The Korea Times

Surprise entries hit SERI top 10

By Kang Seung-woo Mobile information technology (IT)-related items made an impressive stride in the market this year, with smartphones and tablet PCs dominating Korean consumers, a local think tank said Wednesday. In addition, a well-being trend still swept the nation, as people turned their eyes to appreciating beauty as well as function. The Samsung Economic Research Institute (SERI) came up with the top 10 hit items and smartphones became unanimously the most popular device through a whole generation, followed by “Superstar K2,” cable channel Mnet’s version of “American Idol” and the women’s national football team. Social network services (SNS) and

Dec 15, 2010By Kang Seung-woo

Companies

Why can’t we feel benefits of $20,000 in income?

Exchange rate, other factors don’t make you as rich as figure suggests By Kang Seung-woo Many Koreans here may have felt left out when they came across the news that the nation’s per capita income will recover to the $20,000 mark this year for the first time in three years and may reach an all-time high of $23,000 next year. According to the Bank of Korea, the nation’s per capita gross national income (GNI) is forecast to reach $20,510 this year and rise to $22,998 to $23,866 next year. The per capita GNI is the value of a country’s final income in a year, divided by the mid-year population, which in Korea is often quoted in dollars. If Korea ends this year in accordance with this rosy outlook, Korea will become the eighth country in the world to tally $20,000 in per capita income among countries which have a population of 40 million or more. The positive news, ironically, has displeased many Koreans from the middle- and low-income bracket as they are not feeling the change. For them, the rising number means that economic polarization between haves and have-nots has be

Dec 15, 2010By Kang Seung-woo

Companies

Seoul cracks down hard on foreign banks, securities firms

By Kang Seung-woo Korea’s financial regulator is taking stricter action against offending global financial institutions. In addition, it is crossing borders, conducting a probe on Deutsche Bank in Hong Kong on suspicion of triggering a stock market shock last month. The Financial Supervisory Service (FSS) has slapped penalties on units of Barclays Bank, JP Morgan Chase, Bank of Nova Scotia, OCBC Bank and Nomura Securities. The Barclays branch received a reprimand, with its four current and former employees punished last week for violating banking rules over foreign exchange trading, the FSS said. The nation’s financial watchdog said the Barclays branch was responsible for incurring 36.5 billion won ($31.8 million) in losses for its clients by failing to adopt proper risk-management methods when it traded $1.2 billion of currency options with three local companies between June 2006 and November 2007. The FSS also said that it failed to file regulatory reports with authorities over currency futures. One staff member at the Seoul branch of JP Morgan Chase was als

Dec 14, 2010By Kang Seung-woo

Companies

POSCO in company-wide cost-saving campaign

By Kang Seung-woo POSCO is different from other conglomerates when it comes to belt-tightening. The conglomerate, which acquired Daewoo International in one of this year’s biggest merger and acquisition deals, is now engaged in two company-wide campaigns to reduce costs where it can. First, it is asking its employees to reduce the use of photocopies. “We are asking our employees to report electronically so as to save the use of paper,” a company spokesman said, adding that it may amount to a little in terms of savings but may make them aware that the company wants to save. Plus, the steel maker is asking employees to switch off their computers and lights when they are not using them. These campaigns come at a time when the company has been on a rollercoaster ride this year. The company had an impressive start in the first half of 2010, with second-quarter earnings almost tripling from a year earlier due to price hikes and rising demand at home and abroad. Its net income reached 1.19 trillion won ($1.03 million) in the April-June period, compared with a p

Dec 13, 2010By Kang Seung-woo

Companies

Exports surge in public IT solutions

Korea’s expertise in the digitalization of administrative work procedures and public services through information technology (IT) applications has been highly recognized in the world, with exports of Korea’s e-government services reaching $148.76 million this year, according to the Ministry of Public Administration and Security Sunday. The amount is a huge increase from last year’s $66.7 million. Detailed figures showed that Korea’s earnings include $25.20 million from Ecuador for electronic customs services, $33 million from Indonesia for electronic patent applications and $30.60 million from Bangladeshi for information networks. Particularly, Korea has actively expanded itself in the African region including Mali and Morocco and cemented its status in Southeast Asia. The ministry, aiming at nurturing the e-government system as a future major export, has signed a memorandum of understanding with Brunei, Bulgaria and the Inter-American Development Bank (IDB). Korea is often called the world’s most wired nation with its high-speed Internet service available throughout t

Dec 12, 2010By Kang Seung-woo

Companies

Per capita income to top $23,000 in 2011

By Kang Seung-woo Korea’s per capita gross domestic product (GDP) is projected to climb back to the $20,000 level for the first time in three years this year, driven by the strengthening won, the central bank said Sunday. In addition, the LG Economic Research Center forecasts that the nation will hit an all-time high of about $23,000 in per capita GDP next year. The Bank of Korea (BOK) reported that the nominal gross national income (GNI) for this year is estimated at about $1 trillion (1162.7 trillion won), which translates to a per capita income of $20,510. The GNI includes all income generated by nationals, both domestically and overseas. The nominal GNI was calculated based on the real gross domestic product (GDP) growth estimate of 6.1 percent and an annual average exchange rate of 1,160 Korean won against the greenback, according to the BOK. The central bank said that unless the U.S. dollar soars steeply against the won in year-end trading, the per capita income is likely to surpass $20,000. This is the first time for the nation’s per capita GNI to exceed the

Dec 12, 2010By Kang Seung-woo

Companies

Busan-Jinhae FEZ seeks to attract more investors

By Kang Seung-woo The Busan-Jinhae Free Economic Zone (BJFEZ) Authority held an investment seminar Friday in Seoul to attract prospective investors to its key areas of Myeongji and Ungdong. Around 100 people from real estate developers, financial and strategic investors were present at the event. Ha Myeng-keun, commissioner of the BJFEZ Authority, said that the two key areas of the economic zone will play an important role in the development of the BJFEZ. The Myeongji project is expected to be home to foreign investors and their families by offering services ranging from schools, a foreign hospital, medical schools, residences, hotels and convention centers to shopping malls. The Ungdong Tourism and Leisure project will see the development of golf courses, a hotel and casino, marina, and school as well as a medical tourism center. The BJFEZ was established in 2004, aiming at becoming the international business and logistics center of Northeast Asia. The area, which covers 104.8 square kilometers (26,000 acres), is located on the southeastern tip of the Korean Penin

Dec 12, 2010By Kang Seung-woo

Companies

Korea ranks 57th in gold reserves

By Kang Seung-woo Korea saw its ranking in gold reserves fall by one notch to 57th in the world this year, as other countries rushed to secure the yellow metal amid lingering uncertainties overhanging the global economy, the World Gold Council (WGC) said Thursday. According to the WGC, an international nonprofit body that offers key information about gold, Korea’s gold reserves stood at 14.4 tons as of December. Korea’s gold holdings have been standing pat since the second quarter of last year when they increased from 14.3 tons to 14.4 tons. Gold represents 0.2 percent of the nation’s foreign exchange reserves, the eighth smallest along with Canada among 100 countries surveyed. The United States topped the list by holding 8,133.5 tons of gold, followed by Germany with 3,401.8 tons. The International Monetary Fund (IMF), France and China rounded out the top five with 2,846.7 tons, 2,435.4 tons and 1,054.1 tons, respectively. Korea’s gold holdings remain at 0.18 percent of the United States, 1.37 percent of China and 1.89 percent of Japan, according to WGC data. Eme

Dec 9, 2010By Kang Seung-woo

Companies

KDIC exports Korea’s experience

By Kang Seung-woo The government launched a specialized Knowledge Sharing Program (KSP) in 2004 to help emerging countries develop their economic potential using Korea’s experience of rapid economic growth over the past five decades. Through the capacity building program, Korea offers research findings, recommendations and training activities on specific issues relevant to their interests in other countries. In conjunction with the government’s program, the Korea Deposit Insurance Corp. (KDIC) has been active in providing the nation’s expertise and experience in the sector to many developing countries. The state-run agency, headed by President Lee Seung-woo, has provided advanced knowledge in deposit insurance, including fund management and risk surveillance. The KDIC also offers expertise in restructuring troubled banks. It consulted with Mongolia on the introduction of deposit insurance and it also provided foreign financial authorities including Vietnam with expertise and experience learned during the financial crisis in the late 1990’s. The KDIC was established

Dec 9, 2010By Kang Seung-woo

Companies

Mortgages from banks up sharply

Softened rules on lending sparks loan demand By Kang Seung-woo Korean bank’s mortgage lending increased by the largest amount in 16 months in November, as softened rules on mortgages and the economic recovery sparked demand, the central bank said Wednesday. In addition, banks’ household loans, including mortgage lending also grew month-on-month. According to the Bank of Korea (BOK), local banks’ mortgage loans stood at 281.9 trillion won ($247.79 billion) as of the end of November, up 2.9 trillion won from the previous month. It also said that the last month’s reading accelerated from a 2.2 trillion won increase in October and highlighted the steepest monthly gain since a 3.4 trillion won rise in July 2009. The home-backed lending declined by 300 billion won in August, but since then, it has posted a steady monthly increase, tallying a gain of 1.7 trillion won and 2.2 trillion won in September and October, respectively, ahead of 2.9 trillion won last month. Last year, the government tightened regulations for mortgage loans in a bid to ease a spike in home-backed

Dec 8, 2010By Kang Seung-woo

Kang Seung-woo

Read more

Surprise entries hit SERI top 10

Why can’t we feel benefits of $20,000 in income?

Seoul cracks down hard on foreign banks, securities firms

POSCO in company-wide cost-saving campaign

Exports surge in public IT solutions

Per capita income to top $23,000 in 2011

Busan-Jinhae FEZ seeks to attract more investors

Korea ranks 57th in gold reserves

KDIC exports Korea’s experience

Mortgages from banks up sharply

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