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Tag: Korea

  • Used phone chain launches in Seoul subway stations

    Used phone chain launches in Seoul subway stations

    Stores purchasing used cell phones are set to open at Seoul subway stations.

    Seoul Metro, which manages lines No.1 to No.4, says it will open stores that buy used mobile phones at 12 subway stations including Seoul Station, in a bid to stop wasting resources and promote reusing and recycling.

    The new businesses will pay rent to Seoul Metro as well as a commission per phone of at least 7660 won (US$6.50) including VAT. During the contract period of two years, which is the standard agreement period per store, it is expected that 28,800 phones will be purchased.

    Seoul Metro has stipulated the businesses will only be permitted to purchase used phones, and the contract will be invalidated if other forms of business are conducted or the location of the store is changed.

    Clauses forbidding the sale of other items at the store, and limiting the opening hours to within the subway’s hours of operation will be added to the contract.

    However, due to the strict conditions, Seoul Metro is having a hard time attracting investors for the new business.

    Seoul Metro officials emphasised they are starting the venture to strengthen their management efficiency and enhance the convenience of customers. The additional business could be a countermeasure to overcome the organisation’s chronic deficit.

    The selected stations are Dongdaemun Station, Seoul Station, Chungjeongno Station, Sindorim Station, Sillim Station, Seolleung Station, Wangsimni Station, Jongno 3(sam)-ga Station, Oksu Station, Express Bus Terminal Station, Mia Sageori Station and Sadang Station.

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  • Study reveals Asian dining spending trends

    Study reveals Asian dining spending trends

    One in three millennials in Asia are eating at fine dining restaurants at least once a month – more often than those aged over 30.

    The surprise finding is one of a list of revelations uncovered by a MasterCard survey of Asian dining trends away from home. It featured consumers in 17 Asia Pacific markets: Australia, Bangladesh, China, Hong Kong, India, Indonesia, Japan, Malaysia, Myanmar, New Zealand, Philippines, Singapore, South Korea, Sri Lanka, Taiwan, Thailand and Vietnam.

    The most frequent fine-diners in Asia Pacific are millennials (18-29 year olds) from China – on average they visit more expensive establishments two or three times a month. This is higher than the average for millennials across the region and higher than any other age group.

    When choosing where to eat, consumers in Asia Pacific still prefer to rely on word of mouth and recommendations from friends and family (50 per cent). This was applicable for all consumers, regardless of age group, with even millennials trusting word of mouth recommendations (52 per cent) more than online reviews (38 per cent).

    This is despite the fact that more than a third of millennials (36 per cent) post comments and reviews of their dining experiences online. This is especially true of Chinese (61 per cent) and Thai (52 per cent) millennials, where more than half of the young people polled regularly post reviews after a meal.

    Beyond millennials, people in Thailand (39 per cent) and China (30 per cent) are also the most likely to spend more on dining over the next six months with around one in three indicating they plan to eat at more expensive establishments.

    But while consumers may be enjoying fine dining, they are still cost conscious. Sixty-four per cent of consumers in Asia Pacific regularly check for discounts or dining deals from coupon websites, mobile applications or credit card promotions. Sixty-eight per cent of millennials regularly look out for deals before choosing a place to eat.

    Eric Schneider, regional head, Asia Pacific, with MasterCard Advisors, said Asia has always had a strong dining out culture and so it is not surprising that affluent millennials in the region are ‘foodies,’ with many sharing their dining experiences on social media and posting reviews online.

    “While the survey has shown that people are increasingly moving from the hawker centres and into restaurants, young people are still cost conscious, taking a practical and savvy approach by looking for discounts and deals. Young people also still rely on word of mouth recommendations, despite many posting online reviews of dining spots. As Asia’s economies continue to grow, and with technology and social media revolutionizing the dining experience, people will increasingly demand top quality experiences when dining out,” he said.

    Other findings from the survey included:

    • Overall, consumers in Asia Pacific are not looking to make any significant changes to their dining out plans with 61 per cent of all consumers indicating they will look to eat out at the same frequency in the next six months. Twenty per cent plan to eat out more and 19 per cent plan to eat out less in the next six months.
    • The most popular dining option for consumers in Asia Pacific are mid-range restaurants and cafes, followed by fast food outlets and then hawker centres and food courts.
    • Consumers in the Philippines (44 per cent) are looking to tighten their belts with close to one in two planning to eat at less expensive venues in the next six months. Forty-nine per cent also plan to eat out less regularly.
    • A significant proportion of older consumers are going online to check for dining discounts whether on coupon websites/applications or credit card promotions. More than one-third of consumers aged 55 years old and above (36 per cent) indicated they regularly do so before deciding on a dining option.
    • Consumers in China (58 per cent), Taiwan (44 per cent) and Thailand (44 per cent) are the most likely to book dining deals on coupon sites or coupon applications; while consumers in Bangladesh (1 per cent) and Indonesia (11 per cent) were least likely to do so.
    • Diners in Thailand (60 per cent) and China (57 per cent) are most likely to post comments or reviews on social networking sites like Facebook and Twitter with about one in two respondents in these markets reporting that they regularly post comments online following their dining experience.

    The results are based on interviews with 8698 individuals aged 18 to 64 years-old.

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  • Seoul shares edge up on pharmaceutical, retail gains

    Seoul shares edge up on pharmaceutical, retail gains

    South Korean stocks rose marginally high on Tuesday, propped up by rallies in pharmaceutical and retail companies. The local currency lost against the greenback.

    The benchmark Korea Composite Stock Price Index (KOSPI) added 2.25 points, or 0.11 percent, to end at 1,966.31. Trade volume was thin at 394.49 million shares worth 3.76 trillion won (US$3.21 billion), with winners beating losers 461 to 368.

    The market started lower and moved in and out of positive terrain. Propping up the market are individual investors who picked up about 265 billion won worth of shares, while institutions and foreign investors remained net sellers.

    “The mood remained subdued in the KOSPI market as investors locked in taking profits from gains prompted ahead of the ex-dividend date when shares lose the right to receive dividends,” said Kim Hyung-rae, a KDB Daewoo Securities analyst.

    Large-cap shares ended mixed, with pharmaceutical companies leading the upward move.

    No. 1 drug maker Hanmi Pharm jumped 14.46 percent to 736,000 won, while Green Cross gained 4.91 percent to 181,500 won. Furniture maker Hansem surged 6.73 percent to 238,000 won.

    Banking and steel issues weighed on the market. The Industrial Bank of Korea shed 5.26 percent to 12,600 won, while steelmaker POSCO fell 3.69 percent to 169,500 won.

    Telecom giant SK Telecom plunged 6.52 percent to 215,000 won following media reports over the SK Group chairman’s planned divorce with his long-estranged wife, which prompted uncertainty over its corporate governance.

    The local currency ended at 1,169.6 won against the greenback, down 4.2 won from Monday’s close.

     

  • Estee Lauder settles Have & Be Korea deal

    Estee Lauder settles Have & Be Korea deal

    Estee Lauder has completed the acquisition of Have & Be Korea, the parent of skin care brands Dr Jart+ and Do The Right Thing.

    The New York-listed global beauty powerhouse has not revealed terms of the deal, which gives it an important brand in the fast-growing Korean beauty industry.

    Launched online in 2005 by ChinWook Lee, Dr Jart+ is a Seoul-based, global high-growth skin care brand featuring quality and innovative products designed to address specific skin care needs. The brand’s unique fusion of dermatological science and art – as reflected in the

    brand name, which is inspired by the phrase “Doctor Joins Art” – appeals to a broad range of consumers, especially millennials. Dr Jart+ is sold in many countries around the world, primarily in Asia and the US, through various department stores, specialty-multi and eCommerce channels including Sephora.

    The Estee Lauder Companies’ investment also includes an interest in Do The Right Thing (DTRT), a men’s-focused skin care brand that fuses Korean innovation with a bold New York style. Founded by Mr Lee in 2012, DTRT’s line of cleansers, lotions, moisturisers and serums are sold in Korea through various channels and in the US through Sephora and Birchbox Man.

    Estee Lauder is one of the world’s leading manufacturers and marketers of quality skin care, makeup, fragrance and hair care products. The company’s products are sold in over 150

    countries and territories under brand names including: Estee Lauder, Aramis, Clinique, Prescriptives, Lab Series, Origins, Tommy Hilfiger, Mac, Kiton, La Mer, Bobbi Brown, Donna Karan New York, DKNY, Aveda, Jo Malone London, Bumble and bumble, Michael Kors, Darphin, Tom Ford, Smashbox, Ermenegildo Zegna, Aerin, Marni, Tory Burch, Le Labo, Editions de Parfums Frederic Malle and Glamglow.

  • Lotte celebrates topping-out of Korea’s tallest building

    Lotte celebrates topping-out of Korea’s tallest building

    South Korea’s retail giant Lotte Group held a symbolic topping-out ceremony Tuesday afternoon to mark the approaching completion of the Lotte World Tower, the tallest building in the country located in Jamsil, southeastern Seoul.

    Lotte Corp. placed the last crossbeam on the top floor of the 123-story skyscraper amid much fanfare with some 200 high officials in attendance, including Lotte chairman Shin Dong-bin and Seoul City mayor Park Won-soon.

    The Lotte World Tower currently stands at 508 meters as the world’s fifth tallest building in the world. It will reach 555 meters in height once the spire is placed and the interior construction is concluded next year.

    “Offering panoramic views of Seoul, the Lotte World Tower will be able to attract some 2 million tourists every year,” said the Lotte chairman in his congratulatory speech.

    Mindful of public concerns about safety, Shin emphasized that Lotte would “work to ensure that the tower becomes a safe location that can welcome all visitors” and to “successfully wrap up the remaining construction procedures.”

    The supertall skyscraper stands at the center of Lotte’s 3.8 trillion won ($32 billion) project envisioned by Lotte founder Shin Kyuk-ho to build an unparalleled legacy for the company in Jamsil.

    Located adjacent to the tower is the Lotte World Mall, a mega shopping complex featuring shops, restaurants, a movie theater and aquarium. The tower is set to house a six-star hotel, office space and an observatory once it is completed next year.

    “The Lotte World Tower has been constructed in line with my father’s wish to establish a landmark building in Korea,” said the Lotte chairman, also the eldest son of the Lotte founder.

    “The tower will become a structure beloved by people from all over the world.”

     

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  • Hotel Lotte set to submit IPO application next week

    Hotel Lotte set to submit IPO application next week

    Hotel Lotte plans to submit the application to the Korea Exchange (KRX) on Monday for a preliminary regulatory review of its initial public offering (IPO), after clearing uncertainties surrounding the conglomerate’s management and other issues.

    The listing of Hotel Lotte is one of the reform pledges that Lotte Group Chairman Shin Dong-bin has made to assuage public disgust over a bitter family feud for control of the retail-focused conglomerate, which has sprawling businesses both in South Korea and Japan.

    Earlier this month, Lotte said its Japanese shareholders support the current leadership despite the ongoing succession feud. Japan-based Lotte Holdings is the largest shareholder of Hotel Lotte with a 19.1 percent stake.

    The KRX earlier said it is considering simplifying the screening process to facilitate its listing, using a “fast-track” system that cuts the review period to about a month.

    To take advantage of the speedy process, applicants should have over 400 billion won in equity capital and 700 billion won of annual sales for three years, along with other requirements.

    “If Hotel Lotte submits the application, we would be able to confirm the result by January,” a KRX official said, asking for anonymity.

    Hotel Lotte is pushing for the IPO despite the group losing one of its two duty-free stores in Seoul last month.

    Lotte kept a location in Myeongdong, a popular shopping district in downtown, but lost the operational license for another at Lotte World Tower in southeastern Seoul.

    The conglomerate earlier said Hotel Lotte is expected to have a market capitalization of around 10 trillion won ($8.6 billion) when it is publicly traded, but market watchers say losing one of its duty-free stores in Seoul in the recent competition could lead to that re-evaluation of its market value.

  • IKEA Celebrates 1st Bumper Year in Korea

    IKEA Celebrates 1st Bumper Year in Korea

    Swedish furniture giant IKEA will open five more stores here by 2020, IKEA Korea retail manager Andre Schmidtgall told reporters Wednesday.

    Speaking on the first anniversary of the first IKEA store on the southern outskirts of Seoul, Schmidtgall said the decision was prompted by its better-than-expected performance.

    The store in Gwangmyeong, Gyeonggi Province is IKEA’s second largest in the world. Some 6.7 million customers visited over the past year and sales reached W308 billion (US$1=W1,179).

    “Korea is a great market with huge potential, with a growing customer interest in home furnishing,” Schmidtgall said.

    IKEA plans to invest W1.2 trillion by 2020 to open the five additional stores in Goyang north of Seoul, Gangdong in the eastern part of the capital, as well as Daejeon and Busan. The new stores are expected to create 3,500 jobs. The store in Gwangmyeong employs 913 Korean workers.

    The next store will open in Goyang in 2017 on an even bigger scale.

    Schmidtgall played down concerns that IKEA harms regional businesses. “The actual numbers do not show that,” he said.

    The Korea Distribution Association analyzed credit card transactions from December 2014 to August this year and found that revenues at stores within a 10 km radius of the IKEA Gwangmyeong store in fact rose between 7.5 and 27.4 percent.

    Schmidtgall pointed out that the Gwangmyeong store is the only IKEA outlet in the world to offer part of its underground floor space to small businesses.

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  • Hanwha Galleria to open Seoul downtown duty-free store next week

    Hanwha Galleria to open Seoul downtown duty-free store next week

    Korean department retailer Hanwha Galleria is to partially open its first duty-free store at the 63 City Building in downtown Seoul next week, Hanwha Galleria Duty Free merchandising division representative Ji Su Kim told DFNIonline.

    Kim, was unable to reveal further details, but a YonHap News Agency report indicated Hanwha Galleria plans to open 60% of the proposed space in the gold-tinted skyscraper, one of Seoul’s best known landmarks in Yeouido on December 28. Hanwha Galleria and HDC Shilla Duty Free, a joint-venture between Hotel Shilla and Hyundai Development Co were awarded the main downtown duty-free licences in Seoul by the Korea Customs Service in July following a hotly contested tender.

    The report said the pre-opening would showcase 369 brands, including cosmetics, watches and jewellery with nearly half of them Korean brands. The new duty-free shopping space will be located in the first lower level floor of the main 63 building and floors one to three of the annex building. With a total floor area of 10,072sq m, shoppers will have a  one-stop experience in a modern and comfortable space, according to the company.

    Once the entire store is complete, it is hoped the luxury boutiques and cosmetics stores in the first lower level floor and the watches and jewellery section of the first floor will feature global luxury brands.  The second floor will be filled with Korean cosmetics brands showcasing the best of “K-beauty”. This floor will also feature sections for fashion, accessories, tobacco and liquor. The third floor will be home to “K-Special Hall”, an exclusive concept to Galleria Duty Free. This unites more than 100 of Korea’s top brands and small and medium-sized enterprises.

    Shoppers looking to take a break from shopping can enjoy views of the Han River at “Studio Rue”, a media complex café located on the fourth floor, and browse a selection of Hallyu content products and purchase refreshments.

    Meanwhile, Hanwha Galleria, whose Hanwha Timeworld subsidiary runs the duty-free concession at Jeju International airport, is believed to have made little progress in terms of attracting global luxury brands.

    Hanwha Galleria CEO Hwang Yong-deuk said during a briefing. “Although we want to have luxury brands in the stores they are not yet considering opening new shops, thinking they have enough shops in South Korea.”

    The company added it would continue negotiations to house global brands when the Lotte World Tower store closes this month after the Korean powerhouse lost its licence to travel-retail newcomer Doosan Group.

    It also vowed to continue expanding its duty-free business and revealed it is targeting sales of $429.6m million in the new store next year.

    Stay close to DFNIonline and future editions of DFNI for more on the Hanwha Galleria duty-free expansion project.

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  • Korea’s jobless rate stays pat at 3.1% in November

    Korea’s jobless rate stays pat at 3.1% in November

    South Korea’s unemployment rate stayed pat in November compared with the month before as gains in the manufacturing and hospitality sectors were offset by losses in the agrofisheries and retail segments, a government report showed Wednesday.

    According to the report by Statistics Korea, the rate stood at 3.1 percent last month, unchanged from October and the year before. The seasonally adjusted unemployment rate for last month reached 3.4 percent, also flat from the 3.4 percent figure tallied for the previous month. The number of newly created jobs, however, dropped to 285,000 last month, from 348,000 new positions offered in October.

    “Manufacturing continued to fuel growth, along with the hospitality sector, and communication and information technology services, but sharp losses in agrofisheries and to a lesser extent retail affected the job market last month,” said Sim Won-bo, head of the agency’s employment statistics division.

    He said agrofisheries shed 168,000 positions last month from 124,000 jobs lost the month before, while sluggish economic conditions hurt small-time retailer jobs in the country. The official said the loss in agrofisheries was mainly due to rainy weather.

    The manufacturing sector created 190,000 more jobs, with the hospitality sector and communication and information technology services adding a combined 182,000 positions.

    The unemployment rate for people between the ages of 15 and 29 reached 8.1 percent in November, up from the 7.4 percent reading a month earlier, which was the lowest level reported since May 2013.

    The statistical office said the jobless rate for young people usually goes up toward the end of the year as there is a rush to seek employment. The jobless rate among young people has always been higher than the national average.

    The latest report then showed the employment rate for people between 15 and 64, which is used by the Organization for Economic Cooperation and Development to measure employment, stood at 66.3 percent last month, up from 66.2 percent the month before.

    The so-called labor underutilization indicator dipped to 10.3 percent last month from 10.5 percent in October, according to the report.

    The indicator is based on guidelines made by the International Labor Organization and reflects the number of people who are underemployed and those who currently hold part-time jobs but want full-time work. It also counts unemployed people who have given up looking for work not by choice but due to other circumstances.

    The finance ministry said unseasonable weather conditions adversely affected jobs created last month. “The amount of rainfall directly impacted hiring in certain sectors,” it said. “If agrofisheries are not calculated, more than 400,000 jobs were created.” Total precipitation hit 127.8 millimeters, the second highest reading since November 1973.

    The ministry added that while the jobless rate for young people rose, the employment rate edged up 1 percentage point on-year to 41.8 percent, which is a positive development. For the future, it said exports may remain weak but a rise in domestic demand will help create new positions in the coming months.

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  • Apple Korea faces antitrust probe

    Apple Korea faces antitrust probe

    Apple Korea has found itself under the spotlight in South Korea over its repair contracts.

    South Korea’s antitrust watchdog Fair Trade Commission (FTC) said today it is checking possible unfair provisions in contracts signed between Apple Korea and local electronic repair companies.

    The FTC did not elaborate on details but said it confirmed there were unfair clauses that favored the electronics giant.

    “The probe was launched by the commission based on suspicions, with investigators processing all the information gathered,” FTC chief Jeong Jae-chan said.

    He predicted that results of the review will be made public soon. He said because many consumers used iPhones in the country, the investigation should generate considerable interest.

    The latest examination follows the corporate regulator’s recent order that eight local repair companies and mobile operators must change their customer service rules that unfairly restrict the rights of consumers.

    Repair firms, such as UBase Inc., Peach Valley and Beyond Tech Co, along with mobile operators SK Telecom and KT, were ordered to make changes earlier in the year.

    An FTC official said that while the ruling against repair firms involved businesses and consumers, the latest ongoing actions target business-to-business arrangements.

    Besides Apple, the FTC said it plans to release repair information by all mobile phone manufacturers within the year, so consumers can personally check how companies fix gadgets.

    Information will be provided by the Korea Consumer Agency on Samsung Electronics, LG Electronics and Apple, with data to go into such matters as costs, how repairs are made, the time it takes to fix broken devices and related procedures that must be followed, it added.

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  • Lotte’s Japan unit to jack up stake in Korean affiliate

    Lotte’s Japan unit to jack up stake in Korean affiliate

    Lotte Confectionery Co., a unit of South Korean retail giant Lotte Group, said Wednesday that Lotte’s Japan operation will increase its stake in the affiliate, a move seen as part of efforts to cement the incumbent group chairman’s grip in the conglomerate amid a succession feud.

    In a regulatory filing, Lotte Confectionery said that Tokyo-based Lotte Holdings will buy 7.9 percent of its shares at 2.3 million won ($1,950) per share during trading hours by Dec. 28, a deal worth about 258 billion won.

    Last week, Lotte Holdings bought a 2.1-percent stake in Lotte Confectionery through block deals in after-hour trading.

    If the transaction is completed, Lotte Holdings’ stake in the confectionery unit will rise to 10.3 percent to become the No. 2 stakeholder after Lotte Aluminum.

    “Lotte Holdings will increase its stake in Lotte Confectionery to step up cooperation in the confectionery business for a synergy effect,” Lotte said in a release.

    The move comes as Lotte Group chairman Shin Dong-bin and his elder brother Dong-joo have been involved in a succession feud over the group whose business portfolio ranges from food to retail, mostly based in South Korea and Japan.

    The latest share purchase is interpreted as an effort to strengthen Dongbin’s grip on Lotte Confectionery, which stands at a critical position in the group’s cobweb-like structure.

    The confectionery unit has stakes in other key Lotte affiliates, including Lotte Shopping, Lotte Chilsung and Lotte Food, serving as a critical link in South Korea’s fifth-largest conglomerate.

    Shin Dong-bin also owns an 8.8-percent stake in Lotte Confectionery, followed by Shin Kyuk-ho’s 6.8 percent and Shin Dong-joo with 4 percent.

    Founder Shin Kyuk-ho has sided with Dong-joo, who has waged several suits against his brother in Japan and Korea after being fired from his senior executive position at Lotte Holdings earlier this year.

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  • Korea scraps perfume tax

    Korea scraps perfume tax

    Korea’s government has removed some items from the Individual Consumption Taxes list, making them exempt from what is often referred to as a ‘luxury tax’.

    Perfume, cameras and deer antlers were removed from the list, but tax will still be imposed on purchases of Royal Jelly.

    Authorities reported that the ruling party and opposition party have agreed on the revision of the Individual Consumption Tax Act.

    The government announced that it would be eliminating the seven per cent tax that was imposed on deer antlers, Royal Jelly and perfume, when it revealed the revised bill in August.

    However, during debate at the national assembly, Royal Jelly was excluded from the exempted items, and cameras, which used to face a 20 per cent tax, were added.

    The bill proposed by governor Jung Eui-hwa suggested that cameras be excluded from the items facing individual consumption taxes. She explained that ‘owning a camera is no longer a symbol of wealth’, and instead it is seen as a matter of ‘consumer preference and choice’.

    Though it was not included in the revised bill that both parties agreed to, the five per cent tax which was imposed on air conditioners, refrigerators, washers and TVs consuming more than the standard amount of electricity is expected to be abolished as the revised act is enforced.

    The revision was undertaken to follow international trends, and recognise the changes that have occurred with the passing of time. It was concluded that the items exempt from taxes were no longer thought of as ‘luxury’ goods in the current society, in which personal income and standard of living are both higher than in the past.

    With the abolishment of individual consumption taxes, the factory prices of deer antlers, cameras and perfume will be lowered. However, some have pointed out that it remains to be seen whether the revision of the bill will lead to lower consumer prices, like the prices of high-fashion brand bags.

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  • Tokyo-based affiliate eyes major stake in Lotte Confectionery

    Tokyo-based affiliate eyes major stake in Lotte Confectionery

    Korean retail giant Lotte Group’s confectionary affiliate said Wednesday that Japan-based Lotte Holdings has offered to buy 259 billion won ($219.6 million) worth of shares in the firm, a move that will help the group chairman strengthen his control amid a prolonged succession dispute with his brother.

    The Japanese firm will buy 7.9 percent shares of Lotte Confectionary at 2.3 million won per share from the market during trading hours by Dec. 28, the company said in a regulatory filing.

    “By boosting stakes in Lotte Confectionery, Lotte Holdings will be able to improve efficiency based on the potential synergies between the two firms,” it said in a press release.

    Once the purchase is completed, Japan’s leading confectioner will emerge as the second-largest shareholder of the Korean firm with a 10 percent stake. It bought a 2.1 percent stake in the firm on Nov. 4.

    Tightening its grip on Lotte Confectionery means having the group’s key affiliate under control as it holds stakes in Lotte Shopping and Lotte Chilsung.

    Industry insiders said Lotte Holding’s recent decisions to increase its stake in the Korean confectionery unit is to show its support for Shin Dong-bin — the Lotte Group chairman and Lotte Holdings vice chairman — who has been at war with his brother Shin Dong-joo over control of the group since July.

    With Lotte Holdings’ backing, the incumbent chairman who holds an 8.78 percent stake in the Korean unit can cement his leadership over the group, whose portfolio ranges from food to retail mostly in South Korea and Japan.

    Dong-joo, the former Lotte Holdings vice chairman who led the Japanese operations until January, owns a 3.96 percent stake while his father and Lotte founder Shin Kyuk-ho holds a 6.83 percent stake in Lotte Confectionery.

    Meanwhile, the chairman said he would consider listing Lotte Holdings on the Japanese stock market to build a management structure free of the founding family’s feuding.

    During an interview with Japanese media outlet the Nikkei, he said the market debut will be discussed after the Korean initial public offering of Hotel Lotte, slated for the first half of 2016.

    “Coming under tighter scrutiny in the market will enhance the company’s structure and establish transparent corporate governance,” Shin said.

  • Lotte seeks more female managers

    Lotte seeks more female managers

    Lotte Group, a leading South Korean retail giant, vowed Thursday to nurture its female leaders to provide equal opportunities in its workforce.

    Group chairman Shin Dong-bin said in a forum that his conglomerate would increase female leaders to 30 percent of managers by 2020 from the current rate of 11 percent.

    “The group expects to have the first female CEO by 2020,” the chairman said, adding the group would continue to invest in building a family-friendly working environment.

    “More female talents are necessary for Lotte’s affirmative action plan to provide equal opportunities for members of minority groups,’’ Shin said during the fourth Way of Women, an internal annual event for female employees.

    About 500 female staff and executives in the group and its affiliated firms joined the event and shared their experiences and views for the development of female leaders.

    The conglomerate has adopted women-friendly policies, such as flexible working hours and support for career building.

    In its efforts to increase female talents, the company has continued to allocate 40 percent of annual job openings to women for the past few years, which has so far raised the rate of female managers to 11 percent from 1 percent in 2005.

    Lotte announced the new policy amid no signs of easing feuds among owner family members, including chairman Shin, over control of the conglomerate.

    Lotte said its Japanese shareholders support the current leadership despite the ongoing succession feud, in an effort to clear up uncertainties surrounding the preparation for listing its hotel unit.

    The listing of Hotel Lotte is one of the reform pledges that chairman Shin has made to assuage public disgust over a bitter family feud over control of the retail-focused conglomerate, which has sprawling business interests both in South Korea and Japan.

    The Korea Exchange, South Korea’s main bourse in charge of reviewing its initial public offering application, has demanded Lotte prove whether its corporate governance structure is stable enough to proceed with the current process.

    In response, Lotte said it has submitted a document showing that 60 percent of Lotte Holdings’ shareholders support the current leadership. Japan-based Lotte Holdings is the largest shareholder of Hotel Lotte with a 19.1 percent stake.

    “The Hotel Lotte IPO is expected to proceed without delay as major concerns have been cleared up,” a senior Lotte official said.

    “We will make efforts to complete its listing by the first half of next year.”

    The latest move came as Lotte has been mired in a leadership dispute between the group founder’s two sons ― Shin Dong-joo and Shin Dong-bin ― since last summer.

    The two sons had respectively controlled the company’s operations in Japan and Korea until earlier this year.

     

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  • Kakao Bank, South Korea first internet-only banks

    Kakao Bank, South Korea first internet-only banks

    The country’s Financial Services Commission said Sunday it awarded a preliminary license to Kakao for a business to be named Kakao Bank.

    “An Internet bank is meant to give non-financial players, including IT firms, chances to enter the banking sector if they have feasible business plans to improve the financial market and customer rights”, the FSC said earlier’.

    Kakao Bank and K Bank will individually apply for the final approval after satisfying the human and material requirements.

    For Kakao Bank, Korea Investment Holdings Co. will take part as a major shareholder with 50 percent share, while Kakao and Kookmin Bank own 10 percent share each.

    Kakao, KT and Interpark were reported to be the three applications accepted by the FSC. It is the first time in 23 years that a new commercial bank has opened in the country’s banking industry. Once they receive the official approval form the FSC, they need to start operation within six months.

    According to the agency, Kakao’s Kakao Bank gained high scores for innovative services based on its immensely popular mobile messenger app KakaoTalk with 40 million users.

    The banks holding a stake in the two winning consortiums, on the other hand, rejoiced at the FSC approval, but are also facing financial burdens, as well as possible power struggles within the consortium.

    Currently, top-tier banks offer an annual rate of 3 percent to 5 percent, while secondary financial institutions, such as mutual savings banks or capital services, charge 15 to 34 percent.

    “Kakao’s rival, the K-Bank consortium, includes South Korea’s second-largest mobile carrier KT, Woori Bank, GS Retail and China’s Alipay, which is affiliated with e-commerce company Alibaba”.

    Nonparticipating banks geared up to expand their online banking platforms and increase their range of mid-interest rate loans to defend against the incoming Internet-only banks.

    FSC Chairman Yim Jong-yong has been a strong advocate for the web-based bank, saying he expects the online-banking industry to raise the competitiveness of the Korean banking industry as a whole. However, many difficulties are expected in order to pass the bill.

    The bank also aims to go global as it has secured ties with Tencent, China’s biggest social-networking and mobile games company, and the USA online retail giant eBay, which also owns Korea’s two leading shopping sites Gmarket and Auction.

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