The Korea Times

Build on G20 role to address Korea Discount

By Kim Jae-kyoung Staff reporter Since the end of the Korean War in 1953, South Korea has created one of the most impressive stories of rebirth in the world by transforming a war-ravaged agrarian economy into a global manufacturing powerhouse. Over the past 60 years, Korea has seen its ranking rise sharply in the global economic league table, becoming the 13th largest economy in the world. Korean companies also flourished, with Samsung and POSCO emerging as international leaders in the respective manufacturing industries. Following the global financial crisis, Korean firms are rising even further by capitalizing on the fall of global corporate heavyweights. However, there is something missing more importantly not improving as equally fast. It is the brand of Korea. Korea's brand is still undervalued compared to its economic size. Against this backdrop, President Lee Myung-bak and his administration are seeking to use the G20 as an opportunity to strengthen its national brand and turn ‘Korea Discount’ into ‘Korea Premium.’ McKinsey & Company Chairman Dominic Barton be

Aug 12, 2010By Kim Jae-kyoung

Others

Korea should bring can-do approach to G20

This interview is part of a package of articles highlighting Korea’s preparations for the Nov. 11 to 12 G20 Summit slated for Seoul, marking today’s D-90 day for the summit. — ED. By Kim Jae-kyoung Following the Toronto Summit in June, there have been growing doubts about the legitimacy of the G20 Summit, as most of the previous gatherings were only slogan-oriented with no workable agreements and solutions. Leaders around the world are now paying attention to the G20 Seoul Summit slated for Nov. 11 and 12. They believe the G20 is now at a crucial juncture on whether it should remain as the world’s policy forum and that the outcome of the Seoul Summit can determine its future. A noted global consultant suggests that in order to make the summit a success and keep the G20 afloat, Korea take a different approach from its predecessors in its role, noting that it is the first G20 meeting to take place in a non-G8 state in Asia. “Korea’s role at the summit should be action-oriented. It should bring a ‘can-do’ approach to the meeting, ensuring that the G20 makes concret

Aug 12, 2010By Kim Jae-kyoung

Build on G20 role to address Korea Discount

Others

Global business leaders to gather for G20 CEO Summit

By Kim Jae-kyoung Some 100 finance and business CEOs from around the world will gather in Seoul to attend the G20 Business Summit, which will start on Nov. 10 for a two-day run at the Sheraton Grand Walkerhill Hotel, one day prior to the beginning of the two-day G20 Seoul Summit. The large-scale gathering of global CEOs was designed by the Korean government to ensure a more sustainable economic recovery and future growth by having business leaders participate in the G20 process. At a press conference Thursday, the G20 Business Summit Organizing Committee said that business leaders will discuss four key points — promoting trade activity and investment; stabilizing financial systems; achieving “green growth,” and encouraging corporate social responsibility (CSR). Three roundtable discussions will be followed by direct exchanges between business leaders and G20 political leaders. “So far, governments and central banks have played a key role in fixing the global financial system and supporting the economic recovery. But without support from the private sector, it is i

Aug 5, 2010By Kim Jae-kyoung

Others

Korea ready to bridge gaps among G20 nations

Upon arriving at the office of Sakong Il in Samcheong-dong near Cheong Wa Dae for an interview, it didn’t take long to realize that the G20 Seoul Summit is just around the corner. His reception room was full of government officials and related guests lining up to see the chairman of the Presidential Committee for the G20 Summit. Everyone there looked tense as if the international gathering was just one week away. Before the interview began, his spokesperson asked us to keep the interview quick, claiming his tight schedule. But Sakong gave lengthy responses to every issue, mindless of his next appointment. The following is the complete transcript of the interview. ― ED. By Kim Jae-kyoung, Lee Tae-hoon Q: Tell us about the progress in preparation for the forthcoming G20 Summit and challenges it faces. The Presidential Committee for the G20 Summit has been working closely with relevant government ministries, as well as private institutions and experts at home and abroad to develop the agenda for the G20 Seoul Summit and make Seoul a successful host of the event. The Com

Aug 2, 2010By Kim Jae-kyoung

Others

G20 Seoul Summit to end Korea Discount

This interview is part of a package of articles highlighting Korea’s preparations for the Nov. 11-12 G20 Summit slated for Seoul, marking the D-100 day for the summit today. — ED. By Kim Jae-kyoung For Korea, 2010 will be a milestone year as the country will be the first host and chair of the G20 Summit from the Asian region as well as from the emerging world. The hosting of the international gathering has two key implications for Asia’s fourth largest economy. One is that the Seoul Summit will be a ceremony where Korea officially joins the league of advanced economies. The other is that Korea will upgrade its status to a “rule maker” from a “rule taker” by taking an initiative in setting the key agenda during the G20 process. Sakong Il, chairman of the Presidential Committee for the G20 Summit, believes that the G20 Seoul Summit will give the finishing touch to the country’s decades-long efforts to become a force in the global community. “I believe that the successful hosting of the G20 Summit will verify Korea’s elevated status in the global community by boosti

Aug 2, 2010By Kim Jae-kyoung

Korea ready to bridge gaps among G20 nations

Companies

Recovery showing signs of losing steam

By Kim Jae-kyoung Staff reporter Policymakers and some business leaders may feel thrilled about a series of upside economic surprises, such as the stronger-than-expected GDP growth and record sales by local conglomerates, including Samsung Electronics. There are renewed concerns about Korea’s future course, with many leading indicators suggesting that the economy and business activities will lose growth momentum in the latter half of this year. Although the central bank said that the economy may have entered an expansion phase, chances are growing that it will derail from the recovery track due to lingering uncertainties, such as an economic slowdown in the U.S. and China, and the sluggish real estate market here. More businesses have turned pessimistic about the economic outlook, with the manufacturers’ business confidence falling in July for the first time in seven months due to the key rate hike and lingering woes abroad. The Bank of Korea (BOK) reported Thursday that the manufacturers’ business survey index stood at 103 for July, down from 105 for June, the first

Jul 29, 2010By Kim Jae-kyoung

Companies

Nation’s GDP growth hits 10-year high in first half

By Kim Jae-kyoung Staff reporter The Bank of Korea (BOK) said Monday that the Korean economy may have entered an expansion phase, hinting that it will shift the focus of its monetary policy from “economic growth” to “price stability” down the road. The upbeat analysis came after the central bank announced that the nation’s gross domestic product (GDP) grew 7.2 percent in the second quarter from a year earlier, bringing the figure for the first six months to 7.6 percent, the fastest growth in 10 years. The GDP expanded 1.5 percent on a quarter-to-quarter basis. “The economy has sustained stronger-than-expected growth, suggesting that economic growth has recovered to the pre-crisis level and that the economy entered an expansion phase,” BOK director general Kim Myung-kee told reporters. “The robust performance was mainly due to strong overseas shipments and a pickup in domestic demand,” he added. Exports, which account for about 50 percent of GDP, jumped 7.1 percent on-quarter, while private spending rose 0.8 percent, compared with a 0.7 percent gain in the preceding quart

Jul 26, 2010By Kim Jae-kyoung

Companies

KB is like a patient with obesity, says new chief

Euh promises immediate restructuring but says M&A a couple of years away By Kim Jae-kyoung Staff reporter KB Financial Group Chairman Euh Yoon-dae took office Tuesday. Reactions to the rookie financial CEO were mixed. The market welcomed his debut with KB shares rising but he also met with strong protests from the labor union and some shareholders. This is seen as what is in store for Euh's demanding future. Although he took the helm in the spotlight, he is expected to have to tackle a number of daunting tasks both in and outside the group. Euh's first message to KB executives and employees was that a radical organizational reform is awaiting the financial group. He stressed that he would place top priority on improving the group's business structure. Kookmin Bank, the flagship of the financial group, is considered one of the best workplaces in Korea due to fat paychecks and numerous fringe benefits, which many believe are the outcome of the management's populism policy in favor of the lender's labor union. Due to the bloated management, the bank's productivity has

Jul 13, 2010By Kim Jae-kyoung

Companies

Mirae ranks top in equity investment returns

By Kim Jae-kyoung Staff reporter Mirae Asset Securities ranked top in investment returns in equity proprietary trading among the nation's top 10 brokerage houses in 2009. The 10 firms are Mirae, Hyundai, Samsung, Shinhan, Korea, Daewoo, Daishin, Tongyang, Woori and Hana. Equity proprietary trading refers to securities firms' stock trading for direct gain instead of commission income. In other words they trade stocks with their own money as opposed to customers' money, so as to make a return for themselves. According to the Financial Supervisory Service (FSS) Monday, the 10 companies' average return on the equity investment reached 34.8 percent during the 2009 fiscal year, which ended in March. The outcome was a huge improvement from the previous year when the figure was in negative territory but it was still below the benchmark KOSPI's growth rate of 40.33 percent. In 2009, the 10 firms invested a total of 2.56 trillion won in equity proprietary trading, compared to the previous year's 1.85 trillion won. By company, Mirae Asset Securities enjoyed the highest return of

Jul 12, 2010By Kim Jae-kyoung

Companies

More increases likely in 3rd quarter

By Kim Jae-kyoung Staff reporter Following the surprise rate hike by the Bank of Korea (BOK) Friday, market participants are trying to figure out whether it is the beginning of a series or just a one-off action. Although economists are widely split over the future course of monetary policy, more are betting on additional rate increases in the coming months, citing a strong economic recovery and rising inflationary pressure. Roubini Global Economics (RGE), a U.S. financial analysis firm headed by New York University economics professor Nouriel Roubini, better known as "Dr. Doom," forecast additional rate hikes in the third quarter, saying that the BOK is decoupling from the Fed. "Given revival of capital inflows in June, rising inflationary pressures and risks from negative real interest rates, South Korea will hike rates by another 50 basis points in the third quarter," RGE said in an email interview with The Korea Times. "This will be followed by a 25 basis point hike in the fourth quarter, unless domestic and global growth slow more than expected or there's a repeat

Jul 11, 2010By Kim Jae-kyoung

Kim Jae-kyoung

Read more

Build on G20 role to address Korea Discount

Korea should bring can-do approach to G20

Global business leaders to gather for G20 CEO Summit

Korea ready to bridge gaps among G20 nations

G20 Seoul Summit to end Korea Discount

Recovery showing signs of losing steam

Nation’s GDP growth hits 10-year high in first half

KB is like a patient with obesity, says new chief

Mirae ranks top in equity investment returns

More increases likely in 3rd quarter

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