[THE INVESTOR] Creditors of Kumho Tire are kicking off the disposal process of their stakes in the nation’s second-largest tire maker. Credit Suisse, the key sales advisor, on Sept. 20 said the creditors will sell their respective shares through a competitive bidding process. Sources said the final bidding process is expected to start in January next year after a preliminary bidding set for mid-November. A combined 42.1 percent stake or 66.3 million shares owned by nine creditors -- since the ti

[THE INVESTOR] The number of local companies that file for bankruptcy court protection have increased rapidly this year, while the number of judges overseeing the firms remained the same, overwhelming the courts’ capacity to handle the cases, data showed on Sept. 20. According to data by South Korea’s highest court, a total of 1,150 companies are under court receivership at 14 district courts across the country. The number increased by 100 firms from a year earlier as more companies sought bankr

[THE INVESTOR] A group of Volkswagen car owners plan to file a constitutional appeal on Sept. 20, demanding the South Korean government should enforce a replacement order on vehicles affected by the German automaker’s emission-rigging scandal. Barun Law, a Korean law firm that represents VW owners in multiple suit against the automaker, said it will make an appeal against the Ministry of Environment for not issuing appropriate replacement orders for its diesel vehicles equipped with defeat devic

[THE INVESTOR]  South Korean prosecutors will summon Lotte Group Chairman Shin Dong-bin on Sept. 20, to grill him on his role in a series of irregularities the retail giant is accused of committing. Shin will appear for questioning at 9:30 a.m. as a key suspect on charges of embezzlement and breach of trust, the Seoul Central Prosecutors’ Offices said on Sept. 18. According to Lotte Group, the chairman will fully cooperate with the ongoing investigation. Lotte Group Chairman Shin Dong-bin. The I

[THE INVESTOR] Dio, South Korean dental implant manufacturer, will establish a joint venture with a Japanese firm to expand its presence in the country, the company announced on Sept. 13. Dio will form a 51:49 joint venture Dio Digital Corporation with Japanese dental manufacturer Feed Corporation, by investing 547.6 million won (US$490,989) in a 1.74 billion won project. “Through forming the joint venture with a Japanese firm that specializes in dentistry, we will sell implant products and prov

[THE INVESTOR] Lotte Group Chairman Shin Dong-bin is likely to be summoned by the prosecutors after the Chuseok holiday that ends Sept. 18. He will be questioned for his role in a series of corruption charges that the retail giant faces, according to industry sources on Sept. 13. The prosecutors are aiming to end the three-month long probe into Lotte Group by questioning the group chairman. “We will summon Shin Dong-bin after the holiday,” a prosecutor said. “After summoning him, we plan to wrap

[THE INVESTOR] The US government on Sept. 12 issued a final ruling slapping a maximum of 61 percent anti-dumping and countervailing duties on South Korean steelmaker POSCO. The US International Trade Commission affirmed the decision by the US Commerce Department in August to impose duties on hot-rolled flat steel imported from South Korea, Japan, Turkey, Britain, Brazil, Australia and the Netherlands. Under the decision, Korea’s top steelmaker will face 3.89 percent anti-dumping tariff and a cou

[THE INVESTOR] Daesung Electric, automotive component arm of LS Group, is pushing for an initial public offering by next year, the company said on Sept. 12. Daesung said it will apply for preliminary approval to pursue an IPO on the country’s main bourse KOSPI by end of November. It has selected Mirae Asset Financial Group as the lead manager for the deal and shared plans to go public by first half of next year. Once Daesung’s market debut is completed, the company plans on building three new ov

[THE INVESTOR] Choi Eun-young, former chairwoman of Hanjin Shipping, has decided to inject 10 billion won (US$8.99 million) from her private assets to ease Hanjin Shipping’s cargo crisis. “Chairwoman Choi will secure 10 billion won by using her Eusu Holdings stocks as collateral to take out loans and provide (the funds) within a few days,” Eusu Holdings, said in a statement on Sept. 12. Choi now serves as a chairwoman of Eusu Holdings. Hanjin Shipping's former chairwoman Choi Eun-young appears b

[THE INVESTOR] CJ Group’s food affiliates CJ CheilJedang and CJ Freshway on Sept. 12 have signed a memorandum of understanding with Vietnamese state-run retail giant Saigon Trading Group, in a move to expand its business in the country. Under the agreement, food manufacturer CJ CheilJedang will set up a special store CJZone inside Satra’s retail outlets to sell its processed food products. CJ, in cooperation with Satra, will develop various sauces and other new products tailored to meet local ta

[THE INVESTOR] Hanjin Shipping’s bankruptcy filing has worsened the worldwide cargo disruptions, with the crisis taking a heavy toll on its consignors and subcontractors. Nearly 80 Hanjin vessels have been denied port access on concerns that the shipper won’t be able to pay port fees, since South Korea’s largest container carrier entered court protection on Sept. 1. While some vessels were allowed to dock and began unloading at the US ports after a local court granted its bankruptcy protection,

[THE INVESTOR] Ssangyong Motor, owned by India’s auto giant Mahindra & Mahindra, on Sept. 12 released a rendering of its new SUV concept car LIV-2, ahead of the 2016 Paris Motor Show. Due to make its official debut in Paris, the LIV-2 -- which stands for Limitless Interface Vehicle -- is the next generation of Ssangyong’s Rexton SUV, internally known by project name Y400. Rendering image of Ssangyong Motor’s concept car LIV-2According to the company, the new car delivers the automaker’s key desi

[THE INVESTOR] GM Korea’s union workers on Sept. 9 approved the tentative wage deal reached earlier by their union leaders and management that promised a pay increase, bonuses and other benefits, the Korean unit of General Motors said. About 58.9 percent of 12,851 union members voted in favor of the wage deal, putting an end to months of negotiations and a series of partial strikes that halted the production.  GM Korea CEO James KimUnder the new contract, worker’s monthly salary will rise by 80,

[THE INVESTOR] Danish container carrier Maersk and Switzerland-based MSC said they are introducing a new trans-Pacific route, in response to Hanjin Shipping’s bankruptcy filing that has left firms searching for additional routes to handle their cargo. Maersk, the world’s largest container line, on Sept. 8 said it will operate the new service between Asia and the US West Coast beginning Sept. 15. The liner will deploy six vessels with a capacity of 4,000 TEU. The new service will call at ports of

[THE INVESTOR] Officials from the US Department of Commerce will meet with Korean counterparts to discuss measures against Hanjin Shipping’s fallout that has deal a blow to the US retailers, local news reported on Sept. 9. According to the Ministry of Oceans and Fisheries, the US officials will meet with Vice Minister Yoon Hak-bae and other high-ranking officials in a closed-door meeting to resolve the matter early on Sept. 9. Hanjin Shipping entered court receivership on Sept. 1, after its cred

[THE INVESTOR] The head of South Korea’s top financial regulator said if Daewoo Shipping & Marine Engineering had gone bankrupt, the state-run Korea Development Bank and the Export-Import Bank of Korea would have incurred a loss of 13 trillion won (US$11.89 billion). “KDB and KEXIM have extended a combined 14 trillion won to DSME. But we only set aside 1 trillion won for bad debt allowance. Which means if DSME had gone bankrupt, we would had to report 13 trillion won loss immediately,” said Yim

[THE INVESTOR]] Hyundai Merchant Marine will form a vessel-sharing alliance with local midsized container carriers to fill in for Hanjin Shipping that is under court receivership, the shipper said on Sept. 8. South Korea’s second largest container carrier will join the new partnership, named Mini Alliance, with three other carriers Korea Marine Transport, Sinokor Merchant Marine and Heung-A Shipping. The alliance plans to deploy 15 vessels on four Southeast Asian routes – covering Singapore, Mal

[THE INVESTOR] Aju Corp. on Sept. 8 said it has signed a deal to take over Kongyoung Haeun, a Korean firm that specializes in sand dredging, ending a two-year long court receivership of the debt-ridden company. Aju will submit a rehabilitation plan for Kongyoung to the Seoul Central District Court and hold talks with its creditors to finalize the procedure. The acquisition deal is expected to be completed by end-October. Kongyoung Haeun, an affiliate of asphalt manufacturer Kongyoungsa, started

[THE INVESTOR]  The main creditor of Hanjin Shipping refused a South Korean court’s request to give further financial support to the debt-ridden shipper, local news reported on Sept. 8. The Seoul Central District Court managing Hanjin’s receivership process, has asked the state-run Korea Development Bank, the main creditor of the shipper, and related government ministries to provide debtor-in-possession financing. KDB, however, decided not to extend fresh funds, saying it is questionable whether

[THE INVESTOR] South Korean automaker Kia Motors officially opened a new plant in Mexico on Sept. 7. The plant, with an annual production capacity of 400,000 units, is located in Pesqueria in the northern Mexican state of Nuevo Leon. It is Kia’s fourth overseas location after China, Europe and the US. More than 500 people attended the opening ceremony, including Hyundai Motor Group Chairman Chung Mong-koo (second from right), Secretary of Economy of Mexico Ildefonso Guajardo Villareal (second fr