[THE INVESTOR]  The National Tax Service on Oct. 20 launched a special audit on troubled shipbuilder Daewoo Shipbuilding and Marine Engineering. According to DSME, NTS investigators secured finance and accounting-related information from the company’s office in Seoul. The NTS department involved in the audit is known to specialize in special cases, prompting pundits to speculate that it may be related to DSME’s accounting fraud. DSME had initially posted profits in 2013 and 2014, but later corre

Oct. 20, 2016

[THE INVESTOR]  Stemming oversupply is key to overcoming the shipbuilding industry’s difficulties, according to global industry leaders. Speaking at the meeting of shipbuilders’ CEOs from Japan, Europe, China, Korea and the US (JECKU), industry leaders pointed to regulation and oversupply as key factors in the current difficulties, and that recovery will take some time. “In the recent few years, a much larger number of ships have been built than the increase in the volume of shipping, this overs

Oct. 20, 2016

[THE INVESTOR] South Korea's three largest shipbuilders are expected to post positive earnings in third quarter despite their ongoing troubles. According to industry sources, the three companies -- Hyundai Heavy Industries, Samsung Heavy and Daewoo Shipbuilding and Marine Engineering -- are expected to post positive results largely due to their cost-cutting efforts. They have been carrying out restructuring including laying off workers, and selling off assets. Of the three, HHI is expected to po

Oct. 20, 2016

[THE INVESTOR]  The government may introduce an eco-friendly car supply quota to increase the number of electric cars on the road. “As electric car supply is low, there is a need to review mandatory eco-friendly car supply system which is in place overseas,” Minister of Environment Cho Kyeung-kyu said on Oct. 19. Cho said that 2,401 electric cars have been supplied during the first three quarters of the year, when the target for the year is 10,000 units. According to the ministry, the shortfall

Oct. 19, 2016

[THE INVESTOR] Hotel Lotte announced on Oct. 19 that it has been selected as the preferred bidder for Neul Proon Medical Foundation.The foundation operates Bobath Memorial Hospital, but entered rehabilitation process in September 2015. At the end of last year, the hospital’s assets stood at 101.3 billion won (US$ 90.19 million) and debt at 84.2 billion won. The cost of taking over the hospital is estimated to be over 100 billion won. Hotel Lotte is reported to have put in the largest bid. If suc

Oct. 19, 2016

[THE INVESTOR] The bid to take controlling stake in Kumho Tire  could go down to a competition between non-Korean entities. The firm’s creditors are currently looking to sell their 42 percent stake in the tire maker. The preliminary bids will be received on Nov. 9. According to finance industry sources, all strategic investors that received information on the deal are overseas entities. From within Korea, a small number of private equity funds are said to have shown interest in the deal. The boo

Oct. 19, 2016

[THE INVESTOR] The Korea National Oil Corporation on Oct. 18 issued bonds worth US$1 billion. They include 5-year bonds worth US$350 million with yield of 1.094 percent, and 10-year bonds valued at US$650 million at 2.575 percent. According to finance industry officials, KNOC was able to issue the bonds with lower yields due to the recent upgrade of its S&P ratings from “AA-“ to “AA” in August. By Choi He-suk (cheesuk@heraldcorp.com)

Oct. 19, 2016

[THE INVESTOR] Renault Samsung Motors plans to launch a small electric commercial vehicle in 2019, according to news reports on Oct. 18. The company is reportedly planning to begin development this year with the aim of putting it on the market three years later. The vehicle is set to run for about 250 kilometers on a full battery. According to the company, the planned range will exceed the average driving range of small commercial vehicles in use in Korea. Renault Samsung chief Park Dong-hoonThe

Oct. 18, 2016

[THE INVESTOR] STX Offshore and Shipbuilding may be sold off before its revival plans are approved, according to news reports Oct. 18. Citing unnamed sources, the reports said that the Seoul Central District Court is reviewing plans to sell STX Offshore and Shipbuilding in a package deal with STX France, and plans to make a public announcement as early as this week. The court reportedly planned to make the announcement on Oct. 18, but pushed back the date in order to take creditors’ views into a

Oct. 18, 2016

[THE INVESTOR] Hyundai Motor, faced with increasing heat from the government, may be hoping to boost its lobbying capabilities with its new domestic sales chief. Lee Kwang-guk -- who headed Hyundai Motor’s Washington D.C. office -- was appointed as the chief of domestic sales on Oct. 14, replacing Kwak Jin. On the surface, the carmaker said that Lee was appointed for his “global sense and leadership,” which would help the company better respond to recent challenges. Hyundai is currently expected

Oct. 18, 2016

[THE INVESTOR] State-run banks are expected to raise more than 3 trillion won (US$2.64 billion) to prevent Daewoo Shipbuilding and Marine Engineering from being delisted. According to finance industry sources, the Korea Development Bank and the Export-Import Bank of Korea are planning to raise funds within the 4.2 trillion won limit set in October 2015 to keep the shipbuilder listed on the local market. The two banks are reportedly planning to draw up detailed plans within the month. The funds w

Oct. 17, 2016