The Korea Times

POSCO No. 2 stainless steel maker

By Kang Seung-woo POSCO has become the world’s No. 2 stainless steel producer after expanding the capacity of its Chinese stainless steel joint venture, the steel giant said Monday. In addition, the Korean company plans to list the joint venture in Hong Kong or Shanghai after 2013. According to POSCO, Zhangjiagang Pohang Stainless Steel (ZPSS) has completed building additional facilities that enable the joint venture firm to boost its annual production capacity of stainless steel to 1 million tons from 800,000 tons a year. The facility expansion has helped POSCO, the world’s No. 3 steel firm, earn the title of the second-largest stainless steelmaker with an annual production capacity of 3 million tons ― 2 million from POSCO’s plants in Korea and 1 million from ZPSS ― behind Acerinox whose capacity is 3.4 million tons a year. In addition, it also became the first foreign entity in China to produce 1 million tons of stainless steel. The joint venture between China’s Shagang Group and POSCO was established in 1999, with POSCO holding an 82.5 percent stake. “ZPSS has

Jun 13, 2011By Kang Seung-woo

Companies

Samsung Life set to enter India, Indonesia

By Kang Seung-woo Samsung Life Insurance plans to enter the markets of India and Indonesia in efforts to gain a footing in Asia, the company CEO said on Wednesday night. “After foraying into China and Thailand, (the company) plans to make inroads into Asian markets with high potential, such as India and Indonesia, within the next two years,” its CEO Park Keun-hee said at a press conference. The nation’s largest life insurer also plans to expand its existing sales network in China and Thailand as well as establish alliances with local financial institutions. “Once we focus on the Asian market and after making thorough preparations, we will try to advance into the leading markets such as the United States and Europe,” Park said. “We are also preparing for the Middle East amid speculation that there might be another boom there.” A slew of Korean insurance companies have been looking to penetrate global markets for potential growth as the domestic situation remains saturated. This is despite rarely showing solid numbers last year due to increased operating costs on o

Jun 9, 2011By Kang Seung-woo

Companies

Savings bank crisis set to enter Round 2

More problems may be exposed as fiscal year ends this month By Kang Seung-woo The next couple of months will be crucial for the future of troubled savings banks. One problem after another has beset the sector and jeopardized the entire financial industry. But there is little guarantee that all the problems have been exposed. Chances are that there may be more and, if this proves true, it is likely that they will surface by August. The impact may renew the sense of crisis within the financial sector, depending on the seriousness of any problems that are uncovered. The fiscal year of 2010 for savings banks is from July 2010 to June 2011 and their preliminary financial reports are expected to be issued in August. Market watchers say that several business suspensions of savings banks may occur with the current situation not in favor of the secondary lenders. “In the first half of this year, when the Financial Services Commission (FSC) ordered eight savings banks to shut their doors, FSC Chairman Kim Seok-dong said that there would be no more suspensions in the first h

Jun 9, 2011By Kang Seung-woo

Companies

Antitrust watchdog probing Hyundai, Kia

By Kang Seung-woo The nation’s top two automakers and a leading auto parts manufacturer are under investigation by an antitrust watchdog over suspicions that they pressured their subcontractors to slash prices. According to the Fair Trade Commission (FTC) Thursday, its team visited the headquarters of Hyundai Motor, Kia Motors and Hyundai Mobis, Hyundai Motor’s affiliate, in southern Seoul on Tuesday and secured related documents. The vehicle manufacturers usually negotiate with about 2,000 subcontractors twice a year to set supply prices and the latest meeting took place last month. But subcontractors have complained about the negotiations, calling them a formality and that Hyundai and Kia have brandished their market-dominating power in forcing them to cut prices. Hyundai and Kia have dismissed the allegations, saying that they carry out price cuts as part of their overall cost reduction program and that action is only taken in collaboration with their partners. “We never abuse our superior position in the market,” a Hyundai official said. Despite the explanati

Jun 9, 2011By Kang Seung-woo

Companies

All lights out for nighttime golf

By Kang Seung-woo In Korea, there are few sports that are loved by as many as they are hated by others. Extolled as one to put Korea on the world athletic map, impressive performances by local golfers on the PGA and LPGA Tour, golf is often lauded, while criticized as a synonym for extravagance for its exorbitant costs. Now, golf is being targeted as the main culprit of a waste of electricity. The government has banned outdoor lighting on golf courses in its efforts to deal with surging crude oil prices, while golf circles are strongly opposing the energy saving measure, calling it “shortsighted.” The forcible blackout came after the Ministry of Knowledge Economy raised its energy alert level to “caution” from “concern” on Feb. 27 amid rising international oil prices following unrest in Middle Eastern countries. Starting from March 7 after a seven-day grace period, the government is set to fine businesses and organizations breaking the regulations up to 3 million won ($2,772). The ministry said that if crude oil prices stay below $100 per barrel for five days, it wi

Jun 8, 2011By Kang Seung-woo

Companies

2-year extension set for PF loans

By Kang Seung-woo The nation’s financial regulator said Wednesday that it is seeking ways to extend the maturity of soured project financing (PF) loans of savings banks to prop up the reeling industry. According to the Financial Services Commission (FSC), it plans to stretch the rollover period from three years to five in the second half and the amount of non-performing construction loans is estimated at between 5 trillion ($4.62 billion) and 6 trillion won. The Korea Asset Management Corp. (KAMCO) picked up 5.2 trillion won of non-performing PF lending from 89 troubled savings banks at a 50 to 80 percent discount with a maturity of three years between December 2008 and June 2010. As a result, the secondary lenders, which had to pile up loan-loss provisions 11 times over three years to improve their asset quality and eliminate piles of toxic real estate loans, will benefit from the rollover that obligates them to build up reserves 19 times over a five-year span, which the FSC expects will bring down their quarterly reserve quota by around 42 percent. The move came afte

Jun 8, 2011By Kang Seung-woo

Companies

Foreign residents soar 148% over 5 years

By Kang Seung-woo The number of foreign residents in Korea has grown rapidly over the past five years, with their nationalities diversifying, a nationwide census showed Monday. According to the census carried out every five years by Statistics Korea, the number of foreigners who have stayed here for more than three months reached around 590,000 as of November 1, 2010, up 148 percent from the 2005 number of 238,000. The survey also said that a total of 90 countries each have more than 30 nationals living in Korea. China lived up to its billing in the census as the most populated country in the world, as its people, including those of Korean descent, took up the largest portion of the foreign residents with some 299,000, accounting for 50.8 percent. Female Vietnamese, who arrive here for marriage and males who come to find jobs, came in second with around 59,000 people — 10.1 percent — followed by the United States and the Philippines, which represented 7.1 percent and 4.2 percent, respectively. The top 10 countries in the number of foreign residents inclu

Jun 6, 2011By Kang Seung-woo

Companies

Alarm grows on household debt

By Kang Seung-woo The country’s six largest banks dramatically increased their household lending during the first three months of the year despite the growing concerns over deteriorating family finances, the financial watchdog said Friday. The Financial Supervisory Service (FSS) is concerned that the intensifying competition among banks could come at the cost of pulling down credit quality when the country’s historically high household debt poses a significant risk to financial stability. The combined household loans approved by the top six banks ― KB Kookmin, Woori, Shinhan, Hana, Industrial Bank of Korea and the National Agricultural Cooperation Federation (NH Bank) ― increased by 2.5 trillion won ($2.31 billion) in the first quarter, according to FSS figures. This accounted for 40 percent of the 6.3 trillion won in loans extended by banks and other financial institutions. The increase in mortgage loans reached 3.7 trillion won during the period, which offset the decline in other types of borrowing like credit purchases and overdraft loans. At the end of March, ho

Jun 3, 2011By Kang Seung-woo

Companies

Steel giant POSCO names first female manager

By Kang Seung-woo POSCO has named its first female group leader. According to the world No. 3 steelmaker, Liang Ho-young was selected Monday as stainless steel hot rolled (HR) product sales group leader. The position is ranked between board member and section chief. The 51-year-old, scheduled to take office on June 7, will head the group comprised of four teams and 19 members. Female employees account for just 3.5 percent of all the company’s staff ― 568 out of 16,390. Ahead of this appointment, Liang, a mother of two, was thrust into the limelight in 2006, when she became the first female leader of the sales group’s exporting team. She has a good command of Chinese, and a reputation as POSCO’s representative China specialist. Liang attended Chinese middle and high schools in Korea on the suggestion of her father who forecast the rise of China and majored in Chinese language and literature at Yonsei University and the graduate school of Seoul National University. She was also a professor at a university in Taiwan. In recognition of her career, she was hired by P

Jun 2, 2011By Kang Seung-woo

Companies

Energy firms eye new markets

By Kang Seung-woo Despite success in their primary business, local oil refiners are busy tapping into new business sectors in search of other growth engines ahead of a post-petroleum era. The top three firms, SK Innovation, GS Caltex and S-Oil, announced last month that they have found an initial target for new renewable energy: SK and GS are looking to rechargeable batteries and S-Oil, solar photovoltaics (PV). Today, renewable energy is the fastest growing industry in the world and its global market is expected to grow from the current $250 billion (268.52 trillion won) to $1 trillion by 2020. Observers say that refiners loaded with cash from soaring oil prices are aggressively expanding into new areas to secure mid- and long-term growth engines for the future with the recognition that the existing business model cannot ensure sustainability. GS has set up four affiliates over the past three years for new business, headlining the recent move. It announced on May 13 that it formed a 50-50 joint venture, Power Carbon Technology, with JX Nippon Oil and Energy, Japan’s t

Jun 2, 2011By Kang Seung-woo

Kang Seung-woo

Read more

POSCO No. 2 stainless steel maker

Samsung Life set to enter India, Indonesia

Savings bank crisis set to enter Round 2

Antitrust watchdog probing Hyundai, Kia

All lights out for nighttime golf

2-year extension set for PF loans

Foreign residents soar 148% over 5 years

Alarm grows on household debt

Steel giant POSCO names first female manager

Energy firms eye new markets

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