The Korea Times

Hyundai Steel fires up 2nd blast furnace

By Kang Seung-woo DANGJIN, South Chungcheong Province ― Hyundai Steel lit its second blast furnace at its integrated steel mill in Dangjin, 123 kilometers southwest of Seoul. With the maiden operation of the second blast furnace, which can churn out roughly 4 million tons of steel annually, Hyundai Steel’s total annual production capacity is expected to rise to 20 million tons, the ninth largest production according to the World Steel Association in 2009. The operation of the furnace is expected to get into full swing early next year, according to Hyundai Steel. The nation’s second-largest steel firm started full production of its first-ever integrated blast furnace, whose annual capacity is also 4 million tons, in April and it has also operated electric-arc furnaces that produce some 12 million tons of steel annually using scrap metal in Incheon, Pohang and Dangjin in Korea and Ching Tao, China. An electric-arc furnace melts scrap metal to produce second-tier steel products, while a blast furnace is one that makes first-rate steel products from iron ore. “Today is si

Nov 23, 2010By Kang Seung-woo

Companies

Banking industry braces for immediate big bang

Woori, Hana sales, Shinhan corruption scandal building up frantic week By Kang Seung-woo The local banking industry is likely to see a big bang this week. Hana Financial Group’s takeover of Korea Exchange Bank (KEB) is close to being finalized, while the privatization of Woori Financial Group will be fully disclosed. Credit rating agency Moody’s gave a positive reading on Hana’s takeover of KEB. In addition, the investigation into the management scandal at Shinhan Financial Group is expected to come to an end within this week. According to officials in the financial industry on Monday, Hana is wrapping up the deal to acquire a controlling stake of KEB from Lone Star Funds. The U.S. private equity fund is seeking to sell a 51.02 percent stake in KEB and its stake is estimated at about $3.8 billion (4.5 trillion won) based on KEB’s current share price. KEB is the nation’s fifth-largest lender and it accounts for a 40 percent share in the foreign exchange sector in Korea. The group is likely to sign a deal as early as Wednesday, according to sources. “We are in

Nov 22, 2010By Kang Seung-woo

Companies

Economy faces 7 hurdles in 2011

By Kang Seung-woo The Korean economy is facing a bumpy road ahead on its path to full recovery as several economic hurdles, such as a slowdown in the global economy, the China risk and rising raw materials prices are expected to stand in the way of its rebound. In an international seminar on the outlook for the global economy and financial market for 2011, in Seoul, Friday, the Korea Center for International Finance (KCIF) identified seven key economic risks that could threaten the global economy next year. The seven hurdles are debt trouble in Europe, the China risk, global currency disputes, the U.S. quantitative easing policy, a possible slowdown in the global economy, rising international prices for raw materials and overshooting in the U.S. bond market. It said that there is a high possibility for Ireland and Portugal to receive a rescue package from the International Monetary Fund (IMF) and the European Financial Stability Facility (EFSF). “There are rising concerns for Ireland and Portugal, as the Irish banking industry is on the edge of insolvency and Portug

Nov 19, 2010By Kang Seung-woo

Companies

W20 tril. to be invested in HE&C

By Kang Seung-woo Hyundai Group plans to spend 20 trillion won by 2020 on Hyundai Engineering and Construction (HE&C), for which it has been designated as the preferred bidder, its chairwoman said Thursday. “The top priority is to develop Hyundai Engineering and Construction (HE&C) into the nation’s top enterprise. Hyundai Group will invest 20 trillion won in HE&C by 2020 to make the builder a global top five player,” group Chairwoman Hyun Jeong-eun told reporters after her visit to the graves of group founder Chung Ju-yung and former chairman and her late husband Chung Mong-hun in Hanam, Gyeonggi Province. Her visit marked the start of the 12th anniversary of the Mt. Geumgang tour, the group’s flagship of Hyundai’s inter-Korean business. “We will try to strengthen its footing in green industry and next-generation technologies to transform HE&C into a growth engine of the nation’s future,” she said. Creditors of HE&C selected Hyundai Group as the preferred bidder for a major stake in the nation’s largest builder over the much-favored Hyundai-Kia Automotive Group Tuesda

Nov 18, 2010By Kang Seung-woo

Companies

Hyundai’s Chung stock-rich heir

By Kang Seung-woo Hyundai Motor Vice Chairman Chung Eui-sun has become the most stock-rich among heirs of Korea’s top 30 industrial conglomerates, a survey said Thursday. According to Chaebul.com, an online portal that specializes in information concerning large businesses and family-owned conglomerates, the 40-year-old Chung’s stock assets were worth 2.26 trillion won ($1.98 billion) on the basis of Wednesday’s closing price at the Korea Exchange (KRX) to top the 59-member pecking order. Chung is the only son of Hyundai Motor Group Chairman Chung Mong-koo. The site compared the market values of stock holdings owned by 59 children of the family-owned business groups. At the start of this year, Chung junior had stock assets estimated at 1.47 trillion won, making him the third richest behind Lotte Group Vice Chairman Shin Dong-bin and Lotte Japan Vice President Shin Dong-joo, both of whom are the sons of Lotte Group founder Shin Kyuk-Ho. Chung possesses a 31.88 percent stake in Glovis, the logistics subsidiary of the country’s top carmaker, and owns minor stakes in H

Nov 18, 2010By Kang Seung-woo

Companies

Probe into Shinhan trio picks up speed

By Kang Seung-woo The top three chief executives of Shinhan Financial Group are expected to be summoned by prosecutors soon. The selection process of its new leaders is likely to be announced once the investigation is complete. According to sources in the financial industry and prosecuting authorities Monday, the Central District Prosecutors’ Office will resume its investigation into former Chairman Ra Eung-chan, suspended CEO Shin Sang-hoon and Shinhan Bank CEO Lee Baek-soon this week. The probe was on hold due to the G20 Seoul Summit. Although a group of investigators have already raided the offices of the three at the bank’s headquarters in Seoul where they confiscated computer files and other documents earlier this month to uncover evidence of their involvement in embezzlement, breach of trust and other acts of corruption. To start with, the prosecutors will determine if Shin was involved in embezzlement and illegal lending. The 62-year-old was suspended from his duties on Sept. 14, after Shinhan Bank filed a complaint against him, alleging that he had illegally ex

Nov 16, 2010By Kang Seung-woo

Companies

Insurance firms stage aggressive marketing to win more clients

By Kang Seung-woo Recently a 31-year-old salaried man who would prefer to be known by only his family name, Ji visited a department store in central Seoul together with his girlfriend. While his girlfriend was shopping, Ji was consulted by a life planner of a local large insurance company on his expiring car insurance contract, and eventually, he signed up for the insurer’s auto policy. A growing number of people receive advice and strike deals in some of the least expected places, as insurance companies are employing aggressive marketing methods, no longer settling for just making sales by telephone or relying on home visits. . In the past, insurance contracts were usually inked when a life planner canvassed homes or offices, but the new trend is being ubiquitous or going to wherever potential customers may be. According to sources within the insurance industry, insurers have made a foray into unlikely places such as department stores, discount stores, condominiums and apartment complexes to conduct business rather than establishing branches in influential areas or o

Nov 15, 2010By Kang Seung-woo

Companies

Triple risks weigh on financial market

By Kang Seung-woo The local equity market is unlikely to continue its bullish run and hit 2,000 this year, as the economy is facing the triple burden of China tightening its financial policy, renewed fears of a European debt crisis and volatile currency exchange rates. Market watchers say the stock market is likely to show a gradual upward trend over the long-term on the back of ample liquidity and solid economic fundamentals, but those external risks could shake the market in the short-term. High expectations of the KOSPI reaching the 2,000 mark are receding, as some say that it has already peaked this year. The eurozone seems to have relapsed into financial turmoil amid speculation that Ireland may seek a bailout from the European Union (EU), as yields on Irish government bonds have continued to skyrocket. The yield on 10-year Irish bonds increased by about 2 percentage points to 8.64 percent last week, compared with two weeks ago. Europe suffered similar financial woes in May, when Greece suffered a sovereign-debt crisis. The G20 Seoul Summit has left a high poss

Nov 14, 2010By Kang Seung-woo

Companies

Korea emerges as No. 7 exporter

By Kang Seung-woo South Korea is on its way to becoming the world’s seventh-largest exporting country this year on the strength of growing demand for information technology (IT) products, trading organizations said Friday. According to the World Trade Organization (WTO) and the Korea International Trade Association (KITA), Korea’s overall exports between January and August 2010 reached $299.1 billion, up 32.6 percent from the previous year, to sit at an all-time high at seventh behind France, whose exports chalked up $335.2 billion. Korea’s previous high in terms of total exports was ninth, last year. In addition, Korea, Asia’s fourth-largest economy, tallied a single-month record of $44.1 billion in October to cement its current place in the hierarchy. Italy’s exports increased 10.7 percent year-on-year to $283.6 billion to come in eighth, followed by Belgium, whose exports stood at $264.9 billion. Italy and Belgium were ranked seventh and eighth respectively a year ago. Since late last year, the global economy has been recovering, and it has helped IT products see a

Nov 12, 2010By Kang Seung-woo

Companies

Hankook to speed up on eco-friendly tires

By Kang Seung-woo Korea’s No. 1 tire company has set its eyes on becoming a leading global player through pursuing eco-friendly products, its high-ranking official said. Pae Ho-youl, vice president of the marketing strategy department at the Seoul-based company, made the remarks in a recent interview with The Korea Times. ``Eco-friendly products have been the focal point of all industries as well as the tire sector. Social responsibility for the environment has been a factor of corporate competitiveness, and providing an eco-friendly and fuel-efficient commodity has emerged as the global trend in the area,’’ Pae said. ``In addition, the policies of many economically-advanced countries, including those of Korea, have been shifting to become more environmentally-friendly ones. Hence, we need to come up with tires meeting all regulations in the future.’’ ``In our efforts leading up to this, Hankook Tire launched the industry-first green tire `enfren’ in 2008, after a two-year technical development.’’ According to Pae, Hankook Tire, one of the undisputed business bell

Nov 11, 2010By Kang Seung-woo

Kang Seung-woo

Read more

Hyundai Steel fires up 2nd blast furnace

Banking industry braces for immediate big bang

Economy faces 7 hurdles in 2011

W20 tril. to be invested in HE&C

Hyundai’s Chung stock-rich heir

Probe into Shinhan trio picks up speed

Insurance firms stage aggressive marketing to win more clients

Triple risks weigh on financial market

Korea emerges as No. 7 exporter

Hankook to speed up on eco-friendly tires

Top 5 stories