The Korea Times

Korea to inspect Volkswagen vehicles

Volkswagen Korea CEOThomas KuehlBy Lee Hyo-sikThe Korean government will inspect diesel-powered Volkswagen and Audi vehicles sold here to check if the cars comply with emission standards.If the German automakers are found to have manipulated the amount of exhaust emissions to pass the state test, as they did in the United States, this could tarnish the carmakers’ image here and hurt sales.The move comes three days after the U.S. government ordered Volkswagen and Audi to recall nearly 500,000 diesel-powered vehicles sold in the world’s largest automobile market.Last Friday, Volkswagen admitted it installed a controversial software program in its Jetta, Beetle, Passat and Golf cars, all produced between 2009 and 2015. Audi A3 vehicles were also found to have the software that enables the cars to detect when they undergo smog emission tests and lower exhaust emissions. The emission controls are then turned off during ordinary driving.The U.S. Environmental Protection Agency said the software deceived regulators measuring toxic emissions, adding that Volkswagen could face an

Sep 22, 2015By Lee Hyo-sik

Companies

Atlas Copco to nurture Korea into Asian hub

By Lee Hyo-sikRonnie LetenAtlas Copco CEOAtlas Copco, the world’s leading industrial equipment maker, will foster Korea as its business hub in Asia by expanding investment and hiring more workers here, the company CEO said Monday.Atlas Copco CEO Ronnie Leten also told reporters that the 142-year-old Swedish firm will acquire local companies to increase the size of its Korean operations to 1 trillion won by 2020. The company manufactures compressors and other industrial tools, as well as mining and construction equipment.“We have achieved enormous success in Korea since 1981. We now employ over 1,100 people here,” Leten said. “The Korean market is very important for us. It is the seventh largest among 90 markets where our offices are located. Korea is the second-largest in Asia after China.”The CEO said Atlas Copco will continue to strengthen its partnerships with local partners, pledging to increase the sale to 1 trillion won in 2020 from this year’s estimated 650 billion won.“We will foster Atlas Copco Korea as our Asian hub because Korea is

Sep 21, 2015By Lee Hyo-sik

Atlas Copco to nurture Korea into Asian hub

Companies

Hyundai Heavy union plans campaign against Chung

By Lee Hyo-sikThe union at Hyundai Heavy Industries (HHI) faces a backlash for its plan to stage an anti-election campaign against the shipbuilder’s majority stakeholder, Chung Mong-joon, who is running to become the next FIFA president.HHI unionized workers have threatened to organize a rally against the former FIFA vice president, who holds a 10.15 percent stake in the world’s largest shipbuilder, in Switzerland where the election will be held in October.The move is seen as one of the most controversial steps ever taken by the union to press management to accept its demands.The union is demanding that management increase workers’ base salary by 127,560 won, or 6.77 percent, and pay a 250 percent annual performance bonus, among others.However, management is asking the union to accept a wage freeze, given the shipbuilder’s recent dismal performance. In 2014, Hyundai Heavy posted a 3.25 trillion won operating loss, the largest in its history. In the second quarter, it lost 171 billion won.HHI officials and industry watchers are chiding the union, saying this is

Sep 21, 2015By Lee Hyo-sik

Companies

Foreign firms rushing to set up in Foodpolis

President Park Geun-hye, center, participates in a groundbreaking ceremony for the Korea National Food Cluster in Iksan, North Jeolla Province, on Nov. 24, 2014. Agriculture Minister Lee Dong-phil, fourth from right, and Hampton Grains CEO John Kwak, fourth from left, also attended the ceremony. Hampton Grains plans to build grain processing facilities inside the cluster.By Lee Hyo-sikGlobal food companies have been paying a great deal of attention to the Korea National Food Cluster, named Foodpolis, as their strategic base in Asia.Fifty-two foreign firms have already signed an agreement with Foodpolis authorities to set up a presence in the cluster, attracted to its geographical proximity to key markets, advanced research and development (R&D) and information technology infrastructure, skilled manpower, attractive business incentives and other advantages.When completed by 2016, the cluster is expected to host at least 150 Korean and non-Korean companies. Ten research centers will operate in the state-administered food industry cluster in Korea’s southwestern region, churni

Sep 20, 2015By Lee Hyo-sik

Companies

Baek nominated for KT&G CEO

Baek Bok-in, KT&G CEO nomineeBy Lee Hyo-sikKT&G, Korea’s largest cigarette maker, said Friday that it nominated its vice president, Baek Bok-in, as its new CEO.According to the company, an ad-hoc committee set up to select the new head chose Baek, who has been overseeing the cigarette producer’s production, along with its research and development (R&D), as its new CEO, replacing former chief Min Young-jin.In July, Min resigned following a prosecution probe into allegations that he created a slush fund amounting to billions of won.The committee has notified the board of directors of its decision and KT&G will hold an extraordinary shareholders’ meeting in early October to approve Baek’s appointment.The 51-year-old, who began his career at the cigarette company in 1993, has served in various posts such as marketing, business strategy, production and R&D.Upon his nomination, Baek said, “I know I will feel a huge responsibility as CEO when the company is facing a host of challenges both internally and externally. I will do my best to

Sep 18, 2015By Lee Hyo-sik

Companies

KEPCO's operating profit to reach W9 tril. in 2015

By Lee Hyo-sikThe Korea Electric Power Corp. (KEPCO) is expected to post a record-high 9 trillion won ($7.7 billion) operating profit this year, mainly on low crude oil and other energy prices, Mirae Asset Securities said Friday.The securities firm said the state-run power company’s shares should be trading around 72,000 won given its improving bottom line. In the second quarter, KEPCO’s operating profit soared 151.8 percent to 2.08 trillion won from the same quarter last year, with sales gaining 6.1 percent to 13.67 trillion won. In 2014, its operating profit was 1.03 trillion won.On Friday, KEPCO shares inched down 0.31 percent to 47,500 won from the previous day. The benchmark KOSPI rose 0.98 percent, or 19.46 points, to 1,995.95.“KEPCO hasn’t been able to reflect its record-high performance in its share price,” said Lee Hak-moo, an analyst at Mirae Asset Securities. “This is partly because many investors are concerned that the company may be forced to cut utility prices if it posts large profits.”Lee expected the utility company to have 1

Sep 18, 2015By Lee Hyo-sik

KEPCO's operating profit to reach W9 tril. in 2015

Companies

Foreign firms urged to hire more young people

Vice Employment and Labor Minister Koh Young-sun speaks during a policy presentation for CEOs and executives of foreign companies at the Plaza Hotel, downtown Seoul, Friday. Koh called on foreign businesses to hire more young people and help them find jobs abroad. / Yonhap CEOs complain about high wages, militant unions By Lee Hyo-sikThe government has turned to foreign companies operating in the country as part of its ongoing labor reform campaign, calling on them to hire more university graduates to help alleviate the deteriorating job market conditions for young people.However, non-Korean businesses say it has become more difficult to expand their workforce, citing surging labor costs. Higher labor costs have emerged as a key factor undermining the competitiveness of Korea Inc., they said, urging policymakers to make the rigid labor market more flexible and stabilize labor-management relations.“The most important corporate social responsibility is to create jobs,” Koh Young-sun, vice minister of employment and labor, told about 200 CEOs an

Sep 18, 2015By Lee Hyo-sik

Foreign firms urged to hire more young people

Companies

K-Water builds hydroelectric dam in Georgia

Choi Gye-woon, center, CEO of Korea Water Resources Corp. (K-Water), talks with Prime Minister Irakli Garibashvili of Georgia, right, after a groundbreaking ceremony for a hydroelectric power plant on the Nenskra River, Wednesday. K-Water plans to complete construction of the $870 million water power plant by November 2020. / Courtesy of K-WaterBy Lee Hyo-sikThe Korea Water Resources Corp. (K-water) has started construction of a hydroelectric dam in Georgia, which is located between Western Asia and Eastern Europe.K-Water held a groundbreaking ceremony Wednesday for the $870 million hydroelectric power plant to be built on the Nenskra River in the northwestern part of the country.The company plans to complete construction by November 2020 and when it goes into operation, it will generate 280 megawatts of electricity. The amount is expected to meet the electric consumption needs of 580,000 people. All the power will be supplied to Georgia, which has been struggling with a shortage of electricity during winters.K-Water signed a build-operation-transfer contract with the Georgian govern

Sep 17, 2015By Lee Hyo-sik

People & Events

Lee to head global engineering body

Lee Jae-wan, chairman of the Korea Engineering & Consulting Association, speaks during a meeting organized by the International Federation of Consulting Engineers (FIDIC) at the Dubai World Trade Center in the United Arab Emirates, Tuesday. Lee became the first Asian to head FIDIC./ Courtesy of the Ministry of Trade, Industry and EnergyBy Lee Hyo-sikLee Jae-wan, chairman of the Korea Engineering & Consulting Association, was appointed to head global engineering body FIDIC, according to the Ministry of Trade, Industry and Energy, Thursday.He was elected chairman of the International Federation of Consulting Engineers (FIDIC), the first Asian to hold the position, during a meeting at the Dubai World Trade Center in the United Arab Emirates, Tuesday, raising Korea’s profile in the global consulting engineering industry.Lee will serve as FIDIC chairman for two years through September 2017. Founded in 1913, the association is charged with promoting and implementing the consulting engineering industry’s goals on behalf of its member associations. It also disse

Sep 17, 2015By Lee Hyo-sik

Companies

OCI opens 1st solar power plant in China

OCI CEO Lee Woo-hyun, center, and other company officials check solar panels installed on the roof of CMAG, a Chinese electronics firm, in Zhejiang Province, China, Monday. / Courtesy of OCIBy Lee Hyo-sikOCI, the world’s largest polysilicon producer, has opened its first solar power generation plant in China, establishing a presence in the world’s largest solar power market. Polysilicon is the key component of a solar panel.The company said Wednesday that it held an opening ceremony for its first solar power plant in Jiaxing, Zhejiang Province, a day earlier. OCI CEO Lee Woo-hyun said the firm will expand its business in the world’s second-largest economy by building more solar power plants.“We will use the latest facility as a springboard to establish a large foothold in China,” Lee said. “We will set up a holding company here to more effectively raise funds and oversee our China operations.”The company invested $3.35 million to install hundreds of solar panels on the rooftops of two Chinese electronics companies: CMAG and Super Li

Sep 16, 2015By Lee Hyo-sik

Lee Hyo-sik

Read more

Korea to inspect Volkswagen vehicles

Atlas Copco to nurture Korea into Asian hub

Hyundai Heavy union plans campaign against Chung

Foreign firms rushing to set up in Foodpolis

Baek nominated for KT&G CEO

KEPCO's operating profit to reach W9 tril. in 2015

Foreign firms urged to hire more young people

K-Water builds hydroelectric dam in Georgia

Lee to head global engineering body

OCI opens 1st solar power plant in China

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