[THE INVESTOR] South Korean government is pushing to bring limited companies under closer scrutiny, but issues remain. The government plans to propose revisions to the External Audit of Stock Companies Act that will bring limited companies -- both foreign and domestic – to tighten monitoring.Under current regulations, limited companies are not required to receive external audits. In addition, they are not obligated to disclose periodic reports. The planned changes, prompted by the rising number

[THE INVESTOR] Limited companies operating in South Korea could be subjected to tougher monitoring standards matching that of public companies. According to a local daily, the government will propose revisions in related regulations to require limited companies to be receive external audits, and to disclose results during the regulation session of the National Assembly in September. The daily, citing Ministry of Strategy and Finance and Financial Services Commission sources, reported that the pl

[THE INVESTOR] The US Food and Drug Administration has begun reviewing the diabetes treatment SB9 for sale in the US, local media reported on Aug. 8. SB9, developed by MSD in collaboration with Samsung Bioepis, is a biosimilar of Lantus developed by Sanofi. Samsung Bioepis is an affiliate of Korean tech giant Samsung Electrioncs.According to reports, SB9 could be approved for sale by the end of next year. Including SB9, Samsung Bioepis has six biosimilar products in the works. Of the six, two tr

[THE INVESTOR] A listed company’s board of directors should draw up policies for leadership succession to improve transparency, the Corporate Governance Service said in new guidelines issued on Aug. 8.In the guidelines, which are not binding, the CGS also said that institutional investors should exercise their voting rights more actively, and disclose their decisions in regulatory filings. Regarding succession of management, the CGS said that the BOD should establish “comprehensive and detailed”

[THE INVESTOR] South Korean steelmakers’ exports to the US could take a major hit following a series of anti-dumping measures levied on them. On Aug. 5, the US Department of Commerce decided to levy heavy anti-dumping and countervailing duties on South Korean hot-rolled steel plates. For POSCO, the anti-dumping tariff was set at 3.89 percent and the countervailing duty at 57.04 percent. For Hyundai Steel, anti-dumping tariff was set at 9.49 percent and the countervailing duty at 3.89 percent.  P

[THE INVESTOR] The anti-dumping tariff levied on POSCO’s exports to the US will hurt it, but the company’s profitability will not suffer significantly, Hana Financial Investment said on Aug. 8.The US government on Aug. 5 decided to levy 3.89 percent anti-dumping tariff, and 57.04 percent countervailing duty on POSCO’s hot-rolled plates.Hana Financial Investment said that the tariff will damage POSCO’s price competitiveness, and that should the company’s hot-rolled plate exports be halted, POSCO’

[THE INVESTOR] Hyundai Motor is planning to introduce the Genesis marque to the US market and launch the G80 and G90 sedans during the second week of August, local media reported on Aug. 8.  Genesis G80The G80, the follow-up to the Genesis sedan, will start at US$41,400 in the US market. The price of the G90 in the US market has not yet been decided. The vehicle, known as the EQ900, starts at 77 million won (US$69,315) in South Korea. According to reports, Hyundai Motor has set the G90 sales tar

[THE INVESTOR] Hyundai Motor Group’s automobile sales during the first six months of the year dropped while most major competitors advanced, industry data showed on Aug. 7.According to industry data, Hyundai Motor’s sales fell 0.9 percent from a year ago, while that of Kia Motors slid 4.7 percent. The decline recorded by Kia Motors is the highest among the world’s largest carmakers. Overall, the world’s automobile market saw a decline of 0.9 percent coming in at about 2.39 million units during t

[THE INVESTOR] Samsung BioLogics is set to apply for a preliminary listing review on Aug. 11. Samsung BioLogics, the world’s third largest biologics contract manufacturer by capacity, will be the first pharmaceutical firm to be listed on the benchmark KOPSI in 10 years. With Lotte Hotel’s IPO plans having been called off due to the ongoing investigation, Samsung BioLogics will be the largest IPO this year. The industry estimates subscription of about 3 trillion won (US$2.69 billion), and industr

[THE INVESTOR] UK and German investors led the inflow of overseas funds into the South Korean securities market in July, the Financial Supervisory Service’s data showed Aug. 8. According to the FSS, foreign investors’ transactions in the Korean market came to a net purchase of 4.11 trillion won (US$3.68 billion) in July. Of the total, UK investors injected 784.8 billion won, pushing up the value of Korean stocks held by UK investors to 37.58 trillion won. The value of Korean stocks purchased by

[THE INVESTOR] Mirae Asset Global Investment said on Aug. 5 that it will set up a 1 trillion won (US$900 million) venture investment fund within the year.According to the company the fund will attract input from Mirae Asset Group companies as well as institutional investors. The fund will invest in South Korean venture companies considered to have high growth potential, the company said. The company said that the fund is part of its plans aimed at boosting the country’s investment landscape, und

[THE INVESTOR] South Korean securities companies are bracing for major changes in the market following the government’s plans to nurture mega investment banks announced on Aug. 2. Under the plans, securities companies will be categorized according to the size of their capital, and those in larger categories will be allowed to offer more services, and to use a wider range of financial tools for raising capital. The categories are those with pain-in capital of less than 4 trillion won (US$3.60 bil

[THE INVESTOR] The 2002 Hyundai Santa Fe diesel car involved in the Aug. 2 crash that killed four people will be analyzed for manufacturing defects, the Ministry of Land, Infrastructure and Transport said on Aug. 4. The vehicle had crashed into a parked trailer truck in Busan, killing four passengers. The driver survived and claimed that the brakes failed to work.The analysis will initially be limited to the vehicle involved in the accident. The ministry said that should the initial analysis pro

[THE INVESTOR] Kang Man-soo, a key associate of former President Lee Myung-bak, put pressure on Daewoo Shipbuilding and Marine Engineering to make large investments in a biotechnology firm operated by his acquaintance, the prosecution said on Aug. 4.Kang served as the chief of Korea Development Bank between 2011 and 2013, and has been implicated in the expanding DSME corruption case. His home and office were raided on Aug. 2 in connection with the case. According to the investigators, Kang used

[THE INVESTOR] South Korean hedge funds are growing rapidly with nearly 2 trillion won (US$1.79 billion) assets under management since the beginning of the year. According to industry data, the total AUM of local hedge funds has increased from 788.4 billion won in October 2012 to 5.61 trillion won by the end of July. At the beginning of the year, the figure had just breached the 3 trillion won mark.  Mirae Asset.There are currently 133 hedge funds operated by 44 asset management companies. Of th

[THE INVESTOR] Asiana Airlines’ operating profit returned to the black in the second quarter of the year, while its net loss reduced by nearly 70 percent from a year ago.According to its preliminary consolidated earnings report, the company said operating profit came to 28.8 billion won (US$25.86 million), net loss to 26.7 billion won, and revenue to 1.37 trillion won. Compared to the same period last year, the company’s net loss was reduced by 68.77 percent, while revenue rose 4.07 percent. The

[THE INVESTOR] A quick turnaround for South Korean economy is unlikely, a state-run think tank said on Aug. 4.In its monthly economic report, the Korea Development Institute said that although some domestic indicators are improving, the economy in general does not yet appear to be following a similar trend. Hyundai Heavy's shipyard.The KDI added that the ongoing corporate restructuring measures could hold back the rate of economic recovery in the short term. In addition, the improvements in serv

[THE INVESTOR] South Korean research team has developed a cost-effective method for producing hydrogen from seaweeds, the Ministry of Science, ICT and Future Planning said on Aug. 4.According to the ministry, the Daegu University team led by professor Kim Sang-hyoun developed a method for using commonly found bacteria to produce hydrogen from seaweeds. The process uses microbes found in sewage treatment that breaks down galactose in seaweeds. The ministry said that unlike previous methods, Kim’s

[THE INVESTOR] South Korean asset management companies’ dealings in overseas stocks have shrunk by nearly a quarter, due mainly to bearish Chinese markets, data showed on Aug. 4.According to the Korea Securities Depository, local asset management companies conducted 28,362 transactions involving overseas stocks during the first six months of the year. Compared to the same period last year, the figure is 22.85 percent lower. The data showed that transactions involving stocks listed in Hong Kong f

[THE INVESTOR] The Fair Trade Commission is looking into allegations of price-fixing by international automobile shipping companies, the antitrust agency said Aug. 4. According to the FTC, a number of foreign shipping companies may have colluded to fix prices between 2008 and 2012. Companies under investigation include Japan’s Nippon Yusen, K Line, Mitsui O.S.K. Lines, Norwegian firm Wallenius Wilhelmsen Logistics and Chile’s CSA. Japanese shipping companies had received about 200 billion won (U