The Korea Times

KT enjoying wireless Internet explosion

Data revenue compensates declining voice business By Kim Yoo-chul Staff reporter Korean telecommunications giant KT appears to be on the right track in its efforts to rebuild, as the increase in data usage of its customers begins to make up for its declining business model in voice. KT, which is the country's largest telephone and broadband Internet company and the second-largest wireless carrier behind SK Telecom, has the Apple iPhone to thank for easing the transition in revenue sources. The iPhone-initiated smartphone boom, further spurred by the new handsets of Samsung Electronics and LG Electronics, has ignited a wireless Internet explosion. And KT, the sole local provider of the iPhone, seems to be benefiting most. KT is positive about the overall outlook for the remainder of this year as it is fully ready to respond to rising calls from consumers by releasing a series of wireless-focused gadgets. "KT is seeking for a bigger share of South Korea’s wireless data market by introducing the iPhone 4 and various tablet-style PC models," said the company's chie

Jul 30, 2010By Kim Yoo-chul

Companies

Conglomerates nervous about what will come next

By Kim Yoo-chul Staff reporter Korea’s big businesses are holding their breath, putting out feelers and checking tools at their disposal in the face of repeated “threats” issued by President Lee Myung-bak. During an emergency economic meeting Thursday, President Lee said: “Big firms should change their practices in dealing with subcontractors.” Although he added that administrative efforts should be made to encourage conglomerates to voluntarily change their practices, the message was clear as he sympathized with difficulties facing suppliers in securing contracts from big firms. During the meeting, Lee received the results of a survey showing only half of subcontractors here believe they are treated better by big firms now than before. “We are extensively reviewing what more we can do to address the concerns expressed by President Lee,” a corporate executive said on condition of anonymity. The situation is similar in other big businesses, as they scramble to determine how to improve what some argue is a “predator-victim” relationship. Some executives argue th

Jul 29, 2010By Kim Yoo-chul

Companies

Sarkozy approves STX

By Kim Yoo-chul Staff reporter French President Nicolas Sarkozy has pledged financial and administrative support to STX Group, the South Korean shipbuilder said, Thursday. According to the Korean shipbuilder, Sarkozy accompanied by his economic ministers visited the historic Saint-Nazaire shipyard of STX's French subsidiary and checked the yard's key facilities. "Nobody had expected it in the Saint-Nazaire shipyard. But STX did invest," Sarkozy was quoted as saying in the release. "Saint-Nazaire shipyard, which has been steadily winning cruise and naval ship orders, is France's key industrial base," according to the president. Sarkozy said some parts of the government's $45.5 billion fund will be allocated for projects to build highly-advanced vessels. Sarkozy's call came after he remarked that STX is going to build two Mistral naval helicopter carriers for Russia. "With our Russian friends, STX will build the two. Paris is still negotiating the contract, but the decision to go ahead is certain," the French president added. A Mistral carrier can carry 16 hel

Jul 29, 2010By Kim Yoo-chul

Tech & Science

Galaxy S, 3D TV tell Samsungs big plan

By Kim Yoo-chul Staff reporter Consumer product manufacturers are constantly haunted by the question: What's next? How well a firm can answer and follow up on it more or less determines whether it can remain a market leader or overtake the pacesetter. Samsung Electronics has so far come up with all the right answers, and the evidence is its leading role in the markets for a wide range of electronic gadgets and components. Two examples are the Galaxy S mobile phone that is pitted against the iPhone and its selection of three-dimensional (3D) televisions. Since 2006, Samsung has been leading the global flat-screen television market after passing Japanese rival Sony. Although LCD TVs are still one of Samsung's cash-cows, it is seeing a rise in 3D TV sales. High unit prices and still-developing technologies are still cited as the biggest drawbacks for a faster expansion of the 3D TV market. But Samsung is positive it will have a bigger share of the 3D TV market ahead of Sony, Panasonic and LG Electronics. "Samsung sold over 600,000 3D TVs in just the fi

Jul 29, 2010By Kim Yoo-chul

Tech & Science

SDI, LG Innotek boost earnings

By Kim Yoo-chul Staff reporter Two top electronics component-making affiliates are extending their winning streaks in quarterly earnings, helped by the rising demand for consumer electronics products amid signs of an apparent global economic recovery. Stock analysts say the coming third and fourth quarters will be even better for Samsung SDI and LG Innotek, which mainly produce batteries and light-emitting diode (LED) chips, respectively. On Tuesday, Samsung SDI said its quarterly operating profit during the April-June period increased year on year by 45.1 percent to reach 83.6 billion won, while sales went up 11.8 percent to 1.327 trillion won. Net profit for the second quarter was up 33.3 percent to 68.4 billion won. "Strong sales of smartphones and plasma televisions, on the back of major sporting events such as the World Cup, boosted our sales," said company spokesman Seo Hae-su. Seo said the outlook for the second half looks rosy as the demand for lithium-ion batteries is expected to rise by around 20 percent for the remainder this year, spurred by explosive grow

Jul 28, 2010By Kim Yoo-chul

Tech & Science

LG Electronics sees operating profit drop

By Kim Yoo-chul Staff reporter LG Electronics said Wednesday its earnings will see a gradual recovery from the third quarter on the back of rising demand for consumer electronics amid good seasonality. "We expect a better third quarter. Panel prices for televisions are to be stabilized, while the lineups of premium products such as LED-backlit LCD TVs will strengthen," LG said in a statement. LG said more upcoming smartphone models will help it bolster deteriorating profits. The demand for white-goods such as fridges is expected to back up LG's overall performances. "Market focus has already been shifted over the growth pace in terms of earnings from the third quarter. Although we haven't seen a big plunge in stock prices, its smartphone business will remain in the red in the third quarter," said Baek Jong-seok, an analyst at Hyundai Securities. LG reported an "earnings shock" in the second quarter. Operating profit during the April-June period tumbled by 90 percent to 126.2 billion won year-on-year, while the quarterly net profit dropped by 33 percent to 856.4 bi

Jul 28, 2010By Kim Yoo-chul

Tech & Science

LG Chem CEO upbeat

By Kim Yoo-chul Staff reporter The chief executive of South Korea's LG Chem said the LG Group petrochemical affiliate has been in an expansionary phase. The primary signposts for the upbeat projection include its increased battery and petrochemical presence worldwide. LG Chem is aiming to strike at least 2 trillion won in annual sales in batteries alone in 2015. "LG Chem isn't just a petrochemical company anymore. We are proving that petrochemical companies can diversify and manage rechargeable battery businesses as well," said Kim Bahn-suk in a meeting with reporters late Thursday. The meeting was the first time in three years that Kim, who is also the vice chairman of the company, has appeared in person at an organized meeting since 2007. Kim has been known as a reclusive leader, at least when it comes to talking to the media. The CEO made the headlines of the nation's leading newspapers when U.S. President Barack Obama paid a visit to Holland, Michigan, for the groundbreaking of LG Chem’s battery plant earlier this month. In mid-July, LG Chem said its U.S. unit

Jul 28, 2010By Kim Yoo-chul

Tech & Science

KT targets 1 million iPhone 4 sales

By Kim Yoo-chul Staff reporter KT, the nation's second-biggest mobile carrier, plans to sell at least 1 million iPhone 4s, a senior company executive said, Tuesday. The company is also aiming to sell over 1 million iPads, and the executive said differences with Apple over the early introduction of the devices have been narrowed. "KT is planning to sell a combined two million of Apple's top sellers ― 1 million iPhone 4s and 1 million iPads. Our target is quite conservative," said Pyo Hyun-myung, the president of KT's mobile business division in a news conference held in downtown Seoul. Pyo said the company was testing its networks for better technical stabilization and added the September arrival looks positive. Since November last year, when KT introduced the 3GS iPhones to Korea, some 840,000 have been sold, according to the executive. Steve Park, a representative of Apple's local branch, wasn't available for comment. Amid the rising popularity of smartphones, KT has revised up its smartphone customer target to 2.5 million by the end of this year from 2 milli

Jul 27, 2010By Kim Yoo-chul

Tech & Science

Samsung leads in green management

Emission output slashed by 31 percent in 1st year By Kim Yoo-chul Staff reporter Samsung Electronics said Tuesday that it had cut its carbon emissions by 31 percent in June from the end of 2008. In a statement released by the company to mark the first anniversary of its green management strategy, Samsung said that it has improved its energy efficiency by 16 percent on average during the same period, which cut carbon emissions by 9.6 million tons between January and July in 2009. It added that the reduction is the equivalent, of planting 3.5 billion pine trees, or of the amount of green house gases that are generated by 1 million U.S. households per year. Samsung had earlier unveiled its four key strategies to boost green management ― cutting carbon emissions, expanding eco tech-embedded product lineups, investing to build green operations, and strengthening partnerships with suppliers for green management. According to the company, its liquid crystal display (LCD) business got approval from the United Nation’s clean development mechanism or CDM, securing 7.7 milli

Jul 26, 2010By Kim Yoo-chul

Tech & Science

Flat-screen industry facing downturn

Asian LCD makers cut output for first time in 2 years as market uncertainties loom By Kim Yoo-chul Staff reporter Is the global flat-screen industry about to face a downturn? Asian liquid crystal display (LCD) makers seem to think that this is a possibility, as they rush to cut their panel output to meet with the lower-than-expected demand for televisions in China and the effects from the economic turmoil in southern Europe. Senior display industry officials are quick to downplay the worries, although the recent actions by their companies are perhaps more telling. "The plans to cut output don’t mean that LCD makers are foreseeing another downturn. I believe the overall market conditions remain quite healthy," Kwon Young-soo, chief executive of Korea's LG Display, told The Korea Times, last week. LG Display confirmed its plan to cut its panel output in August, joining the movements by Taiwan's Chimei Innolux and AU Optronics to lower the production. The adjustments are the first since LCD makers lowered their production in 2008 amid the global recession. The fla

Jul 25, 2010By Kim Yoo-chul

Kim Yoo-chul

Read more

KT enjoying wireless Internet explosion

Conglomerates nervous about what will come next

Sarkozy approves STX

Galaxy S, 3D TV tell Samsungs big plan

SDI, LG Innotek boost earnings

LG Electronics sees operating profit drop

LG Chem CEO upbeat

KT targets 1 million iPhone 4 sales

Samsung leads in green management

Flat-screen industry facing downturn

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