The Korea Development Institute (KDI) pointed out that trade liberalization policies such as signing of free trade agreements (FTAs) has led to little productivity enhancement in the manufacturing sector of South Korea since 2012. It advised that unviable companies need to be driven out and unemploy
Tripartite talks failed in the end due to the insistence of the Korean Confederation of Trade Unions (KCTU). A complete agreement of the KCTU, the Federation of Korean Trade Unions (FKTU), employers and the government, which has been anticipated for 22 years, is now up in the air again. The KCTU is
The author is an analyst of NH Investment & Securities. He can be reached at soohong.cho@nhqv.com. -- Ed. After a bottoming out of margins this year, Hyundai Mobis’s module division is likely to enjoy a long-term top- and bottom-line growth trend, driven by the expansion of the electrification busin
A city is bound to evolve when its citizens keep learning after school. In this kind of city, citizens learn not to pass school entrance examinations but to enjoy learning in life and feel rewarded. Incheon’s Yeonsu-gu (district), which is home to Songdo International City, has dreamed of becoming s
DRAM prices have stopped rising after rallying for six months. They are expected to fall again as the volume of orders will decrease beginning the third quarter.The average fixed transaction price of a DDR4 8 Gb DRAM mainly used for PCs was US$3.31 in June, the same as May, market research company D
Korea Western Power will participate in a gas-fired hybrid power generation project in the eastern U.S.The state-run power company signed an agreement with KDB Infrastructure Asset Management on June 29 to form a consortium to jointly invest in the Killingly Energy Center (KEC) Gas-fired Hybrid Powe
Although the number of Korean 5G subscribers crossed six million in April in one year since the launch of commercial 5G services, actual 5G access time still remains low.Korean 5G smartphone users are connected to 5G services for only 15 percent of their total use time, according to a report by Brit
Samsung Electronics vice chairman Lee Jae-yong visited a factory of SEMES, a semiconductor and display equipment subsidiary of Samsung Electronics, to encourage its employees to redouble their efforts to navigate through an uncertain business environment."I cannot see the end of uncertainty," Lee sa
Statistics Korea announced on June 30 that South Korea’s overall industrial production fell 1.2 percent in May from a month earlier.South Korea’s retail sales increased 4.6 percent month on month in May after another increase in April. Retail sales have rebounded to the pre-COVID-19 level based on g
Japan implemented photoresist, hydrogen fluoride and fluorine polyimide export restrictions one year ago and South Korean companies’ concerns over production setbacks are still continuing. Although they have responded well by R&D and import source diversification, their dependence on photoresist and
The Korean Intellectual Property Office and the Department of Intellectual Property of Laos have signed a memorandum of understanding so that patent registration in South Korea can have the same effect in Laos starting from July 1.Specifically, patent examination in Laos will be replaced with simple
The U.S. government canceled the special status of Hong Kong. Its relay trade function and financial hub position, which are the two pillars of its economy, are likely to be seriously affected and foreign enterprises and funds may escape from the city without trade privileges. Hong Kong is a global
Lotte Engineering & Construction’s Indonesian joint venture partner Modernland Realty (MDLN) is in default crisis, threatening to derail their 450 billion won residential complex development project in Jakarta.On June 23, Fitch Ratings downgraded MDLN’s long-term issuer default rating to “CCC-“ from
The author is an analyst of NH Investment & Securities. He can be reached at minjae.lee@nhqv.com. -- Ed. Rental rates of return for multi-homeowners have worsened due to stricter holding tax regulations. But, after the Jun 17 housing market stabilization measures, price increases in areas excluded f
The authors are analysts of Shinhan Investment Corp. They can be reached at johnsoh@shinhan.com and chank@shinhan.com, respectively. -- Ed. Initiate coverage with BUY for a target price of KRW238,000We initiate coverage of Samsung SDS with BUY for a target price of KRW238,000 with: 1) company-wide o
The normalization of diplomatic relations between South Korea and Japan commemorated its 55th anniversary on June 22. Still, the bilateral relations are currently the worst on the economic and national security sides as well as the history side.The Japanese government implemented export restrictions
The factory operation rate of small and medium-sized enterprises (SMEs) has fallen to the lowest level since the 2009 financial crisis.The Korean Federation of Small and Medium Business (KBIZ) conducted a survey on 3,150 SMEs from June 15 to 22 and announced the results on June 29. The survey found
The Korean steel industry is suffering from a double whammy -- a steep rise in costs and a demand cliff following the spread of COVID-19. Although price hikes are urgently needed in view of worsening profitability amid rising production costs, it is not easy to raise prices because of a plunge in de
A system semiconductor design support center which allows fabless companies to design chips 24 hours a day has opened in Pangyo, Gyeonggi Province.The Korean government will invest US$1 billion in developing next-generation intelligent semiconductors and a 100 billion won system semiconductor invest
Daewoo Shipbuilding and Marine Engineering Co. (DSME) and Samsung Heavy Industries Co. (SHIC) are full of hope for winning icebreaking LNG carrier orders from Russia. Korean shipbuilders are likely to sweep up orders for icebreaking LNG carriers that will be used for the Second Yamal Project, a Russ