STX Heavy Industries has called off a 450.8 billion won ($406.8 million) contract to build a gas pipeline in Iraq, fueling concerns about the company’s ongoing restructuring efforts. The company said Friday the decision was made due to the prolonged conflict in Anbar, Iraq, where Islamic State extremists have been mounting a wave of attacks targeting the Iraqi army.“The worsening situation in the region has reached the level where we cannot proceed with construction,” a company official told the

Kia Motors, South Korea’s second-largest automaker, said it would begin accepting preorders for its upgraded midsize sedan, the all-new K5, from Monday.The second-generation of the K5, set to go on sale in mid-July, comes five years after the first version’s launch in 2010. The vehicle features an upgraded design and improved engine features.The new K5 comes in two models, featuring differing design schemes ― the K5 Modern Extreme and the K5 Sporty Extreme. There are five engine types available,

With competition in Korea’s limited luxury car market heating up, German luxury carmakers are turning their eyes to the country’s younger generation for further growth, introducing their compact car models, armed with a new look and cheaper price. In the latest move, Audi, the fourth-largest foreign car brand in Korea, debuted two A1 cars ― the A1 30 TDI and A1 Sportback 30 TDI ― on Thursday, hoping that its smallest diesel-powered product line will appeal to the 20- and 30-somethings here.The b

Park Wan-su (left), CEO of Incheon International Airport Corp., poses with Mertol Genc, CEO of the project to build the Istanbul Grand Airport, after signing a contract to offer airport operation consulting services to the new airport in Istanbul, Turkey until 2020. The Incheon Airport-led international consortium won the 12.9 billion won ($11.7 million) consulting project in March. IIAC

The state-run Korea Electric Power Corp., the nation’s largest utility company, has internally decided to cut electricity rates under pressure from the political circles, according to a source.“KEPCO will soon lower the electricity rates as it has already agreed with the government on the measure,” a company official close to the matter told The Korea Herald on condition of anonymity.The source, however, declined to say how large the cut would be. KEPCO has been under pressure to make a rate cut

The South Korean government will soon review supplementary budgeting to turn the faltering economy around, experts said Sunday. The Korean economy has faced a number of difficulties to tackle, including sluggish domestic consumption and falling exports for the first half of this year. To make things worse, the recent outbreak of the Middle East respiratory syndrome is casting cold water on the economy. Witnessing worsening economic conditions, economists said an extra shot to the budget is neces

For urban dwellers who are tired of the hustle and bustle of the city and dream of a break in a remote corner of the world, Yangshuo, a rural Chinese town in southern China, might be the perfect destination. The 2,000-year-old town is under the jurisdiction of Guilin City in the Guangxi Zhuang autonomous region of southwest China. It has just 30,000 people, but its world-class scenery of endless karst peaks and winding rivers make it a big draw for tourists. Guilin and Yangshuo, both of which ha

A crisis began escalating at Daewoo International ― the trading and overseas resource development arm of POSCO ― Wednesday following rumors that CEO Jeon Byeong-eal would quit in protest of the parent firm’s asset restructuring plan.POSCO officials declined to comment in the day, saying they would issue a statement after a decision regarding his status was made.According to industry sources, Jeon uploaded a message on the internal corporate board in May that he had sent an email to POSCO chairma

South Korea plans to build two new nuclear reactors within the next 15 years in an effort to revive its nuclear power footing for energy, the government announced Monday.The addition will increase the number of reactors to 39 by 2029. Currently, Korea has 23 reactors nationwide. The expansion of nuclear power is included in the seventh “basic plan for long-term electricity supply and demand,” which covers the period between 2015 and 2029. The Ministry of Trade, Industry and Energy had developed

 The competition between BMW and Mercedes-Benz is heating up in the used car market again, following a duel in the luxury car segment. The two German carmakers have recently announced plans to expand their used car businesses in an effort to encourage the continued growth of their sales.BMW Korea has been the market leader among foreign car brands for the past decade in selling certified preowned cars since its launch of the “BMW Premium Selection’’ services in 2005.  The company said it offers

The nation’s two airport operators are panicking over the outbreak of Middle East respiratory syndrome, worried about its impact on passenger traffic. In line with the level 2 health warning issued by the Korea Centers for Disease Control, the Incheon International Airport Corp. and Korea Airports Corp. ― which runs 14 airports nationwide, including Gimpo Airport ― said they had established a task force each to deal with issues related to the disease since May 22.The task force is in charge of t

A sense of crisis is escalating at Hyundai Motor as sales by the nation’s largest carmaker fell in its two biggest overseas markets ― China and the U.S. ― in May. Shares of Hyundai Motor plunged 10.36 percent to 138,500 won ($124.8) on Tuesday, affected by lackluster sales at home and abroad. The stock hit a four-year low. On Monday, Hyundai Motor said its domestic and overseas sales fell 8.2 percent and 6.1 percent last month, respectively, from the same period a year ago. The disappointing sal

Concerns over the negative impact of an outbreak of Middle East respiratory syndrome on the Korean economy are rising after the health authorities reported the first two deaths from the disease Monday. “Unless the authorities prevent the further spread of MERS, the number of Chinese travelers could fall at a fast pace, which will deal a blow to domestic consumption,’’ said Lim Hee-jung, a researcher from Hyundai Research Institute.Spending by Chinese visitors has boosted domestic consumption in

Hanwha Group, the nation’s 10th largest conglomerate, unveiled its facility investment plan to turn the nation’s central region of Chungcheong into a solar business hub. “Hanwha Q Cells Korea will build a 1.5 gigawatt solar cell plant in Jincheon, North Chungcheong Province, by the end of this year,” the group said in a press release. The company, where Hanwha Corp. and Hanwha Chemical hold 41 percent and 30 percent stake each, will invest 350 billion won ($260 million) for the project to build

 POSCO chairman Kwon Oh-joon delivers a speech during a career coaching session titled ``Dream Bridge’’ for a group of students from the Baekhak Middle School in Gyeonggi Province. The event was held at the POSCO Center in Samseong-dong, southern Seoul, Monday. POSCO

Hyundai Motor Group opened a five-story research and development center named after its chairman, Chung Mong-koo, within the Seoul campus of Hanyang University on Friday.“The Chung Mong-koo Automotive Research Center will focus on cultivating talent for the green and smart car sectors,’’ the automaker said in a statement. On the sidelines of the opening ceremony, Chung received an honorary doctorate in engineering from the university for his achievements in management and the automotive engineer

A growing demand for diversity and self-expression is creating new trends in many industries in Korea as its economy matures. The nation’s car industry, long dominated by large domestic carmakers like Hyundai and Kia, is no exception. The latest consumer demand is boosting the sales of foreign cars in Korea. Industry watchers forecast the market share of foreign carmakers in the Korean automotive market will hit a record high of 20 percent by the year-end. It has also created a demand for busine

GS Group chairman Huh Chang-soo has picked “change” and “innovation” as the management keywords for the future of the conglomerate, whose main businesses include energy, construction and retail.“The business landscape is expected to change faster than ever before, affected by the mobile revolution and the advent of new technologies like the Internet of Things,” Huh said.He made the remark to increase the sense of urgency for change among executives during the Value Creation Forum, an internal ma