Headlines, November 16, 2018

Friday, November 16, 2018

Round-up of important news from major Korean dailies and from international media today:

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

U.N. panel adopts resolution condemning N.K. human rights abuses

A United Nations committee on Nov. 15, 2018 adopted a resolution calling for accountability for gross human rights violations in North Korea. The U.N. Third Committee, which oversees humanitarian issues, passed the document by consensus without a vote.

Samsung Biologics CEO regrets accounting fraud ruling

The chief of Samsung BioLogics Co. claimed on Nov. 15, 2018 that his company didn't intentionally violate accounting rules before listing its stock on the Seoul bourse in 2016 and expressed regret over the financial regulator's ruling. The Securities and Futures Commission (SFC) suspended share trading of Samsung BioLogics on Nov. 14, 2018 and slapped it with a fine of 8 billion won ($7.05 million), after ruling that it committed accounting fraud in 2015 to inflate its value ahead of an initial public offering in the following year.

Oil funds lose big on plunging crude prices

South Korea's three oil commodity exchange traded funds (ETFs) have chalked up abysmal returns over the past month due to tumbling crude prices, a fund evaluator said on Nov. 16, 2018. The oil-focused funds, which are pegged to crude prices, posted an average return of over minus 15 percent in the month to Nov. 16, according to market tracker KG Zeroin.

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KBS (http://world.kbs.co.kr/english/news/)

Moon to Attend APEC in Papua New Guinea

President Moon Jae-in will head to Papua New Guinea on Friday after wrapping up a four-day trip to Singapore for regional summits.The president will arrive in Port Moresby, the capital of the Oceanian country, on Friday afternoon on Air Force One.

N. Korean Media: Kim Jong-un Inspects Test of New High-Tech Weapon

North Korean leader Kim Jong-un has reportedly inspected a test of a newly developed high-tech weapon. The Korean Central Broadcasting Station said on Friday that Kim visited a site at a national defense institute and inspected the test of the unspecified new tactical weapon.

EXIM Banks of S. Korea, China, Japan Agree to form Consultative Body

Export-import banks of South Korea, China and Japan have agreed to form a consultative body to enhance three-way cooperation. According to the Export-Import Bank of Korea, its chairman Eun Sung-soo reached the agreement with his Chinese and Japanese counterparts on Thursday on the sidelines of the Asian EXIM Banks Forum in Thailand.

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

S. Korea demolishes DMZ guard post with explosive

South Korea on Thursday demolished part of a border guard post with an explosive device as part of an inter-Korean agreement to withdraw such installations inside the Demilitarized Zone (DMZ) to reduce tensions, Seoul's defense ministry said. Its military used a TNT explosive to destroy the upper part of the guard post in Cheorwon, some 90 kilometers northeast of Seoul, to carry out the agreement under which the Koreas will each withdraw 11 DMZ guard posts on a trial basis.

N.K. rights issue may get more emphasis in Democratic-led House: ex-U.S. diplomat

North Korea's human rights issue may get "more emphasis" in the U.S. House of Representatives with the Democrats winning back control in last week's midterm elections, a former U.S. diplomat said Thursday. Kathleen Stephens, who served as ambassador to South Korea from 2008-2011, made the remarks, noting that President Donald Trump has not paid much attention to the issue in the wake of his summit with North Korean leader Kim Jong-un in Singapore in June.

SK hynix develops new DRAM optimized for big-data, AI, machine learning

South Korea's No. 2 chipmaker SK hynix Inc. said Thursday it developed a new dynamic random-access memory (DRAM), DDR5, which comes with faster speed and improved power efficiency to meet the demand from the field of big-data, artificial-intelligence, and machine-learning. SK hynix, which earlier unveiled the second-generation 10-nano class 8 gigabit DDR4, said it developed the 16 gigabit DDR5 using the same processing technology.

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

How Blair Williams ended up hosting family on South Korean TV

After nearly three years since appearing on popular TV show “Non-Summit,” Blair Williams’ name is back in entertainment news. This time, the spotlight was shared with his family, who recently appeared on “Welcome, First Time in Korea?”

FKI vice head urges WTO to address nontariff barriers

The World Trade Organization should tackle escalating nontariff barriers to stem the spread of protectionism and nationalism, the deputy head of South Korea's top business lobby said Friday. Kwon Tae-shin, vice chairman of the Federation of the Korean Industries, made the call during the globalization session of the Asia Pacific Economic Cooperation CEO Summit in Port Moresby, Papua New Guinea, the FKI said, which lobbies for the country's family-controlled conglomerates.

Market remains split over Samsung BioLogics’ trading suspension

The stock trading suspension of Samsung BioLogics starting Thursday seemed to wrap up a chapter in the yearslong brawl over alleged accounting fraud, apparently with the defeat of the biotech company. Market observers, however, remained divided on the impact that the case may have on the domestic stock market and the biopharmaceutical industry. Some optimistically suggested that the sanction may act as a turning point for the Samsung Group affiliate to end the prolonged uncertainty factor.

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The Korea Times (http://www.koreatimes.co.kr)

College exam takes place across nation

More than 500,000 students took the government-administered university entrance exam in 1,190 test venues across the country, Thursday, with the entire nation hushing for the crucial test. The five-part College Scholastic Ability Test (CSAT) started at 8:40 a.m. with the Korean language portion of the exam and ran until 5:40 p.m., according to the Ministry of Education.

Seoul awards honorary citizenship to 22 foreigners

The Seoul Metropolitan Government awarded honorary citizenship to 22 foreigners to recognize their social, cultural and financial contributions to the city at a ceremony held in the Sejong Center for the Performing Arts, Thursday. Among the 22 people was Zahid Hussain, known as the representative of Pakistan on "Abnormal Summit," a Korean television talk show featuring foreigners living in Korea.

Center helps online sex crime victims

Spreading sexual content on the internet, including voyeur videos and revenge porn, has become a serious problem here, with its means of circulation diversifying along with technological development. The Women's Human Rights Institute of Korea, an affiliated organization of the Ministry of Gender Equality and Family, said putting a stop to the spread of sexually explicit pictures or videos shared without consent of the person shown is no longer as simple as requesting a website operator to delete the content.

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

Big Problems Plague Korea's Employment Market

Korea's job market is plagued by a growing income gap, high youth unemployment, gender inequality and a high proportion of small store owners, according to a report by the Bank of Korea out last week. The report said the labor market is sharply divided between permanent employees in big businesses, who earn hefty salaries but account for only 11 percent of all workers, and temporary workers or those employed permanently in small and mid-sized companies, who earn far less.

Fans Go to Extreme Lengths to Catch Their Idols at Airport

Over 200 fans gathered in the departure drop-off area of Terminal 1 at Incheon International Airport on Monday morning to see boy band Wanna One leave for a fan event in Bangkok, Thailand. When the members came out of the van, the fans started screaming and a blizzard of camera flashes went off. Some even had portable ladders and expensive telephoto lenses.

Minimum Wage Hike 'Could Cost Half a Million Jobs'

A sharp increase in the minimum wage will cause some 470,000 jobs to be lost over the next four years as income disparity worsens, according to a study.The Korea Economic Research Institute said in a report on Wednesday that if the minimum wage rises to W10,000 an hour by 2021, up to 476,000 jobs will disappear (US$1=W1,136).

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

Trade of Samsung BioLogics stock suspended

Trade of Samsung BioLogics (Samsung Bio) stock on the market were summarily suspended on Nov. 14 after financial authorities reached a final conclusion that the company had engaged in “deliberate accounting fraud” in connection with affiliate Samsung Bioepis.The situation is now seen as increasingly likely to proceed under a three-track approach involving a listing suitability review by the Korea Exchange (KRX), which considers whether to delist companies; an investigation by prosecutors; and a court review in response to an administrative suit filed by Samsung.

Samsung Biologics’ accounting fraud both begins and ends with Lee Jae-yong’s succession of the group

South Korean regulators’ findings that Samsung BioLogics engaged in “deliberate accounting fraud” is expected to have serious ramifications for the trial of Samsung Electronics Vice Chairman Lee Jae-yong and the overall management structure in the Samsung Group. Since this means that books were cooked to aid Lee’s succession of control of the group, it further deflates consumer confidence in the group, which had already been battered by the Choi Soon-sil influence-peddling scandal.

US hedge fund Elliott renewing pressure campaign against Hyundai Motor Group

The US-based hedge fund Elliott is renewing its pressure campaign against the Hyundai Motor Group for the return of excess capital to shareholders and disposal of non-core assets. Analysts read the push as intended to influence governance structure changes currently being discussed by the group. The Hyundai Motor Group has indicated it does not plan to respond individually to what it describes as “vulture” tactics by Elliott, which it sees as picking at company weaknesses in order to maximize profits.

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

Andy Kim wins New Jersey 3rd District Election

Andy Kim, a 36-year-old Democrat, who ran in the midterm election for New Jersey’s 3rd Congressional District, has won the parliamentary seat. This makes him the first South Korean congressperson in the U.S. since Kim Chang-joon, the former Republican congressman who served 20 years ago.

Boston Red Sox extend Alex Cora's contract through 2021

The Boston Red Sox, the champions of the World Series in 2018, announced on Wednesday (local time) that it will extend the contract for an extra year with Manager Alex Cora. Following his “3+1” contract with Boston last year, he will have his contract extended through 2021 with a team option for the 2022 season. This gives him an extra year for his guarantee period.

Gov't to award 128 patriots on Patriotic Martyrs Day

The Ministry of Patriots and Veterans Affairs said Thursday that it will posthumously award 128 independence fighters with the Orders of Merit for National Foundation, the National Foundation Medals, or the Presidential Medals on the occasion of the 79th Day of the Patriotic Martyrs.

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

BioLogics’s fate could rattle Kospi investors

The accounting fraud penalties slapped on Samsung BioLogics Wednesday could take a toll on investment sentiment in general and specifically for bio stocks on local stock markets that are already skittish, analysts warned. Major uncertainties are unfolding in two directions: whether Samsung’s biotechnology unit will face delisting, and whether any future investigation penetrates the group’s leadership including its de facto CEO Lee Jae-yong.

Amateur golfers invited to tee off in the North

North Korea will resume an annual amateur golf tournament in 2019 after a two-year hiatus as the country struggles to earn foreign exchange due to international sanctions. Lupine Travel, a U.K.-based travel agency that sponsors the event, recently announced that the 2019 DPRK Amateur Golf Open will run from next Sept. 5 to 6 in Pyongyang. DPRK is the acronym for North Korea’s official name, the Democratic People’s Republic of Korea.

Former Supreme Court justice is subpoenaed

Prosecutors broke precedence by summoning a former judge on the country’s highest court to question him on allegations that the Supreme Court deliberately shelved a damages suit by Koreans forced into labor during Japanese colonial times to curry favor with the previous administration.

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

Strict Judgment of Samsung BioLogics Accounting Fraud

On November 14, the Securities and Futures Commission concluded that accounting fraud had been committed at Samsung BioLogics. The commission announced, "Samsung BioLogics intentionally breached accounting rules when changing the status of Samsung Bioepis from a subsidiary to an associate company." In other words, Samsung BioLogics's interpretation of accounting standards, which they applied in 2015, did not conform to accounting principles. The commission recommended that the chief executive officer be dismissed and decided to request the Prosecution Service for an investigation into the company. It also suspended the trade of BioLogics shares, which will inevitably leave an impact on the stock market.

Lessons Learned from the One-Day North Korean Missile Fiasco

On November 13 (local time), U.S. President Donald Trump said, "We fully know about the sites being discussed, nothing new," on the Sakkanmol missile base, which the Center for Strategic and International Studies (CSIS) mentioned in its report the previous day. President Trump also refuted the New York Times report that cited the CSIS report and suggested a great deception on the part of North Korea, calling it "inaccurate." The National Intelligence Service (NIS) also made an announcement on the Sakkanmol missile base in North Korea on November 14 and said, "We have been well aware of the situation and they (North Korea) are maintaining normal activities."

Sudden Controversy over a North Korean Missile Base: Sabotaging the Denuclearization Negotiations?

The Center for Strategic and International Studies (CSIS), a U.S. think tank, released a reported titled, "Undeclared North Korea: The Sakkanmol Missile Operating Base." The report claimed to have confirmed thirteen of the twenty undeclared missile operating bases currently in operation by the North Korean authorities without official confirmation. CSIS based their argument on satellite photos taken on March 29 by a civilian satellite firm and introduced the Sakkanmol base in Hwangju-gun, North Hwanghae Province as one of the secret missile bases.

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

SK Hynix develops next-generation 10-nano class DRAM chip

South Korea's second-largest chipmaker SK hynix developed a next-generation microchip which is fast, power efficient, and for processing big data analytics and AI-related tasks such as deep learning. Dynamic random-access memory (DRAM) chips are widely used in digital electronics such as smartphones and computers to manage their main memory.

Kia releases teaser image for revamped compact box car Soul

Kia Motors, an affiliate of South Korea's Hyundai auto group, released a set of teaser images showing silhouettes of the revamped model of "SOUL", a multi-purpose vehicle (MPV) better known as a "box-shaped car", arousing the curiosity of consumers worldwide.

MR-based virtual fitting solution using 3D avatar makes debut

An upgraded mixed reality-based virtual fitting solution using a 3D avatar made its debut, allowing consumers to reduce the effort of putting on clothes. Apparel brands and stores can make 3D clothing in virtual clothing in a short time with exclusive software.

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

Hyundai Group to celebrate 20th anniversary of Mount Kumgang tour in North Korea

South Korea’s Hyundai Group will hold a joint ceremony with North Korean officials to celebrate the 20th anniversary of its long-suspended Mount Kumgang tour program at the resort mountain in North Korea, a move that would speed up the renewal of the tours to the North amid fast thawing relations between the two Koreas.

Vietnam securities firms’ post-tax profit up 59 per cent in Q3

Total post-tax profit of 72 securities companies reached VNĐ2.14 trillion (US$92 million) in the third quarter of this year, up 59 per cent quarter-on-quarter, according to the Hanoi Stock Exchange (HNX). The number of profitable securities companies and value of profits increased over the previous quarter as well as against the same period last year.

Kospi net profit minus Samsung Elec down 6.4% on year as of Sept

Members on the Korea Composite Stock Price Index (Kospi) reported reduced income this year as of September against a year-ago when bellwether Samsung Electronics is excluded. According to Korea Exchange, the combined operating profit of 639 Kospi-listed companies with a fiscal year ending December increased 7.88 percent on-year to 130 trillion won ($115.2 billion) on a consolidated basis in the January-September period.

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