The Korea Times

KT reports better bottom line

By Kim Yoo-chul KT, the first vendor of iPhones here, Friday reported in a regulatory filing that the operating profit during the January to March period was 726 billion won. Net profit soared 85 percent to 555 billion won and quarterly sales also increased by 6 percent to 5.3 trillion won. ``The first quarter was impressive and we are expecting the second quarter to be better than the first considering increasing wireless data-related revenue,’’ said KT spokeswoman Kim Yoon-jeong. KT has secured 3.83 million smartphone subscribers as of the end of March. KT has raised the target number of subscribers to 8 million, up from 6.5 million this year. KT invested 688.9 billion won including 363.1 billion won in wireless-related businesses, a cut of 44.4 percent from the preceding quarter, the filing said. KT announced the quarterly results based on a consolidated scheme under new accounting rules adopted this year. However the nation’s top-tier telecom firm is being asked to implement some visible measures to offset its falling fixed-line business for a more balanced

May 6, 2011By Kim Yoo-chul

Tech & Science

Is SK Telecoms performance good enough?

By Kim Yoo-chul SK Telecom, the nation's biggest mobile carrier, is being urged to find breakthroughs for growth as it sees a fall in average revenue per user (ARPU). ARPU is considered as a key barometer in the telecom industry. It represents the average of how much money the company collects from its subscriber base. On Wednesday, SK Telecom said its ARPU as of the end of the first quarter of this year was down to 40,393 won, a decrease of 1,040 won from a year earlier, despite rising smartphone customers. "More of our customers are using packaged services and the trend is quite negative in terms of ARPU," said a company spokesman. Mirae Asset Securities, a leading local brokerage, has presented a "hold" view for SK Telecom stocks and maintained its target for SK Telecom of 200,000 won per share. The research house said SK Telecom's ARPU will slide further to 36,540 won by the end of this year, casting some doubts over SK Telecom’s long-term sustainability. SK Telecom officials said the telecommunication firm will increase its ARPU, as the firm is clinching mor

May 4, 2011By Kim Yoo-chul

Tech & Science

Nonghyup clients to take IBM to court

Country manager to be replaced By Kim Yoo-chul International Business Machines (IBM), the New York-based multinational tech and consulting giant, plans to implement a series of management changes including the replacement of its country chief. This is in response to the forced shutdown of the network of Korea's National Agricultural Cooperative Federation (NACF), locally known as Nonghyup or NH Bank, entirely, when a cyber attack crippled the bank's tech system last month. Nonghyup had outsourced its technology systems to IBM and the laptop of one of the contractors had been the focus of investigations. Now, Nonghyup customers are planning to bring IBM to court in a class action with some 1,600 clients seeking compensation for the system meltdown. "The situation is getting serious for IBM. As far as I know, the current country manager Lee Hwi-sung has offered to resign from the top post," said a top-ranking industry executive, asking not to be identified, Wednesday. Lee was appointed to in 2005 IBM headquarters in New York is considering promoting senior corpora

May 4, 2011By Kim Yoo-chul

Tech & Science

Samsung chief shrugs off bomb threat

By Kim Yoo-chul Samsung Electronics Chairman Lee Kun-hee worked at the company's headquarters in southern Seoul, Tuesday, despite a threat to blow the building up. ``The Samsung chairman is safe, though Samsung received an emailed bomb threat against our key buildings,’’ a Samsung representative said. He added that Lee was briefed on the threat. ``The chairman came in at around 8:00 a.m. and later had lunch with the heads of Samsung’s financial unit,’’ he said. Earlier in the day, some 50 police were sent to check garages and offices of Samsung Electronics, Samsung Life Insurance and Samsung C&T for three and a half hours from 7:35 a.m. ``We found nothing suspicious,’’ said a police spokesman. Samsung deployed more security officers around its main buildings, according to Samsung officials. ``I am relieved that nothing happened,’’ a Samsung employee said, adding that he was shocked at the news. Samsung’s affiliate in Canada received an email around 4:30 a.m. (local time) Monday with the sender identified as ``dilara jahednai.’’ The email included a t

May 3, 2011By Kim Yoo-chul

Tech & Science

LG Display, Cree of US part ways over LED chips

By Kim Yoo-chul LG Display has terminated its contract with Cree for light-emitting diode (LED) chips used for the former's flat-screen products. In January 2009, LG Display signed a memorandum of understanding (MOU) with the Nasdaq-listed Cree for it to supply LED chips, key components in value-added liquid crystal display (LCD) products ``The MOU with Cree has become meaningless for several reasons,’’ an LG spokesman said Monday. A spokesman for U.S.-based Cree was not available to confirm the termination of the strategic alliance. Market observers say that the measure is not surprising. ``The termination was widely expected as LG doesn’t need to pay more to Cree for LED chips. There are numerous players producing LED chips such as Taiwan’s Epistar,’’ said Eugene Kim, a senior analyst at Taurus Investment & Securities. LG would be able to use patented LED chip-related technologies from other rising players at competitive prices, said Kim. He noted that LED chip buyers such as LG can secure stronger bargaining power with chip providers staging patent wars

May 2, 2011By Kim Yoo-chul

Tech & Science

Will Hyundai, LG, SK bid for Hynix?

By Kim Yoo-chul Major shareholders of Hynix Semiconductor are making their third attempt to sell their combined 15 percent stake valued at around 3.4 trillion won in the world's No. 2 supplier of computer memory chips after Samsung Electronics. The sale is considered a ``hot issue’’ in the global semiconductor industry. Though the Korea Finance Corporation (KoFC) and the Korea Exchange Bank (KEB) are reviewing various options including an issuance of new shares with the aim to bring in more investors, the outlook is quite uncertain. The two form the biggest stake-holding team. ``Still, the market seems doubtful that the stake sale process will immediately make a break through,’’ said a top-ranking industry executive, asking not to be identified. The stakeholders are set to invite bidders as early as this month. KEB said an agreement has been made to give various options to a potential buyer. ``This time would be different because Hynix has proved its ability to create revenue and secure its bottom line regardless of the industry’s cyclical ups and downs,’’ said

May 2, 2011By Kim Yoo-chul

Companies

Will Samsung see better 2nd quarter?

By Kim Yoo-chul Samsung Electronics is concerned that the next three months may be a repeat performance of the lackluster first quarter. ``We see the current business challenges will continue in the current quarter because of stiff competition in our key products amid global uncertainty,’’ said Robert Yi, chief of Samsung’s investor relations team, in a conference call to analysts, Friday. Net profit for Samsung in the first quarter of this year tumbled 30 percent from a year earlier to 2.78 trillion won ($2.59 billion) hit by sluggish demand for LCD panels and TVs. In a regulatory filing to the Korea Exchange (KRX), Samsung reported a 32 percent decrease in operating profit to 2.95 trillion won, the lowest figure in seven quarters. Quarterly sales were up just 6.8 percent to 36.98 trillion won year-on-year. ``The results were disappointing but matched its previous earnings guidance,’’ said Kim Do-han, an analyst at Samsung Securities. Samsung’s display-making division posted an operating loss of 230 billion won during the quarter on the basis of quarterly sale

Apr 29, 2011By Kim Yoo-chul

Tech & Science

Electronics industry looking up

Samsung, LG, Hynix are top engines for Korea Inc. By Kim Yoo-chul Korea's electronics industry is the main engine for Korea Inc. Samsung Electronics is going head-to-head with Apple in smartphones, and leading panel production. LG is also strong in a wide range of areas. Predicting the future of Samsung, LG and other Korean electronics firms, may be hard considering the cyclic trap and their sensitivity to global economic situations but they are on a growth path. In business-to-business (B2B) sectors, the world’s No. 2 computer chipmaker Hynix Semiconductor, and LG Display were also boasting of ``bargaining power’’ with their clients, and technological advancements amid their rivals chronic struggles in the cyclical and volatile sectors. ``In the consumer electronics business, where players are involved in head-to-head fights for market share, Samsung and LG’s tactics have so far paid off as they used `fast-follower strategies’ especially in products,’’ said Jeong Ho-sung, a researcher at Samsung Economic Research Institute (SERI), the nation’s leading private t

Apr 28, 2011By Kim Yoo-chul

Companies

HHI starts power generation in earthquake-hit Japan

By Kim Yoo-chul Hyundai Heavy Industries (HHI), the world's biggest shipbuilder and among the leaders in marine engine manufacturing, has begun operating portable power stations in Japan to help ease electricity shortages there triggered by the country’s earthquake, tsunami and nuclear crisis. The company has sent four of its portable packaged power stations (PPS) to Chiba, Japan, with each unit capable of producing 1.7-megawatts of electricity ― enough to provide sufficient power for some 10,000 households. "We hope this will partly help Japan recover from power shortages and pave the way to boost bilateral relations between South Korea and Japan," HHI said in a statement. HHI said top company executives including Chairman Min Keh-sik and chief of the engine-handling division Kwon Oh-shin flew to Japan for participation in an opening event. The stations coming on-line comes just a month after HHI sent the PPSs to the neighboring country following power problems due to the earthquake and tsunami. "HHI's technicians will stay in Japan to monitor any unexpected techn

Apr 27, 2011By Kim Yoo-chul

Tech & Science

LG finally shows smartphone pulse

Korean technology giant posts Q1 operating profit as handset loss narrows By Kim Yoo-chul LG Electronics posted an operating profit for the January-March period after two consecutive quarterly losses, thanks to an improving mobile-phone business, the company said Wednesday. Perhaps LG has finally got a clue in the lucrative smartphone market, where it has been thoroughly overwhelmed by rivals like Apple and Samsung Electronics. LG, the world's third-largest handset vendor and No. 2 television set maker, reported a first-quarter operating profit of 131 billion won (about $121 million), recovering from a record 246 billion won loss in the preceding quarter. The company's operating loss from its handset division narrowed to 101 billion won from 262 billion in the fourth quarter, helped by the solid performance of high-end products like the Optimus 2X and Optimus Black smartphones. LG's television division swung to a profit of 82 billion won from a 65 billion won loss in the preceding quarter, LG said in a regulatory filing. Despite the improvement in its mobile

Apr 27, 2011By Kim Yoo-chul

Kim Yoo-chul

Read more

KT reports better bottom line

Is SK Telecoms performance good enough?

Nonghyup clients to take IBM to court

Samsung chief shrugs off bomb threat

LG Display, Cree of US part ways over LED chips

Will Hyundai, LG, SK bid for Hynix?

Will Samsung see better 2nd quarter?

Electronics industry looking up

HHI starts power generation in earthquake-hit Japan

LG finally shows smartphone pulse

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