The Korea Times

POSCO takes precaution

By Kang Seung-woo Although steel giant, POSCO, got the green light to build a manufacturing plant in Orissa, India, it may still see a few obstacles before the completion of the $22 billion project, industry sources say. The Indian government finally gave POSCO, currently the world’s third-biggest steel maker, its blessing for the factory on the country’s eastern coast, Monday, after letting the Koreans wait for five years. However, POSCO still needs approval from India’s Supreme Court to mine the region’s iron ore, the main raw material involved in the production of steel. There is also a possibility that locals, concerned about losing their property, may also disrupt POSCO’s land purchase process. Currently, the firm imports its iron ore mostly from Australia and Brazil. POSCO signed a memorandum of understanding (MOU) with the provincial government of Orissa in 2005 over establishing the plant with a projected annual output of 12 million tons, and the company had planned to begin groundwork for the facility within this year. However, an Indian company filed a la

Feb 1, 2011By Kang Seung-woo

Companies

S-OIL CEO promotes science

By Kang Seung-woo S-OIL CEO Ahmed A. Subaey is setting another milestone in his efforts to bring his firm closer to the Korean community. After supporting firefighters and setting up a sports organization, Subaey has now set up a foundation to help promote science and engineering initiatives. S-OIL has established the S-OIL Science Prodigy and Culture Foundation with the purpose of nurturing talent in pure science and supporting academic research efforts in Korea. According to the refinery, a plaque hanging ceremony was held at the foundation’s office in the 63 Building in Yeouido, Seoul, Monday with its CEO Ahmed A. Subaey and foundation Chairman Oh Myung on hand. The foundation selects and offers scholarships to outstanding science or engineering undergraduate and graduate students at Korean universities and provides support for research institutes’ academic theses and research projects. In addition, the foundation plans to promote exchanges with leading overseas academic institutions and to develop a program for cultural exchanges with the Middle East, so as

Jan 31, 2011By Kang Seung-woo

Companies

India gives conditional approval for POSCOs plant

By Kang Seung-woo India has given final “conditional” approval to POSCO’s plan to build a $12-billion steel mill in its east coastal region ― the single biggest foreign investment project for India. “Undoubtedly projects such as that of POSCO have considerable economic, technological and strategic significance for the country,” Environment Minister Jairam Ramesh said in a statement. “At the same time, laws on the environment and forests must be implemented seriously.” The approval comes five years after the world’s No. 3 steel maker proposed building a steel plant with an annual capacity of 12 million tons in Orissa. Since then, the plan has been caught in wrangling between local villagers and the central government. “We welcome the decision by the environment ministry. We will try our best to cooperate with the Indian government and continue to purchase more land,” an official of POSCO told The Korea Times. “The government asked POSCO to donate 2 percent of its annual net profit to the community, to avoid high erosion zones in the construction of a harbor and aff

Jan 31, 2011By Kang Seung-woo

Companies

Seoul bourse dips on Egyptian woes

By Kang Seung-woo, Kim Yoo-chul As a result of the upheaval in Egypt, share prices took a nosedive to the 2,600 mark and the won lost ground against the U.S. dollar. Big firms are evacuating their staff from Egypt or planning to do so, the center of their businesses in northern Africa. The Korea Composite Stock Price Index (KOSPI) closed down 34.14 points, or 1.81 percent, to 2,069.73. Trading volume was moderate at 316.9 million shares worth 7.29 trillion won ($6.5 billion), with losers far outnumbering gainers 607 to 219. “Egyptian woes were reflected in hefty foreign selling,” said a Seoul-based economist. Foreign investors sold a net 693.8 billion won worth of stocks, which is the biggest net selling by foreigners since November 2009. “Foreigners sold both futures and spots, which implies that the issue is likely to linger. It will take some time for foreigners to shift to net buyers.” Other Asian stock markets also dipped, as investors sought less risky investments. Japan’s Nikkei index hit a one-month low after losing 122.42 points, or 1.18 percent, to

Jan 31, 2011By Kang Seung-woo

Companies

Recovery set to slow despite strong output growth

By Kang Seung-woo Despite strong output growth, Korea is definitely losing recovery momentum with its leading economic indicator falling for the 12th straight month last December. The year-long contraction comes in stark contrast to a nearly 17 percent expansion in output on a year-on-year basis. According to Statistics Korea Monday, the composite leading indicator (CLI) fell 0.2 percentage points from November 2010. The CLI is a composite economic indicator that gauges how the economy will fare in six months by measuring current industrial output, housing and financial market conditions, and the gross domestic product (GDP). “There are growing concerns over the faltering economic rebound,” said Lee Chang-sun, an economist at the LG Economic Research Institute (LGERI). “Although the U.S. economy has been bouncing back lately, the Chinese monetary tightening may slow Korea’s recovery.” Since the financial crisis sparked by the bankruptcy of Lehman Brothers in late 2008, Asia’s fourth-largest economy, has posted solid growth, pulling off an eight-year high of a 6.1-

Jan 31, 2011By Kang Seung-woo

Companies

Is full compensation causing moral hazard?

Agriculture minister says Taiwan case of industrial collapse is unlikely By Kang Seung-woo Close to 2.7 million cattle and pigs have so far been destroyed in an effort to fight a sweeping foot-and-mouth disease (FMD) outbreak. The highly communicable and fatal disease, the first case being traced back to Andong, North Gyeongsang Province, has spread across the nation except for South Jeolla Province and Jeju Island. The numbers break down to 144,249 cows, 2.57 million pigs, 4,300 goats and 2240 deer killed. More than 70 percent of the livestock in Gimpo, west of Seoul, has been culled. The damage in monetary terms is staggering; some estimates suggesting the ultimate cost could reach more than 2 trillion won. Such a sweeping level of devastation triggers an eerie scenario — Taiwan. The breakaway island was devastated by FMD with its livestock industry — mainly swine — all but gone, resulting in unintended social engineering that has changed its industrial structure forever. “We don’t expect the Taiwan case to happen here,” said Yoo Jeon

Jan 30, 2011By Kang Seung-woo

Companies

Giving up vaccine-free status may cost Korea dearly

By Kang Seung-woo Korea has decided to give up its “vaccine-free” status by inoculating all pigs and cattle in its effort to fight a raging foot-and-mouth disease (FMD) epidemic. President Lee Myung-bak has ordered the domestic production of vaccines, large quantities of which will be needed for regular inoculations even after the current crisis ends. “It was the President’s order to find ways of self-producing vaccines,” Yoo Jeong-bok, minister of food, agriculture, forestry and fisheries, recently told a group of editors. Asked whether Lee made his decision on the basis of experts’ opinion, Yoo didn’t answer clearly, adding that he expected a feasibility test would be conducted to determine whether Lee’s order to locally develop and produce the vaccines would be implemented. Instead of relying on inoculations, the nation depended on the mass culling of livestock to prevent a further spread of the highly-contagious disease but after finding quarantine efforts ineffective, vaccine-dependent methods have gained momentum. The policy switch came as President Lee c

Jan 30, 2011By Kang Seung-woo

Companies

Agriculture minister offers to resign over FMD

By Kang Seung-woo Agriculture Minister Yoo Jeong-bok offered to step down Friday over his ministry’s poor response to the foot-and-mouth disease (FMD) outbreak that has been devastating farms across the country since late last year. However, Minister Yoo said he will retain his post until quarantine efforts are completed and the spread of the disease is arrested. Since the first FMD case was reported at a farm in North Gyeongsang Province in November, more than 2.88 million head of livestock, including 2.4 million pigs, have been culled and financial losses are estimated at more than 1.5 trillion won (about $1.34 billion). “I plan to do my utmost to try to contain the foot-and-mouth disease outbreak, and once the situation is brought under control, I will step down,” Yoo said in a press conference. The government has been facing increasing criticism from opposition lawmakers as well as civic groups and media over its belated response to what has become the country’s worst-ever FMD outbreak. Experts have been questioning the effectiveness of the initial quarantine me

Jan 28, 2011By Kang Seung-woo

Companies

Mobile boom proving as economic catalyst?

By Kang Seung-woo It appears that the smartphone epidemic has created a new type of entrepreneur in mobile applications, or apps, developers. The country’s number of creative one-man enterprises increased sharply last year, government figures show, on the strength of the explosion in mobile Internet devices and content. According to the Small and Medium Business Administration (SMBA), the nation’s one-man enterprises reached 235,000 in 2010, up 15.7 percent from the preceding year, and the number accounts for about 1 percent of the economically active population. Standalone creative enterprises are one-person companies that generate or exploit knowledge and information. The SMBA attributed the surge to the rapidly growing mobile content market, affected by influx of smartphone, and the government’s promotion to create youth’s start-ups. Apple’s iPhone and Samsung Electronics’ Galaxy S have been megahit products since their release in late 2009 and early 2010, respectively. The number of iPhone users in Korea reached 2 million Sunday and Galaxy S’s sales have also hit

Jan 27, 2011By Kang Seung-woo

Companies

KoreaToday POSCO looks to become powerhouse in new material sector

By Kang Seung-woo Steel giant POSCO has aggressively expanded its business portfolio in the materials and eco-friendly sectors in a bid to seek new growth engines, and transform itself into a comprehensive material corporation. In accordance with the goal, POSCO and its affiliates have worked with institutions from industry, academy and research institutes including the Research Institute of Industrial Source and Technology (RIST) for open innovation - a paradigm that assumes that firms can and should use external ideas as well as internal ones. POSCO is also focusing on the production and supply of high-powered, ultra-light basic and innovative materials, which are believed to be a catalyst for green growth. “POSCO has contributed to the nation’s industrial development with its impressive achievements. From now on, POSCO will try to take off in new materials fields,” POSCO Chairman Chung Joon-yang said. Due to today’s global trend towards nationalism in natural resources, and unstable material prices, many countries have rushed to secure natural assets. In additi

Jan 26, 2011By Kang Seung-woo

Kang Seung-woo

Read more

POSCO takes precaution

S-OIL CEO promotes science

India gives conditional approval for POSCOs plant

Seoul bourse dips on Egyptian woes

Recovery set to slow despite strong output growth

Is full compensation causing moral hazard?

Giving up vaccine-free status may cost Korea dearly

Agriculture minister offers to resign over FMD

Mobile boom proving as economic catalyst?

KoreaToday POSCO looks to become powerhouse in new material sector

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