The Korea Times

MS to freeze smartphone patent fees

By Yoon Ja-youngMicrosoft (MS) will not raise smartphone patent fees for its competitors. This is part of the provisions MS agreed to in getting approval from the Fair Trade Commission (FTC) for its acquisition of Nokia’s mobile business.MS signed the deal to acquire Nokia’s mobile business in September 2013, and reported it to the FTC after two months. Through this “vertical integration,” MS now has the means to manufacture smartphones.However, there was concern that the merger could hamper market competition. MS holds numerous patents essential for the mobile operating system (OS) _ some are used in the Android OS. It means MS can raise patent fees for its competitors in the handset market such as Samsung Electronics and LG Electronics, hampering fair competition in the market.To dismiss such concerns, MS applied for a consent order in August. A consent order is when a business proposes measures to prevent unfair practices to get FTC approval on a deal.The provisions were prepared reflecting the ideas of the FTC and are posted on the FTC website, www.ft

May 19, 2015By Yoon Ja-young

Economy

Gov't considering measures to boost outflow of dollars

By Yoon Ja-youngHaving a huge amount of dollars is not always good when it comes to the national economy.  As the huge current account surplus is hurting exporters, the government is pondering ways to pull out the dollars, encouraging overseas investment.“The current account surplus is increasing continuously. We need some efforts to decrease it,” Strategy and Finance Minister Choi Kyung-hwan recently told reporters.He said that the government will promote overseas investment.The government is pondering diverse options to increase overseas investment, including deregulation for investors and tax incentives. Overseas stock investment by individuals and pension funds as well as corporate mergers and acquisitions of foreign companies are among them.Lim Hyung-joon, a research fellow at the Korea Institute of Finance, pointed out that the government has much room to increase overseas investment by individual investors.“While the overseas stocks held by 18 major OECD member countries stood at on average 45.8 percent of their GDP, and their overseas bonds at 56.3 perc

May 18, 2015By Yoon Ja-young

Economy

Chrysler, Peugeot, Citroen to recall cars over defects

By Yoon Ja-youngChrysler, Peugeot and Citroen cars will be recalled here because of defects in some components.The Ministry of Land, Infrastructure and Transport said Friday that FCA Korea and Hanbul Motors would voluntarily recall the cars they had imported and sold here.FCA Korea imports Fiat and Chrysler brands, and Hanbul Motors is the official importer and distributor of Peugeot and Citroen here.The ministry said the Jeep Grand Cherokee, imported by FCA Korea, was being recalled because the airbag system might not work because of a defect in the electronic control unit.Vehicles made between March 27, 2013, and Jan. 13, 2014, are subject to the recall. The ministry said there were 231 such vehicles in Korea.The owners should visit an FCA Korea service center to get a new airbag electronic control unit free of charge.Four models imported by Hanbul Motors ― the Peugeot 308, Peugeot 308SW, Citroen Grand C4 Picasso and Citroen C4 Picasso ― are also being recalled. The ministry said that there was a possibility of a bolt being cracked in the suspension system of the front wh

May 15, 2015By Yoon Ja-young

Economy

Index indicates 2nd-half recovery

By Yoon Ja-youngThe economy is showing positive signs for growth and analysts have cautiously forecast a recovery in the second half, although at a slow pace.According to the Organization for Economic Cooperation and Development (OECD), Korea’s composite leading indicator (CLI) recorded 102 in March, the highest since April 2010.The indicator is designed to anticipate turning points in economic activity and a reading above 100 indicates economic expansion.Korea’s CLI has been rising for nine consecutive months, adding to expectations that the nation is likely to see a stronger recovery in the second half of the year.The government and the central bank are now giving a more positive outlook on the economy. Bank of Korea Governor Lee Ju-yeol said recently that the economy is showing “weak but positive signs.”“Consumer sentiment is improving and so are the housing and stock markets. GDP grew 0.8 percent in the first quarter, which is not satisfying enough but continues the improving trend.”The Ministry of Strategy and Finance also pointed out that the

May 14, 2015By Yoon Ja-young

Economy

Gov't to stay on expansionary course

By Yoon Ja-young The government will enhance fiscal stability while continuing its expansionary policies to support economic revitalization.At the 2015 fiscal strategy meeting presided over by President Park Geun-hye, the Ministry of Strategy and Finance presented a master plan for fiscal management between 2015 and 2019.“At homes, mothers first cut unnecessary spending instead of borrowing money if they have to spend money on something. The country’s fiscal management should follow this principle as well,” President Park said, criticizing the reckless legislation by lawmakers that isn’t accompanied by a funding plan.She added that fiscal management without strategic guidelines was like sailing without a mast or oars.The finance ministry explained that there will be strong restructuring of fiscal spending in the budget next year. Firstly, all government projects will be reevaluated from a zero-base, and ineffective projects will be scrapped or have their budgets slashed. The number of government subsidized projects will be cut by 10 percent, and new proje

May 13, 2015By Yoon Ja-young

Economy

Moneylenders under pressure over ads

An advertisement from moneylender Rush N Cash. Moneylenders have been criticized for allegedly exaggerating in commercials. / From the Rush N Cash homepageBy Yoon Ja-young The government and lawmakers are moving to curb the allegedly exaggerated or false information Rush n Cash and other moneylenders are running advertisements on TV and the Internet.On top of restricting the time the moneylenders can run ads, regulators are considering lowering the maximum interest rate on loans to below 30 percent from 34.9 percent.According to Korea Communications Commission data submitted to Rep. Kang Gi-jung of the main opposition New Politics Alliance for Democracy (NPAD), moneylenders are running on average 1,043 ads on 38 major cable TV channels daily.The ads seem to be effective. A survey by the Consumer Loan Finance Association, an association of moneylenders, shows that more than half of those who borrowed money from them cited TV ads as their source of information on where to borrow.Previously, these ads relied on celebrities to make appeals to consumers. Celebrities eventua

May 8, 2015By Yoon Ja-young

Economy

Political conflict puts tax refund in question

By Yoon Ja-youngThe confrontation between the two rival parties over pension reform plans is disappointing taxpayers who were expecting to get part of their taxes back, as the lawmakers are delaying passage of the revision bill essential for the tax refund.The government says the bill should pass at the National Assembly before May 11, or there will be utter chaos regarding the filing of taxes.“If the revision bill doesn’t pass the National Assembly by May 11, it will be impossible to refund tax within this month as we have promised. Moreover, many people will have to file last year’s year-end settlement again,” Strategy and Finance Minister Choi Kyung-hwan said at the economic ministers’ meeting, Thursday.In Korea, salaried workers pay a certain amount of income tax from their salaries every month. At the end of the year, the exact amount of tax is determined, taking into account diverse factors such as the number of family members they support, insurance payments, education and medical expenses, donations, and credit card spending.The government adopte

May 8, 2015By Yoon Ja-young

Economy

Peak wage system expanded to hire young workers

By Yoon Ja-young Lee, a manger at an oil company, entered the peak wage program last year. He is getting 80 percent of the salary he used to get, but he is happy with the system as the company extended his retirement age by two years.“Though I am nearing 60, I think I am still young and I can work. I am happy that I can work for two more years with the adoption of the peak wage system,” he said.The Ministry of Strategy and Finance announced the plan to expand peak wage program at state-run enterprises, Thursday. They will introduce the program to hire more young people with the labor costs they have saved. It is expected to create 6,700 more jobs over the next couple of years.In the peak wage system, the employee agrees to a reduced salary from a few years ahead of retirement, in return for guaranteeing job security and extending the retirement age.The program is a win-win for employees and the government as well as businesses.Employees are happy to earn money for a few more years and prepare thoroughly for life after retirement, while the companies are glad to conti

May 7, 2015By Yoon Ja-young

Economy

Most newlyweds think home ownership is a must

By Yoon Ja-youngEight out of 10 newlyweds think purchasing and owning their own home is a must. That is the biggest economic reason why both husbands and wives are working, a survey showed.The Ministry of Land, Infrastructure and Transport announced the result of its survey of newlyweds Wednesday. A total of 2,677 couples, who have been married for less than five years, were polled.The survey showed that 84.7 percent think owning a home is a must. That’s higher than the country’s average households, among whom 79.1 percent said they should own a home.Those in middle- to lower-income brackets, and those with children, had stronger wills to buy their own homes, compared with high-income couples or those without children.However, they don’t think it will be easy to become a homeowner. The survey showed that they expect it to take at least eight years and nine months on average to purchase a home.Those living in Seoul, Incheon or Gyeonggi Province expected it to take even longer ― on average, 10 years ― while those in other regions estimated it to take an aver

May 6, 2015By Yoon Ja-young

Economy

Investment in gold increasing

Gold bars traded at the Korea Gold Exchange are on display in this file photo. Gold has risen as a popular means of investment among the wealthy, who expect an increase in value and want to save taxes. / Korea TimesBy Yoon Ja-youngKim, a businessman in Seoul, has been buying gold at the gold trading market operated by the Korea Exchange (KRX) since last year. He has bought around 200 kilograms of gold so far, investing almost 10 billion won.As the wealthy are turning their eyes to gold as an attractive investment, trading has surged notably at the market.Average daily trading surpassed 10 kilograms for the first time in April, according to the KRX ― up from March when it stood at 7 kilograms. “Following the falling gold prices, individual investors have been increasing purchases, betting the price will reverse course,” a spokesman for the KRX said.The average gold price for April stood at 42,341 won per gram, down 1.3 percent from March.The gold investment has been increasing since October when the international gold price stood at between $1,100 and $

May 1, 2015By Yoon Ja-young

Yoon Ja-young

Read more

MS to freeze smartphone patent fees

Gov't considering measures to boost outflow of dollars

Chrysler, Peugeot, Citroen to recall cars over defects

Index indicates 2nd-half recovery

Gov't to stay on expansionary course

Moneylenders under pressure over ads

Political conflict puts tax refund in question

Peak wage system expanded to hire young workers

Most newlyweds think home ownership is a must

Investment in gold increasing

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