The Korea Times

Institutional investors buy planes to lease

By Lee Hyo-sikAirplane leasing has emerged as an attractive investment option for intuitional investors such as pension funds and insurers, who sit on the huge cash reserves, amid the continued low interest rate, according to financial industry analysts, Thursday.To realize higher returns, more investors are showing interest in purchasing planes from Boeing or Airbus and leasing them to airlines rather than putting money into treasuries or corporate bonds.Leasing airplanes is also said to be safer than to invest in stocks and real estate properties as carriers pay 6 to 8 percent of the airplane value as rent annually unless they go bankrupt.The investors also can dispose of planes at decent prices when they need to retrieve money.On Aug. 28, KDB Daewoo Securities bought a Boeing 777-300ER from Emirates Airlines for $65 million and leased it back to the Middle East carrier. The airline pays rent for using the plane.In June, KDB Daewoo and other local institutional investors signed a $92 million airplane lease contract with DHL under which the investors bought the Boeing 777-200LRF pla

Sep 4, 2015By Lee Hyo-sik

Companies

Can shipbuilders afford strike?

By Lee Hyo-sikUnions at Korea’s three largest shipbuilders are threatening to strike at a time when the companies are struggling to stay afloat amid the worldwide industry slump.They are demanding a raise and improved working conditions, adding that unless their demands are met they will begin a strike on Sept. 9.However, industry analysts are chiding the unions, saying this is not the time for workers to stage a walkout when their companies are losing huge amounts of money on falling orders and unprofitable projects.They say unionized workers should refrain from making “excessive” demands and instead work together with management to overcome the current difficulties.The Coalition of Shipbuilders’ Labor Unions, which was founded in May, held a press conference Wednesday pledging to go on a strike on Sept. 9 unless shipbuilders accept their demands.Its representatives said the unions have taken the necessary steps to begin a strike, urging management to increase their base salaries by about 120,000 won ($100) a month.However, company officials are expressing co

Sep 3, 2015By Lee Hyo-sik

Companies

Korea-China free trade to gain momentum

President Park Geun-hye and Chinese President Xi Jinping, left, hold summit talks at Beijing’s Great Hall of the People Wednesday, to discuss ways to advance bilateral relations and deal with North Korea. / YonhapBeijing asked to make it easier for Korean firms to expand investmentBy Lee Hyo-sikPresident Park Geun-hye, accompanied by the largest-ever business delegation during her three-day state visit to China, discussed a wide range of business issues with Chinese leaders and agreed to boost economic cooperation, Wednesday.Among others, they have agreed to have the Korea-China Free Trade Agreement (FTA) go into effect as quickly as possible to increase bilateral trade and cross-border investment.In a meeting with Chinese Prime Minister Li Keqiang, who oversees the economic policies of the world’s second-largest economy, on Wednesday afternoon, the two agreed to finalize the Korea-China FTA in the near future and lower trade barriers so that Korean companies can do business more freely in China and vice versa.Park’s visit comes at a time when Korea’s exports

Sep 2, 2015By Lee Hyo-sik

Park, Xi agree to deter NK provocations

Companies

What's behind GM's stellar performance?

Impala sedan of GM KoreaBy Lee Hyo-sikGM Korea, which used to be sandwiched between Hyundai-Kia and imported car brands, has been exceeding market expectations lately on the brisk sales of its Chevrolet vehicles.Claiming more than a 10 percent market share has been a difficult task for the Korean unit of U.S. auto giant General Motors. But, thanks to the popularity of the New Spark mini car and other newly launched vehicles, the automaker is getting closer to achieving that long-sought goal, according to company officials.They say GM vehicles have begun attracting a great deal of attention from consumers for their high product quality and affordable prices, adding that its effective marketing helped spark consumer interest.In August, the automaker sold 13,844 vehicles, up 16 percent from the previous year. It was the largest sales figure for August since the company was founded in October 2002.“All of our Chevrolet brands were sold more than a year earlier,” a GM Korea spokesman said. “In particular, we sold 6,987 New Spark mini cars last month, 53.5 percent more th

Sep 2, 2015By Lee Hyo-sik

Companies

KRC to build agriculture training center for developing nations

Lee Sang-mu, CEO of the Korea Rural Community Corp. (KRC), speaks during a groundbreaking ceremony for the Rural Community-International Education Exchange Center (RC-IEEC) in Ansan, Gyeonggi Province, Tuesday. KRC plans to open the agriculture education center, which will train government officials from 50 developing countries. / Courtesy of KRCBy Lee Hyo-sikThe Korea Rural Community Corp. (KRC) will build a large-scale agriculture education center to train government officials from developing countries, spearheading Korea’s efforts to spread its knowhow in agriculture across the globe, the company said Tuesday.The state-run rural development agency said the center will educate as many as 3,000 foreign trainees annually, and offer more than 50 different academic and field training programs on farming and agriculture-related infrastructure development.The company said it plans to complete the construction by the end of 2016 and start running the facility in January 2017.The KRC held a groundbreaking ceremony for the Rural Community-International Education Exchange Center (RC-IE

Sep 1, 2015By Lee Hyo-sik

Companies

Hyundai, Kia offer deep discounts in China

By Lee Hyo-sikHyundai Motor and Kia Motors have begun offering deep discounts on sports utility vehicles (SUVs) and other cars by as much as 40 percent in order to prop up their sagging sales in China.The discount campaign is also designed to exhaust inventories of older models ahead of the launch of new ones in the world’s second-largest automobile market.The two automakers have seen their sales plunge this year amid intensifying competition from China’s homegrown brands. Volkswagen and other global carmakers have slashed prices of their popular vehicles, stealing customers from Hyundai and Kia.According to Hyundai Motor Group Monday, it has lowered prices of Hyundai’s Tucson SUV and other models, which will soon be replaced by new ones.Chinese dealers selling the Tucson ix35 reportedly offer as much as a 40 percent discount, or 15 million won ($13,000), ahead of the release of the All New Tucson in early September. The dealers are also providing buyers with additional gifts, worth 1.45 million, to dispose of their inventories.Dealers for Kia Motors have also lower

Aug 31, 2015By Lee Hyo-sik

Companies

KGCCI stresses innovation in business

Korean-German Chamber of Commerce and Industry (KGCCI) president Stefan Halusa, sixth from left, poses with Siemens Energy Solutions CEO Rochus Bergmann, third from right, and other participants at the seminar. / Courtesy of KGCCIBy Lee Hyo-sikMore than 100 German and Korean business leaders are concerned, but have expressed cautious optimism about Korea’s economic outlook in the second half of the year and beyond.They warned that Korea faced a host of downside risks at home and abroad, such as China’s slowing economy.The leaders said Asia’s fourth-largest economy should work to boost sluggish domestic demand and invest more in the energy sector, adding that construction companies should be more aggressive in entering rapidly industrializing Asian economies.Speaking at a Korean-German Chamber of Commerce and Industry (KGCCI) seminar last Thursday, participants said Korea’s exports grew slowly during the first half, which slowed GDP growth.The slowdown in China, the biggest consumer of Korean exports, had also caused the KOSPI to retreat to a two-year

Aug 30, 2015By Lee Hyo-sik

Companies

New Weolseong No. 2 reactor starts operation

No. 2 nuclear reactor at the new Weolseong Nuclear Power Plant in Gyeongju, NorthGyeongsang ProvinceBy Lee Hyo-sikThe second reactor at the new Weolseong nuclear power plant in Gyeongju, 370 kilometers southeast of Seoul, has successfully been in commercial operation since July 24, helping power authorities meet increased demand for electricity during the summer.Korea Hydro & Nuclear Power (KHNP), which operates the power plant, said Sunday that the No. 2 reactor, capable of generating 7.9 billion kilowatts of electricity annually, has performed without a glitch over the past month, proving the safety and operational reliability of Korea’s nuclear reactors.“It took nearly ten years to build and begin commercially operating the second New Weolseong reactor,” a KHNP official said. “We conducted a successful test run from November last year to July. The reactor passed all the required tests.”With the second new Weolseong reactor in operation, Korea now has a total of 24 reactors, which were built along its coastlines, making KHNP the world’s third

Aug 30, 2015By Lee Hyo-sik

New Weolseong No. 2 reactor starts operation

Companies

Creditors fail to agree on Kumho sales price

By Lee Hyo-sikThe state-run Korea Development Bank (KDB) and other creditors have failed to reach a consensus on what price to dispose of their 57.5 percent stake in Kumho Industrial, the holding company of Kumho Asiana Group.Representatives from KDB and other 21 creditors held a meeting Thursday to narrow their differences on the matter but failed to do so, according to the state-run bank.Mirae Asset and other financial investors reportedly insisted on getting 1.02 trillion won ($833 million) for the stakes, or 59,000 won per share, including a premium for management rights and the firm's stakes in other group affiliates.However, commercial banks sought to lower the sales price to facilitate the stake sales as Kumho Group Chairman Park Sam-koo has remained adamant that he cannot pay more than 650.3 billion won for the stakes, or 37,564 won per share.“Creditors gathered at the KDB headquarters in Yeouido on Thursday to hammer out an agreement on the sales price of Kumho Industrial,” said an official familiar with the matter. “But creditors decided to take more time

Aug 27, 2015By Lee Hyo-sik

Companies

Ferrari, Harley-Davidson, Volvo ordered to recall for defects

By Lee Hyo-sikVolvo’s FH trucksFerrari's California T sports carHarley-Davidson's FLHX Street Glide motorcycleFerrari, Harley-Davidson and Volvo Trucks were ordered to recall their vehicles here because of various product defects, the Ministry of Land, Infrastructure and Transport said Thursday.FMK, which imports and sells high-priced Italian sports cars in Korea, has been ordered to call back a total of 27 vehicles because the driver-side airbags could explode at a wrong angle, which can harm those behind the steering wheel. FMK is Ferrari’s official dealer, affiliated with Hyosung Group.The vehicles to be recalled include 18 Ferrari California Ts, four Speciale 458s, and two Speciale A’s. The cars were all manufactured between March 10 and June 19, the ministry said.FMK is also calling back two LaFerrari sports cars, assembled between March 15, 2014 and March 4, 2015, because they did not meet auto safety regulations for faulty head restraints.“The defect could cause an injury at the time of accidents,” a ministry official said. “They were also f

Aug 27, 2015By Lee Hyo-sik

Lee Hyo-sik

Read more

Institutional investors buy planes to lease

Can shipbuilders afford strike?

Korea-China free trade to gain momentum

What's behind GM's stellar performance?

KRC to build agriculture training center for developing nations

Hyundai, Kia offer deep discounts in China

KGCCI stresses innovation in business

New Weolseong No. 2 reactor starts operation

Creditors fail to agree on Kumho sales price

Ferrari, Harley-Davidson, Volvo ordered to recall for defects

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