[THE INVESTOR] South Korea’s top financial regulator affirmed on Oct. 5 that the performance-based pay for local bank workers should take effect.“It’s an indispensable financial reform task,” Yim Jong-yong, chairman of the Financial Services Commission, said at a government-civilian meeting on improving the nation’s financial system.The government will push for the spread of a “performance-oriented culture” on the basis of constant principles, he added.Yim’s comments came as bank workers here st

[THE INVESTOR] A nationwide shopping festival, Korea Sale Festa, has boosted retail sales after its launch on Sept. 29, data showed on Oct. 5. The massive shopping campaign aims to tie up the retail industry with the tourism and cultural sectors in line with the major Chinese holiday season. The Ministry of Trade, Industry and Energy said the top five department store brands and four discount store chains saw their sales increase 15.7 percent and 10.4 percent, respectively, from Sept. 29- Oct. 3

[THE INVESTOR] GM Korea has started exporting its all-new Malibu midsize sedans built in South Korea to the Middle East, industry sources said on Oct. 5. The local unit of General Mortors shipped about 900 Malibu units to the region in August and 1,493 vehicles in September, while it expects to export nearly 1,000 Malibus this month.Last month, GM Korea shipped Malibu sedans to such major Middle Eastern countries as Saudi Arabia, Kuwait and the United Arab Emirates, where the new model will make

[THE INVESTOR] South Korea’s inflation rate hit 1.2 percent in September, the highest in seven months, according Statistics Korea on Oct. 5. The figure had stayed below the 1 percent level four straight months since May. From a month earlier, the index edged down 0.6 percent in September.Core inflation, which excludes volatile oil and food prices, increased 1.8 percent compared with last year, remaining unchanged from a month earlier.(theinvestor@heraldcorp.com)

[THE INVESTOR] New foreign direct investment pledged to South Korea rose to a record high in the first nine months of the year, according to the government on Oct. 4Fresh FDI committed to the country during the first nine months came to US$15.05 billion, up 13.4 percent from US$13.27 billion a year earlier, according to the Ministry of Trade, Industry and Energy.It marked the largest amount of FDI pledged in history for a nine-month period, surpassing the earlier record of US$14.8 billion tallie

[THE INVESTOR] The South Korean Central bank remained wary on Oct. 4 for a redenomination of the Korean won. “A cautious approach is needed for a redenomination due to heightened economic uncertainties at home and abroad,” the BOK said in a report to Kim Jong-min, a lawmaker of the main opposition Minjoo Party of Korea, for an annual parliamentary audit of the BOK.The central bank said a redenomination could offer public convenience in calculation and enhance the status of the Korean currency ab

[THE INVESTOR] Hyundai Heavy Industries said on Oct. 4 that it has signed a memorandum of understanding with Saudi Electricity to strengthen its partnership in the Middle Eastern country’s electricity market. Saudi Arabia is seeking to spend a total of US$89.3 billion by 2021 to expand its electricity output to 105 GW from the current 65 GW in order to meet growing electricity demand.HHI has been providing power transformers and gas-insulated switchgears to Saudi Arabia. Last year, the shipbuild

[THE INVESTOR] Samsung Display has registered for a patent for technology to manufacture bendable displays in the United States, industry sources said on Oct. 4. The technology would allow the organic light-emitting diode displays to be folded and bent inwards, they said.Samsung Electronics and Samsung Display have so far registered 30 related patents with the US Patent and Trademark Office, with 14 of them registered this year alone. The patents have been either registered both at home and abro

[THE INVESTOR] The savings bank deposits in South Korea have nearly doubled over the past two years, data showed on Oct. 4. According to the data by the Korea Deposit Insurance Corp., deposits of more than 50 million won (US$45,300) per account at local savings banks totaled 5.08 trillion won as of end-June, up 87.3 percent from two years ago and 14.5 percent from the previous quarter.The portion of large-sum deposits to the total also surged to 12.5 percent in the second quarter of this year fr

[THE INVESTOR] South Korean synthetic fiber manufacturer Hyosung, said on Oct. 4 that it plans to ramp up its spandex production in Turkey to cope with rising demand in Europe and the Middle East. The company will spend US$27 million to expand spandex output there by 5,000 tons to 25,000 tons, by the end of the first half of next year.When the construction of its new Chinese plant with a capacity of 16,000 tons is completed during the first half of next year, its combined annual spandex output w

[THE INVESTOR] The Industrial Bank of Korea  has issued a refund guarantee to Samsung Heavy Industries that has just won a new order in almost one year. The shipyard secured a 420 billion won (US$380million) deal late last month to build two LNG carriers with a European customer. The deal came as local shipyards are suffering from a sharp decline in new orders amid a protracted industry-wide slump.Samsung Heavy is also set to win more deals valued at a combined 3 trillion won, including a contra

[DISCLOSURE] Korea Line (005880) announced on Sept. 30 that it has signed a 77.89 billion won (US$70.53 million) charter contract with a ship owner in Asia. The contract amount is equivalent to 14.65 percent of the company’s consolidated sales last year. The contract lasts from April 30, 2017 to June 29, 2024. The company also announced that it has decided to invest 66.8 billion won in building two 50,000 DWT (dead weight tonnage) bulk carriers. The ship delivery date is June 30, 2017. By Park Y

[THE INVESTOR]  South Korean President Park Geun-hye will meet Masayoshi Son, the chairman of Japanese telecom giant SoftBank, on Sept. 30 to discuss bilateral cooperation on investment and new industries.During her talks with the businessman, also known by his Korean name Son Jeong-ui, Park plans to ask SoftBank to deepen cooperation with South Korean firms in finding new growth engines, creating new jobs and expanding its investment in high-tech areas such as robotics, artificial intelligence

[THE INVESTOR] A total of 1,460 remote farming and fishing villages will have broadband Internet by the end of November, according to ICT and Future Planning on Sept. 30. Since 2010, the ministry, local governments and broadband internet operators have built high-speed Internet networks in remote villages, with the aim of bridging the digital divide.Of 13,217 remote villages with fewer than 50 households each, broadband internet networks were installed in 10,696 villages as of last year. This ye

[THE INVESTOR] Renault Samsung Motors said on Sept. 30 that the preorders of the QM6, to be released in October in South Korea, has surpassed 10,000 units in a month.The new version of its QM5 SUV was unveiled at the Beijing auto show in April. The QM5 is being marketed as the Renault Koleos overseas. Renault Samsung’s new SUV will compete with rival models, such as Hyundai Motor’s Santa Fe and Tuscon, and Kia Motors’ Sorento and Sportage in the midsized SUV market, which has shown strong growth

[THE INVESTOR] The number of manufacturing jobs in South Korea has decreased to the lowest in nearly three years, according to Statistics Korea on Sept. 30. A total of 4.41 million workers were employed in the manufacturing sector in August, accounting for 16.7 percent of all South Korean employees. It marks the lowest since October 2013, when the ratio stood at 16.5 percent.The proportion rose close to 18 percent early this year, but it has been on the decline since recording 17.5 percent in Ma

[THE INVESTOR] Samsung Heavy Industries had inked a 420 billion won (US$380 million) deal to build two LNG carriers, the first in almost one year, the company said on Sept. 30. The deal with a European customer came as local shipyards are suffering from a sharp decline in new orders amid a protracted industry-wide slump. A LNG carrier made by Samsung Heavy IndustriesSamsung Heavy is also set to win more deals valued at a combined 3 trillion won, including from a contract to build offshore facili

[THE INVESTOR] A total of 670,000 households were unable to pay their electricity bill as of July, according to the state energy supplier‘s report on Sept. 30. The households owed 83.1 billion won (US$75.8 million) in unpaid power bills. The number of households in arrears is relatively higher compared with 629,000 at the end of December in 2012, 589,000 in 2013, 597,000 in 2014 and 636,000 in 2015, according to the report submitted by the Korea Electric Power Corp. to the National Assembly ener

[THE INVESTOR] South Korea‘s industrial output rose for the fourth consecutive months in August, according to a government report on Sept. 30. Production in the mining, manufacturing, gas and electricity industries rose 2.3 percent last month from a year ago, according to the report by Statistics Korea. The August figure marks the fourth straight month of advance, following a 4.7 percent jump in May, a 0.8 percent gain in June and a 1.6 percent rise in July.From a month earlier, industrial outpu

[THE INVESTOR] South Korean manufactures’ business sentiment is expected to slightly improve in October, according to central bank data on Sept. 30. The business survey index of manufacturing firms came to 75 in October, up from 74 a month earlier, according to the Bank of Korea.A reading above 100 means optimists outnumber pessimists, while a reading below the benchmark means the opposite.An index measuring local firms’ sentiments toward exports came to 85 for October, down from 87 for Septembe