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KDB rushes to sell off tax-financed companies according to gov't fiscal policy

A Korea Development Bank (KDB) flag stands at the main gate of the state-run lender's headquarters in Yeouido, Seoul, in this photo taken in 2016. Korea Times fileBy Yi Whan-wooThe planned sale of Daewoo Shipbuilding & Marine Engineering (DSME) is prompting speculation that its main creditor, state-run lender Korea Development Bank (KDB), is moving fast to sell off tax-financed companies in accordance with the government's focus on curbing the national debt. Announced on Monday, the KDB's plan has raised controversy that it is selling the debt-ridden shipbuilder for “a giveaway price,” after overseeing the operations of the company for 21 years and injecting more than 7 trillion won ($4.87 billion) into it.DSME is set to be acquired by Hanwha Group for 2 trillion won under a preliminary agreement signed between the defense-to-energy group and the KDB for a conditional sale.The plan marks the first attempt to privatize a KDB-controlled firm after President Yoon Suk-yeol loyalist Kang Seog-hoon took office as the bank's chairman and CEO in June.DSME, which is 55.7-perce

Sep 28, 2022By Yi Whan-woo
KDB rushes to sell off tax-financed companies according to gov't fiscal policy

Extended loan maturity feared to hurt banks' financial health

Financial Services Commission (FSC) Chairman Kim Joo-hyun speaks during a meeting with CEOs of major banks to discuss extending loan maturity for pandemic-stricken businesses at the Korea Federation of Banks in central Seoul, Tuesday. YonhapBy Yi Whan-wooThe government's extended grace period for loan repayments as a pandemic relief program is fueling concerns that banks will find it more difficult to figure out which clients are at risk of default.Accordingly, the banks are anticipated to struggle more to manage their financial soundness for the next three years ― the maximum grace period as announced by the Financial Services Commission (FSC), Tuesday.It is the fifth time that the government has extended the maturity on loans since April 2020 so as to buttress the cash-strapped self-employed and small and medium-sized enterprises (SMEs) struggling financially amid the COVID-19 pandemic.So far, every six months, the grace period has been extended on the loans. The total amount of loans that have been extended is worth 362.4 trillion won. Under the circumstances, multiple bank offici

Sep 27, 2022By Yi Whan-woo
Extended loan maturity feared to hurt banks' financial health

Viva Republica raises half of intended capital

Viva Republica founder and CEO Lee Seung-gun speaks to reporters during a press conference held in December 2019. NewsisBy Anna J. ParkViva Republica has wrapped up its Series G investment round raising a total of 530 billion won ($371 million), about half of what it had aimed to attract during the round. According to the investment banking industry Tuesday, the comprehensive fintech company, which covers banking, brokerage and payment, completed the Series G investment round at the end of last month, with its corporate value estimated at around 9.1 trillion won.Originally, the company aimed to attract one trillion won during the Series G round, when the firm first planned this latest investment round at the start of the year. But it had to be curtailed down to raising about half of the planned amount of capital due to drastically deteriorated external macroeconomic conditions, such as soaring interest rates. The company plans to monitor the market for the time being, before deciding whether to attract additional capital, if necessary. Several investors who participated in the firm's

Sep 27, 2022By Anna J. Park
Viva Republica raises half of intended capital

Most Korean manufacturers rule out reshoring: poll

LG Electronics' washing machine-manufacturing plant in Tennessee / Courtesy of LG ElectronicsMore than nine in 10 Korean companies aren't considering bringing their manufacturing back home due mainly to labor regulations here, a poll showed Tuesday.Of the 306 Korean businesses that have overseas operations, 93.5 percent said they have no plans for reshoring, according to the survey by the Korea Enterprises Federation (KEF).Nearly 98 percent of corporations with a workforce of 300 or more said they are not considering reshoring, with the comparable figure for firms with fewer than 300 workers coming to 87.5 percent.Some 30 percent cited Korea's labor regulations as the biggest hurdle for their possible reshoring.It was followed by the country's tax system with 24.5 percent, environmental restrictions with 16.7 percent and zoning rules with 13.1 percent.Slightly over 82 percent said they don't know enough about Seoul's reshoring promotion system.The Yoon Suk-yeol government has promised to expand support for companies that move production back home, including state financial incentives

Sep 27, 2022
Most Korean manufacturers rule out reshoring: poll

Asiana to expand flights to Japan as visa-free travel resumes

An Asiana Airlines plane is seen through a window at Terminal 1 of Incheon International Airport. YonhapAsiana Airlines, Korea's second-biggest carrier, said Tuesday it will expand flights to Japan from late October on Japan's decision to ease travel restrictions despite the COVID-19 pandemic. Japan announced last week it will lift the ban on the number of inbound passengers and resume visa-free travel for visitors from specific countries, including Korea, from Oct. 11. Currently, Japan only allows package tours and requires visas for all visitors in a move to control the spread of the pandemic. Asiana plans to increase the number of flights by 10 to 32 starting from Oct. 30 on its major routes from Incheon to Narita, Osaka, Fukuoka and Nagoya, the company said in a statement. Asiana said it is also considering increasing the number of flights on the Gimpo-Haneda and other routes, such as Sapporo and Miyazaki, depending on travel demand. It offers seven flights a week on the Haneda route. The carrier aims to revive the number of flights to Japan to 40 percent of the pre-pandemic leve

Sep 27, 2022
Asiana to expand flights to Japan as visa-free travel resumes

Celltrion receives approval to sell anticancer biosimilar Vegzelma in Japan

Lab technicians at Celltrion test drug candidates. Courtesy of CelltrionKorean biopharmaceutical firm Celltrion said Tuesday it has received approval to sell its anticancer biosimilar Vegzelma in Japan.According to the company, Japan's Ministry of Health, Labor and Welfare recently approved the sale of the biosimilar, also known as CT-P16, which referenced Switzerland-based Roche Holding's blockbuster pill Avastin.Avastin, which kills cancer cells by removing blood vessels, is approved to treat numerous cancers, including metastatic colorectal cancer. The nod by Japanese authorities came a month after the European Commission approved the sale of the biosimilar in Europe. Vegzelma was also approved for sale by Britain's Medicines and Healthcare products Regulatory Agency earlier this month.The Incheon-based Korean company also sought approval from the U.S. Food and Drug Administration late last year and is waiting for a decision.A Celltrion official said the company plans to swiftly introduce Vegzelma in the Japanese market and strengthen its anticancer biosimilar portfolio in the fut

Sep 27, 2022
Celltrion receives approval to sell anticancer biosimilar Vegzelma in Japan

Hanwha Group to take over debt-ridden DSME for 2 trillion won

Korea Development Bank (KDB) Chairman and CEO Kang Seog-hoon speaks during a press conference on the planned sale of Daewoo Shipbuilding & Marine Engineering (DSME) at KDB headquarters in Yeouido, Seoul, Monday. YonhapBy Yi Whan-wooHanwha Group will take over debt-ridden Daewoo Shipbuilding & Marine Engineering (DSME) as the two firms signed a preliminary investment deal on a conditional sale, Korea Development Bank (KDB) said Monday.The state-run bank, which is the main creditor and largest shareholder of DSME with a 55.7 percent stake, said Hanwha Group signed a memorandum of understanding (MOU) to acquire a 49.3 percent stake in the ailing shipbuilder.Under the MOU, the group's subsidiaries will participate in DSME's 2 trillion won ($1.39 billion) rights offering for a 49.3 percent stake and managerial control. Hanwha Aerospace will fund 1 trillion won, Hanwha Systems 500 billion won, Hanwha Impact Partners 400 billion won, and three subsidiaries of Hanwha Energy will fund 100 billion won to participate in the rights offering. After the rights issue, KDB will still hold a

Sep 26, 2022By Yi Whan-woo
Hanwha Group to take over debt-ridden DSME for 2 trillion won

SC Bank Korea offers special rates to new customers

Standard Chartered (SC) Bank Korea is offering special interest rates for those subscribing to MMDA products. Courtesy of SC Bank KoreaBy Yoon Ja-youngStandard Chartered (SC) Bank Korea is offering a special interest rate of up to 2.4 percent per year, before tax, to new customers who subscribe to its money market deposit accounts (MMDA) by Sept. 29.According to the bank, account holders are eligible for the special rate up to 60 days from opening the account. MMDAs are savings accounts where one can freely deposit and withdraw money, and the interest rate is adjusted depending on the daily balance of the account with higher deposits earning higher interest. The special rate applies to new customers who subscribe to MMDAs at SC Bank Korea branches by Sept. 29, with a minimum deposit of 100 million won ($70,000) and maximum of 2 billion won. The special event will be closed before Sept. 29 if total subscriptions reach 100 billion won. If the balance of the account falls below 100 million won, standard rates will be applied. The standard interest rates are 1 percent for a balance of 10

Sep 26, 2022
SC Bank Korea offers special rates to new customers

Mirae Asset's IFC purchase deal falls apart

IFC Seoul on Yeouido / Courtesy of Mirae Asset Global InvestmentsAsset management firm files arbitration case for return of depositsBy Anna J. Park Mirae Asset's plan to purchase International Finance Center (IFC) Seoul from Toronto-based Brookfield Asset Management has fallen apart, some four months after the two sides signed a memorandum of understanding (MOU) in May this year agreeing to a 4 trillion won ($2.79 billion) deal. According to investment banking sources, Monday, Mirae Asset has filed a case with Singapore International Arbitration Centers (SIAC) to retrieve a 200 billion won deposit paid to Brookfield Asset under the MOU.Originally, Mirae Asset was to raise about half of the 4 trillion won by establishing a real estate investment trust (REIT) but the plan had to be scrapped, as the Korean government brought a halt to its plans in August, owing to an excessive proportion of debt in the trust's structure. Mirae Asset had been certain that it could recover the deposit money, as the terms and conditions of the memorandum stated that the deposit could be refunded in the eve

Sep 26, 2022By Anna J. Park
Mirae Asset's IFC purchase deal falls apart

UAE begins operations of Korean-built No. 3 nuclear reactor

The first reactor of the Barakah nuclear power plant in the United Arab Emirates is seen in this undated file photo released by Korea Electric Power. YonhapThe United Arab Emirates (UAE) has started up the third unit of the Korean-built Barakah nuclear power plant, the country's nuclear energy corporation and Korea's state-run utility firm said Friday.The Middle Eastern country issued an operating license for the Unit 3 reactor in June, and it wrapped up a test run, according to Korea Electric Power (KEPCO) and the Emirates Nuclear Energy Corporation (ENEC).Its commercial operation will begin next year after being connected to the national grid and further tests, they said.It is one of the four nuclear reactors built in Barakah, 270 kilometers west of Abu Dhabi, under a $20 billion contract won by a KEPCO-led consortium in 2009. The project marked Korea's first export of a homegrown commercial atomic power plant.The first Barakah unit began commercial operations in April 2021, and the second one in March this year.The Unit 3 will add 1,400 megawatts of zero-carbon emission electricit

Sep 23, 2022
UAE begins operations of Korean-built No. 3 nuclear reactor
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