, but he is still CEO of Naver Financial and the Happybean Foundation. “We have decided that Choi is no longer qualified to serve as an executive either at Naver (headquarters) or at any of its affiliates. We urge the firm to dismiss him from all of his positions at Naver, including Naver Financial,” a union official said. The union also requested that the firm establish a taskforce, consisting of an equal number of members from both the union and management to prevent additional bullying or harassment incidents from taking place at worksites.The union warned that if its request was not accepted, it would consider taking possible collective action, such as organizing

Jun 29, 2021By Kim Jae-heun

Labor union demands Naver Financial chief resign after bullying incident

Companies

SK to approach Lotte for e-commerce tieup

SK Planet's headquarters in Pangyo in Seongnam, Gyeonggi Province / Korea Times fileBy Kim Jae-heunThe country's second-tier e-commerce operators are reviewing their best options on how to survive in the highly competitive local e-commerce market, with SK considering forming a partnership with Lotte.Shinsegae's sole decision to acquire an 80 percent stake in eBay Korea means, if the transaction is completed as scheduled, the local e-commerce market will be reshaped centering on three major players ― Naver, Shinsegae and Coupang.Currently, Naver is the top player in Korea's e-commerce market with a 17 percent market share, followed by Shinsegae with 15 percent (12 percent which eBay Korea controls) and Coupang with 13 percent. SK is the fourth-largest player with a market share of 6 percent, followed by Lotte with 5 percent, which are way too low to compete against the top three.Acknowledging the further growth potential of the country's e-commerce market, SK is hoping to challenge the sector leaders via active collaboration. “We will open a store within 11st in collaboration wi

Jun 28, 2021By Kim Jae-heun

SK to approach Lotte for e-commerce tieup

Companies

Yogiyo tender delayed again

Yogiyo's corporate image / Korea Times fileEBay Korea bid affects Yogiyo dealBy Kim Jae-heunYogiyo's acquisition deal has been put off for the second time. Its operator Delivery Hero delivered the message through its underwriter Morgan Stanley that it has requested to defer the final biding to next month.It is unknown when the Berlin-based Delivery Hero will run the tender of its food delivery player, but it must be sold before Aug. 3 as designated by Korea's top antitrust watchdog. The Korea Fair Trade Commission (KFTC) said the German firm must give up Yogiyo to take over Baedal Minjok (Baemin), the largest food delivery service here currently operated by Woowa Brothers. The Yogiyo sale is being affected by the eBay Korea deal, for which Shinsegae is solely in talks with the U.S. e-commerce firm currently. Shinsegae is also included in the bidding shortlist for Yogiyo, and if it takes over eBay Korea, the retail giant is likely to withdraw its Yogiyo bid. The sale prices of eBay Korea and Yogiyo are said to be 4 trillion won and 2 trillion won, respectively, which means Shinsegae w

Jun 24, 2021By Kim Jae-heun

Companies

Louis Vuitton to focus on department store business

A young male customer looks at a luxury bag at Hyundai Department Store in Apgujeong, Seoul, on April 11. Korea time fileBy Kim Jae-heunFrench fashion house Louis Vuitton is set to beef up its menswear business as it pulls out of duty free stores here. Earlier this month, British publisher, The Moodie Davitt Report, said Louis Vuitton was “progressively withdrawing from much of its downtown duty free business in Korea.This seems to be part of the fashion house's strategy to maintain its brand reputation by preventing “daigou,” or surrogate shoppers, from sweeping up products in duty free shops in downtown Seoul. These shoppers are paid to purchase luxury goods for overseas Chinese customers.Instead, Louis Vuitton is planning to open menswear boutiques at department stores in Apgujeong, southern Seoul, June 24, and in the Jung District, downtown Seoul, in August.Male customers are emerging as big spenders on luxury products in the local market, and Louis Vuitton wants to target them.The luxury menswear segment was considered as a small market; but recently, young men

Jun 24, 2021By Kim Jae-heun

Louis Vuitton to focus on department store business

Companies

AmorePacific revamps governance ahead of FTC's regulation

AmorePacific Group Chairman Suh Kyung-bae speaks during a National Assembly inspection in Seoul, last Sept. 22. Korea time fileBy Kim Jae-heunThe country's leading cosmetics firm AmorePacific is reshuffling its group governance ahead of a scheduled regulation change by the Korea Fair Trade Commission (KFTC).The revision to the Fair Trade Act passed by the National Assembly last year allows the antitrust overseer to ban companies from outsourcing original equipment manufacturer (OEM) production to any of their subsidiaries in which they have at least a 20 percent shareholding. The new rule applies to both listed and unlisted affiliates. AmorePacific decided to absorb its unlisted affiliate Aestura during a board meeting, Monday. The subsidiary will then be subordinate to the main company and the new regulation will not be applicable, regardless of the share ownership percentage.AmorePacific used to outsource most of its OEM production to Aestura, which was established in 1982 and specializes in manufacturing cosmeceutical items. It also supplies OEM items for AmorePacific's functional

Jun 23, 2021By Kim Jae-heun

AmorePacific revamps governance ahead of FTC's regulation

Companies

ANALYSIS Shinsegae's big picture for future retailing

Retail giant aims to see meteoric rise in corporate size By Kim Jae-heunNot until early this year did Shinsegae start to make its presence again in the local retail market amid the ongoing decline of the supermarket industry.Shinsegae owns the country's largest discount store chain E-mart, which enjoyed its heyday until the mid-2010s. However, with the appearance of e-commerce firms like Coupang, people started to shop online and the outbreak of COVID-19 boosted the transition to digital platforms faster than ever.Vice Chairman of Shinsegae Chung Yong-jin quickly took action to pull out businesses running into the red and declared in January that he will make 2021 a “winning year for Shinsegae.”“This year could be the best opportunity for Shinsegae Group when the retail market is going through a drastic reshuffle affected by COVID-19. We will not play a losing game,” said Chung through his New Year's address delivered online.Sports marketingThe vice chairman started by taking over a local professional baseball team SK Wyverns on January 26, investing a to

Jun 23, 2021By Kim Jae-heun

[ANALYSIS] Shinsegae's big picture for future retailing

Companies

Reporter's Notebook Lotte's uncertain stance in retail market

Lotte Shopping CEO Kang Hee-tae poses at his office in Seoul on March 23. Courtesy of Lotte ShoppingBy Kim Jae-heunRetail has been one of Lotte Group's main businesses here, with the firm leading the market alongside its rival Shinsegae. However, with the appearance of e-commerce firms including Coupang and Naver Shopping, their positions have been continuously threatened, especially since the outbreak of the COVID-19 pandemic.Coupang's sales have nearly doubled from 7 trillion won in 2019 to 13.5 trillion won last year, which is about 2.68 trillion won behind Lotte Shopping. But considering how fast Coupang is growing, it is only a matter of time before the online retailer surpasses both Lotte and Shinsegae. Feeling a sense of danger, the two traditional retail giants started their own online businesses three years ago, but they have failed to close the gap with Coupang and Naver in the online shopping sector.Shinsegae formed a strategic alliance quickly with Naver and CJ Group to beef up its online business and is very close to acquiring eBay Korea, the third-largest e-commerce fir

Jun 22, 2021By Kim Jae-heun

Kim Jae-heun

Read more

Naver to invest W40 bil. in CJ's OTT service

Daewoo E&C to bolster safety system

GS to compete with Shinsegae to acquire Hugel

Labor union demands Naver Financial chief resign after bullying incident

SK to approach Lotte for e-commerce tieup

Yogiyo tender delayed again

Louis Vuitton to focus on department store business

AmorePacific revamps governance ahead of FTC's regulation

ANALYSIS Shinsegae's big picture for future retailing

Reporter's Notebook Lotte's uncertain stance in retail market

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