[THE INVESTOR] The Bank of Korea may consider altering the benchmark rate by smaller increments. In a report submitted to Rep. Park Joo-hyun of the minor opposition People’s Party, the BOK said that smaller changes could be considered in situations that require a more cautious approach. At present, the BOK alters the benchmark rate by 0.25 percentage points, and has been against making smaller changes saying that such changes would have limited impact.  The Bank of Korea governor Lee Ju-yeolIn t

[THE INVESTOR] The economic participation rate of Koreans in their 20s hit a decade-high in the second quarter of the year, data showed on Oct. 4. According to Statistics Korea, the economic participation rate of those in their 20s rose 1.3 percentage points from the second quarter of last year to come in at 65.7 percent. The figure is the highest seen since the final quarter of 2005 when it came to 65.8 percent. However, the data also showed that the number of unemployed in their 20s has risen

[THE INVESTOR] KB Kookmin Bank and nine securities companies have been selected to purchase 50-year Treasurys, the Ministry of Strategy and Finance revealed on Sept. 30.Along with KB Kookmin Bank, Daishin Securities, Dongbu Securities, Mirae Asset Securities, Mirae Asset Daewoo, Meritz Securities, Samsung Securities, NH Investment and Securities, Hyundai Securities and Shinhan Investment will acquire 1.1 trillion won (US$ 997.77 million) worth of the Treasury bonds that will be issued on Oct. 11

[THE INVESTOR] The Ministry of National Defense on Sept. 30 chose a golf course in Seongju, North Gyeongsang Province, as the location of the Terminal High Altitude Area Defense system.The ministry said that Seongju government and the National Assembly have been briefed on the decision, and an official announcement will be made at 2:30 p.m.The site, Lotte Skyhill Country Club in northern Seongju, is located 18 kilometers north of the Seongju County center. The golf course sits 680 meters above s

[THE INVESTOR] China imported record amount of coal from North Korea in August despite the international sanctions, data showed on Sept. 30.According to the Korea International Trade Association, Pyongyang’s coal exports to China in August came to 2.46 million metric tons. This is an increase of 35 percent on-year, and the highest monthly volume recorded since North Korea-China trade data was first compiled in 1998. The rise is thought to have been fueled in part by North Korea’s lowering of pri

[THE INVESTOR] Accounting firm Deloitte Anjin has come under scrutiny in the expanding Daewoo Shipbuilding and Marine Engineering corruption case, the prosecutors’ office revealed on Sept. 29. The investigators suspect that Deloitte Anjin turned a blind eye to DSME’s fraudulent accounting. For 2013 and 2014, DSME posted profits. However, it was revealed that the company had been manipulating the books, and had amassed about 5.5 trillion won (US$ 5 billion) losses. Deloitte Anjin, which had appro

[THE INVESTOR] GS Caltex on Sept. 29 began work on the world’s first biobutanol production facility. Located in the company’s complex in Yeosu, South Jeolla Province, the new facility is a pilot project for commercial production of butanol using non-food plant materials. The 50 billion won (US$45.59 million) plant will be able to produce 400 metric tons of biobutanol on an annual basis. The facility is scheduled for completion during the second half of next year.  A rendering image of GS Caltex'

[THE INVESTOR] Autonomous vehicle testing will be allowed on all roads in the South Korea from November, the Ministry of Land, Infrastructure and Transport announced on Sept. 29. This follows the revised enforcement decree on Motor Vehicle Management Act allowing autonomous vehicles to be tested on all roads.Under the revision, autonomous vehicles can be tested on all roads, with the exception of areas singled out by the authorities. At present, only 375 kilometers of roads in Daegu, Sejong and

[THE INVESTOR] The government on Sept. 28 called for a restructuring of the petrochemicals industry to reduce oversupply and streamline businesses. “According to a consultation report, a rapid business restructuring should be implemented with regards to four of the 33 key (petrochemicals) products are in oversupply,” Minister of Trade, Industry and Energy Joo Hyung-hwan said at a meeting with chiefs of petrochemical companies. “It is important that (concerned businesses) shed unnecessary weight

[THE INVESTOR] October will see the largest number of initial public offerings this year, but there are concerns that the volume could pose an obstacle for the companies. Next month, three companies are planning to be listed on the KOSPI and 12 are preparing to go public on the KOSDAQ. Of these, Doosan Bobcat, a unit of power and construction equipment conglomerate Doosan, will be the largest with the company hoping to raise about 2 trillion won (US$1.82 billion. The remainder are eyeing a combi

[THE INVESTOR] The dispute over performance-based salary system is growing with South Korea’s largest umbrella labor unions set to stage mass rallies and strikes. The hardline Korean Confederation of Trade Unions will hold a rally in Seoul on Sept. 28. The Federation of Korean Trade Unions will follow suit the next day. The KCTU will rally in Seoul’s Yeouido with 16,000 members marching to the ruling Saenuri Party’s. In addition, unions belonging to the Korean Metal Workers’ Union will strike ac

[THE INVESTOR] Korea Federation of SMEs Chairman Park Sung-taek said on Sept. 28 that he is considering launching a boycott campaign on Hyundai Motor products. Speaking to the media, Park said that Hyundai Motor union’s strike was causing massive damages to small and medium enterprises and that a boycott could be launched. “Hyundai Motor is the key culprit for causing the pay gap between large companies and SMEs,” Park said. “Hyundai Motor grew into a global company with the support of the gover

[THE INVESTOR]  Dongbu Steel’s creditors plan to complete the sale of the company’s electric arc furnace within the year, with two Iranian steelmakers showing interest in the facility. According to reports citing unnamed South Korean finance industry sources, two Iranian steelmakers submitted letters of intent earlier this month. The final biddings will take place at the end of October, and the creditors hope to select the preferred bidder in November, to seal the deal within the year. The elect

[THE INVESTOR] The bids for Tongyang Magic came down to four competitors on Sept. 27, with CJ Group and Hyundai Department Store Group dropping out of the race.However, Hyundai Department Store Group’s subsidiary Hyundai Home Shopping has decided to bid for Tongyang Magic.On Sept. 27, the final bids for Tongyang Magic were received from Hyundai Home Shopping, SK Networks, AJ Networks and UNID. The bids are reported to be in the range of 500 billion won (US$ 455.41 million).CJ Group was rumored t

[THE INVESTOR] The consolidated operating profit of Korea Electric Power Corp. could reach 11 trillion won (US$10.04 billion) this year, the company’s CEO revealed on Sept. 27.Speaking at a parliamentary audit, KEPCO CEO Cho Hwan-eik said that this year’s consolidated operating profit is projected at between 10 trillion won and 11 trillion won. He said that the fall in international oil prices and the cut in overseas operations costs contributed to the high operating profit projection.  KEPCO CE

[THE INVESTOR] South Korea’s top four commercial banks have reduced the amount of outstanding loans by more than 6 trillion won (US$ 5.47 billion) this year. According to finance industry data, outstanding loans at the top four banks – KB Kookmin, Shinhan, Woori and KEB Hana – came to about 72.25 trillion won at the end of August, falling about 6.05 trillion won from the end of 2015. Of the four, KEB Hana reduced its figure by nearly 4.7 trillion won, and its BIS capital adequacy ratio rose to 1

[THE INVESTOR] As many as 100 golf courses could be put up for sale as shareholders fear the impact of the Improper Solicitation and Graft Act, industry sources project. Of these, 29 are either under court receivership or undergoing workout processes. The majority of the remainder are said to be facing financial difficulties, which are likely to be amplified by the new act. The Improper Solicitation and Graft Act, also known as Kim Young-ran Act, prohibits officials in both public and private se

[THE INVESTOR] South Korean companies’ entertainment expenses came to 9.97 trillion won (US$8.97 billion) in 2015, an increase of 6.8 percent from the previous year, National Tax Service data showed on Sept. 27. The data was revealed by Rep. Kim Jong-min of the main opposition Minjoo Party of Korea. Companies in the top 1 percent in terms of revenue spent about 3.34 trillion won, or 33.5 percent of the total. The data also showed that local companies continue to spend large sums at adult enterta

[THE INVESTOR] The national pension fund could run out two years earlier than previously projected, the National Assembly Budget Office’s analysis showed on Sept. 27.In its analysis of the country’s long-term finances, the National Assembly Budget Office estimated that the national pension fund may be depleted by 2058. The report projected that the fund will begin to fall after 2030, begin posting negative growth from 2042 and run out in 2058.The government had earlier estimated that the fund wi

[THE INVESTOR] On Sept. 26, Daekyo (019680) increased 4.79% to 8,750 won (US$7.9). It had increased 5.77% through the past month. Standard deviation, which indicates variableness, records 1.2% over the same period of time over one month.  - Among its peer group, in spite of low Volatility, Increasing Rate is high- Most related stocks have also increased. Services industry +0.33%- Target price KRW 11,000, has 27% disparate to increase compared with stock price.- Individuals and Foreigners sell, I