Hanjin Heavy Industries & Construction Co., a midsized shipyard in South Korea, announced on Jan. 8 that its affiliate in Subic of the Philippines has filed for a rehabilitation program with a Philippine court due to a prolonged business slump.The Philippine court will decide within 120 days whether
The Korea Development Bank (KDB) has decided to mobilize former officials of now-defunct Hanjin Shipping to support Hyundai Merchant Marine (HMM), which is still in trouble despite massive financial support from the Korean government."We have come up with the idea of using a shock therapy as the shi
The Korea Development Bank (KDB) has decided to allow GM Korea to spin off its R&D unit into a separate company.Instead of withdrawing an injunction application filed with the court to suspend the separation of the unit from GM Korea, the KDB agreed with GM to designate the new company as an R&D bas
The Korea Development Bank (KDB) will invest US$375 million in GM Korea on Dec. 26 to fulfill its promise to invest a total of US$750 million in the ailing company to normalize its operations. The KDB invested half of the promised US$750 million in June.GM Korea announced on Dec. 13, that it decided
The Korea Development Bank (KDB) is likely to withdraw its opposition to GM Korea's plan to spin off its R&D unit into a separate company.The bank said on Dec. 12 that it has received a plan from GM Korea about how the company would be managed after the planned separation of the R&D unit. The ba
Korea Development Bank (KDB) is struggling with restructuring of big ailing corporations put under its care.For example, KDB should determine within this month whether to invest US$375 million in GM Korea. Under a normalization plan, GM Korea is supposed to receive US$750 million in investment from
The court has put the brakes on GM Korea’s plan to spin off its research and development unit into a separate company, saying there was a serious flaw in the company’s decision-making process.The Seoul High Court accepted on Nov. 28 the Korea Development Bank’s request for a provisional court injunc
With the plannd launch of a new R&D corporation only one week away, the conflict between GM Korea's labor and management over the new R&D entity is not showing any sign of being resolved.As three-part talks among the labor, management and Korea Development Bank (KDB) proposed by the KDB have bee
The Korea Development Bank (KDB)'s proposed trilateral talks with the labor and management of GM Korea have been aborted."GM Korea counterproposed bilateral talks with the KDB, and the labor union expressed its willingness to participate when a set of preconditions are met,” the KDB said in a pr
GM CEO Mary Barra sent an email to GM Korea executives last month, saying that those who have worked for 12 years or more can voluntarily retire.GM Korea also notified those subject to retirement of details about the upcoming procedure. In her email, the GM CEO stressed that the company will have to
A global consulting firm warned that the domestic insurance market is reaching saturation. Moreover, small and mid-size insurance companies, which suffer from performance deterioration, are expected to stand on a delicate precipice as the introduction of new International Financial Reporting Standar
The exposure of South Korea’s four major banks to the auto industry is approaching 40 trillion won (US$35.03 billion). If Hyundai Motor and Kia Motors continue to show a poor performance, their partner companies will be driven into financial trouble. Then banks are highly likely to have an increasin
The South Korean government’s financial support for companies working with GM Korea has come to an end.Since GM Korea decided to spin off its R&D unit into a separate company in July this year, financial support for its partner firms has almost ended. The government is planning to support the auto p
The South Korean government will provide 15 trillion won (US$13.23 billion) in low-cost loans to small and medium-sized enterprises (SMEs) within the year in order to help them modernize their production facilities and increase investment in safety and environmental production measures.The governmen
The government will inject one trillion won (US$900 million) in emergency aid into Hyundai Merchant Marine (HMM) to alleviate its financial difficulty.HMM announced on Oct. 23, that the company would issue 600 billion won (US$540 million) in bonds with warrants (BWs) and 400 billion won (US$360 mill
The National Labor Relations Commission has turned down a request for mediation filed by unionized GM Korea workers to resolve their dispute with the company’s management over its plan to establish a separate R&D company.The commission’s decision has effectively made the GM Korea union's planned
GM Korea has spun off its R&D functions and formed a separate company in a blitzkrieg manner. Yet the move has generated a backlash from unionized GM Korea workers, the Korea Development Bank and the Incheon Ciy government.GM Korea's workers have voted to go on strike as they see the spin-off as
The Incheon District Court has rejected a petition filed by the Korea Development Bank (KDB) for an injunction against a shareholders' meeting of GM Korea Co. set for Oct. 19. Accordingly, the likelihood of the KDB and GM Korea having a legal battle over restructuring of the ailing company has i
South Korea is slow in adopting fintech, while China has already entered the late stage of popularization, a report from the Korea Development Bank (KDB) shows.The report on the Korean and global fintech industry says the global fintech adoption rate stands at 33 percent, entering the early stage of
Korea’s top financial regulator said on Sept. 19 that inter-Korean economic cooperation will create an opportunity for mutual growth between foreign and South Korean financial companies.Referring to the Pyongyang North–South Joint Declaration adopted on Sept. 19, Financial Supervisory Service (FSS)