The Korea Times

Firms step up guard against crisis

By Lee Hyo-sik Lee Kun-heeSamsung Electronics chairmanChung Mong-kooHyundai Motor chairmanKoo Bon-mooLG Group chairmanKim Chang-geunSK Supex chairmanThe heads of Korea’s top four conglomerates are placing priority on exploring new markets, improving product quality and leading market trends this year in order to secure an edge in the increasingly competitive global marketplace.In a New Year message, Samsung Electronics Chairman Lee Kun-hee urged the country’s largest business group to make inroads into new foreign markets and nurture future growth engines in 2013, while Hyundai Motor Group Chairman Chung Mong-koo encouraged employees to enhance the firm’s brand image through the production of high-quality, next-generation vehicles.LG Group Chairman Koo Bon-moo stressed that his conglomerate should become a leader in electronics and other sectors by introducing innovative products and providing flawless customer services.Lee predicted Wednesday that the world economy will continue to grow at a slow rate in 2013, adding that his group will face a bumpy road

Jan 2, 2013By Lee Hyo-sik

Companies

FTC vows to tackle chaebol ownership

By Lee Hyo-sikFair Trade Commission (FTC) Chairman Kim Dong-soo pledged Tuesday to root out unfair business practices by family-run conglomerates.Kim said in his New Year message that his agency will make ``economic democratization’’ its top priority to address a deepening gap between big and small firms.`We should apply more comprehensive rules in order to prevent chaebol from pursuing personal gains through illicit practices,’’ he said. ``The government will do everything it can to help overhaul the chaebol’s absurd ownership structure.’’The chairman made the remarks in line with economic democratization policies of President-elect Park Geun-hye, who has vowed to correct unfair practices committed by large companies against small ones. Park also said her administration will improve the corporate governance structure of chaebol to prevent their monopolistic behavior and illicit wealth transfer to owners.He said the FTC will crack down on unfair inter-subsidiary dealings among large business groups. Some chaebol affiliates have been criticize

Jan 1, 2013By Lee Hyo-sik

Companies

Psy picked as best commercial model

A screen capture from an LG Uplus TV commercial shows Psy promoting the firm’s fourth-generation long term evolution wireless service.                                                                                                         / Courtesy of LG UplusBy Lee Hyo-sikPsy, a 35-year-old chubby rapper, was picked as the top model for corporate advertisers in 2012, according to the Korea Broadcast Advertizing Corp. (KOBACO) Friday.In a KOBACO survey of 6,000 consumers nationwide, 11.8 percent named Psy as this year’s best commercial model, followed by singer and actor Lee Seung-gi at 11.6 percent and figure skater Kim Yu-na at 7.6 percent.The father of twin baby girls rose to international stardom with his global hit ``Gangnam Style,’’ and comical horse-riding dance sweeping the planet.Psy emerge

Dec 28, 2012By Lee Hyo-sik

Companies

Foodpolis attracts foreign food companies

An artist’s impression of the Korean National Food Cluster named Foodpolis, which will be constructed in Iksan, North Jeolla Province, by 2015.                 / Courtesy of Ministry for Food, Agriculture, Forestry and Fisheries Food cluster to churn out $15 billion output, create 22,000 jobs Suh Kyu-yongMinister for food, agriculture, forestry and fisheriesBy Lee Hyo-sikKorea is seeking to create a food industry cluster in the southwestern part of the country by 2015 to boost its exports of a wide range of value-added, processed food products. To do so, it plans to attract over 150 local and international food companies and 10 research centers, churning out $15 billion output annually and generating 22,000 new jobs.The Ministry for Food, Agriculture, Forestry and Fisheries has and will invest $500 million to build the food industry complex named Foodpolis on 3.58 square kilometers in Iksan, NorthJeolla Province. The cluster is largely designed to help increase the nation’s food exports to Japan, China and o

Dec 25, 2012By Lee Hyo-sik

Companies

Shinsegae corporate mecenat for poor

A choir and an orchestra from Hanbit Arts, a social enterprise supporting visually-impaired artists, perform at the Sejong Center for the Performing Arts, downtown Seoul, on Oct. 29.                                                                    / Courtesy of Shinsegae Department StoreBy Lee Hyo-sikShinsegae Department Store, one of Korea’s major department stores, has decided to organize more cultural and artistic events for senior citizens and the underprivileged next year.It also plans to further solidify its status as a leading corporate mecenat by sponsoring more arts organizations that support performances by children of low-income families and the handicapped.Since 2010 when Shinsegae began mecenat activities in cooperation with the Seoul Arts Center, it has organized a wide range of concerts, musicals and other cultural performances not only for customers, but also employees and business p

Dec 23, 2012By Lee Hyo-sik

Companies

Curb enthusiasm for jobs

Big firms refrain from increasing employmentBy Lee Hyo-sik Jobseekers line up at an employment fair organized by the Ministry of Knowledge Economy at COEX, southern Seoul, earlier in October.                          / Korea Times photo                                 by Kim Dong-hoGiven the continued uncertain global economic outlook, Korea’s large business groups are unlikely to invest and hire more in 2013 than this year.Since the collapse of Lehman Brothers in late 2008, Samsung, Hyundai and other corporate powerhouses here have increased research and development (R&D) spending and acquired foreign rivals to strengthen their global competitiveness, despite unfavorable business conditions at home and abroad. As a result, they have emerged as winners from the worldwide financial crisis and captured large international market shares over the past four years.However, it seems the prolonged business slump has finally

Dec 23, 2012By Lee Hyo-sik

Companies

Election to boost property market

By Lee Hyo-sikThe election of Park Geun-hye as the next president is seen as favorable by real estate market watchers, with the country’s first female leader and the Saenuri Party expected to largely inherit the policies of the current Lee Myung-bak administration. Her defeated rival Moon Jae-in vowed to scrap several property market stimulus measures introduced by the current government.Park will also likely maintain consistency concerning the nation’s energy policies, but take more stringent steps to boost the safety of nuclear power plants.But the future of the state-run Korea Aerospace Industries (KAI) remains unclear as the incoming president has not yet clarified her position over the privatization of Korea’s largest aerospace firm.According to construction industry sources Thursday, Park is widely expected to continue real estate policies introduced by the Lee administration in a bid to boost the sluggish property market. Her government will also likely scrap a price cap on newly-built apartments and punitive capital gains tax, encouraging builders to constru

Dec 20, 2012By Lee Hyo-sik

Politics

'Economic democratization' aimed at fixing unfair practices

By Lee Hyo-sikDuring the Dec. 19 presidential election campaign, both ruling and opposition parties rushed to introduce a wide range of measures in the name of economic democratization in a bid to garner more votes.They included overhauling the chaebol ownership structure, restricting inter-subsidiary equity investment, and strengthening the separation of financial capital from industrial capital, among many others.The ruling Saenuri Party has argued that economic democratization policies of President-elect Park Geun-hye are better designed to cure the ills of Korea’s export-oriented economic structure than those of her rival Moon Jae-in.It said Park primarily seeks to correct unfair business practices by family-run conglomerates, improve corporate governance, strengthen separation of financial capital from industrial capital, as well as protect small businesses.``However, Moon of the main opposition Democratic United Party wants to dismantle chaebol, which will wreak havoc on the Korean economy. It will slash corporate investment, hinder job creation and negatively affect smal

Dec 19, 2012By Lee Hyo-sik

Politics

Park to focus on restoring middle class

President-elect Park Geun-hye shakes hands with a ventor during a visit to a trational market in Yeosu, South Jeolla Province, on Dec. 5.           / YonhapDebt reduction, job creation pitched to back average familiesBy Lee Hyo-sikPresident-elect Park Geun-hye of the ruling Saenuri Party has pledged to rebuild the middle class as her top economic policy priority in a bid to win the hearts and minds of ordinary Koreans that make up the majority of the electorate.Park, daughter of late President Park Chung-hee and now the nation’s first female president, has said she will help households reduce debt, create jobs, strengthen job security, and lower education and housing costs. She also promised to promote ``economic democratization’’ through shared growth between large and small businesses, as well as pursue balanced regional growth.Party officials said that Park’s goal is to increase the size of the country’s middle class to 70 percent, adding she will raise 135 trillion won ($124 billion) over the next five years to realize this.

Dec 19, 2012By Lee Hyo-sik

Companies

Financial sector faces sweeping changes

By Lee Hyo-sikThe financial industry will likely face sweeping changes following the presidential election, putting bureaucrats and CEOs on edge over what the next president will do.The current financial regulatory system is widely expected to undergo a drastic overhaul, with heads of financial authorities and leaders of the country’s large financial groups forced to resign en masse.Additionally, banks and other financial services firms will be required to extend more help to small businesses and the poor and better protect consumer rights in the name of ``economic democratization,’’ which will chip away at their bottom lines.According to financial industry sources Wednesday, financial policymaking body the Financial Services Commission (FSC) and its supervisory affiliate the Financial Supervisory Service (FSS) will be subject to radical changes. But it is too early to predict exactly how they will be reorganized because both ruling and opposition parties have not yet unveiled detailed plans.Some financial industry watchers speculate that the FSC could be expanded t

Dec 19, 2012By Lee Hyo-sik

Lee Hyo-sik

Read more

Firms step up guard against crisis

FTC vows to tackle chaebol ownership

Psy picked as best commercial model

Foodpolis attracts foreign food companies

Shinsegae corporate mecenat for poor

Curb enthusiasm for jobs

Election to boost property market

'Economic democratization' aimed at fixing unfair practices

Park to focus on restoring middle class

Financial sector faces sweeping changes

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