The Korea Times

Jobless rate rises to 3.5% in June

By Kang Seung-woo Staff reporter The jobless rate in June rose by 0.3 percentage points to 3.5 percent in June from a month earlier, breaking the momentum of improvement in the previous four months. The job market for young people aged between 19 and 29 was severely constrained with the unemployment rate for that group rising by 1.9 percentage points to 8.5 percent, according to Statistics Korea. This bad news comes at a time when the government is expressing confidence in the strength of the ongoing recovery. The Bank of Korea raised its growth outlook to a robust 5.8 percent while raising its key rate for the first time in 17 months by 0.25 percentage points to 2.25 percent. "Although the local economy is getting back on track faster than expected, companies are still concerned about lingering uncertainties. As a result, they have relied on experienced workers who can contribute to immediately increasing output," Lee Geun-tae, an economist at the LG Economic Research Institute, told The Korea Times. He expects that this trend is likely to continue in the second h

Jul 14, 2010By Kang Seung-woo

Companies

Kookmin CEO Kang bows out after six years’ service

By Kang Seung-woo Staff reporter Kookmin Bank CEO Kang Chung-won stepped down Tuesday after serving about six years at the helm of the nation's largest bank. His resignation came after Euh Yoon-dae, chairman of KB Financial Group, received confirmation for his chairmanship at the shareholders' meeting on the same day. Although his term was to end at the end of October, he left the bank to enable Euh to reorganize KB. "It was the most significant moment in my life to work at Kookmin Bank," Kang said in a farewell speech. "I am really grateful to all the executives and employees for doing a great job at the bank and hope that it will soar again under new leadership." Kang, who also served as vice chairman of KB, might have mixed feelings about Euh's inauguration. He was nominated for the top post of the group last December, but he withdrew his nomination amid the regulator's intense audit into KB and its flagship Kookmin Bank. The bank has also been entangled in allegations that the inner circle of President Lee Myung-bak might have influenced the nomination. T

Jul 13, 2010By Kang Seung-woo

Companies

Central bank raises growth outlook to 5.9%

By Kang Seung-woo Staff reporter The Bank of Korea Monday raised its economic growth forecast for this year by 0.7 percentage points to 5.9 percent on the back of robust exports and improving domestic demand. The revised forecast is also 0.1 percentage point higher than the finance ministry's projection last month. The new figure represents the highest annual growth since 2002 when the economy grew 7.2 percent. Asia's fourth-largest economy posted a 7.4 percent growth in the first half and is expected to expand 4.5 percent in the second, meaning an overall 5.9 percent growth for this year. "The upward revision came as the economy performed better-than-expected in the first quarter and exports are forecast to remain brisk into the third quarter," Lee Sang-woo, director-general of the BOK's research department, said at a press conference. "The recovery momentum by the private sector is likely to pick up with exports leading the growth," Lee said. The BOK forecast that the economy would grow 4.5 percent next year - 3.5 percent in the first half and 5.0 percent i

Jul 12, 2010By Kang Seung-woo

Companies

Regulator to probe Shinhan Financial Group head

By Kang Seung-woo Staff reporter The nation's financial watchdog said Monday it will investigate allegations that Shinhan Financial Group Chairman Ra Eung-chan violated the law regarding real-name financial transactions several years ago. The move came a year after the head of the nation's third largest financial group was cleared of bribery charges related to Park Yeon-cha, a businessman and former financial supporter of the late former President Roh Moo-hyun. "As soon as we collect related documents, we will launch an investigation into him," a Financial Supervisory Service official said in a press conference. "After discussions with the Financial Services Commission, we plan to ask for documents from administrative agencies linked to the issue." The 71-year-old chairman was investigated by the prosecution last year after transferring 5 billion won ($4.18 million) in 2007 to Park, a former CEO of shoemaker Taekwang, because the money was withdrawn from an account registered to another person. Ra was cleared of any suspicious activity; while Park is now serving a

Jul 12, 2010By Kang Seung-woo

Companies

Restaurateur on mission to spread gospel on US beef

By Kang Seung-woo Staff reporter U.S. beef is yet to be completely welcomed by consumers, as the massive demonstrations against the government decision to resume imports two years ago are still fresh in their mind. However, Lee Ki-sang is on a one-man mission to remove public doubt on U.S. beef, and the restaurateur's tool is "L.A. galbi," short ribs seasoned Korean style. "When I was applying for a patent on my brand of L.A. galbi three years ago, my friends told me I was crazy because all American beef was banned at the time," Lee said in a telephone interview with The Korea Times. "I thought that the ban would be lifted five or six years later," he said. Last August, the 61-year-old opened his restaurant named "K-55 L.A. Galbi" in front of Osan Air Base in Pyeongtaek, south of Seoul. The base is codenamed, "K-55." Korea prohibited the import of American beef in 2003 after a case of mad cow disease was discovered and the ban remained in place until 2008, when the government decided to lift it. The decision triggered two months of huge demonstrations, inflamed b

Jul 9, 2010By Kang Seung-woo

Companies

Finance-related stocks gain momentum

By Kang Seung-woo Staff reporter Banking and securities stocks gained steam on the stock market thanks to eased concerns over the eurozone crisis and increasing investment confidence. Shinhan Financial Group climbed 4.82 percent, while KB Financial Holding Company's shares rose 4.73 percent, Thursday. Woori Finance, Korea Exchange Bank (KEB), Industrial Bank of Korea (IBK) and Haha Finance also joined climbers, marking advances of 2.04 percent to 4.71 percent. Other gainers were Hanwha Securities at 5.28 percent; Woori Investment and Securities, 4.70 percent; Daewoo Securities. 3.24 percent; Tongyang Securities, 3.39 percent; Kiwoom Securities, 3.42 percent and Samsung Securities, 3.33 percent. The rise of the finance-related stocks was related to Wednesday's Wall Street rally. The Dow Jones Industrial Average notched its biggest one-day growth since May 27, surging 274.66 points, or 2.8 percent, to 10,018.28, thanks to a robust profit forecast from several companies and optimism about the easing European debt crisis. In addition, financial stocks rebounded fr

Jul 8, 2010By Kang Seung-woo

Companies

Creditor banks freeze new loans to Hyundai Group

By Kang Seung-woo Staff reporter Korea Exchange Bank (KEB) and other creditor banks said Thursday that they have decided not to open a new line of credit for Hyundai Group. The decision followed Hyundai's repeated refusal to sign a KEB-recommended debt restructuring plan. Hyundai said that the plan didn't reflect its unique business portfolio, adding that it would replace KEB as its main creditor through paying off its debts to the bank if necessary. In response, Hyundai's 13 creditors, led by KEB, decided to take collective punitive action. With the decision, the banks said that Hyundai Group and its subsidiaries, including Hyundai Merchant Marine and Hyundai Asan, will not be allowed to take out new loans starting immediately. The committee, headed by KEB, consists of major local lenders, including the Korea Development Bank (KDB), Shinhan Bank and the National Agricultural Cooperative Federation, also known as Nonghyup. Hyundai Group, led by Chairwoman Hyun Jung-eun, was selected in May as one of nine financially distressed conglomerates to go through debt res

Jul 8, 2010By Kang Seung-woo

Companies

Creditors to stop new loans to Hyundai

By Kang Seung-woo Staff reporter The Korea Exchange Bank (KEB) and other creditor banks are likely to stop providing new loans to Hyundai Group in retaliation for the conglomerate's repeated refusal to sign up to a KEB-led plan to improve its financial structure. Sources said Wednesday that Hyundai hadn't agreed with the KEB's assessment of its financial health and restructuring recommendations by the final deadline set for that day. This is the third deadline the group has failed to meet following two previous ones set for June 15 and 25. Creditors, comprised of 13 banks, are expected to announce the retaliatory measure today on the basis of a meeting attended by the Korea Development Bank (KDB), Shinhan Bank, Nonghyup and KEB. "Creditor banks are determined to cut fresh lending to Hyundai Group," a banking representative said. The creditors plan to add pressure; if Hyundai Group, the parent group of the country's biggest bulk carrier Hyundai Merchant Marine and Hyundai Asan, continues to refuse to submit a reform plan. Unsatisfied with KEB's reform program la

Jul 7, 2010By Kang Seung-woo

Companies

BJFEZ seeks new investments

The Busan-Jinhae Free Economic Zone (BJFEZ) Tuesday held a conference to lure further investment into the free economic zone at the BJFEZ Authority in Busan. During the Investment Attraction Committee meeting, presided over by Commissioner Ha Myeng-keun, on the agenda were plans to draw large domestic companies, which gave up plans to set up shop in the proposed administrative city of Sejong. The government had tried to revise the plan and turn it into a business and science city but its attempt was foiled at the National Assembly. The BJFEZ Investment Committee is comprised of 14 specialists from the academic, public and private sectors. They also talked about attracting suitable and prospective investors to both the Myeongji and Ungdong areas that are currently under development. Established in 2004 with the aim of becoming the international business and logistics hub of Northeast Asia and the world, the BJFEZ has so far drawn $5.4 billion in investment and financial commitments.

Jul 7, 2010By Kang Seung-woo

Companies

Korean economy stuck in 15th place

By Kang Seung-woo Staff reporter Last year Korea's economy remained the world's 15th largest for the second year in a row. The World Bank announced Wednesday that Korea logged $832.5 billion in nominal gross domestic product (GDP), the broadest measure of economic performance, in 2009. The fourth-largest Asian economy saw its GDP tallied at $929.1 billion in 2008 for 15th spot. The top five countries retained the same ranks as in 2008. The United States placed first with $14.26 trillion, followed by Japan with $5.68 trillion and China with $4.99 trillion. Germany with $3.35 trillion and France with $2.65 trillion rounded out the top five. Since just failing to make the top 10 list in 2003, finishing 11th, the Korean economy has been on the wane, tumbling one notch in each of the following three years between 2004 and 2007 to rank 14th. The economy recorded a 0.2 percent growth last year with consumer prices rising 2.8 percent. Meanwhile, the World Bank also reported that the nation's nominal gross national income (GNI), a barometer for actual purchasing pow

Jul 7, 2010By Kang Seung-woo

Kang Seung-woo

Read more

Jobless rate rises to 3.5% in June

Kookmin CEO Kang bows out after six years’ service

Central bank raises growth outlook to 5.9%

Regulator to probe Shinhan Financial Group head

Restaurateur on mission to spread gospel on US beef

Finance-related stocks gain momentum

Creditor banks freeze new loans to Hyundai Group

Creditors to stop new loans to Hyundai

BJFEZ seeks new investments

Korean economy stuck in 15th place

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