Business - The Korea Times

Hotel Shilla's hanok hotel project delayed amid duty free sales slump

Hotel Shilla’s plan to build a new hotel in Seoul, designed in the traditional Korean "hanok" style, is on hold as the company struggles with declining sales, primarily in its duty free retail division. Although the company launched its ambitious 300 billion won ($204 million) project in 2011, construction has yet to progress due to multiple setbacks. The hotel’s construction remains indefinitely on hold, according to a senior official from the hotel and resort division of Samsung Group. He said that only land preparation has been completed. "Only roads have been cleared at the site so far. The project's main construction phase has not yet begun," the official said. "We will issue a public disclosure once we decide on any further action regarding the project." The official said the company is currently in a financially bad situation, and the project will resume after the problem is resolved. "About 80 percent of our sales come from duty free stores, with the rest from our hotel business," the official added. "The decline in duty free sales has significantly impacted our overall revenu

Apr 1, 2025By Ko Dong-hwan

Hotel Shilla's hanok hotel project delayed amid duty free sales slump

6 in 10 Korean manufacturers say US tariffs will impact their biz, survey shows

Six out of 10 Korean manufacturers expect the tightening U.S. tariffs to have direct or indirect impacts on their businesses, a survey showed Tuesday. Nearly half of them said they are still "monitoring developments," even as the U.S. prepares to announce reciprocal taxes on Wednesday. According to the poll by the Korea Chamber of Commerce and Industry (KCCI), 60.3 percent of 2,107 manufacturers across the country said they are under the impact of new U.S. tariffs. The poll surveyed companies from Feb. 21 to March 7. Among the respondents, 46.3 percent said they are facing indirect impacts, while 14 percent said they will be directly affected by the tariffs. Among the Donald Trump administration’s tariff measures announced so far, three are expected to pose direct impacts on the Korean economy. The United States has been imposing a 25 percent tariff on steel since March 12 and will slap a 25 percent tariff on fully assembled vehicles manufactured outside the U.S. beginning Thursday. On Wednesday, the administration is set to announce reciprocal tariffs against U.S. trading partners, me

Apr 1, 2025By Nam Hyun-woo

6 in 10 Korean manufacturers say US tariffs will impact their biz, survey shows

Hyundai warns US dealers of possible price hikes amid 25% tariffs

Korean automaker Hyundai warned U.S. dealers it is evaluating its pricing strategy in the face of forthcoming 25 percent tariffs on imported vehicles and parts announced by President Donald Trump. Randy Parker, chief executive officer of Hyundai and Genesis Motor North America, told dealers in a note that "current vehicle pricing is not guaranteed and may be subject to change for units wholesaled after April 2." Analysts expect automakers will have to significantly hike vehicle prices if the new tariffs remain in place for an extended period, leaving consumers to pay more for vehicles that already have price tags averaging near $50,000. Cox Automotive estimates that 25 percent tariffs will add $3,000 to the cost of a U.S.-made vehicle and $6,000 to vehicles made in Canada or Mexico. "Tariffs are not easy," Parker told dealers. Parker also said the automaker is "fortunate that we do not depend heavily on imports from Mexico and Canada, and we have been sure footed in our U.S. investments." Hyundai announced a $21 billion investment in the United States with the president at the White House

Apr 1, 2025By Reuters

Hyundai warns US dealers of possible price hikes amid 25% tariffs

Acting president vetoes bill expanding corporate directors' fiduciary duty to include shareholders

Acting President Han Duck-soo on Tuesday vetoed an opposition-led bill expanding the fiduciary duty of corporate directors from solely the "company" to both the "company and its shareholders." The amendment to the Commercial Act, which was passed by the opposition-controlled National Assembly last month, was vetoed by Han at a Cabinet meeting and will be sent back to parliament for a revote. In addition to expanding corporate directors' fiduciary duties, the bill mandates the adoption of electronic shareholder meetings for listed companies. "I deeply agree with the basic spirit of the bill," Han said at the meeting. "However, given the large influence this bill can have on the business environment and competitiveness of not only big companies, but the majority of companies, including small and medium-sized enterprises, I determined there was a need to find an alternative solution that minimizes the side effects through more in-depth discussions, and following serious reflection, intend to demand the National Assembly's reconsideration." Han said that while the bill appears to be aimed at

Apr 1, 2025By Yonhap

Acting president vetoes bill expanding corporate directors' fiduciary duty to include shareholders

Hanwha chairman to transfer control to 3 sons

Hanwha Group Chairman Kim Seung-youn is set to transfer half of his controlling stake in the group’s holding firm, Hanwha Corp., to his three sons, making them the largest collective stakeholder in the conglomerate that spans the defense, construction, energy and finance sectors. According to Hanwha Corp.’s regulatory filings, Kim will grant half of his 22.65 percent stake in the company, or 11.32 percent, to his three sons. The eldest son, Hanwha Group Vice Chairman Dong-kwan, will receive 4.86 percent, and the second and third sons, Hanwha Life Insurance President Dong-won and Hanwha Galleria Vice President Dong-seon, will each receive 3.23 percent. The transaction is set to take place on April 30. Following the transfer, Hanwha Corp.’s largest shareholder will be Hanwha Energy, with 22.16 percent, followed by Kim with 11.33 percent, his son Dong-kwan with 9.77 percent and the two other sons who will each hold 5.37 percent. Since Hanwha Energy is fully owned by the three sons, the transfer will raise the sons’ combined stake in Hanwha Corp. up to 42.67 percent, making them the

Mar 31, 2025By Nam Hyun-woo

Hanwha chairman to transfer control to 3 sons

KOIMA's 1st woman leader aims for balanced trade

The Korea Importers Association's (KOIMA) first woman leader in its 55-year history has pledged to help the export-reliant country navigate tariff threats from the United States by addressing Washington's concerns over growing trade imbalances. During her inauguration ceremony on Monday, KOIMA Chairwoman Youn Young-mi emphasized the importance of imports, describing them as one of the government's key bargaining chips in negotiations with the U.S. administration. In 1999, she founded Highland Foods, Korea's leading meat importer, which generates 1 trillion won ($681 million) in annual revenue. Her company also trades in American beef, which has become a focal point in U.S. pressure on Korea. Earlier this year, it was revealed that the U.S. Cattlemen's Association had proposed in Washington that Korea begin importing beef from cattle aged 30 months or older. "KOIMA will continue to serve as a bridge between global suppliers and domestic buyers, fostering partnerships through trade affairs and diplomatic cooperation," she said. "I also urge my government to provide imports with the same le

Mar 31, 2025By Park Jae-hyuk

KOIMA's 1st woman leader aims for balanced trade

What are Korea's bargaining chips against Trump's reciprocal tariffs?

The Korean private sector's ongoing investments in the United States are expected to help Seoul to secure favorable results in its negotiations with Washington to lower tariffs as much as possible, international trade experts said, Monday. The experts advised the government to emphasize Korea's contribution to the U.S. economy, as the White House has pointed to nontariff barriers and trade imbalances to justify its forthcoming reciprocal tariffs on free trade partners. "The government should show proof that Korean products have contributed to the U.S. industry and job market," said Kim Dae-jong, a professor of business administration at Sejong University. Chang Sang-sik, head of the Institute for International Trade under the Korea International Trade Association, said that Korea should position itself as an irreplaceable ally as the U.S. has excluded Chinese products. Initially, the government sought an exemption from reciprocal tariffs, citing the Korea-U.S. Free Trade Agreement (KORUS FTA), which makes almost all goods tariff-free. However, U.S. President Donald Trump has reiterated t

Mar 31, 2025By Park Jae-hyuk

What are Korea's bargaining chips against Trump's reciprocal tariffs?

LX Holdings vows to expand global revenue streams

LX Holdings will place its 2025 management focus on expanding revenue streams abroad even in the face of mounting geopolitical uncertainties posed by prolonged economic downturn and trade protectionism, the company said Monday. “We will secure our differentiated competitiveness by attracting new clients and finding global business opportunities,” LX Holdings Chairman Koo Bon-joon said during the firm's regular shareholders’ meeting. The statement comes as global trade uncertainties continue to escalate, with major economies around the world increasingly adopting protectionist policies following the reelection of U.S. President Donald Trump. Despite the volatile global trade environment, Koo pledged to turn the ongoing crisis into opportunities by strengthening its group-wide trade vigilance and sophisticating its business structures. “LX will keep gaining competitive edges in our global business, so we can ensure sustainable growth,” Koo said. LX Holdings is on track to stabilize its earnings, with the company reporting an operating profit of 156 billion won ($106 million) last

Mar 31, 2025By Lee Min-hyung

LX Holdings vows to expand global revenue streams

Incheon in talks with Wycombe Abbey to establish 1st Korean campus

Incheon Metropolitan City is in talks with Wycombe Abbey, a prestigious all-girls independent boarding school in Buckinghamshire, England, to establish a regional campus in the Korean port city, the Incheon Free Economic Zone (IFEZ) Authority said Monday. IFEZ designated the British school as the preferred partner for an international school project in Midan City, a developing area on Incheon’s western Yeongjong Island. If an agreement is reached, the school will become the first international school in Yeongjong, with a completion date set for 2028. On Friday, IFEZ selected Wycombe Abbey from a pool of seven candidate schools from the U.K., the United States and Canada that had applied to the city. The new campus, set to be built on a 96,000-square-meter site, is expected to drive the development of Incheon’s western coastal region and serve as a key anchor for attracting further foreign investment, IFEZ said. With the addition of the new school, all three of Incheon’s free economic zones — Songdo, Cheongna and Yeongjong — will be home to foreign educational institutions. “T

Mar 31, 2025By Ko Dong-hwan

Incheon in talks with Wycombe Abbey to establish 1st Korean campus

LS, LIG join hands amid suspicions over Hoban’s aggressive moves

LS Group and LIG Group have formed a strategic partnership across their business portfolios in what appears to be an effort to counter construction conglomerate Hoban Group’s aggressive stake-building in LS’ holding firm. According to LS Group and LIG Group on Monday, the two sides recently signed a memorandum of understanding (MOU) for “strategic alliance and comprehensive cooperation to support mutual growth and development between the two groups.” LS and LIG were spun off from LG Group in 2003 and 1999, respectively, and both are led by members of the LG founder Koo family. LS is a conglomerate focused on cables, electricity and energy, while LIG’s core business centers on its defense unit, LIG Nex1. Through the MOU, the two groups agreed to “create synergy and mutual growth by leveraging each group’s core business capabilities in various sectors,” including advanced materials, defense systems, electricity, energy and communications. For these goals, the two sides will set up a consultative body to come up with detailed cooperation plans. The MOU is widely interpreted t