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Tag: Industry

  • Kia Motors Niro wins Car of the Year from U.K. magazine

    Kia Motors Niro wins Car of the Year from U.K. magazine

    Kia Motors said Thursday its Niro electric vehicle has won British consumer magazine and website What Car?’s Car of the Year Award. Kia said the model received high scores for its long range and reasonable price. The Niro also won the Electric Car of the Year.

    This year’s What Car? awards were given to 25 models in various categories.

    Kia and its larger affiliate Hyundai Motor have won a total of nine What Car? awards this year, the companies said in a statement.

    Kia’s Picanto was named the best City Car of the Year, with its Cee’d compact winning the best Family Car for less than £20,000. Kia’s Stinger fastback sports sedan received the best Performance Car for less than £50,000. Hyundai said its Ioniq passenger car was given the Hybrid Car of the Year Award.

  • Qatar possible partner for Malaysia’s third national car project

    Qatar possible partner for Malaysia’s third national car project

    Malaysia is looking at the possibility of having Qatar on board the third national car project. In a statement, the International Trade and Industry Ministry (Miti) said Minister Datuk Darell Leiking had a bilateral meeting with Qatar’s Minister of Commerce and Industry Ali Ahmed Al Kuwari and Qatar Investment Authority CEO Mansoor Ebrahim al-Mahmoud on Jan 22.

    “The main objective of the meeting is to explore the possibility of having Qatar on board Malaysia’s third national car project. This is to leverage on Qatar’s investments in Volkswagen and Audi. Qatar positively welcomed the idea and reiterated on the need to deliberate the details of the joint manufacturing project,“ Miti said.

    Darell highlighted that Qatar could look at the possibility of collaborating in Malaysia in other parts of the automotive sector such as investment in automotive components or producing electric cars. He also informed Qatar on the recent launching of the latest Proton model X70 and Perodua Aruz.

    “Qatar took the opportunity to update Malaysia on its current investment reforms including the relaxation of foreign investment ownership, of which 100% foreign ownership is now allowed in Qatar in various sectors.”

    Qatar expressed hope that more Malaysian companies to invest in Qatar. Qatar can be seen as a gateway to the Middle East market and Malaysia as a springboard to the Asean market. To this effect, the Second Malaysia-Qatar Joint Trade Committee Meeting is scheduled to be held on March 28-29 2019.

    “Noting the good relationship between Malaysia and Qatar, the minister also expressed the possibility of proposing Qatar to be a dialogue partner in Asean,“ Miti said.

  • BMW Korea announces recall of 99,000 additional vehicles

    BMW Korea announces recall of 99,000 additional vehicles

    BMW on Wednesday announced another recall of an additional 99,000 vehicles, with 20,000 of them recalled immediately on concerns of engine fires. The remaining 79,000 will be recalled if replacement parts are found to be faulty. The Ministry of Land, Infrastructure and Transport on Wednesday announced that it has told the German carmaker to follow up with a recall plan that it submitted last week.

    The recall plan followed the investigation results announced by a joint investigation team on Dec. 24 in regard to BMW vehicle catching fire in Korea.

    The investigation team at the time announced that the fires were not only caused by the emission reduction system, or exhaust gas recirculation (EGR) system, but also by the intake manifold.

    The 20,363 vehicles that were in the first recall in July last year will be the first in line to be re-recalled, this time to check the intake manifold.

    These are vehicles with EGR modules that have not been replaced.

    The government said it will also inspect 80,000 BMWs to see if they have any leakage problems.

    Last year, BMW recalled 106,000 vehicles after they began bursting into flames last summer.

  • Boom abroad for Hyundai Mobis high-tech car parts

    Boom abroad for Hyundai Mobis high-tech car parts

    Hyundai Mobis said Tuesday it logged $1.7 billion worth of orders for high-tech automotive parts from non-Korean customers last year, setting a new record for overseas sales. High-tech parts include sensors, display and lamps used for self-driving and electric cars. Last year’s figure is a 40 percent jump from $1.2 billion worth of orders in 2017. The parts company has been rapidly expanding its global presence over the years. Orders for high-tech parts from overseas customers totaled just $500 million in 2015.

    The Hyundai affiliate said the record-breaking result is largely due to increasing demand from overseas electric vehicle companies and its focus on developing future car technologies.

    According to Mobis, it received nearly $1 billion worth orders, 60 percent of its total overseas orders, from electric vehicle companies in North America, Europe and China.

    Many electric car companies are start-ups. A Mobis spokesperson said companies at this stage of development tend to be more aggressive when it comes to investment in technology.

    Recently, Mobis signed a deal to supply steering wheel-mounted displays and smart lamps to electric car companies. The products have yet to be commercialized.

    Steering wheel-mounted displays are fit in the center of the wheel.

    Smart lamps will be used for communicating with pedestrians or other cars through the display of light pattern messages.

    The parts maker also signed a contract to supply lateral radars to a North American company. This type of radar extends the sensing coverage of autonomous vehicles.

    The company said it will continue to expand sales of high value-added electronic parts this year as global automakers increasingly rely on digital features to differentiate their products.

  • Hyundai Motor offering a bigger, better Universe

    Hyundai Motor offering a bigger, better Universe

    Hyundai’s Universe is about to get bigger. Hyundai Motor unveiled an updated version of its luxury coach, the Universe, on Tuesday, increasing its size and adding safety features. The updated coach, scheduled for release next March, has an extended wheelbase of 12.5 meters (41 feet), 0.5 meters longer than the existing model. Distance between seats has been increased.

    The vehicle comes with a variety of new safety features applied for the first time in a coach in the local market, such as an engine fire extinguishing system, driver attention warning and a rear-view monitor.

    Hyundai Motor explained that the Universe’s driver attention warning system and smart cruise control are now offered to prevent drowsy driving and other avoidable accidents. The new Universe also has a refreshed exterior design with headlight changes and will be available in three trims.

  • Tech sector forecast to see slower growth ahead

    Tech sector forecast to see slower growth ahead

    Hong Leong Investment Bank (HLIB) Research anticipates slower growth in the technology sector due to downside risks in the macro environment coupled with waning data trends. However, it expects automotive and Internet of Things (IoT) to take the forefront while smartphone takes a backseat. The research house said in a note that for the first 11 months of 2018 (11M18) global semiconductor sales were outstanding after growing 16%, thanks to the explosive growth of memory followed by discrete and optoelectronics.

    As for 2019, consensus is projecting 3% growth for that segment.

    “However, we see further downside to this projection considering the US-China trade conflict, stagnant smartphone demand, industry-wide inventory adjustment and weaker memory prices,” HLIB said.

    The automotive sector is expected to be the major growth driver for global technology industry supported by its development towards full autonomy. The equipment industry remained solid with billings increasing 11% in 11M18, supported by heavy investments in all regions except Taiwan.

    “However, year-on-year growth has been on a snail’s pace for the past five months, translating into a significant deceleration from past 20 consecutive months’ double-digit growth rates,” the research house explained.

    According to SEMI, this reflected the near-term weakening demand for personal computers, mobile phones and servers as well as pulled back investments in response to recent softening of memory prices.

    “This is in line with its expectation of expansion in capital spending not outpacing sales growth on the long run and potentially lead to industry-wide overcapacity,” said HLIB.

    The research house also highlighted that local semiconductor players may experience strong demand to support the disrupted global supply chain should the procurement levy and technology transfer restriction from US take effect.

    Note that China sources substantial fabrication equipment from US players for its expansionary semiconductor industry towards the “Make in China 2025” vision. Vice versa, US fabless semiconductor players outsource their product fabrication and some are produced in China.

    With strong greenback, HLIB expects tech firms to be marginally boosted thanks to their US dollar-denominated sales while partly offset by the US dollar cost items.

    It estimates the ringgit to be weaker in FY19 with at full-year average of RM4.20 against US dollar.

    Nonetheless, pricier commodities, compounded by stronger US dollar projection, will exert pressures on margins for traditional packaging.

    Maintaining a “neutral” call on the sector, HLIB displayed a cautious stance in the absence of near-term catalyst as it expects global sales and capital spending to grow moderately.

    As for stock picks, it gave Frontken a “buy” call at a target price of RM1.05 on the back of bullish global semiconductor market outlook, robust fab investment, leading edge technology, oil and gas recovery and strong balance sheet.

  • Samsung factories ready to make 5G and foldable phones

    Samsung factories ready to make 5G and foldable phones

    Samsung Electronics is ready to roll out both 5G and foldable phones, two of most highly-anticipated products from the electronics company. While Samsung has already announced a plan to introduce new Galaxy phones at an unpacking event next month in San Francisco, it is confirmed on Tuesday that Samsung’s global production base in Vietnam has completed preparation to mass-produce 5G phones.

    The 5G phone is tentatively called “Galaxy S10 X.” Two Samsung factories, located in the provinces of Bac Ninh and Thai Nguyen, both north of Hanoi, produce 150 million smartphones a year. The 5G-enabled version of Galaxy S10 produced in Vietnam will be exported globally, starting with the United States. The first one million units of Samsung’s first foldable phone will be produced at the company’s production plant in Gumi, North Gyeongsang.

    The 5G phone “will roll out three to four weeks after the basic Galaxy S10 model hits the market. However, we have finished all preparations to mass produce a 5G phone,” a source from Samsung Electronics said.

    The phone will likely be introduced during the unpacking event on Feb. 20 along with three other versions of Samsung’s 10th-generation Galaxy family: S10, S10+ and S10 light.

    Phones that can connect to the 5G network are expected to bring revolutionary changes in media consumption habits. A 5G phone can download a 1.5 gigabyte movie in under a second.

    Samsung’s first 5G phone is likely to come with a 6.7-inch screen, larger than the 6.1-inch screen of S10 or 6.4-inch screen of S10+.

    The 5G-connected S10 will be powered by the Exynos 9820 chipset.

    Though it is designed for 5G connections, the phone will still be able to connect to 4G LTE as 5G infrastructure development is still underway. Even in Korea, where 5G infrastructure is quickly being built, next-generation connectivity is a work in progress.

    Samsung will first supply 5G phones to five telecom companies, including Verizon, AT&T and Sprint, all in the United States, and SK Telecom and KT in Korea

    Although the 5G phone will be introduced at the unpacking event, the actual launch of the model will come a bit later than the new S10s.

    While basic versions will be released in early March, the actual 5G-capable models will be available at the end of March.

    Samsung has greatly tightened security at its S10 production sites in Vietnam factories after a picture of the Galaxy S10 was leaked online.

    As for the company’s foldable phone, tentatively dubbed the “Galaxy F,” initial production will take place at the Gumi plant. Industry sources project that Samsung is likely to introduce the foldable phone at the unpacking event as well, but will release the phone April at the earliest.

    Federico Casalegno, head of the Samsung Design Innovation Center in North America, said “the foldable phone is a breakthrough in technology innovation,” during a press briefing last week.

    Industry insiders say the main reason for making foldable phones at the local Gumi plant is to prevent technology leaks and better control the initial production volume of the phone.

    “We are not yet ready to mass-produce foldable phones as well in Vietnam,” a spokesperson from Samsung said. “The first one million units of foldable phones and 5G phones to be sold in the Korean market will be produced at the Gumi plant, which is in charge of producing our premium products.”

  • Vietnam liquor maker makes a loss, 4 years in a row

    Vietnam liquor maker makes a loss, 4 years in a row

    Nation’s leading liquor maker Halico has reported a loss of VND75 billion ($3.22 million) for 2018. With Vietnamese consumers moving towards foreign brands, the 120-year-old liquor maker, in which Vietnam’s second biggest brewery Habeco has 54.29 percent ownership and British multinational Diageo holds a 45.5 percent stake, Halico has reported losses for the fourth year in a row.

    It reported a loss of over VND20 billion ($859,780) in the fourth quarter of 2018, raising the total annual loss to VND75 billion ($3.22 million).

    In its annual statement for 2018, Halico’s board expressed doubts that the company can continue operating, with Vietnamese consumer tastes shifting to imported beer and foreign alcoholic products. It conceded that it has failed to capture younger consumer segments.

    In addition, Diageo has been unable to negotiate any substantial supply contracts with foreign partners, so the company has not been able to do well in exports.

    Furthermore, management costs have risen to over 60 percent of revenue. Despite a 30 percent rise in sales in 2018 (VND155 billion or $6.66 million), the difference was not able to compensate for expenses incurred.

    The Hanoi Liquor Joint Stock Company was originally a Hanoi winery, founded in 1898 and equitized in 2004 with initial charter capital of nearly VND50 billion ($2.15 million).

    In early 2011, Diageo Plc, a British multinational alcoholic beverages company, acquired an 18.67 percent stake in Halico for a total of VND800 billion ($34.4 million) from investment fund VinaCapital.

    Diageo is the world’s biggest liquor company, owning famous brands such as Johnnie Walker, Bailey and Smirnoff. It bought another 26.83 percent stake in 2012, hoping to cash in on the growing consumer market.

    Halico’s accumulated losses at the end of last year topped VND330 billion ($14.19 million), 1.6 times higher than its current charter capital at VND200 billion ($8.6 million).

  • Hyundai develops safer airbag deployment system

    Hyundai develops safer airbag deployment system

    Hyundai Motor Group, Korea’s biggest carmaker by sales, said Monday it has developed a safer airbag deployment system to better protect people from multiple crashes. The advanced airbag system immediately prepares for additional crashes once it recognizes an initial collision, in cases where the collision is not serious enough to warrant a deployment, the conglomerate said in a statement.

    “If the first collision is a minor one, but the vehicle continues on and collides with something else, such as trees or street lamps, the airbag system optimizes itself to prepare for additional crashes,” a company spokesman explained to reporters over the phone.

    It is the first time a Korean carmaker has developed such a multi-crash airbag system, the statement said.

    Existing airbag systems do not inflate once they determine the initial collision is minor, even if subsequent impacts involve greater force and can lead to serious injury, it said.

  • Hyundai, Kia move ahead with recall in U.S.

    Hyundai, Kia move ahead with recall in U.S.

    Despite a government shutdown, Hyundai and Kia are moving ahead with a recall of about 168,000 vehicles to fix a fuel pipe problem that can cause engine fires. The problem stems from improper repairs during previous recalls for engine failures. The affiliated Korean automakers have been dogged by fire and engine failure complaints from across the nation. They’re both under investigation by the U.S. National Highway Traffic Safety Administration, which has been trying to figure out whether initial recalls covered enough vehicles. But the agency is mostly closed due to the shutdown.

    In addition to the recall, each automaker says it will do a “product improvement campaign” covering a total of 3.7 million vehicles to install software that will alert drivers of possible engine failures and send the cars into a reduced-speed “limp” mode if problems are detected.

    Nhtsa employees who do safety investigations and recall notifications are not at work. Under normal circumstances, the agency would review the recalls to make sure they are adequate and post details on the agency website. It would also monitor notices to customers, and ensure customers could check to see if their vehicles are included.

    Kia spokesman James Bell said the company is proceeding with the recall and campaign regardless of government delays.

    “Making our customers comfortable is vastly more important than making sure we’re following additional government processes right now,” he said. Kia sent letters to dealers around Jan. 10 notifying them of the recall, he said.

    But a U.S. auto safety advocate called the recalls inadequate and said the product improvement campaigns should instead be recalls that are overseen by Nhtsa.

    An Nhtsa spokeswoman said she could not comment due to the shutdown.

    Hyundai and Kia started recalling 1.7 million vehicles in 2015 – about 618,000 of which are Kias – because manufacturing debris can restrict oil flow to connecting rod bearings. That can cause bearings in 2-liter and 2.4-liter four-cylinder engines to wear and fail. The problem can also cause fires. The repair in many cases is an expensive engine block replacement.

    Now the companies are acknowledging that the engine replacements may not have been properly done in all cases by dealers. A Kia statement says the high-pressure fuel pipe may have been damaged, misaligned or improperly tightened while the engines were being replaced under recall. That can allow fuel to leak and hit hot engine parts, causing fires.

    Kia says it has six reports of fires among the vehicles being recalled for possible fuel leaks, while Hyundai says it has no fire reports. Neither company had any reports of injuries.

    The fuel injector pipe recall covers some 2011 through 2014 Kia Optima cars, 2012 through 2014 Sorento SUVs, and 2011 through 2013 Sportage SUVs, all with 2-liter and 2.4-liter four-cylinder engines. Also covered are many 2011 to 2014 Hyundai Sonata cars and 2013 and 2014 Santa Fe Sport SUVs.

    More than 2 million 2011 Sonatas from the 2011 through 2018 model years and Santa Fe Sports from 2013 through 2018 are covered by the software and engine-knock sensor updates. About 1.7 million Kias, including the 2011 through 2018 Optima, the 2012 through 2018 Sorento and 2011 through 18 Sportage, are covered.

    The companies say owners of the recalled vehicles will be notified by letter. Dealers will check the fuel pipe for leaks and replace the pipe if needed.

    Kia is only doing the fix on 68,000 of its 618,000 vehicles recalled for the engine problems, while Hyundai is recalling 100,000 of more than 1 million. Hyundai said only vehicles that had engines replaced in the previous recalls are covered by the new recall.

    He also raised concerns about the government shutdown’s impact on Nhtsa, which he said should be open to handle critical safety recalls.

  • Korean SUV sales soar globally

    Korean SUV sales soar globally

    SUVs have recently grabbed the spotlight in Korea, breaking both local and export sales records. According to the Korea Automobile Manufacturers Association (KAMA), the number of exported SUVs by five local automakers reached a new record of 1.38 million units in 2018, a 6.7 percent increase from the previous year. In just 17 years, the figure rose by 700 percent – exports recorded merely 196,111 units in 2000.

    Over the same period, overall exports of passenger vehicles declined 3.1 percent to 2.34 million units. The share of SUVs also reached an all-time high.

    Compact SUVs from Korea were most popular in export markets.

    GM Korea’s Chevrolet Trax was shipped the most, at 239,800 units, followed by Hyundai Motor’s Tucson at 228,461 units.

    Small-sized SUVs also performed well, with 202,779 units of Hyundai Motor’s subcompact SUV Kona shipped abroad, a 437 percent rise from the previous year.

    Kia Motors’ Stonic exported 58,989 units, increasing 75.8 percent from 2017.

    Much of the enthusiasm surrounding SUVs in markets abroad was also present in the local market.

    Last year, 519,883 SUVs were sold in Korea, passing the 500,000 unit mark for the first time.

    With a 12.7 percent rise from 2017 sales figures of 461,385 units, SUVs currently take up a 40.1 percent share in the overall passenger car sales figures.

    Meanwhile, passenger car sales, excluding SUVs, dropped 6.9 percent last year from the previous year.

    Hyundai Motor’s mid-sized SUV, the Santa Fe, was the most popular in Korea, selling 107,202 units. This was the first time that an SUV model recorded an annual sales figure over 100,000 units.

    The SUV market is expected to grow this year.

    As compact and small-sized SUVs are poised to lead exports and medium and small-sized SUVs the local market, large-sized SUVs are also being rolled out this year.

    Hyundai Motor’s Palisade, unveiled last November, recorded over 25,000 preorders in just three weeks, hitting 62.5 percent of the automaker’s annual sales target of 40,000 units for the model.

    It will likely take customers around seven months to receive the vehicle if ordered now.

    According to Hyundai Motor, the large-sized SUV is popular among older drivers. Customers in their 40s accounted for 37 percent of orders and those in their 50s made up 26.9 percent.

    “As high-quality amenities and vehicle stability that used to be developed through sedans is now applied to SUVs, there was quite a bit of progress,” said Kim Pil-soo, a professor of automotive engineering at Daelim University.

    “This year’s SUV sales and market share will grow as local and foreign SUVs have adopted the advantages of sedans,” added Kim.

  • Indian rice prices slip as demand lags; Vietnam awaits major harvest

    Indian rice prices slip as demand lags; Vietnam awaits major harvest

    Rice export prices slipped in India as the rupee weakened and demand waned, prompting buyers to turn to other markets such as Vietnam. India’s 5 percent broken parboiled variety eased to $379-$384 per tonne this week from the $382-$387 range last week. “Demand is still weak due to higher prices,” said an exporter based in Kakinada in the southern state of Andhra Pradesh, adding that despite the fall, prevailing high rates were prompting buyers to look at other markets, such as Vietnam.

    The Indian rupee hit a month low on Thursday, increasing exporters’ margins from overseas sales and thereby prompting a reduction in prices.

    Export prices in India had shot up after the central state of Chhattisgarh, a leading rice producer, raised minimum paddy buying prices to 2,500 rupees per 100 kg from 1,750 rupees.

    In neighboring Bangladesh, an increase in domestic rates for rice could prompt the government to cut the import duty on the staple grain, traders said.

    The south Asian country, which emerged as a major importer of the grain in 2017 after floods destroyed crops, imposed a 28 percent duty in June last year to support its farmers after local production revived.

    In Vietnam, rates for 5 percent broken rice fell to $355-$360 a tonne from $370-$375 last week ahead of the country’s largest harvest, expected to begin in two weeks.

    “Indonesia’s state food procurement agency’s recent announcement that it may not import rice this year has also weighed on prices,” a Ho Chi Minh City-based source said.

    “We are negotiating a deal for around 10,000 tonnes to be delivered late February, and we are stuck at pricing. We’re asking for $360 and they are offering $345,” the trader said, adding that the shipment would be bound for Africa.”

    Another trader said China’s move to limit rice shipments from Vietnam may not be as bad as some traders initially feared.

    “It’s only the beginning of the year now and importing countries can change their import plans, especially when hit by natural disasters,” the trader said.

    In second biggest exporter Thailand, prices of the benchmark 5 percent broken variety widened to $385-$400, free on board Bangkok, from $390-$400 the previous week, mostly due to fluctuations in the value of the domestic currency.

    “Demand remains flat, but some exporters are starting to talk about possible orders from the Philippines,” a Bangkok-based trader said.

    The Thai market is likely to see additional supplies flowing in toward the end of this month, from the seasonal harvest, and this could in turn move prices, another trader in Bangkok said.

  • Nissan Korea fined 900 million won for inflating mileage figures

    Nissan Korea fined 900 million won for inflating mileage figures

    Korea’s antitrust watchdog said Wednesday that it has fined Nissan Korea 900 million won ($802,100) for inflating gas mileage figures for its Infiniti Q50 2.2d sedans. The Japanese car’s fuel efficiency reaches 14.6 kilometers per liter (34.3 miles per gallon), but the local unit of the Japanese carmaker overstated the fuel efficiency as 15.1 kilometers per liter in its stickers, catalogues and magazines between February and November 2014, according to the Fair Trade Commission.

    Nissan Korea sold 2,040 Infiniti Q50 2.2d sedans valued at 68.68 billion won during the cited period.

    “There are concerns that Nissan Korea’s advertising could hurt fair trade by distorting consumers’ reasonable choice, considering that fuel efficiency is a priority factor when they buy vehicles,” the commission said.

    Repeated calls to Nissan Korea seeking comment went unanswered.

  • Imports of commercial vehicles fell last month in Korea

    Imports of commercial vehicles fell last month in Korea

    Sales of imported commercial vehicles plunged 38 percent last month from a year earlier amid slower economic growth, a local automobile association said Tuesday. The number of newly-registered imported commercial vehicles fell to 283 units in December from 390 a year ago, the Korea Automobile Importers and Distributors Association (KAIDA) said in a statement.

    “The construction industry faces a slowdown as the government pushes for regeneration projects in residential areas instead of building new apartments or homes. This is driving down demand for commercial vehicles,” a spokeswoman for Volvo Trucks Korea said.

    Imported commercial vehicles are widely viewed as being more upmarket than domestically produced rivals and offer more choices for users.

    For the whole of 2018, the number of imported commercial vehicles sold in Korea declined 1.6 percent to 4,394 units from 4,464 a year earlier, the statement said.

    Major imported commercial vehicle brands are MAN, Mercedes-Benz, Volvo Trucks, Scania and Iveco.

    There are three kinds of trucks. Two of them are regarded as commercial vehicles, but the third, referred to as a dump truck, is classified as construction equipment.

    KAIDA began to compile sales data for imported commercial vehicles in January 2017.

  • Shilla Vietnam to open hotel at Da Nang

    Shilla Vietnam to open hotel at Da Nang

    Hotel Shilla announced Tuesday that it will actively begin expanding its brand abroad this year, the first new location being a resort in Da Nang, Vietnam. “Starting with Da Nang, we hope to expand our brand to more than 10 overseas locations in Southeast Asia, United States and China,” the hotel company said in a statement. Hotel Shilla is Samsung’s hotel and duty-free business arm. The 46-year-old company currently operates The Shilla Seoul and The Shilla Jeju.

    It also runs 11 business hotels under its Shilla Stay name.

    The company said that it will expand overseas through hotel management agreements with local companies, a common structuring for hotel chains. This means the local partner will own the hotel building while Shilla will operate the business. For Shilla, this minimizes investment risks.

    Shilla’s new Da Nang hotel – slated to open this year under the brand-new Shilla Monogram name – will be a nine-floor building with 300 rooms. The hotel will be located on Non Nuoc Beach in Da Nang, a popular destination for Korean tourists.

    The hotel, still under construction, will feature an outdoor pool, restaurants and bars. Every room will be equipped with a balcony.

    Hotel Shilla also announced that it is preparing to open a 200-room premium business hotel in San Jose in Silicon Valley, California, under its Shilla Stay brand by 2021.

    “We hope to continue raising more revenues abroad by expanding our overseas hotel business,” said a Hotel Shilla spokesperson.

    Some 20 percent of the company’s total revenues today, or 1 trillion won ($892.5 million), come from abroad. Hotel Shilla operates several duty-free stores in domestic and foreign airports, including locations at three of Asia’s busiest airports: Singapore’s Changi Airport, Hong Kong International Airport and Incheon International Airport.

    Hotel Shilla has been operating Jinji Lake Shilla Hotel in Suzhou, China, since 2006. It was the first overseas hotel managed by the company.

    Following Tuesday’s announcement, Hotel Shilla’s stock prices closed at 76,100 won on Tuesday, 1.33 percent higher than Monday.

    As for upcoming domestic projects, Hotel Shilla is planning to open a hotel themed after hanok, or traditional Korean houses, by 2023 in central Seoul.

    If the company receives approval to build the new hotel from domestic land authorities, it will become the first to operate such a hotel in Seoul.