The Korea Times

'Please, conduct business as usual'

By Lee Hyo-sikThe Federation of Korean Industries (FKI) and other business associations are calling on member companies to carry on with business as usual to help alleviate the adverse impact on the economy from Middle East Respiratory Syndrome (MERS).FKI, a lobby that largely represents the interests of the country’s family controlled conglomerates, said Monday that it sent a notice to its 600 members asking them to run business activities while taking necessary precautions against the highly infectious, flu-like virus.“To minimize negative effects of the MERS outbreak on the economy, we are asking our member firms to hold meetings, send employees abroad and conduct other activities as usual,” a FKI spokesman said. “Of course, we are encouraging companies to take all possible measures to prevent the spread of the MERS virus at their workplaces.”Unlike many organizations that have canceled planned events over MERS fears, FKI plans to hold its scheduled gatherings at home and abroad.For instance, it sent a business delegation to the United States las

Jun 15, 2015By Lee Hyo-sik

Companies

Kumho chairman's control of Asiana Airlines validated

By Lee Hyo-sikKumho Asiana Group Chairman Park Sam-koo will continue as CEO of Asiana Airlines as the court has ruled his appointment legally valid.The latest ruling deals a blow to his younger brother and Kumho Petrochemical Group Chairman Chan-koo who has been trying to strip the elder Park of his influence over the country’s second-largest flagship carrier.Seoul Southern District Court ruled Monday that the decision by Asiana Airlines shareholders in March 2014 to appoint Sam-koo as its co-CEO was legitimate, dismissing a suit filed by Kumho Petrochemical.Following last year’s shareholder’s meeting, the chemical company filed a complaint against the carrier, insisting the latter’s decision-making process was flawed, meaning Sam-koo’s appointment was invalid.Shareholders, led by Kumho Industrial which holds a 30.1 percent stake in Asiana Airlines, elected Kumho Group Chairman as co-CEO along with Kim Soo-cheon.However, Kumho Petrochemical, the second-largest stakeholder with 12.61 percent, opposed the appointment. It argued that the carrier did not pro

Jun 15, 2015By Lee Hyo-sik

Companies

Harim acquires Pan Ocean

By Lee Hyo-sikHarim, the country’s largest poultry breeder and animal feed maker, said Friday that it will acquire a 58 percent stake in mid-sized shipping firm Pan Ocean for 1 trillion won ($910 million). Shareholders and creditors of the shipping company agreed to a capital write-down and other restructuring programs.In April, Harim submitted a rehabilitation plan for Pan Ocean to the Seoul Central District Court, saying it will buy the troubled shipping firm only if the latter’s shareholders and creditors accept financial losses.The plan calls for the 1.25-to-1 stock reduction, while requiring Korean Development Bank and other creditors to recoup only 82 percent of their loans extended to Pan Ocean.For instance, a shareholder who currently has 250 Pan Ocean shares will see his stakes drop to 200 after the capital reduction.Harim held a meeting of Pan Ocean shareholders and creditors at the court on Friday and put its rehabilitation scheme to a vote. The company has to gain consent from more than half of Pan Ocean stakeholders and two-thirds of creditors.At the meeting,

Jun 12, 2015By Lee Hyo-sik

Companies

Will KCC show midas touch again?

By Lee Hyo-sikKCC CEO Chung Mong-jinKCC’s decision to buy Samsung C&T’s treasury shares is attracting keen attention from analysts and investors as to whether Korea’s largest construction materials firm can reap financial gains from the transaction.Most analysts say that given KCC’s record, chances are the company will likely make money from getting involved in an escalating conflict between Samsung C&T and Elliott Associates, a U.S.-based vulture fund that recently acquired a 7.12 percent stake in Samsung Group’s construction and trading unit.They also say the deal could enable KCC to supply more construction materials to one of Korea’s major builders.KCC Chairman and CEO Chung Mong-jin is known for having the midas touch for investment in corporate shares.On Wednesday, Samsung C&T sold its entire holdings of treasury shares to KCC, as part of its move to fight Elliott, which is seeking to prevent its merger with Cheil Industries. KCC bought all 8.99 million company-owned common shares, or 5.79 percent, for 674 billion won, or 75,000 w

Jun 12, 2015By Lee Hyo-sik

People & Events

GM promotes Stuart Norris to managing director for design

Stuart NorrisBy Lee Hyo-sikGM Korea said Thursday that it will promote senior designer Stuart Norris to managing director of its design center on July 1.Norris has been serving as the director of the carmaker’s advanced design team since August 2012, the local unit of U.S. automotive giant General Motors said, adding that he has been part of a team exploring future vehicles and technology for GM’s global brands.Norris has held several key posts in the global design operation since he began his automotive design career at GM in 2004, the automaker said.He first worked on interior design for the company’s mid-sized Hummer brand. In 2007, Norris was in charge of the human-machine interface for the Chevrolet Volt and Cadillac “CUE” systems.He also oversaw components and user interfaces design for a number of vehicles produced and sold under GM’s brands, including Buick, GMC and Opel.Before joining GM, Norris worked at Jaguar where he undertook a series of assignments drawing up interior and exterior designs for the brand’s vehicles.He received a

Jun 11, 2015By Lee Hyo-sik

GM promotes Stuart Norris to managing director for design

Companies

Daewoo Int'l CEO refuses to step down

By Lee Hyo-sik Daewoo International CEO Jeon Byeong-eal has rejected POSCO’s call to step down, insisting that he has a mandate to complete ongoing corporate restructuring.Jeon said he will remain in office until he successfully normalizes the operations of POSCO’s trading and natural resource development unit.His remarks have dealt a blow to POSCO Chairman Kwon Oh-joon who has been trying to get rid of him.According to POSCO, Daewoo International and other industry sources Thursday, Jeon sent an email to Daewoo’s outside directors a day earlier, saying that he will not quit any time soon.In the message, the CEO said he plans to remain in charge until Daewoo completes restructuring and normalizes its operations, adding that he will only then consider leaving the company.“It has been confirmed that the Daewoo CEO sent the message to company’s outside directors, telling them what he wants to do,” said an industry official who declined to be named. “At first, POSCO wanted Jeon to quit immediately for publically opposing its plan to dispose

Jun 11, 2015By Lee Hyo-sik

Companies

POSCO to dismiss Daewoo International CEO

By Lee Hyo-sikKwon Oh-joonPOSCO chairmanJeon Byeong-ealDaewoo Int’l CEOPOSCO has decided to dismiss Daewoo International CEO Jeon Byeong-eal for openly disapproving of its plan to dispose of Daewoo’s stake in a Myanmar natural gas project, officials familiar with the matter said Wednesday.The world’s fourth-largest steelmaker is expected to accept the resignation tendered by Jeon on May 14. Jeon and 31 other heads of POSCO affiliates turned in resignations to Chairman Kwon Oh-joon to show their willingness to transform their companies into more efficiently-managed and profitable entities.“The Daewoo CEO, who has been in the post since March 2012, will soon be replaced,” said an official familiar with the matter, who declined to be named. “It is hard to officially say why POSCO decided to dismiss him. But what I can say is that POSCO is unhappy with how Jeon has behaved concerning the sale of the Myanmar natural gas stake.”POSCO holds a 60.31 percent stake in Korea’s largest trading firm, which has successfully been producing natural gas

Jun 10, 2015By Lee Hyo-sik

POSCO to dismiss Daewoo International CEO

Companies

Kumho Tire wins design awards in US

By Lee Hyo-sikThree products from Kumho Tire, Korea’s leading tire maker, have won prestigious design awards in the United States.At the Green Good Design Award 2015, the company’s three tires for eco-friendly and electric vehicles received main prizes. They are the ecowing S, ecowing ES01 and Wattrun VA31.The Chicago Athenaeum: Museum of Architecture and Design organizes the event annually and awards a wide range of industrial goods for their environment-friendly designs.“The three products are the fruit of our strenuous efforts to produce environment-friendly and fuel-efficient tires over the years,” a Kumho Tire official said. “We will continue to hone our expertise in manufacturing the state-of-the-art products and spare no efforts to secure global competitiveness.”The company said the ecowing S and ecowing ES01 are eco-friendly tires designed to help vehicles cut fuel consumption, reduce running noise and minimize tire wear.The Wattrun VA31 was the first tire developed exclusively for electric vehicles in Korea. It won several design awards la

Jun 10, 2015By Lee Hyo-sik

Companies

POSCO named world's most competitive steelmaker

By Lee Hyo-sikPOSCO, the world’s fourth-largest steelmaker by production, announced Tuesday that it topped the global competitiveness list in 2015 for the sixth consecutive year on the back of its technological innovations and talented workforce.World Steel Dynamics, one of the world’s steel industry research institutes, held a meeting in New York, Tuesday, and announced the World-Class Steelmaker Rankings, POSCO said. The organization evaluated 36 steelmakers around the world in 23 categories, including production volume, technical innovation, profitability and financial soundness.POSCO received 7.91 points out of 10, the highest among the 36, maintaining its No. 1 position which it first garnered in 2010. The company excelled in the production and sale of premium steel products and the provision of solution marketing. POSCO was also highly rated for its technological innovation and talented manpower.The U.S. steelmaker Nucor came in second with 7.55 points, followed by Nippon Steel & Sumitomo Metal Corp. at 7.49 points, Gerdau at 7.34 points and Severstal at 7.31 po

Jun 9, 2015By Lee Hyo-sik

Companies

Gov't urged to make tax codes biz-friendly

By Lee Hyo-sikThe Korea Chamber of Commerce and Industry (KCCI) has called on the government to make the tax codes friendlier to businesses when it comes to expansion of investment and hiring.The association, which advocates the interests of more than 140,000 small and large businesses, said Tuesday that policymakers should ease the tax burden on companies engaging in mergers and acquisitions (M&As) abroad.The KCCI also wants the government to offer larger tax breaks to businesses that increase outbound shipments, expand research activities and spend more on social welfare programs.Around this time of the year, the association makes dozens of proposals to the Ministry of Strategy and Finance before the latter announces a set of changes to the country’s tax codes. The move is aimed at influencing the ministry to make the tax rules more business-friendly.“The business circle wants the government to create a more corporate-friendly tax environment, encouraging businesses to invest more and hire more workers,” said Jeon Su-bong, head of the KCCI’s research div

Jun 9, 2015By Lee Hyo-sik

Lee Hyo-sik

Read more

'Please, conduct business as usual'

Kumho chairman's control of Asiana Airlines validated

Harim acquires Pan Ocean

Will KCC show midas touch again?

GM promotes Stuart Norris to managing director for design

Daewoo Int'l CEO refuses to step down

POSCO to dismiss Daewoo International CEO

Kumho Tire wins design awards in US

POSCO named world's most competitive steelmaker

Gov't urged to make tax codes biz-friendly

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