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Tag: Korea

  • Mohegan Sun-led scheme gets South Korean casino licence

    Mohegan Sun-led scheme gets South Korean casino licence

    The government of South Korea has awarded a licence to build a casino resort to a consortium between U.S.-based Mohegan Tribal Gaming Authority (also known as Mohegan Sun) and South Korean chemicals manufacturer KCC Corp.

    The new property is to be located in Incheon, near the country capital Seoul, the Ministry of Culture, Sports and Tourism said in a statement on its website on Friday.

    The country’s authorities had been reviewing an unspecified number of proposals for new casino resorts, submitted as part of an integrated resort licence bidding process initiated in 2015. There were up to two new casino resort licences up for grabs, but the South Korean government decided to grant only one.

    The licence allows the Mohegan Sun-KCC consortium to set up a foreigners-only casino.

    South Korea currently has 17 casinos, but the country’s nationals are only allowed to gamble at one of them – Kangwon Land in an upland area of Kangwon province.

    The winning bid (pictured in an artist’s rendering) has a price tag of US$1.24 billion and includes a hotel, retail areas, a concert arena and venues for conventions, according to South Korea’s Yonhap news agency. The scheme is scheduled to begin operations by 2020.

    “We will closely monitor the project to help support the [winning consortium] in building a world-class integrated resort,” the ministry said, quoted by the news agency. “It is expected to boost the competitiveness of the South Korean tourism industry with various tourism infrastructure, such as a K-pop arena, a theme park and a convention centre.”

    There are already two casino projects proposed for Incheon.

    South Korean foreigners-only casino operator Paradise Co Ltd has linked with Japanese pachinko operator Sega Sammy Holdings Inc for a project in Incheon referred to as Paradise City and already under construction. The scheme, with a total area of 330,000 square metres (3.55 million sq feet), is presented in its official website as having a price ticket of KRW1.3 trillion (US$1.05 billion) and featuring a foreigners-only casino with 160 live table games, 388 electronic table games and 350 slot machines. It is scheduled to open in 2017.

    The other announced project for Incheon is the result of a partnership between U.S. casino operator Caesars Entertainment Corp and Hong Kong-listed real estate developer Lippo Ltd. Construction has not yet started. Analyst Grant Govertsen from Union Gaming Securities Asia Ltd said in a note on Friday “there are uncertainties currently associated with the Caesars project”.

    No regional impact

    Mr Govertsen said in his note following the South Korean government’s announcement that construction for Mohegan Sun-KCC’s project should begin in early 2017. The project has the working title ‘Inspire Integrated Resort’. It will be Mohegan Sun’s first venture outside of North America.

    KCC in November announced it acquired a 24.5-percent stake in Inspire Integrated Resort Co Ltd – a South Korean subsidiary of U.S. regional tribal casino operator Mohegan Sun – for a total consideration of KRW203.8 billion, becoming a joint venture partner in the casino resort project.

    The consortium has a commitment to spend a total of US$5 billion in South Korea over the next 20 years.

    Mohegan Sun’s project includes a 20,000-square metre casino with 250 gaming tables – including 40 VIP tables – and 1,500 slot machines.

    The casino resort will have a two-tower luxury hotel complex with 1,000 rooms, a 20,000-seat arena, and more than 18,500 square metres of shops, restaurants, art exhibition and music entertainment areas, including “a Korean village celebrating Korean food and music, and a Native American cultural and arts experience”, according to Mohegan Sun.

    Union Gaming said in its note it did not expect the three new casino resorts in Incheon to pose a material threat to Macau, Singapore or the Philippines.

    Mr Govertsen noted the ongoing decline in Chinese high roller play around the region. He added that none of the U.S.-based casino operators entering the South Korean market had a significant built-in base of VIP customers, being largely reliant upon mass-market customers to generate a return.

    He said: “Importantly for Macau, its mass market gross gaming revenue is driven primarily by southern China meaning that related persons are unlikely to divert to [South] Korea for gaming. Rather we would expect Incheon integrated resorts to draw from northern Chinese cities (e.g. Beijing, Tianjin) and from Chinese visitors already going to [South] Korea for purposes other than gaming.”

    In a January note, Morgan Stanley said new casino supply did “not bode well” for South Korea’s foreigners-only casinos, especially as the investment bank expected the number of Chinese high rollers to South Korean casinos to continue declining.

    Union Gaming’s Mr Govertsen also noted that the three casino projects for Incheon are not close to each other. “This suggests that there is unlikely to be the natural benefit associated with the cluster effect seen in markets like Las Vegas and Macau (e.g. driving increased visitation and therefore increased revenue).”

    He added: “However, operators who do not have a presence in Asia, like Caesars (coming in capital light) and Mohegan Sun, seem to be less risk averse and could be beneficiaries should [South] Korea ever green light locals gaming beyond the lone locals gaming licence issued to Kangwon Land – although we find this scenario to be highly unlikely for the foreseeable future.”

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  • Market for Pico Projectors in South Korea Projected to Grow at a CAGR

    Market for Pico Projectors in South Korea Projected to Grow at a CAGR

    The market for pico projectors in South Korea is projected to grow at a CAGR of over 24% during 2016 – 2021. LCoS (Liquid Crystal on Silicon) technology garnered the highest share in South Korea pico projectors market in 2015, due to better image quality, high resolution and efficiency, less power consumption, etc., as compared to other display technologies.

    South Korea pico projectors market witnessed rapid growth over the past few years on account of their growing acceptability and rising usage in various end user segments such as consumer electronics, defense & aerospace, automotive, etc. Rising demand for pico projector integrated devices, growing IT investments and increasing mobile workforce is projected to propel growth in the country’s pico projectors market in the coming years.

    Additionally, growing penetration of various compact and small projection display technologies along with increasing demand for handheld and portable devices is projected to drive growth in South Korea pico projectors market during 2016 – 2021.

    Due to these advantages, LCoS technology is being increasingly used in smartphones, tablets, televisions, head up displays, etc. In 2015, the country’s southern region was the largest market for pico projectors, on account of the region’s high per capita GDP and high level of industrialization. Few of the leading companies operating in South Korea pico projectors market include SK Telecom and LG Electronics, among others.

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  • Korean department stores struggle

    Korean department stores struggle

    Chinese travellers have emerged as one of the few bright spots for Korean department stores suffering from dull domestic consumption.

    The arrival of a new demographic of consumers has prompted an all-out fight to attract deep-pocketed clients, industry officials told Yonhap.

    Sales at department stores inched down 0.4 per cent on-year to 29.22 trillion won (US$23.69 billion) in 2015, Statistics Korea showed, mostly attributable to the Middle East Respiratory Syndrome (Mers) outbreak and rapidly rising online marketplaces.

    While consumption among locals has steadily slowed over the past years, major department stores in downtown Seoul saw growing sales among Chinese nationals.

    At Lotte Department Store in the famous shopping district of Myeongdong, sales by Chinese customers accounted for 18.1 per cent of the total, rising 6.8 per cent from a year ago.

    At the nearby Shinsegae Department Store, sales by Chinese customers rose 21.8 per cent in 2015 from a year ago, though the pace slowed from 131 per cent in 2014 and 87 per cent in 2013 in the wake of the Mers outbreak. The store did not release exact sales figures.

    Foreign luxury watch and jewellery brands topped their shopping list, while leading Korean fashion and cosmetic brands were also picked up by Chinese travellers.

    Among them, the Seoul-based luxury bag manufacturer MCM was the second-most selling brand by the Chinese, while sunglass brand Gentle Monster and Amore Pacific’s high-end cosmetic lineSulhwasoo were named as popular items.

    “While the Chinese mostly preferred foreign luxury brands and local cosmetic brands, a wider range of Korean products have been selling among Chinese customers,” said Park Young-hwan, a marketing official at Lotte Department Store.

    In response to the changing consumption trends, Korean department stores have launched a variety of promotional events through social networking services and invited China’s popular bloggers to embrace rich Chinese customers.

    Some stores have even assigned assistants for VIP customers to provide guidance while they shop. Others have offered limousines and pick-up services.

  • Lotte Group in Indonesian confectionery push

    Lotte Group in Indonesian confectionery push

    South Korean confectionery manufacturer Lotte Group is planning an eCommerce joint venture with one of Indonesia’s largest conglomerates, the Salim Group, within the next few months with the aim of being up and running by early next year.

    This follows a new government policy on eCommerce that opens up a market of nearly 250 million people to foreign brands. According to the Korean media, the deal was formalised when Lotte Group chairman Shin Dong-bin met with Salim Group chairman Anthony Salim in Singapore during an Asia Business Council meeting.
    Under Shin, Lotte has been aggressively expanding its overseas businesses, and the Indonesian confectionery market is considered a key strategic opportunity, reports Deal Street Asia. The company hopes to secure a strong foothold in the eCommerce market through an omni-channel retailing strategy and establishing a stable delivery service via the partners’ offline stores.
    Also planning to introduce products popular in Korea, Lotte first became involved in the Indonesian market in 2008 when it acquired 10 stores of the Dutch discount chain Makro. Lotte has one department store in Indonesia and 41 retail outlets, while Salim Group has 11,000 Indomartconvenience stores. The Salim Group’s businesses cover such sectors as food, distribution, telecommunications, media, automobile manufacturing and property development.

    An eCommerce roadmap has been drafted by the Indonesian government as a basis for guidelines regulating the sector. It covers such aspects as funding, taxation, communication infrastructure, logistics, cyber security, consumer protection and education, with the aim of achieving eCommerce transaction value of $130 billion by 2020.

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  • South Korea’s card spending jumps 16 pct in Jan.

    South Korea’s card spending jumps 16 pct in Jan.

    South Korea’s card spending rose sharply in January, data showed Friday, on the back of increased consumption for the Lunar New Year holiday and a gradual recovery in domestic demand.

    Purchases made with plastic cards reached 56.1 trillion won (US$45.4 billion) last month, up 15.9 percent from a year earlier, according to data compiled by the Credit Finance Association (CREFIA).

    The data includes transactions on credit, debit and prepaid cards. Cash advances, overseas spending and card loans were not included.

    Of the amount, credit card spending went up 15.9 percent on-year to 44.79 trillion won, while those of debit cards advanced 16.2 percent to 11.2 trillion won over the cited period, according to the data.

    “This year, the new year holiday started earlier than last year, which mainly led to the growth in January’s credit card spending,” a CREFIA official said.

    The retail sector, including department stores and big retail chains, enjoyed a 20.4 percent surge in credit spending on-year to 6.7 trillion won, the data showed.

    In particular, purchases made by credit cards in convenience stores spiked 56 percent thanks to the increase in small families and the solid growth in sales of their private-brand products, according to the association.

     

  • Shinsegae unveils revamped Gangnam department store

    Shinsegae unveils revamped Gangnam department store

    The revamped Shinsegae department store in Gangnam will officially open on Friday.

    The store’s concept is heavily inspired by the high-end department store chains Le Bon Marche in France and Saks Fifth Avenue in the U.S.

    The Shinsegae Group, which is Korea’s second-largest retailer, has added six new floors to the annex building of its store in the affluent area of southern Seoul. This makes the 86,500 square-meter store the largest department store in Seoul. It also now houses 1,000 brands, up from about 600 brands previously.

    “The Gangnam store is important in every way. We are striving to suggest shopping as a lifestyle rather than to seek for simply sales growth,” said Jang Jae-young, CEO of Shinsegae Department Store, at the press briefing to mark the opening.

    The company has seen sales come to a standstill over the past few years, mainly due to the global economic slowdown as well as competition from other retail channels such as e-commerce.

    The revamped store is designed to attract people who prefer a luxurious in-store shopping experience and Shinsegae expects it to be a game changer. Its Gangnam branch is expected to generate 1.7 trillion won ($1.2 billion) in its first year and 2 trillion won by 2019.

    Brands within the store are categorized into four major themes – shoes, contemporary, kids and living. Products Items are divided based on themes rather than by brand names. Hence luxury brands, such as Christian Louboutin, and domestic brands, such as Soda, mingle in the same zone.

    For those preparing for marriage, the store has dedicated a whole floor to wedding gifts and lifestyle goods. There, you can find anything from luxury goods, such as jewelry and watches worth hundreds of millions of won, to silver three-story tea trays or zen-style flower arrangements.

    “According to our research, people from countries exceeding gross domestic production per capita of $30,000 value the experience of shopping, its process and services they receive. We think the Korean market is ready for this,” said Ryu Sin-yul, vice president of the Gangnam store.

    Shinsegae plans to open five more stores this year — Busan Centum City Mall in March, an urban duty free store in May, two stores in Gimhae of South Gyeongsang Province and Daegu in June and December respectively as well as Hanam Union Square shopping mall in September.

    “We are not trying to compete with (other retail powerhouses such as) Hyundai or Lotte. We will create a new generation of shoppers who have never been to department stores before,” Ryu said.

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  • Korea’s card spending jumps 16% in January

    Korea’s card spending jumps 16% in January

    Korea’s card spending rose sharply in January, data showed Friday, on the back of increased consumption for the Lunar New Year holiday and a gradual recovery in domestic demand.

    Purchases made with plastic cards reached 56.1 trillion won ($45.4 billion) last month, up 15.9 percent from a year earlier, according to data compiled by the Credit Finance Association (CREFIA).

    Of the amount, credit card spending went up 15.9 percent on-year to 44.79 trillion won, while those of debit cards advanced 16.2 percent to 11.2 trillion won over the cited period, according to the data.The data includes transactions on credit, debit and prepaid cards. Cash advances, overseas spending and card loans were not included.

    “This year, the new year holiday started earlier than last year, which mainly led to the growth in January’s credit card spending,” a CREFIA official said.

    The retail sector, including department stores and big retail chains, enjoyed a 20.4 percent surge in credit spending on-year to 6.7 trillion won, the data showed.

    In particular, purchases made by credit cards in convenience stores spiked 56 percent thanks to the increase in small families and the solid growth in sales of their private-brand products, according to the association.

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  • Mohegan gaming authority wins license for Korea casino

    Mohegan gaming authority wins license for Korea casino

    UNCASVILLE, Conn. (AP) – The parent company of the Mohegan Sun casino says it has received a license from the Korean government to build a $5 billion resort near the international airport in Seoul.

    The Mohegan Tribal Gaming Authority says the project will include a hotel complex with 1,350 rooms, more than 20,000 square meters of retail space and an arena that it says would be the largest in South Korea.

    The gaming authority is teaming with the KCC Corp., a South Korean chemicals company, and the airport for the project.

    Gaming authority president Bobby Soper said Friday the company aims to help the Korean government fulfill its vision of “driving economic development by growing tourism, creating jobs, and showcasing Korean culture via the integrated resort.”

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  • Microwave pasteurization in South Korea

    Microwave pasteurization in South Korea

    The new Micvac microwave pasteurization line is installed in one of Daesang’s factories that is dedicated to producing high-quality ready meals. The brand Whistling Cook is distributed nationwide through both retail and Internet channels.

    The range of chilled ready meals consists of six products in 240-, 390-, and 395-g sizes. The recipes are influenced by cuisine from various parts of the world, such as Korea, China, and Europe.

    “We are very happy about this project, and it’s exciting to see how well the products are accepted by the consumers,” says Myounghyun Seo, MV-Project team leader at Daesang Corp.

    “We are delighted that the Micvac concept now also enters South Korea,” says Hirokazu Kushioka, Manager of the Micvac team within Dai Nippon Printing Co., Ltd (DNP). “The producers like the shelf life, which enables a smoother production and efficient logistics.”

    “We are very proud to become a strategic supplier to Daesang Corporation. It’s an industry leader with focus on high quality and innovation,” continues Håkan Pettersson, Managing Director at Micvac. “And I am really happy to see how well Micvac develops in the region together with our partner DNP.”

    Micvac and DNP started their cooperation in 2010, recognizing that interest in high-quality chilled ready meals with both convenience and extended shelf life is on the rise.

  • Chinese spend $13.8bn abroad during Spring Festival

    Chinese spend $13.8bn abroad during Spring Festival

    During the Chinese Spring Festival, 6 million Chinese travelled overseas and spent a total of 90 billion ($13.8 billion) yuan on shopping.

    The products they purchased abroad included expensive luxury items, smart bidets, and electric rice cookers, but surprisingly, most Chinese tourists bought items used in everyday life such as cough syrup, sanitary napkins, condoms, stockings, electric toothbrushes, and nail clippers.

    Chinese media also reported on the phenomenon of their people buying commonplace items during their travels abroad. Various media outlets reported that Chinese tourists bought condoms, sanitary napkins, nail clippers, tumblers, and cough syrup from Japan, and hair dye, shampoo, sanitary napkins with oriental medicinal herbs, ramen, and honey butter almonds from Korea.

    Cosmetics, health supplements and clothing were popular items from the US, as well as fountain pens, knives, key chains and electric toothbrushes from Europe.

    A clerk at a duty-free store in Osaka commented that sales were 2.6 times higher than in 2015, thanks to the spirited purchasing of low-priced, everyday items by Chinese tourists.

    A tour guide in Seoul commented that along with cosmetics, skincare products, and shampoo, snacks and stationary were popular Korean items among Chinese tourists.

    Some Chinese media outlets suggested that because overseas products are of better quality, can be purchased at more reasonable prices, and are safer than Chinese products, Chinese tourists stock up on foreign products when they have a chance.

    A Chinese consumer commented that she comes to Korea every year to buy facial packs and BB creams.

    “Of course, there are quality packs in China too, but so many are fake, and sometimes side effects occur even if the products are purchased at official stores.”

    Officials at Chinese consumer associations point out that China still lags behind neighboring countries in the manufacturing, design, and development of products, and should overcome the fact that the quality of their products is low in comparison to prices.

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  • Korea’s baby market undeterred by economic slowdown

    Korea’s baby market undeterred by economic slowdown

    From couples with babies on strollers to seniors holding toddlers’ hands, a recent annual baby fair held at Coex, in Samseong-dong, southern Seoul, was packed with a sea of Koreans wanting to explore the latest and premium products for their children.

    The three-day event that ended Sunday had about 110,000 visitors, according to organizers, reflecting Korean parents’ unwavering love for their children and their endless interests on the market.

    The market has been thriving in recent years, despite falling birthrates and growing fears over a slowing economy. Korea’s fertility rate is among the lowest in the world. The size of the baby market, however, has been growing rapidly in recent years, and is expected to grow further. The market is now estimated at 1.7 trillion won ($1.38 billion).

    “The number of parents having one kid has been growing. Those parents, even though they might not be able to afford it financially, are more willing to pay for what they believe is necessary for their kids’ well-being,” said an industry watcher.

    Concerns over the economic downturn has led to a growing number of customers looking for quality local products offered at reasonable prices, organizers said.

    Interest, however, still remains high for European products such as strollers priced at around 2 million won and baby chairs offered at nearly 500,000 won each, as young parents are more open to spending money on luxury goods than the older generation, they added.

    A recent Scandinavian fever has also been heating up the market, particularly its luxury segment.

    Parents think highly of Nordic designs and brands that stress safety and cleanliness, according to reports quoting comments from industry insiders. This is why foreign brands have been diversifying retail channels in order to reach out to more customers. They have been making aggressive marketing efforts by expanding their presence in online and mobile markets, they said.

    Another noteworthy trend in the market for baby products is that it is seeing growing spending power among senior consumers.

    According to a recent survey by a daily deals website, sales of baby care products, including diapers and powdered milk, surged the most last year among those in their 60s, followed by customers in their 50s.

    This has led some baby product companies or retailers to closely watch the rise of “urban grannies,” referring to enthusiastic senior consumers purchasing products in a modern way. Some companies have even introduced feeding bottles with numbers printed in larger sizes.

    This is not limited to just the traditional players, such as toy and food companies, the market has seen a growing number of newcomers — such as home appliances and bio companies — targeting parents whose interests go beyond the basic requirements of feeding and changing diapers.

    Coway, a Korean home appliances company, has showcased its latest air purifier that automatically monitors the level of fine dust in the room and transmits the information to users’ smartphones in real time. The smart defect system was devised especially for parents with babies concerned over the impact of worsening dust level in the air to their little ones, the company said.

    At the baby fair, many parents showed interest in smaller gadgets, such as nasal aspirators and digital thermometers manufactured by local companies.

    A crowd of people line up Sunday to enter a baby fair held at Coex in Seoul. (Yonhap)

    “I have come here not only for toy products, but to experience smart gadgets devised for easier baby care,” said Cho Young-eun, a 38-year-old mom with a 2-year-old daughter.

    Bio companies have also been expanding marketing efforts in light of growing health consciousness.

    Local companies like Medipost and Boryung Medience offered services at discounted prices at the fair in a bid to lure parents to invest in their babies’ future health. Both firms operate cord blood banks that store blood cells collected at birth. Cord blood can be used to treat various incurable diseases, including leukemia, later on if needed, the companies said.

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  • 2016 Chinese business gets off to a roaring start in Korea

    2016 Chinese business gets off to a roaring start in Korea

    The Chinese tourism and travel retail business began with a bang in January with arrivals up by +32.4% year-on-year to 521,981, according to Korea Tourism Organization.

    The growth is all the more impressive for coming off a strong base. January 2015 saw a similarly robust +32.9% rise to 394,345.

    Departures by Koreans also rose strongly, up +15.1% in January to 2,112,337, following an impressive +20.1% increase in 2015.

    The January figures will be much welcomed by Korean travel retailers after a difficult 2015 caused by the mid-year MERS crisis. Chinese arrivals dipped by -2.3% last year, a fall driven entirely by the catastrophic slump in tourism from June through August.

    Japanese visitor arrivals remained soft in January, falling -2.0% to 136,884, following a -19.4% fall in 2015.

    For 2015, Chinese visitors accounted for 45.2% of all arrivals, with the once dominant Japanese representing a mere 13.9% share.

    Visitor arrivals by gender for January; Source: Korea Tourism Organization
    Visitor arrivals by purpose and nationality for January; Source: Korea Tourism Organization
    Outbound departures of Korean nationals by gender for January; Source: Korea Tourism Organization
    Visitor arrivals by gender for 2015; Source: Korea Tourism Organization
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  • Korean’s Eland To Build Tourism JV With China’s Wanda

    Korean’s Eland To Build Tourism JV With China’s Wanda

    South Korea’s apparel brand Eland recently signed an agreement with China’s Wanda Group to establish a tourism joint venture in South Korea.

    This is reportedly the first cooperating result of the two parties since they signed their leisure industry investment agreement in June 2014.

    According to the agreement, Eland and Wanda will each hold a 50% stake in the tourism JV and they will each account for half of the board of directors. However, Eland will be responsible for the operation of the JV. The two parties are expected to agree on actual processes, including deciding on a corporate name, in March 2016 at the latest.

    A representative from Eland said that by combining Eland’s diversity with Wanda’s online advantage in China, the two parties will achieve better results. Wanda Group operates in various industries such as department stores, hotels, real estate, and tourism in China. By cooperating with Wanda, Eland plans to transfer its major business from fashion to logistics.

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  • Online shopping boom in Korea risks mall debt downgrades

    Online shopping boom in Korea risks mall debt downgrades

    South Koreans are spending record amounts shopping with their mobile devices, raising the risk of debt downgrades for retail giants still focused on mall traffic.

    The odds that the nation’s No 1 department store operator, Lotte Shopping Co, will miss debt payments in the coming 12 months doubled to 0.64 per cent from 0.29 per cent a year earlier, according to Bloomberg’s default-risk model that takes into account a company’s finances and stock moves. That suggests it merits a non-investment debt rating. Default risk using the model also climbed for Shinsegae Co, the third-ranked department store operator.

    Moody’s Investors Service and Fitch Ratings have both changed their outlook for Lotte Shopping’s score to negative from stable this month, following a cut in Shinsegae’s outlook to negative by Korea Investors Service last month. The nation’s mobile shopping transactions surged 64 per cent to a record 24.4 trillion won (S$28 billion) last year while sales at department stores dropped for a second straight year, according to Statistics Korea data.

    “We don’t expect a meaningful improvement in Lotte Shopping’s earnings this year,” said Hong Kong- based senior analyst at Moody’s, Wan Hee Yoo.

    Lotte Shopping expects sales in its overseas business to grow this year and it also seeks to increase domestic sales by linking its online and off-line businesses, said its spokesman on Wednesday.

    Shinsegae has been making efforts to reduce its debt ratio since last year, including by selling shares of Samsung Life Insurance Co and issuing perpetual bonds, said its spokesman on Wednesday.

    The spread on Shinsegae’s dollar notes due in 2045 rose to 185 basis points on Feb 23, the highest since its issue in May, showed Bloomberg-compiled data. Lotte Shopping’s 2017 bond spread has fallen 14 basis points this year to 130.

    The nation’s online shopping market is forecast to grow to more than 100 trillion won by 2019, with purchases on mobiles making up about 75 per cent, said Korea Ratings last month, citing Bain & Co’s projection.

    Total transactions on the Internet increased 19 per cent to 53.9 trillion won last year, according to Statistics Korea data.

    South Korea’s smartphone penetration rate is the world’s fourth highest at 83 per cent as of end-March, according to a KT Economics & Management Research Lab report released in July.

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  • Business Media Rip Curl Under Fire After Using North Korean Slave Labor

    Business Media Rip Curl Under Fire After Using North Korean Slave Labor

    Rip Curl has been around for a long time. Like many clothing brands, they have a tag on them that says “Made in China.” According to the Sydney Morning Herald, though, a large part of their 2015 line wasn’t made in China–it was made in North Korea, and under conditions being called “slave-like.”

    North Korea is notorious for its working conditions, and Rip Curl’s 2015 mountain-wear line was made in a factory near the North Korean capital of Pyongyang, then shipped around the world and sold in retail stores. Rip Curl is deflecting the blame to one of its sub-contractors.

    “We were aware of this issue, which related to our Winter 2015 Mountain-wear range, but only became aware of it after the production was complete and had been shipped to our retail customers,” said Rip Curl chief financial officer Tony Roberts. “This was a case of a supplier diverting part of their production order to an unauthorized subcontractor, with the production done from an unauthorized factory, in an unauthorized country, without our knowledge or consent, in clear breach of our supplier terms and policies.”

    The news came out after a Australian traveler named Nik Halik secretly took photos of the garment’s “made in China” labels while his tour guide was distracted.

    Oxfam Australia seems to be leading the charge in holding Rip Curl responsible. “Rip Curl has no excuse for being unaware of what is happening. Companies are responsible for human rights abuses within their businesses – not only morally but also within international human rights frameworks,” said CEO Dr Helen Szoke.

    It is becoming more and more common for large companies to show exactly where their goods are made. Kelly Slater’s Outerknown, for instance, has made a point of showing exactly how and where they source their materials. Although OK faced public backlash for it’s higher-than-average price point, it is better than clothing made by forced work.

    Rip Curl, of course, is desperately back-pedaling away from the situation. “We do not approve or authorize any production of Rip Curl products out of North Korea,” said Tony Roberts. The fact remains, though, that if an entire line of clothing can be made and shipped around the world without the company itself having any idea of where it was made, there is a deep-seated problem in one of the world’s largest surf brands.

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