Wednesday, October 26, 2022
Round-up of important news from major Korean dailies and from international media today
The Korea Post ( www.koreapost.com )
Chairman Choi Chul-hong of Boram Group selected as the person who made the Korean economy shine
Chairman Choi Chul-hong of Boram Group was selected as Korea’s representative person who led customer-oriented management at the ‘People & Management Who Lighted the Korean Economy in 2022’ awards ceremony. In addition, Boram Group received the Minister of Gender Equality and Family Award in recognition of its efforts to create jobs. An official from the Boram Group said, "Chairman Choi Chul-hong has led the Boram Group for the past 32 years and has always put the customer first with the philosophy of 'customer-centered sharing management'."
Chairman Chung Eui-sun on a business trip to the US
Chairman Chung Eui-sun of Hyundai Motor Group went on a business trip to the United States to attend a groundbreaking ceremony for a plant dedicated to electric vehicles in Georgia. According to industry sources, Chairman Chung left to the United States on a private plane from Gimpo International Airport on Oct. 24. Chairman Chung is planning to attend the groundbreaking ceremony for an electric vehicle-only plant in Georgia, USA, scheduled for Oct. 25 (local time), while staying there for about a week. Hyundai Motor Group announced in May that it would invest $5.5 billion (about 7.93 trillion won) to build an electric vehicle-only plant in Georgia, USA.
Hwacheon opens cable car service at Baegam-san Mountain
The 46-seat cable car runs to the top of Mt. Baegam-san at 1,178 meters above sea level in the Hwacheon County area. The Hwacheon Baegam-san Cable Car, at the the northernmost and highest city in Korea, offers a panoramic view of South Korea and also North Korea. This impressive cable car service began operation in earnest with the opening ceremony held on Oct. 21, 2022. The Baegam-san Cable Car, which was unveiled for the first time in eight years since the construction began in March 2014, is the only cable car in Korea that goes north and south of the civilian control line south of the Demilitarized Zone in the Hwacheon County, the forefront of the Central-Eastern region of the Republic of Korea.
Chosun Ilbo (http://english.chosun.com)
2 Koreas Exchange Warning Shots into Waters Near NLL
A North Korean ship crossed into South Korean waters in the West Sea early on Monday morning, prompting the South Korean military to fire warning shots and scramble fighter jets. "A North Korean ship crossed the Northern Limit Line, the de facto maritime border, at 3:42 a.m.," the Joint Chiefs of Staff here said. "The ship retreated as the South fired around 20 rounds of warning shots, but about 90 minutes later, North Korea fired about 10 artillery shells in response." North Korea does not officially recognize the NLL and its ships sometimes cross the border, resulting in military tensions.
S.Korea, U.S. Kick off Massive Maritime Exercises in West Sea
The South Korean military kicked off four days of large-scale maritime drills in the West Sea on Monday, amid a series of recent North Korean provocations.
The Navy, Army, Air Force and Coast Guard are all participating alongside the U.S. Forces Korea. The drills are part of an annual defense exercise that ends on Friday. The Navy is mobilizing about 20 warships, including Aegis destroyers and frigates, as well as maritime patrol aircraft and helicopters. The Army's Apache helicopters and the Air Force's F-15K and KF-16 fighter jets are also taking part.
Kim Jong-un Sends Congratulatory Letter to Xi
North Korean leader Kim Jong-un sent a congratulatory letter to Chinese President Xi Jinping as he extended his leadership for another five years and possibly indefinitely, the North's official Rodong Sinmun daily reported on Monday. The daily gave extensive coverage to Xi's re-election to an unprecedented third term as leader of the Chinese Communist Party after 10 years of rule. The daily called Xi's re-election an "expression of deep trust and expectations" of the Chinese people, while hailing an "inseparable friendship" with Beijing, the North's sole ally.
Joongang Ilbo (https://koreajoongangdaily.joins.com )
SK hynix misses in third quarter, slashes capital expenditure
SK hynix reported lower-than-expected earnings in the third quarter due to sluggish demand for chips and announced a plan to cut production to cope with the memory supply glut. The company said it would be slashing capital expenditure, following similar moves by Micron and Kioxia. SK hynix reported 1.1 trillion won ($771 million) of net profit in the July-to-September period, down 67 percent on year. The result falls short of the 1.59-trillion-won market consensus, as tracked by FnGuide.
Yoon presents lean budget but DP boycotts his speech
President Yoon Suk-yeol called for cooperation across party lines to cope with economic difficulties and North Korean threats in his first parliamentary budget speech Tuesday, which was boycotted by the Democratic Party (DP). "In order to overcome the serious economic and security situations, the opposing parties can't go separate ways," Yoon told a half-empty parliament. "Cooperation in the National Assembly is desperately needed." Yoon outlined the details of a 639 trillion won ($443 billion) budget proposal after DP lawmakers boycotted a day after prosecutors raided their party headquarters.
Yellen lays down the law, says IRA itself nonnegotiable
All the DC lobbying has come to naught, with the U.S. treasury secretary telling reporters that the law is the law and that the Inflation Reduction Act (IRA) must be implemented as written. "The legislation is what it is," Janet Yellen said Monday, according to a Bloomberg report. Her line-in-the-sand declaration is just the latest example of the Korean administration being caught on the back foot and playing catch-up as global events unfold. The Democratic Party is noting that it was ill prepared for the current economic crisis, despite plenty of warning signs, and is pointing out that the EV issue was similarly mishandled.
The Dong-A Ilbo (http://english.donga.com/)
Wrangling continues over raid on Democratic Party headquarters
The ruling and opposition parties continued to wrangle over the prosecutors’ raid on the Democratic Party headquarters. The main opposition party was up in arms against the raid, accusing it of “killing the opposition party.” The ruling People Power Party retorted back, warning the opposition against abandoning their responsibilities as a political party to defend their party leader Lee Jae-myung. During a plenary session at the National Assembly on Tuesday, Lee labeled the raid as a declaration to reject normal politics and reign over the people and the constitutional rule.
‘Inflation will peak this year,’ says IMF
The International Monetary Fund (IMF) projected that Korea’s import growth will drop near zero in 2023. At a press conference under the theme of “Global economy and the Republic of Korea," Krishna Srinivasan, the director of IMF’s Asia and Pacific Department, said that Korea’s imports would stagnate next year. He projected that Korea’s import growth, which stands in the high 3% range, will drop near zero percent. “The South Korean economy has been considerably influenced by the real global economy and financial market,” Mr. Srinivasan said.
Rishi Sunak’s ascent to U.K. leader hailed in India as ‘incredible feat’
Indians hailed over the newly-confirmed U.K. Prime Minister Rishi Sunak (aged 42), who formerly served as the nation’s Treasury chief, noting that his victory took place exactly 75 years after Indian independence. Rishi Sunak is the first non-white, Asian and Hindu prime minister in U.K. history. Prime Minister Modi of India congratulated Sunak on Monday via Twitter, describing him as the "living bridge” between India and the U.K. The Indian ruling BJP leader Priti Gandhi said she cheered “with great joy the rise of a proud Hindu who publicly acknowledges and respects his culture and roots," according to the Washington Post.
Maeil Business News Korea (http://www.pulsenews.co.kr/)
Korean debt woes may moderate BOK’s rate increases
The Bank of Korea (BOK) may have to moderate its stride at its final rate-setting meeting next month even at the risk of widening the gap with galloping U.S. rates in light of the fragility of the local debt market and liquidity squeeze triggered by default declare in securities issued by a public corporation. BOK was widely anticipated to deliver the second straight hike in 50 basis points in November as the U.S. Federal Reserve is most certain to fire off the fourth consecutive hike in 75 basis points earlier on next month.
Half of ELS contracts linked to H shares at risk of losing principal for Koreans
Around half of equity-linked securities (ELS) with underlying mainland Chinese stocks listed on Hong Kong market are already losing money for South Koreans as the Hong Kong stock index crashes to a 14-year low with China’s leader Xi Jinping entering the third term. ELS connected to the Hang Seng China Enterprises (HSCEI) sold about 10.4 trillion won ($7.2 billion) worth in Korea this year. Half of them are projected to have entered the knock-in option zone where investors may lose their principal investment, according to Korea Investment & Securities and other industry sources on Monday.
Korean financial groups celebrate best Q3 on unprecedented rate increases
South Korea’s major lenders Shinhan Financial Group, Hana Finanacial Group, and Woori Financial Group reported their best third quarter thanks to thriving banking business from fast rises in interest rates and escalating risk aversion sentiment. Shinhan Financial Group in its regulatory filing on Tuesday that its net profit in the third quarter amounted to 1.59 trillion won ($1.11 billion), a quarterly record after gaining 20.8 percent from a quarter ago and 42.9 percent from a year earlier. The figure also beat the market consensus of 1.52 trillion won compiled by Seoul-based financial data tracker FnGuide.
HanKyoReh Shinmun (http://english.hani.co.kr)
Last safeguard against continued clashes along two Koreas’ disputed sea border
A hair-trigger situation unfolded on the Northern Limit Line (NLL) in the West Sea of Korea early Monday morning. South and North Korea exchanged warning fire after a North Korean merchant ship crossed the NLL, while South Korean Air Force fighter aircraft moved in to prepare for eventualities. The situation showed that the NLL, traditionally a powder keg between the two sides, is once again in a precarious state amid increasing speculation that a seventh nuclear test by North Korea is imminent.
Shots exchanged along “powder keg” of two Koreas’ western sea boundary
The disputed maritime demarcation line off Korea’s western coast is drawing attention again after a North Korean merchant ship crossed the Northern Limit Line (NLL) early on Monday and warning shots were exchanged between the two sides. Regarding this incident, South Korea’s Joint Chiefs of Staff and North Korea’s People's Army General Staff each claimed that the other side crossed the NLL and made the first provocation, in response to which they then proceeded to fire warning shots as a countermeasure.
Korean Air passenger plane overruns runway in Philippines in possible brake malfunction
A Korean Air passenger plane carrying around 170 passengers and crew overran a runway while attempting a late-night landing in poor weather conditions at Mactan-Cebu International Airport in the Philippines. While there was no loss of life or serious injury, the aircraft was severely damaged. It’s been suggested that the plane’s braking mechanism may have malfunctioned during two landing attempts prior to the final one. According to accounts Monday from the South Korean Ministry of Land, Infrastructure and Transport (MOLIT) and Korean Air, a Korean Air A300-300 aircraft (Flight KE631) that had departed from Incheon International Airport on Sunday overran the runway while landing at Mactan-Cebu International Airport in the Philippines.
The KyungHyangShinmun (http://english.khan.co.kr/)
Five SPC Affiliates Including Samlip and Shany Occupy 83% of the Bread Market: “Ppangkao” Turns Out to Be True
Five affiliates of the SPC group enjoyed a near monopoly over the domestic bread market with market shares of over 80%. According to the food industry statistics released by the Korea Agro-Fisheries & Food Trade Corporation on October 25, the five SPC affiliates accounted for 83.4% or over 3.7 trillion won of sales among the total sales of 4.5 trillion won recorded by 82 bread manufacturers that sold products last year. Paris Croissant, which operates Paris Baguette, accounted for 41.0% of the sales with over 1.8 trillion won, while SPC Samlip, which owns brands like Samlip Hopang, accounted for 30.3% with over 1.3 trillion won.
43,759 New Daily Cases of COVID-19, Exceeding 40,000 for the First Time in 34 Days
The Central Disease Control Headquarters at the Korea Disease Control and Prevention Agency announced that as of midnight October 25, authorities have confirmed 43,759 new cases of COVID-19 from the previous day. This was 10,536 more than a week ago (Oct. 18, 33,223 cases), and it was also the first time in 34 days that the number of new daily cases surpassed 40,000 since September 21 (41,264 cases). Currently, 225 patients receiving in-patient treatment are in critical condition, and authorities confirmed seventeen more deaths.
Yoo Seong-min, “Kim Jin-tae’s Mention of Corporate Workout Sends Fear Throughout the Financial Market. He Shouldn’t Take Bankruptcy Lightly”
Former lawmaker Yoo Seong-min said, “One comment by the Gangwon-do governor on requesting the court for a corporate workout of GJC (Gangwon Jungdo Development Corp.) has paralyzed the bond market and spread fear throughout the financial market,” and cited Gangwon-do Governor Kim Jin-tae as the cause of the current unrest in the financial market. On October 23, Yoo expressed his views on his social media account along with Governor Kim’s name in the hashtag. Earlier on September 28, Gangwon-do announced that it would request a corporate workout for Gangwon Jungdo Development Corporation, which oversaw the groundwork around Legoland in Jungdo Island, Chuncheon.
KBS(http://world.kbs.co.kr/service)
Business Sentiment Worsens for Second Month in October
Business sentiment worsened for a second month in October amid growing concerns of an economic slowdown. According to the Bank of Korea on Wednesday, the business survey index(BSI) for all industries dropped by two points on-month to stand at 76 for October, marking the lowest in 20 months since February 2021 when it also posted 76. The reading, indicating that pessimists outnumber optimists with a figure below 100, is the second straight month of decline after rising to 80 in July and 81 in August.
Yoon Sends Letter Congratulating Xi on Third Term
President Yoon Suk Yeol has congratulated Chinese President Xi Jinping on being elected to a third term as the general secretary of the ruling party. The presidential office said on Tuesday that the government sent a letter of congratulations by President Yoon to Xi on Monday in relation to the 20th Party Congress of the Chinese Communist Party. Yoon's office said in a statement that in the letter, Yoon told Xi that he looked forward to close communication and cooperation to improve the relations between the two nations.
Vice Foreign Ministers of S. Korea, US, Japan Discuss N. Korea, Trilateral Cooperation
The vice foreign ministers of South Korea, the United States and Japan held talks on Tuesday to discuss North Korea's ballistic missile launches and other issues. According to the U.S. State Department, Deputy Secretary of State Wendy Sherman met with her South Korean and Japanese counterparts Cho Hyun-dong and Takeo Mori in Tokyo to discuss cooperation on the international stage. In the meeting, the three sides reportedly shared concerns about the North's recent series of ballistic missile launches.
Yonhap (http://english.yonhapnews.co.kr)
Yoon calls for bipartisan cooperation as opposition boycotts budget speech
President Yoon Suk-yeol called Tuesday for bipartisan cooperation to cope with threats from North Korea and economic difficulties as he explained his administration's first budget proposal in a parliamentary speech boycotted by the opposition party. Yoon outlined the details of the 639 trillion won (US$443 billion) proposal in a half-empty National Assembly hall as lawmakers of the main opposition Democratic Party (DP) refused to listen in protest of the prosecution's recent raid of its headquarters and other actions it described as suppression of the opposition.
U.S. very much focused on human rights conditions in N. Korea: State Dept.
The United States is very much focused on improving human rights conditions in North Korea, a state department spokesperson said Tuesday, calling it a serious challenge. Ned Price, however, said he had no announcements to make when asked if the U.S. would appoint a special envoy for North Korean human rights, a position that has remained vacant for nearly six years. "When it comes to human rights in North Korea, of course, it is something that we are deeply concerned with," he said when asked about the issue in a daily press briefing.
S. Korea, U.S., Japan to hold high-level talks amid speculation on N.K. nuke test
Senior diplomats of South Korea, the United States and Japan plan to hold consultations on Wednesday on regional and global security issues amid concerns over the possibility of a North Korean nuclear test. South Korea's First Vice Foreign Minister Cho Hyun-dong is scheduled to engage in the trilateral session with his American and Japanese counterparts -- Wendy Sherman and Takeo Mori -- in Tokyo to discuss ways to deal with North Korea's evolving threats highlighted by a series of ballistic missile launches in recent weeks.
The Korea Herald (http://www.koreaherald.com)
US tactical nuke redeployment, NATO-style nuclear sharing off table, S. Korea says
The Yoon Suk-yeol government has reiterated that the redeployment of US tactical nuclear weapons on the Korean Peninsula and NATO-style nuclear sharing agreement are currently off the table. The Yoon government has recently reaffirmed its endorsement of a nuclear-free Korean Peninsula as heated debates have erupted in Seoul over how to counter North Korea’s escalating threats to fire tactical nuclear arms at South Korean targets.
Yoon highlights North Korea threat, budget to half-empty National Assembly
President Yoon Suk-yeol on Tuesday addressed the National Assembly amid escalating partisan conflict that led to an unprecedented complete boycott by the main opposition party. Doubling down on defense. In the address, Yoon stressed the need to strengthen deterrence against North Korea, saying that another nuclear weapons test by Pyongyang is imminent.“It is judged that North Korea has already completed preparations for its seventh nuclear test,” Yoon said.
S. Korea, US, Japan to hold high-level talks amid speculation on N.Korea nuke test
Senior diplomats of South Korea, the United States and Japan plan to hold consultations on Wednesday on regional and global security issues amid concerns over the possibility of a North Korean nuclear test. South Korea's First Vice Foreign Minister Cho Hyun-dong is scheduled to engage in the trilateral session with his American and Japanese counterparts -- Wendy Sherman and Takeo Mori -- in Tokyo to discuss ways to deal with North Korea's evolving threats highlighted by a series of ballistic missile launches in recent weeks.
The Korea Times (http://www.koreatimes.co.kr)
Legoland crisis spreads across corporate world
A default in project financing for the construction of the Legoland Korea amusement park in Gangwon Province has not only caused concerns over the possibility of a series of bankruptcies of securities firms and builders, but has also made it more difficult for big businesses to raise money, according to industry officials, Tuesday. Even before the Gangwon provincial government triggered distrust in the nation's bond market by breaching its promise to guarantee the repayment of the amusement park developer's debts, affiliates of the SK, Lotte and Hyosung groups raised money through primary collateralized bond obligations (P-CBOs) guaranteed by the state-run Korea Credit Guarantee Fund (KODIT).
Why Hyundai Motor chief goes to US so often
Hyundai Motor Group Chairman Chung Euisun left for the U.S., Monday, in a preemptive move to meet with policymakers with substantial influence in mapping out the specifics of the Inflation Reduction Act (IRA), according to market watchers, Tuesday. His most pressing task is to buy time until after the car giant's Georgia manufacturing plants begin operating in 2025, about two years after beginning construction in the first half of next year. The groundbreaking ceremony was held Tuesday (local time).
S. Korea holds bilateral talks with US, Japan on NK threats amid nuke test speculation
South Korea on Tuesday held high-level bilateral consultations with the United States and Japan on North Korea's saber-rattling amid speculations that Pyongyang may soon conduct another nuclear test. Cho Hyun-dong, Seoul's vice foreign minister, met with his U.S. counterpart, Wendy Sherman, at the South Korean Embassy in Tokyo to discuss ways to deal with North Korea's evolving threats highlighted by a series of ballistic missile launches in recent weeks. "The two countries will solidify our deterrence against North Korea with overwhelming capabilities through a firm South Korea-U.S. combined defense posture and security cooperation," Cho told reporters at the outset of the meeting.
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