Headlines, September 5, 2018

Monday, September 5, 2018

Established during the Era of Japanese Occupation of Korea in 1896

Founder of Doosan Business Group may have wanted it to grow into a ‘Big Mountain’

By Park Byung-uk, vice president/editorial writer (industry)Author Park Byung-uk is former Business Director at The Korea Times. After retirement from the English daily, Park joined The Korea Post media

This is the second installment in a series articles on leading business conglomerates in Korea and around the world covered by the writer, a specialist in the business world in Korea and outside the world. Park was formerly the director of the Business Bureau of The Korea Times, a leading independent English daily in Korea. Park joined The Korea Post media which own and operate 3 English and 2 Korean-language media outlets since 1985.—Ed.

The Doosan Group is a large business conglomerate in Korea, which ranks the13th in the Jaebeol business hierarchy in Korea today with an annual turnover hovering over 17 trillion 585.5 billion won and achieving 1 trillion 179.9 billion won in business profit. Doosan is now a global business giant with 62% of its total revenue accruing from overseas operations and sales.

As in the case of many Jaebeol business groups in Korea, Doosan, too, began from scratches when it started 122 years ago in 1896.

The first cosmetic power for woman in Korea was invented by the then Park Seung-jin Store in Seoul in the 1890s by owner-operator, Park Seung-jin, who is the founder of today’s Doosan Group. Today, the Doosan Business Group is the 13th largest business conglomerate in Korea with an annual turnover of over 17 trillion 585.5 billion won and employing over 40,000 persons.

The husband of the Korean woman ‘inventor’ of the Korean cosmetic powder was Park Seung-jik who ran a drapery store in Seoul and women being the main customers, he gave out the cosmetic power to the guests which his wife ‘invented’ and named ‘Park-ga Bun’ (or Park Family Powder).
Women want to look beautiful everywhere in the world and Korea in the 1890s was no exception as they are today.

Chairman & CEO Jeongwon Park of the Doosan Business Group Group

A woman user wrote in a newspaper at the time in the late 1890s, “The power was easily soluble in water and oil, made our face look white and beautiful!” Popularity of the ‘Park Family Powder’ skyrocketed and storeowners and peddlers alike all came to the Park Store and bought it to sell in all parts of the country.
In particular, the Park Family Powder was very, very popular among Gisaeng women (women entertainers for men at high-class restaurants in Korea at the time). Records show that Park sold 10,000 packs of the cosmetic power per day.
So how are the Park Family descents doing today?
They have all done well, and the business organization has grown by leaps and bounds through the 122-year history since its birth in 1896.
(For further details and pictures, please visit: http://www.koreapost.com/news/articleView.html?idxno=7485)

----------------------------------------------------------------------------------------

Round-up of important news from major Korean dailies today

And from international media:

The Korea Post media (www.koreapost.com) in English, (www.koreapost.co.kr) in Korean.

Founder of Doosan Business Group may have wanted it grow into a ‘Big Mountain’
The Doosan Group is a large business conglomerate in Korea, which ranks the13th in the Jaebeol business hierarchy in Korea today with an annual turnover hovering over 17 trillion 585.5 billion won (US$15bil. 9hund. 87mil.181thou.818) and achieving 1 trillion 179.9 billion (US$1bil. 72mil. 6hund. 36thou.364) in business profit. Doosan is now a global business giant with 62% of its total revenue accruing from overseas operations and sales.

Uzbekistan-Korea: The two countries have now opened a new stage of strategic partnership
It is a high privilege for me to address today the esteemed readers of The Korea Post media on the occasions of the 27th Anniversary of Uzbekistan’s independence and 26th Anniversary of establishment of diplomatic relations with the Republic of Korea.
After gaining independence, Uzbekistan took a worthy place in the world community. Over the years, a great creative work has been carried out. Human honor and dignity are exalted, well-being of people is ensured, appearance of our cities and villages has radically changed. Due to independence, we gained freedom, revived ancient traditions.

Kakao to expand investment in AI
South Korea's top mobile messenger operator Kakao Corp. said Tuesday that it will expand investment in an artificial intelligence (AI) sector in line with the company's effort to find a new growth engine.
"Kakao adopted AI to spearhead long term and stable growth in various services," Kim Byung-han, an executive official, said during an AI forum hosted by Kakao in Seoul. "The company's investment in AI is a matter of life or death."

-----------------------------------------------------------------------------------------------------

KBS (http://world.kbs.co.kr/english/news/)
S. Korea's Economy Expands 0.6% in Q2
South Korea's economy saw growth of point-six percent in the second quarter, slightly lower than an earlier estimate.
According to preliminary data released by the Bank of Korea on Tuesday, the nation’s real gross domestic product for the second quarter expanded point-six percent to some 397-point-96 trillion won.

Gov't Reveals Revisions to S. Korea-US FTA
The government has revealed the revisions to the free trade agreement with the U.S. which the two sides agreed on in principle earlier in March.
The Ministry of Trade, Industry and Energy disclosed the revised deal on its Web site on Monday.

N. Chungcheong Province Suffers Heavy Rain Damage
North Chungcheong Province has suffered major damage after it was pounded by some 200 millimeters of heavy rain on Monday night.
As of 7 a.m. Tuesday, the province estimated there were four landslides, 48 cases of flooding and 13 mudslides. At one time on Monday night, the province had seen more than 60 millimeters of rain per hour.

--------------------------------------------------------------------------------------------------------
Yonhap (http://english.yonhapnews.co.kr)

Russia's top parliamentary official to visit N. Korea for foundation anniversary
The head of Russia's upper house of parliament will visit North Korea for the upcoming anniversary of the foundation of the communist state, the North's state-run media said Wednesday.
"Valentina Matvienko, chairwoman of the Russian Federation Council, will soon pay an official visit to the DPRK at the invitation of the Supreme People's Assembly of the DPRK, and take part in the events marking its 70th birthday," the Korean Central News Agency (KCNA) said.

Gov't honors five Marine victims of chopper crash with national merit
The veterans ministry has decided to recognize the five deceased Marines in the July chopper crash as men of national merit, officials said Wednesday.
Following the decision Tuesday, the ministry conferred the national merit certificates to the families of Col. Kim Jung-il, Lt. Col. Noh Dong-hwan, Master Sgt. Kim Jin-hwa, Sgt. 1st Class Kim Se-young and Sgt. Park Jae-woo.

S. Korea's FX reserves retreat for first time in 6 months
South Korea's foreign currency reserves lost ground for the first time in six months in August on the strengthening U.S. dollar, central bank data showed Wednesday.
The total value of the country's foreign exchange reserves came to US$401.13 billion last month, down from an all-time high of $402.45 billion in July, according to the Bank of Korea (BOK).

--------------------------------------------------------------------------------------------------------
The Korea Herald (http://www.koreaherald.com)

Military exemption: performance booster or unfair privilege?
When the Korean national soccer team won the gold medal at the Asian Games on Sunday, English Premier League star Son Hong-min, along with 20 of his teammates, received exemptions from mandatory military service.

Moon, Trump to meet at UN this month: White House
South Korean President Moon Jae-in and US President Donald Trump agreed Tuesday to meet during the United Nations General Assembly in New York this month, the White House said.
The leaders spoke by phone ahead of Wednesday's planned trip to Pyongyang by a South Korean government delegation headed by Moon's chief national security aide, Chung Eui-yong.

Worker dies of CO2 poisoning at Samsung semiconductor plant
A worker died of carbon dioxide poisoning Tuesday at the Samsung Electronics semiconductor plant in Giheung, Gyeonggi Province, during an inspection of fire-safety equipment, the company confirmed.
----------------------------------------------------------------------------------------------------------------------------
The Korea Times (http://www.koreatimes.co.kr)

Moon's special envoys embark on one-day trip to North Korea
South Korean President Moon Jae-in's special envoy headed to North Korea on Wednesday for talks on a proposed summit between Moon and North Korean leader Kim Jong-un, as well as ways to move forward stalled talks on ridding the North of its nuclear weapons.
Chung Eui-yong, head of the presidential National Security Office, left Seoul Air Base in Seongnam, along with four other delegates including National Intelligence Service Director Suh Hoon and Vice Unification Minister Chun Hae-sung.

One dead, two injured in CO2 leak at Samsung chip plant
A worker is dead and two injured after toxic gas leaked at the Samsung Electronics plant in Giheung, south of Seoul, police said Tuesday.
The accident happened at 3:40 p.m. in a section of the first basement packed with fire extinguishing equipment. Leaked Co2 from the equipment is said to have caused the accident.

'MAN Truck sought to conceal defects'
MAN Truck & Bus Korea is still facing criticism from the nation's truck drivers, although it "voluntarily" decided to start recalling 1,191 TGS dump trucks of four models this week, industry officials said Tuesday.
Critics pointed out the local subsidiary of the German truck maker's continuous attempts to conceal the defects in its vehicles, saying the recent recalls are irrelevant to the faults that drivers of MAN trucks have complained about so far.

--------------------------------------------------------------------------------------------------------
Chosun Ilbo (http://english.chosun.com)

Law Firms Have Hands Full with Shorter Working Week
Many Small Businesses Heavily in Debt
More than 150,000 small businesses have taken out high-interest loans from small savings banks, or multiple loans from credit card companies and other financial institutions, according to a recent study.
The number of small businesses who took out high-interest loans increased by 50,000 over the last three years.

Defense Ministry Mulls Tightening Draft Exemption Rules
The Defense Ministry wants to tighten exemption rules for mandatory military service to bridge a looming shortfall in the number of young eligible me with an aim to phase them out by 2022.

Gov't Reveals Results of FTA Renegotiations with U.S.
The Ministry of Trade, Industry and Energy posted the outcome of negotiations to revise the Korea-U.S. free trade agreement on its website on Wednesday.
The two countries agreed in principle on March 24 after three rounds of revision talks since January. One change is that a 25 percent tariff on Korean pickup trucks will now only be scrapped by 2041, 20 years later than originally envisaged, to protect the American auto industry.

--------------------------------------------------------------------------------------------------------
HanKyoReh Shinmun (http://english.hani.co.kr)

Son Heung-min exempt from military service, but not BTS?
The 2018 Asian Games in Jakarta and Palembang may have come to a close, but the debate over mandatory military service exemptions for gold medal winners is heating up. On Sept. 3, the Military Manpower Administration (MMA) announced plans to undertake a full-scale review of its special military service exemption system for artists and athletes.

Retrials to be held for victims of illegal detention and torture during Jeju Uprising
Retrials are to be held for 18 people sentenced to prison time in a court-martial after suffering illegal detention and torture during the Jeju Uprising of 1948–49. This marks the first-ever decision to begin retrials in criminal court in connection with the uprising.

Constitutional Court declares act that denies unions by university professors is unconstitutional
The Constitutional Court has ruled unconstitutional a provision in the Act on the Establishment and Operation of Teachers’ Unions denying recognition for the establishment of unions by university professors.

---------------------------------------------------------------------------------------------------------
The Dong-A Ilbo (http://english.donga.com/)

Xi Jinping’s visit to North Korea seems unlikely
Wang Huning, a member of China’s Politburo Standing Committee and secretary of the party’s Secretariat, is set to travel to Pyongyang as President Xi Jinping’s envoy around Sept. 9 to celebrate North Korea’s 70th founding anniversary, sources said Monday.

North Korean tourism products attract tourists in Europe
More and more foreigners are seeking to travel to North Korea as the likelihood of a war on the Korean Peninsula has disappeared after the U.S.-North Korea summit in June.

Chinese electric car battery makers face subsidies drought
The decision by the Chinese government to cut the number of subsidies for local electric vehicle battery makers has been causing chaos for the industry, with many businesses facing bankruptcy or a halt in production. The subsidies advantage that the Chinese battery makers have enjoyed against their Korean and Japanese competitors is now boomeranging back.

--------------------------------------------------------------------------------------------------------
JoongAng Ilbo (http://koreajoongangdaily.joins.com/)

North Korea prepares major events for the Sept. 9 anniversary
North Korea is said to have prepared five huge celebrations, including a military parade, where at least 10,000 people will participate, to mark the 70th anniversary of the country’s founding on September 9. The North has requested embassies and international organizations in Pyongyang to submit an application if they wish to participate.

Aekyung Industrial joins hands with JW Shinyak
Aekyung Industrial announced on Tuesday that it signed an MOU with JW Shinyak to launch a new brand of dermacosmetics.

South Korea to phase out plastic straws by 2027
South Korea will phase out single-use cups and plastic straws at restaurants by 2027. Excessive packaging at large retailers will also be banned by law.

--------------------------------------------------------------------------------------------------------
The KyungHyang Shinmun (http://english.khan.co.kr/)

“Why Son Heung-min, But Not BTS?” Controversial Military Service Exemption
Military service exemption was one of the biggest issues of the 2018 Jakarta-Palembang Asian Games. It remained a hot topic on September 3, the day after the closing ceremony. People online pointed out and criticized problems concerning eligibility for the exemption as well as equity. A petition was launched demanding improvements to the system on the Cheong Wa Dae petition site. This day, the Military Manpower Administration announced that it would reconsider the military service exemption policy from square one, but the defense ministry drew the line saying, "This is the basic position of the Military Manpower Administration in connection to equity in military service." The positions of the Military Manpower Administration and the Ministry of National Defense once again stirred controversy.

Eradicating Irregular Practices Is Not a Matter of Choice
On September 1, in the first plenary session of the ruling party, government and Cheong Wa Dae--a meeting of all the leaders and senior officials of the Democratic Party of Korea, the government and Cheong Wa Dae--President Moon Jae-in said, "We need to powerfully and constantly make an effort to put an end to irregular practices, pushing out an era of injustice and creating a fair and just Republic of Korea." He reaffirmed his direction and determination in state affairs as the government and the ruling party established a new line-up with the cabinet reshuffle and the new leadership in the Democratic Party. The president judged that the government attempts to get rid of irregular practices were in a serious state and once again focused the support of the ruling party, government and Cheong Wa Dae on this issue.

--------------------------------------------------------------------------------------------------------
AJU Business Daily (http://eng.ajunews.com/korea)

Premier responds to request for BTS' military service exemption
South Korea's prime minister called for "rational improvement" in revising standards for military service exemptions after a social debate erupted over whether K-pop band BTS members should be exempted from their mandatory service for enhancing the prestige and image of their homeland.

Special envoy to carry Moon's letter during trip to Pyongyang
South Korean President Moon Jae-in will send a letter to North Korean leader Kim Jong-un through his envoy who will make a cross-border trip this week to make preparations for a fresh summit amid concerns that a stalemate in denuclearization talks could disrupt inter-Korean rapprochement.

--------------------------------------------------------------------------------------------------------
Maeil Business News Korea ( http://www.pulsenews.co.kr/)

LS C&S bags $36 mn submarine cable deal in Malaysia
South Korea’s leading cable maker LS Cable & System Ltd. said Tuesday it has clinched a 40 billion won ($35.9 million) order to build submarine power cables for Malaysia, bolstering its presence in the Southeast Asian market previously dominated by Japanese players.

Hanwha’s defense units showcase advanced weaponry in Australia
Hanwha Land Systems Co. and Hanwha Defense Systems Corp., the defense units of South Korea’s Hanwha Group, announced Tuesday that they have joined Land Forces 2018 with a joint booth to tap deeper into the Australian market and to leverage the exhibition as a chance to attract new prospects to their advanced military solutions.

S. Korea’s Q2 GDP up 0.6%, revised down from preliminary 0.7%
South Korea’s gross domestic product (GDP) grew 0.6 percent in the second quarter against the previous three-month period, slower than preliminary rate of 0.7 percent released in July, casting a doubt on the country’s lately downgraded growth target of 2.9 percent for this year.

--------------------------------------------------------------------------------------------------------
What’s ticking around the world at this second?
See what the world media around the world have to report:

Lee Kyung-sik edt@koreapost.com