[THE INVESTOR] The growth rate of South Korea’s export volume index dropped in July, Bank of Korea said Aug. 23. According to the central bank, Korea’s exports volume index recorded 0.8 percent on-year growth in July, falling from 3.6 percent on-year growth recorded in June. The data showed that exports of transportation equipment, machinery and fabrics fell, but electronics, electric equipment and chemicals increased. The BOK data does not include ships, weapons, works of art or aircrafts. In t

[THE INVESTOR] Korea National Oil Corporation will begin producing natural gas from the Donghae-2 gas field from October, a local daily reported Aug. 22.According to the report, KNOC completed test drilling and plans to begin production in October. The daily quoted an unnamed government official as saying that production will begin once the pipelines are relocated. Donghae-2 field is located 60 kilometers off the coast of Ulsan, and is estimated to contain about 566 million cubic meters of natur

[THE INVESTOR] A revised Motor Vehicle Management Act dubbed the Korean version of the US’ “lemon laws” was proposed on Aug. 23. Proposed by Rep. Shim Jae-cheol of the ruling Saenuri Party, the revision stipulates that refunds or replacements must be provided when a new vehicle experiences defects. If approved, the revised act would enable consumers to demand a refund or replacement if a new vehicle experiences severe faults within 30 days of delivery on two or more occasions. In addition, four

[THE INVESTOR] Shinhan BNP Paribas Asset Management will launch a stock investment fund in collaboration with Vietnam’s VinaCapital, the company said Aug. 23. The product will invest in stocks traded in markets in Indonesia, the Philippines and Vietnam.Shihan BNP Paribas and VinaCapital will also collaborate in developing additional products investing in Vietnamese securities and real estate. VinaCapital is Vietnam’s second-largest provider of asset management services. By Choi He-suk (cheesuk@h

[THE INVESTOR] Korea National Oil Corporation will pull out of Iraq’s Sangaw South oil field project. The state-run company has injected about US$130 million into the project since 2008.At the time, the company acquired 50 percent stake in the project, expecting large oil reserves. However, the company decided the project has little merit to continue.As recently as March 2015, the KNOC had expected to strike oil, and claimed at a National Assembly audit that the Sangaw South project would enable

[THE INVESTOR] South Korean insurance companies’ net profits for the first half of the year fell from a year ago, weighed down by life insurance companies’ plunging profits. According to the Financial Supervisory Service, local life insurers saw first half net profits plunged 17.9 percent from the same period last year to come in at 2.29 trillion won (US$2.04 billion). Nonlife insurers, however, saw a year-on-year increase of 21.1 percent.The combined assets of all insurance companies increased

[THE INVESTOR] Pizza Hut Korea on Aug. 22 denied reports saying the company was to be sold. Earlier in the day, a local daily had reported that Pizza Hut’s US headquarters was looking to sell its Korean operations. Saying that related reports were groundless, Pizza Hut Korea said Korea remains an important market for the US company.“(Selling Pizza Hut Korea) is not under consideration in any way,” Pizza Hut Korea said in a statement. The company added that it plans to strengthen its Korean opera

[THE INVESTOR] Daewoo Shipbuilding & Marine Engineering's credit rating could be lowered further, the Korea Investors Service said on Aug. 22.The ailing shipbuilder is currently rated BB.The current rating was given in June, when it was lowered from BB+. Korea Investors Service analysts said the company’s losses grew in the second quarter, and the deteriorating credibility of DSME’s accounting is adding to the downward pressure on its credit rating. DSME posted an operating loss of 356.9 billion

[THE INVESTOR] Cell therapy developer Green Cross Cell and biotechnology firm ToolGen on Aug. 22 signed a memorandum of understanding on collaborating in developing immune therapy for cancer. The two companies plan to apply ToolGen’s DNA scissor technology to Green Cross Cell’s anti-cancer immune therapy. The companies hope to amplify T-cells’ ability to attack cancer cells. By Choi He-suk (cheesuk@heraldcorp.com)

[THE INVESTOR] The National Pension Service increased its stakes in automotive, chemical and pharmaceutical companies this year, data showed on Aug. 22. According to data provider FnGuide, the NPS increased its stakes to above 5 percent in 86 companies this year, of which 33 were in the three industries. On average, the price of the 86 companies stocks increased 3.55 percent this year. Under local regulations, the NPS is required to disclose the names of companies it holds stakes of 5 percent or

[THE INVESTOR] Accounting firms could be prohibited from arranging and representing clients in corporate mergers and acquisitions deals.On Aug. 22, Rep. Park Yong-jin of the main opposition The Minjoo Party of Korea proposed a revision to the Financial Investment Services and Capital Markets Act that would allow such services to be provided only by those licensed as financial investment businesses. At present, arranging and representing clients in M&A deals does not require a financial investmen

[THE INVESTOR] South Korea’s exports appear unlikely to recover in August, feeding concerns that figures will drop for the 20th consecutive month.According to the Korea Customs Service, South Korea’s August exports stood at about US$22.45 billion on Aug. 20, down 0.3 percent compared to the same period last year. Although the government has hinted that exports could begin a recovery from August, the won’s climb against the dollar is casting doubt on the projections. In August, the biggest export

[THE INVESTOR] Pizza Hut is in talks with private equity funds and other potential buyers for the management rights for Pizza Hut Korea, a local daily reported Aug. 21. According to reports, Pizza Hut has been in contact with a number of potential buyers. Pizza Hut Korea is the third US fast food giant to put its Korean operations up for sale in recent months, following McDonald’s and KFC. Pizza Hut entered the local market in 1985, but has been suffering from dwindling profitability faced with

[THE INVESTOR] Korea Electric Power Corp. plans to acquire a US solar power plant, the South Korean company said Aug. 22. According to KEPCO, it will sign a deal to acquire Cogentrix Energy Power Management’s Alamosa Solar Generating Plant in Alamosa, Colorado, at the end of the month.The deal is estimated to be worth about US$30 million. Alamosa Solar Generating Plant has a generation capacity of 30 megawatts and supplies power to about 10,000 homes, the company said. This is the latest move by

[THE INVESTOR] Samsung Asset Management is to establish two spinoff subsidiaries on Jan. 1.Samsung Asset Management said on Aug. 19 that the move is aimed at increasing the efficiency of its businesses.One of the subsidiaries tentatively named Active Asset Management will be established with 30 billion won (US$ 26.76 million) capital, and it will specialize in collective investment and investment consultations, the company said. The other subsidiary, tentatively named Hedge Asset Management, wil

[THE INVESTOR] Hyundai Motor on Aug. 19 estimated that labor unions’ strikes have caused more than 1.13 trillion won (US$1.01 billion) in damages.The carmaker’s union on Aug. 19 staged partial strikes in protest of the company’s plans to expand the peak wage system. The union halted production for eight hours on Aug. 19, and plans to strike again on Aug. 22 for another eight hours. Hyundai Motor’s management and the union held their 18th round of talks in this year’s wages negotiations on Aug. 1

[THE INVESTOR] South Korean households’ real income remained the same from a year ago during the second quarter of the year, government data showed Aug. 19.According to Statistics Korea, although the second quarter saw household income grow by 0.8 percent from a year ago, real income remained the same. The data showed the second quarter’s sluggish growth was brought on mainly by the drop in capital income, which dropped 9.8 percent compared to the same period last year. Since dropping to below 1

[THE INVESTOR] The ratio of South Korean households’ disposable income to consumption fell to a record low during the second quarter of the year, Statistics Korea said Aug. 19.According to Statistics Korea, South Korean households’ disposable income showed a 1 percent increase year-on-year in the second quarter of the year. However, consumer spending stayed unchanged over the same period, pushing down the proportion of disposable income to consumption to 70.9 percent. This is the lowest quarterl

[THE INVESTOR] South Koreans cut back on education spending, but ponied more up for tobacco and alcohol products during the second quarter of the year compared to a year ago, data showed Aug. 19. According to Statistics Korea data, South Korean households’ education spending declined 0.7 percent on-year, but spending on alcoholic drinks and tobacco products rose 7.1 percent. For tobacco alone, spending increased 10.9 percent, as tobacco consumption recovered from a tax hike implemented last year

[THE INVESTOR] South Korea’s income inequality worsened in the second quarter of the year, Statistics Korea data showed on Aug. 19.According to the data, the income of households in the bottom 20 percent dropped 6 percent compared to the same period last year to come in at about 1.39 million won (US$1,240). In contrast, that of the top 20 percent of households increased 1.7 percent to come in at 8.21 million won per month. The drop in the lowest income households’ earnings was attributed to fall