[THE INVESTOR] Volkswagen held its first annual shareholders meeting in Hanover, Germany, on June 22 (local time), the first in nine months since it became embroiled in the emissions rigging scandal.While the senior management and directors apologized and explained its ongoing recall plans in Germany and the US, there were no mention of compensatory measures for victims from other countries, including Korea, where 125,522 units were affected. “On behalf of the Volkswagen Group and everyone who w

[THE INVESTOR] Korean and Spanish construction companies are working together in efforts to expand trade and gain a foothold in new markets. Korea’s trade promotion agency KOTRA held a forum in Madrid, Spain, with Association of National Field Construction Companies in Spain (SEOPAN) on June 22 (local time). A total of 13 companies participated in the forum, including Korea’s Hyundai Engineering & Construction and Daechang Corporation, and Spain’s Groupo ACS, the world’s leading construction fir

[The INVESTOR] Korea’s economy is expected to grow at a similar rate this year on the recovery of exports in the second half. Facility investment, however, will record minus growth, according to a leading economic think tank. Korea Institute for Industrial Economics and Trade released its economic and industrial outlook for 2016 on June 22. It predicted the gross domestic product in the first half of the year at 2.9 percent and the second half at 2.3 percent, averaging the figure of 2.6 percent

[THE INVESTOR] Korean pharma companies Green Cross Labcell and ST Pharm will list on the secondary bourse KOSDAQ on June 23, the Korea Exchange announced on June 22. Green Cross Labcell, a Green Cross affiliate that develops drugs for incurable diseases, posted 34.5 billion won (US $29.8 million) in sales and operating profit of 2.3 billion won last year. The initial public offering is priced at 18,500 won. ST Pharm, launched in 2008, recorded 138 billion won in sales and 25.2 billion won in ope

[THE INVESTOR] Asiana Airlines, the nation’s second-largest air carrier, is mulling a joint venture for in-flight catering, local news reported on June 22. Citing sources from the airline industry, the report indicated that Asiana has been discussing the plan with various companies here and abroad. “Asiana, which has outsourced catering, is planning on establishing a new JV,” a source was quoted as saying. Asiana began in-flight catering business in 1994 and continued until 2003 when it sold 80

[THE INVESTOR] Prosecutors on June 21 filed for an arrest warrant for the head of certification unit of Audi Volkswagen Korea over the automaker’s emission rigging scandal. The head, identified by his surname Yoon, has been charged with fabrication of private documents and obstruction of justice, Seoul Central District Prosecutors’ Office said. Yoon is the first executive in the snowballing case for whom prosecutors are seeking an arrest warrant. According to prosecutors, Yoon is suspected of ma

[THE INVESTOR] Korea’s top steelmaker POSCO plans to expand production of its quake-proof steel products in light of growing awareness that the peninsula is no longer safe from major seismic jolts following the Japan earthquake and tsunami of 2011. POSCO has set its goal to expand production and sale of quake-proof steel products by 30 percent year-on-year, local news reported on June 21.Dongdaemun Design Plaza in Seoul built with POSCO’s TMCP steel Under the plan, the steelmaker plans to expand

[THE INVESTOR] Korea’s competitiveness in advanced manufacturing sector has declined over the past years, due mainly to sluggish performance in semiconductor and mobile industry, according to a report by Hyundai Economic Research Institute released on June 21. From 2010 to 2014, added value in Korea’s advanced manufacturing industry -- which includes aerospace, semiconductor, IT and pharmaceutical, among others -- declined by 4.7 percent. Japan is the only other major country that dropped, by 9.

[THE INVESTOR] Korea’s antitrust agency will fine Volkswagen around 80 billion won (US$ 68.9 million) for deceiving customers with false advertisements in the German automaker’s emission rigging scandal that affected millions of cars globally, including here. The state-run Fair Trade Commission is probing VW’s false advertisement claims, the agency’s head Jeong Jae-chan said in an interview with local media on June 21. The agency has looked into VW’s advertisements from 2009 to 2015, which toute

[THE INVESTOR] Koo Bon-sung, vice chairman of LG Group’s catering unit Ourhome, has been appointed new chief executive of the company on June 20. Koo, the eldest son of the current chairman Koo Ja-hak, is the largest shareholder of the food company. However, it was only recently that the presumptive heir participated in the board meeting and took part in management. Up until last year, it was Bon-sung’s younger sister Koo Ji-eun, now CEO of Kalisco, who was named the likely heir of Ourhome as sh

[THE INVESTOR] Boryung Pharmaceutical on June 20 clinched a deal with Sandoz, the generic division of Swiss drug maker Novartis, to export its anti-hypertension drug Cilnidipine to Southeast Asian countries. Under the contract, Boryung will provide US$ 73 million worth of drugs through Sandoz to six countries, including Thailand, Philippines, Malaysia, Singapore, Taiwan and Hong Kong over the 10 year period. “Based on the experience from Knarb’s marketing abroad, we will increase our brand’s val

[THE INVESTOR] Korea Investors Service, one of the big three rating agencies here, downgraded the credit ratings of Hanjin Shipping, Hyundai Merchant Marine and Daewoo Shipbuilding & Marine Engineering on June 20. The agency lowered DSME from BB+ to BB, with its rating outlook also remaining negative. HMM received a downgrade from A+ to A, citing its continuous deficit, while Hanjin Shipping, struggling container operator who recently sought creditor-led restructuring to avoid bankruptcy, also f

[THE INVESTOR] Only 1 percent of Korean companies have set up defense mechanisms against hostile takeovers in recent years, indicating that they are still vulnerable to such threats and shows the lack of corporate governance. Daeshin Economic Research Institute on June 19 looked into 600 listed companies and conglomerate affiliates in Korea where institutional investors or the pension fund hold more than 5 percent stake in the company. Only six of 600, or 1 percent, have established measures aga

[THE INVESTOR] Lotte Group affiliates have frequently purchased stocks of unlisted companies owned by the group’s owner family, including the founder Shin Kyuk-ho and his three children, since 2001, data by an online corporate tracker showed on June 19. According to Chaebul.com, Lotte’s seven affiliates, including Hotel Lotte -- the de facto holding company of its Korea operations -- have spent a total of 224.6 billion won ($192.7 million) to purchase shares of private companies owned by the fou

[THE INVESTOR] Korean customers of Volkswagen’s gasoline vehicles are set to file criminal charges against Audi Volkswagen Korea. The move comes in the wake of the recent disclosure by prosecutors that the German carmaker rigged software of its gasoline cars to cheat on emission tests, local news reported on June 19. “Following the diesel vehicle scandal, it has been revealed that gasoline cars were also manipulated. We plan to gather victims here and file a lawsuit against Audi Volkswagen Korea

[THE INVESTOR] Prosecutors are focusing on five main allegations against Lotte Group in their probe on the nation’s fifth largest conglomerate. 1. Shin Kyuk-ho and Shin Dong-bin’s 30 billion won (US$25.6 million)Prosecutors on June 16 secured testimony that Lotte group founder Shin Kyuk-ho and his son -- current group chairman Shin Dong-bin -- had collected 10 billion won and 20 billion won, respectively, from the affiliates under the conglomerate. The two Shins asserted that the amount was for

[THE INVESTOR] German carmaker Volkswagen’s headquarters ordered the manipulation of emissions tests for vehicles imported into Korea, Seoul prosecutors said on June 17. The investigators have secured evidence that German officials ordered the manipulation of software in the seventh generation Volkswagen Golf to secure approval from Korea’s National Institute of Environmental Research. Under local laws, all imported cars have to receive approval from the state-run agency of their emission result

 [THE INVESTOR] Korea’s current account surplus with China fell nearly 20 percent last year due to the sluggish growth of the world’s second largest economy, central bank data showed June 17.The current account surplus with China came to $45.14 billion in 2015, a 19.5 percent decline from the previous year’s $56.06 billion, according to data from the Bank of Korea. The figure decreased for two straight years since 2013 when it reached $56.69 billion. Busan PortThe central bank cited a drop in ex

[The Investor] The first arrest in the widening Daewoo Shipbuilding and Marine Engineering corruption probe was made on June 17, fueling speculations that the investigators are closing in on former CEO Nam Sang-tae. Prosecutors arrested the chairman of HUMEX Shipping & Air Freight, identified by his surname Chung, on charges of bribing former DSME CEO Nam Sang-tae, in exchange for obtaining an exclusive contract.  Main office of DSME. The InvestorAccording to investigators, Chung, who is Nam’s c

[THE INVESTOR] Prosecutors suspect Lotte Group’s affiliate Lotte Chemical is behind stashing multibillion won slush funds abroad amid a widening probe into Korea’s fifth largest conglomerates over embezzlement. According to local reports on June 16, Lotte Chemical has reportedly amassed funds by overstating the import price of raw materials and later siphoned off to the group’s executives. Lotte Department Store in central Seoul. The InvestorIn this process, Lotte Chemical stuck a deal with Lott