The Korea Times

MERS shockwave hits Korea Inc.

Acting Prime Minister Choi Kyung-hwan wipes sweat from his cheek while speaking to CEOs of small and medium-sized companies at the Plaza Hotel in downtown Seoul, Monday. He said the ongoing MERS crisis will have a negative impact on the nation’s economy, including reductions in spending and investment./ YonhapBy Lee Hyo-sikMiddle East Respiratory Syndrome (MERS) is sending shockwaves throughout many industries here, putting an additional burden on Korea’s already sagging economy.According to travel agencies, hotels, airlines and other hospitality-related businesses, Monday, the spread of the highly infectious flu-like virus is beginning to have adverse effects on business as people increasingly choose not to venture out.Retail sales have dropped over the past few weeks, while construction firms are increasingly having a hard time carrying out projects in the Middle East because employees are reluctant to fly to the region for fear of contracting the MERS virus.“An increasing number of Chinese and other foreign tourists, who purchased our tour packages, have decided

Jun 8, 2015By Lee Hyo-sik

Companies

Hyundai Motor takes anti-MERS measures

Hyundai Motor Vice Chairman Yoon Yeo-chul, right, checks out the carmaker’s plant in Ulsan, Monday. Korea’s largest automaker said it is taking all possible measures to prevent Middle East Respiratory Syndrome from affecting its employees. / Courtesy of Hyundai MotorBy Lee Hyo-sikHyundai Motor Group said Monday it is taking all possible measures to prevent the Middle East Respiratory Syndrome (MERS) virus from affecting its employees.Chairman Chung Mong-koo presided over an emergency meeting at the company’s headquarters in southern Seoul, in which he ordered heads of group affiliates to institute all possible measures against the disease.Following the meeting, Hyundai Motor Vice Chairman Yoon Yeo-chul went to the firm’s plant in Ulsan to check on what the facility was doing to keep the virus at bay. Kia Motors CEO Park Han-woo also visited the carmaker’s main plant in Hwaseong, Gyeonggi Province.“Thousands of employees work at each of our plants. If a single worker gets infected with the MERS virus, he or she could easily spread it to others,&rdqu

Jun 8, 2015By Lee Hyo-sik

Companies

Online duty free shops slapped with fines

By Lee Hyo-sikThe Fair Trade Commission (FTC) has fined the operators of 10 online duty free shops a combined 33 million won ($30,000) for deceiving consumers with false advertisements and refusing to provide refunds, the watchdog said Sunday.The anti-trust agency also ordered the companies to end these malpractices.Those fined include CyberSky, Korean Air’s online duty free shop, Dongwha Duty Free, Lotte Duty Free, Busan Lotte Duty Free, Shilla Duty Free, Shinsegae Duty Free, Walkerhill Duty Free, Asiana Duty Free, Air Busan Duty Free and Jeju Duty Free. Each company was fined between 1 million won and 5 million won.“We believe our latest action will help improve consumer rights by encouraging online duty free shops to provide shoppers with accurate information,” an official said. “Retailers will also become more willing to give a refund. We will continue to monitor online duty free retailers to ensure that they abide by laws and respect consumer rights.”Dongwha Duty Free and five other duty free websites were found to have carried a notice suggesting t

Jun 7, 2015By Lee Hyo-sik

Companies

Companies vulnerable to corporate raids

By Lee Hyo-sikOne in five affiliates of major conglomerates are vulnerable to corporate raids by foreign investors because controlling families and their affiliates hold smaller stakes than non-Korean shareholders.According to Chaebol.com, a corporate research information provider, Sunday, 16 out of 96 listed firms affiliated with Korea’s top 10 business groups face the risk of being taken over by foreign corporate raiders.Foreigners hold greater combined stakes in 16 companies than controlling families and other friendly equity holders.By group, six of Samsung Group’s 18 units are exposed to a possible hostile takeover by foreign shareholders, followed by three each at Hyundai Motor Group, SK Group and LG Group.Chaebol.com released the findings, several days after U.S. hedge fund Elliott Management said it acquired a 7.12 percent stake in Samsung Construction & Trade (C&T) and opposed the firm’s planned merger with Cheil Industries.The news has sent shockwaves across the corporate world in Korea as Samsung Group will likely face a hard time integrating the

Jun 7, 2015By Lee Hyo-sik

Companies

Elliott buys major stake in Samsung C&T

US fund’s opposition to merger aimed at maximizing gainsBy Lee Hyo-sikThe U.S. hedge fund that recently acquired a 7.12 percent stake in Samsung Construction & Trade (C&T) says it opposes the firm’s planned merger with Cheil Industries.Elliott Management said the merger is not in the best interests of Samsung C&T shareholders, adding that it will voice its opinions to influence company management.Most analysts here say Elliott’s surprise move is largely designed to drive up the Samsung C&T share price so it can realize a huge capital gain later.This tactic has been used by several Western investment funds such as Sovereign and Hermes, which acquired a large chunk of shares in Korean companies with weak corporate governance to make short-term capital gains.According Elliott’s PR agency here, the fund spent 706.5 billion won to acquire the 7.12 percent stake in Samsung C&T, or 63,500 won a share.The hedge fund was founded in 1977 and manages about $26 billion. It filed a disclosure report with the Financial Supervisory Service stating that it

Jun 4, 2015By Lee Hyo-sik

Companies

Airlines put on high alert

Asiana Airlines workers sterilize seats, overhead bins and the floor of an aircraft at Incheon International Airport, Thursday. The carrier will conduct sterilization work on all 74 of its airplanes in an effort to prevent the spread of Middle East Respiratory Syndrome. / YonhapBy Lee Hyo-sikKorean Air, Asiana Airlines and other carriers are on high alert over the outbreak of Middle East Respiratory Syndrome (MERS) here, taking all possible steps to quell growing safety concerns among air travelers.They are worried that the highly infectious flu-like virus might reduce travel demand during the coming summer holiday season, saying some Korean and non-Korean passengers are beginning to cancel flights.Korean Air said Thursday that it is preventing passengers showing MERS symptoms, such as a high fever, from boarding its planes. The country’s largest carrier is the only airline flying to the Middle East. It operates non-stop routes to Dubai and Riyadh.“We are screening all passengers at the gates before they board planes,” a Korean Air spokesman said. “If a passen

Jun 4, 2015By Lee Hyo-sik

Companies

Coupang attracts $1 bil. investment from Softbank

By Lee Hyo-sikCoupang, Korea’s leading e-commerce site, has attracted a $1 billion investment from Softbank, Japan’s largest telecommunications and Internet company.The company said Wednesday that it will spend the money on building more logistics centers and hiring more workers to expand its delivery services.It said the latest investment attraction will help the company compete more effectively with Amazon, Alibaba and other multinational online firms.In May last year, Coupang received a $100 million investment from U.S.-based Sequia Capital. In November, BlackRock also decided to inject $300 million into the company.“We are extremely glad that Softbank, which is widely known as a long-term investor, decided to invest in us. This will further enhance our financial health,” Coupang CEO Kim Bom said. “Coupang will take advantage of the Japanese company’s global network and expertise in a wide range of sectors. Softbank will help us grow rapidly.”The company plans to expand its logistics centers to 16 and boost its own delivery system to incre

Jun 3, 2015By Lee Hyo-sik

Companies

Microsoft Korea CEO moves to GM Korea

By Lee Hyo-sikJames KimJames Kim, CEO of Microsoft Korea, will move to GM Korea on June 15 to work as chief operating officer (COO) for the struggling automaker, the company said Wednesday.Kim will be responsible for overseeing the operations of the local unit of U.S. automotive giant General Motors (GM), including production, quality control, sourcing and labor relations.He will report to GM Korea CEO and Chairman Sergio Rocha, whose three-year term ended in February. But the Brazil-born CEO asked the U.S. headquarters to let him stay longer.Kim, who is also chairman of the American Chamber of Commerce in Korea (AMCHAM Korea), has been leading Microsoft Korea since 2009. Previously, he served as CEO of Yahoo Korea.He has a bachelor’s degree in economics from the University of California at Los Angeles and a master of business administration from Harvard University.“Kim has an outstanding track record as a leader in technology, consulting, manufacturing and telecommunications companies in Korea and the United States,” said Rocha. “He will focus on the operatio

Jun 3, 2015By Lee Hyo-sik

People & Events

KGCCI elects new chairman

Kim Young-jinBy Lee Hyo-sikThe Korean German Chamber of Commerce and Industry (KGCCI) has elected Handok CEO Kim Young-jin as its new chairman.The board of the association representing the interests of German companies operating in Korea held a meeting Wednesday and chose the head of the pharmaceutical company as its top ranking official.Kim, who has been promoting business ties between Korea and Germany for years, is also the chairman of the Korean German Society.He is taking over the post from Nara Holding Chairman Cho Hae-hyeong, who served as the KGCCI chairman from 2010.“The KGCCI is grateful for Chairman Kim’s commitment and is looking forward to further promote economic exchange and cooperation between Korea and Germany under his leadership,” KGCCI Secretary General Barbara Zollmann said.On April 30, KGCCI also chose Stefan Halusa, CEO of Brose Korea, as its new president, who succeeds Thomas Geyer, CEO of Vector Korea.KGCCI has been fostering economic relations between Germany and Korea since its founding in 1981. With around 500 members from diverse industr

Jun 3, 2015By Lee Hyo-sik

Companies

Hyundai Heavy pledges to stop manpower cuts

By Lee Hyo-sikHHI CEO Kwon Oh-gapHyundai Heavy Industries (HHI) will stop dismissing employees through voluntary retirement plans and pay each of their workers a special bonus of 1 million won ($910), the company CEO said Monday.In a statement addressed to employees, HHI CEO Kwon Oh-gap, who took over in September, said that Korea’s largest shipbuilder will no longer introduce voluntary retirement programs.He said that now is the time for all employees to join together to overcome the current difficulties.“The campaign to overhaul our corporate structure is close to the end. Our efforts to reduce costs have paid off,” Kwon said. “I believe that all employees now understand where our company stands and are willing to work together. To gather our strength, the company has decided to end the ‘artificial’ manpower restructuring.”In January, about 1,500 senior manager-level workers left Hyundai Heavy, and two months later about 150 female employees, who were on a payroll for more than 15 years, quit through a voluntary retirement plan.The CEO said

Jun 1, 2015By Lee Hyo-sik

Lee Hyo-sik

Read more

MERS shockwave hits Korea Inc.

Hyundai Motor takes anti-MERS measures

Online duty free shops slapped with fines

Companies vulnerable to corporate raids

Elliott buys major stake in Samsung C&T

Airlines put on high alert

Coupang attracts $1 bil. investment from Softbank

Microsoft Korea CEO moves to GM Korea

KGCCI elects new chairman

Hyundai Heavy pledges to stop manpower cuts

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