Lee Hyo-sik

Korean builders face risk of losing $755 mil. in unpaid Iraq refinery project

Hyundai Engineering & Construction (E&C) and three other local builders are at risk of losing more than 1 trillion won ($755 million) tied up in a major Iraqi refinery project, according to documents obtained by a ruling party lawmaker Friday. Hyundai E&C, GS Engineering & Construction, SK ecoplant and Hyundai Engineering have yet to collect 625.4 billion won in outstanding payments and are facing the possible forfeiture of another 420.2 billion won in performance guarantees. The builders have been seeking payment for work on the $6.8 billion Karbala Refinery Project, commissioned by Iraq's state-owned State Company for Oil Projects (SCOP). Company materials provided to Rep. Lee Jae-gang of the ruling Democratic Party of Korea showed the construction of a refinery capable of processing 140,000 barrels of crude oil per day was delayed by factors including Iraq’s internal conflict and the COVID-19 pandemic. The companies handed over the refinery's facilities to the Iraqi side in December 2023. However, SCOP has withheld payments, citing outstanding defects and missing tax-related docume

Assembly audit must reveal those responsible for leveraged ETF fiasco

Seoul stocks have been tanking since mid-June, when the bullish market took a sharp turn as investors rushed to dump shares of Samsung Electronics and SK hynix amid growing concerns over the sustainability of Big Tech companies’ unprecedented investments in artificial intelligence (AI). After surging to as high as 9,385.59 points on June 19, the benchmark KOSPI tumbled to as low as 5,262.77 points on July 29. Although some market correction was inevitable following KOSPI’s unprecedented rally, driven by the two Korean chip giants amid the global AI investment boom over the past year, single-stock leveraged exchange-traded funds (ETFs) tied to the two companies have been widely blamed for amplifying market volatility. Unlike conventional leveraged ETFs, which track broader indexes such as the KOSPI 200 or the S&P 500, the controversial products, launched on May 27, provide leveraged exposure to individual stocks, allowing investors to gain or lose twice the daily return of the underlying shares. Fueled by the AI-driven chip rally, the products rapidly gained popularity among investor

Land minister, Seoul mayor clash over proposed public housing at Yongsan Park

The Lee Jae Myung administration is at odds with the Seoul Metropolitan Government over the former's proposal to use part or all of Yongsan Park in central Seoul for public housing, showing the growing tension between efforts to increase housing supply and the preservation of urban green. Minister of Land, Infrastructure and Transport Kim Yun-duk told reporters on Friday that the government is considering using not only Yongsan Children's Garden but potentially the entire Yongsan Park site for housing development. "Yongsan Children's Garden is a narrow concept. We are considering the entire Yongsan Park," Kim said during a news conference marking his first year in office. He said the government has been examining various sites in Yongsan, including areas that may face environmental contamination and require negotiations with the U.S. military, adding the government would consider all possible options to increase housing supply. Kim then said any housing development at the park would require discussions with the National Assembly, the Seoul Metropolitan Government, Yongsan District and t

Stock market gains will ultimately flow into housing

President Lee Jae Myung’s high-profile pledge to divert liquidity from Seoul’s overheated housing market to the stock market seems to have worked as the main benchmark KOSPI has soared past 9,000 points in recent weeks, driven largely by massive retail buying. On top of several policy changes over the past year aimed at mitigating the “Korea discount,” the local equity market has received a much-needed boost from the semiconductor boom, fueled by the unprecedented memory chip demand from global tech firms for artificial intelligence. Shares of Samsung Electronics and SK hynix, which now account for nearly 60 percent of the country’s market capitalization, have soared to all-time highs since the beginning of the year. But some investors have become increasingly uneasy as to whether the semiconductor cycle may have peaked despite the rosy market outlook, while others have become nervous due to sharp market swings following the debut of single-stock leveraged exchange-traded funds tied to the two memory chip giants on May 27. Against such growing market volatility, many investors

Gov’t considers building more nuclear reactors to meet chip, AI power demand

The government should quickly review plans to build additional nuclear reactors to meet rapidly growing electricity demand from semiconductor manufacturing complexes and artificial intelligence (AI) data centers, Minister of Climate, Energy and Environment Kim Sung-hwan said Friday. Kim said the issue needs to be addressed as soon as possible because the government plans to finalize its 12th basic plan for long-term electricity supply and demand ahead of the regular parliamentary session later this year. "Semiconductor production requires a stable supply of electricity around the clock, making it similar to a baseload power source," Kim said in an interview with MBC Radio. "It will not be easy to meet the growing demand with renewable energy alone, so we need to promptly examine whether additional nuclear reactors should be built." Kim said the semiconductor clusters planned in Yongin, Gyeonggi Province, and the southwestern region of the country will require electricity equivalent to the output of about 15 nuclear reactors with a capacity of 1.4 gigawatts each. Regarding potential sites

PHOTO Hana supports young small business owners

Citi Korea marks 'Global Community Day' with corporate clients

Citi Korea held a volunteer activity with employees from key corporate clients at its headquarters in Seoul, Thursday, in celebration of "Global Community Day," the company said Friday. Through the creation of an upcycled collaborative artwork and art supply kits, the activity demonstrated a sustainable community engagement model that contributes to environmental protection and local community development. The event was made even more meaningful with the participation of employees from 14 major global companies that have grown alongside Citi over many years. These companies, which operate across diverse markets around the world, joined Citi Korea not only as financial partners but also as collaborators committed to fulfilling their social responsibilities and creating positive impact in the communities where they operate. Participants created a collaborative artwork on paper canvases made from discarded cardboard collected by older adults and assembled art supply kits. In particular, the activity carried special significance as it established a “resource circulation” model that suppo

Shinhan Securities hosts George Washington University Korean studies delegation

Shinhan Securities hosted a student delegation from George Washington University's Institute for Korean Studies, as part of an overseas study program aimed at deepening understanding of Korea’s capital markets and financial industry, the company said Sunday. The delegation visited Shinhan Securities’ headquarters in Seoul's financial district of Yeouido, Friday, during the university’s summer study abroad program, organized under the theme “Korea in the 21st Century: Past, Present, and Future in the Age of Globalization.” The program, running through May 30, includes 12 participants, including students majoring in Korean studies and faculty members interested in Korean society and economy. During the visit, participants attended lectures and briefings on the structure and characteristics of Korea’s capital markets, trends in digital financial innovation and the outlook for future growth industries including K-content, semiconductors and artificial intelligence. The delegation also met with Shinhan Securities employees for a question-and-answer session on the country’s finan

‘K-shaped’ rally leaves many investors behind

The ongoing stock market rally is supposed to be a source of excitement for investors. But for an office worker in his 50s surnamed Kim, the recent surge in stocks has brought more frustration than joy. The reason is very simple. He does not own shares in Samsung Electronics, SK hynix or other large-cap leaders that have powered the market in recent months. Instead, his portfolio is filled with small-cap stocks that have failed to participate in the bull market run. A bigger problem is that he is still clinging on to his holdings, hoping that someday, their prices will rise. But unfortunately, we all know such rebound never comes. “I could buy the leading stocks even now because I have cash,” Kim said. “But I’m afraid I would be buying at the top. I’d rather wait for a correction, even though I know the rally may not end soon.” He is one of hundreds of thousands of individual investors who have been sidelined by a “K-shaped” rally, in which a small group of dominant companies surge while the majority of stocks lag behind. The benchmark KOSPI index has been on a record-bre

Procurement agency supports resource recovery firms

The Public Procurement Service (PPS) is supporting nationwide efforts to develop resource recovery technologies to help secure a stable supply of raw materials, the state-run procurement agency said Friday. PPS Administrator Baek Seung-bo visited City Oil Field in Jeongeup, North Jeolla Province, Thursday, a company that specializes in producing petrochemical feedstock by decomposing waste plastics, to explore ways to expand sales channels and secure stable raw materials through public procurement. The visit was aimed at strengthening domestic alternative supply chains through waste resource recycling and supporting stable market access for innovative enterprises, especially as geopolitical instability in the Middle East increases the price volatility of imported raw materials. City Oil Field’s plant uses low-temperature pyrolysis to regenerate naphtha and refined oil from waste plastics. By reducing import dependency, the facility enhances production stability and eases the cost burdens for businesses amid global supply disruptions. PPS plans to provide active support to ensure that t