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Tag: Korea

  • South Korean carriers cut Vietnam flights as coronavirus infections spiral

    South Korean carriers cut Vietnam flights as coronavirus infections spiral

    South Korea’s largest carriers have decreased the frequency of flights to Vietnamese tourist hotspots over rising Covid-19 infections at home.

    Korean Air, the largest airline in South Korea, has announced that it will suspend many flights departing from Seoul and Busan to Ho Chi Minh City and Hanoi, Vietnam’s two largest metropolises, Da Nang and Nha Trang in central region and Phu Quoc Island in the south until the end of March.

    Asiana Airlines, the country’s second-largest carrier, has also canceled many flights from Incheon Airport in Seoul to Hanoi, Da Nang and Nha Trang at least until mid-March. This airline’s Incheon-Phu Quoc route will continue operations, but the frequency will be reduced from four flights a week to two.

    Korean Air normally operates 20 flights between the two countries a day, while Asiana Airlines has an average 4 flights a day. The two carriers did not reveal specific numbers of suspended flights.

    The flight suspensions follow the rapid spread of the novel coronavirus in South Korea, where more than 4,800 infections and 23 deaths have been recorded.

    Vietnam is a leading destination among South Koreans, ranked third after Japan and mainland China, according to Global Destination Cities Index (GDCI), released by Mastercard last year. South Korea is the second-largest feeder market of Vietnam’s tourism after China, with around 4.2 million visitors in 2019, up 23.1 percent year-on-year.

    Nha Trang and Da Nang are among top holiday destinations for South Koreans.

    The Covid-19 outbreak, with its epicenter in China, has severely cut the number of South Koreans traveling abroad, and Vietnam’s tourism sector has borne the brunt.

    Around 322,000 South Koreans came to Vietnam in February, down 16 percent from a year ago. Worse still, the number is expected to decrease dramatically in the coming months after the South Korean government declared a red alert, its highest level of epidemic alarm.

    The Vietnamese government, too, has deployed various measures to prevent the spread of the virus, including canceling many flights to South Korea and suspending visa-free entry for South Koreans starting last Saturday.

    In Vietnam, national flag carrier Vietnam Airlines has said it will suspend all flights to South Korea from Thursday while private carrier Bamboo Airways halted services to the country South Korea from February 26.

    Hanoi’s Noi Bai and Ho Chi Minh City’s Tan Son Nhat, Vietnam’s two largest airports, had stated they would stop receiving South Korea arrivals starting Sunday.

    Passengers scheduled to land in Noi Bai will have to do so at Van Don Airport in northern Quang Ninh Province, around four hours drive away, while those headed for Tan Son Nhat will have to travel a similar distance to Can Tho Airport in the Mekong Delta.

    This decision was taken after a large number of Vietnamese returning from South Korea overloaded medical quarantine facilities in both cities.

    All 16 people with Covid-19 recorded in Vietnam so far have been discharged from hospitals.

    Globally, the death toll has reached 3,069, mostly in mainland China, followed by Iran (66), Italy (52) and South Korea (34). The U.S and Japan which have reported six deaths each.

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  • South Korean cafe ranks continues to grow

    South Korean cafe ranks continues to grow

    The number of South Korean cafes continues to grow at a brisk pace, according to a government recent study.

    The Korea Fair Trade Commission reported there were 15,036 coffee shops in South Korea as of 2018, an increase of 7.9 percent (1105 shops) over the previous year. The rate of increase was the highest among all types of restaurants.

    The data may be a year out of date, but anecdotal feedback from the industry suggests the trend endured into last year

    As of 2018, average annual sales for South Korean cafes amounted to 231 million won (US$190,000), which was 6.5 percent more than in 2017.

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  • Coronavirus case confirmed in Samsung factory in South Korea

    Coronavirus case confirmed in Samsung factory in South Korea

    We have been hearing news about different factories’ production struggles over the coronavirus outbreak for almost two months now. Unfortunately, on Saturday, Samsung temporarily closed one factory in South Korea over a confirmed case of the coronavirus, reports Reuters. Until now, Samsung has remained fairly unaffected by the public health crisis.

    The aforementioned factory complex is situated in the South Korean city of Gumi, close to the center of South Korea’s largest coronavirus outbreak (in the city of Daegu), where, reportedly, the cases of infected with the illness amount to around 433. However, the factory is responsible only for the production of a small portion of high-end phones, in particular the Galaxy Z Flip and the Galaxy Fold, primarily for the domestic market.

    The facility is to remain closed until Monday morning, while the floor where the infected employee worked will be shut down until February 25, Tuesday. Workers that came into contact with the employee in question are now in self-quarantine and will be tested for possible infection with the virus.

    Samsung states that production in other factories in South Korea will remain unaffected for now.

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  • Bamboo Airways suspends S.Korea flights to contain coronavirus

    Bamboo Airways suspends S.Korea flights to contain coronavirus

    Vietnam’s private airline Bamboo Airways will suspend all routes to and from South Korea to stem the spread of the novel coronavirus.

    Both routes from central Da Nang and Nha Trang to Seoul’s Incheon International Airport will cease operation starting February 26, it stated Monday.

    The airline is currently operating seven trips a week on each route with the narrow-body Airbus A21neo capable of carrying nearly 200 passengers.

    It stated flight suspension is vital to warding off the coronavirus from South Korea where the number of confirmed cases has reached 763, and death toll 7 as of Monday.

    Last year, South Korea was Vietnam’s second-largest tourism market behind China with 4.3 million visitors, up 23 percent year-on-year.

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  • Daegu citizens use social media to support restaurants hit by coronavirus

    Daegu citizens use social media to support restaurants hit by coronavirus

    Citizens of South Korean city Daegu are working together on social media to prop up local businesses hit hard by the rapidly growing coronavirus outbreak.

    A Facebook page introducing restaurants in Daegu posted Friday that many establishments are losing money due to the coronavirus epidemic. These restaurants saw their sales fall and are struggling to use up food and ingredients.

    The Facebook page posted a message saying, “If there are restaurants who need help using up ingredients, please let us know. We will help as best as we can.”

    Citizens are taking steps to make sure that restaurant food going unsold due to a drop in customer numbers doesn’t go to waste.

    When such information was made public, inquiries were made by various local restaurants, including steak restaurants and cafes that sell desserts and beverages.

    Site managers received and posted the remaining materials, prices, contact information and photos from restaurant owners. Some posts also showed a welcoming phrase, “Used up all the ingredients.”

    There were also citizen reports to publicize the situation at traditional markets, where many elderly vendors are not familiar with the internet.

    One citizen said: “There are a lot of fruits at Seomun Market stalls and so on. Delivery is also possible,” and provided the site manager with the location and the phone number.

    Other Facebook pages that deliver various news in the region have also joined the initiative.

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  • Vietnam IT recruiting firm raises million dollars from South Korean investor

    Vietnam IT recruiting firm raises million dollars from South Korean investor

    IT recruitment firm TopDev has secured a million-dollar investment from South Korea’s leading recruitment company Saramin HR.

    The Ho Chi Minh City-based company said in a statement Monday that the deal, whose exact value it did not reveal, would be used to increase the supply of developers through training programs for graduates.

    Saramin HR, which is listed on South Korea’s KOSDAQ, said the investment is part of its global development plan and would support TopDev’s potential expansion in Southeast Asia.

    TopDev said Vietnam has 350,000-400,000 developers now but 500,000 would be needed by 2021 as the country remains a popular outsourcing software destination for multinationals.

    Vietnam is seeing increasing investment in tech startups.

    Last year the total investment in Vietnamese tech startups surged 2.5 times to $741 million, second only to Indonesia in Southeast Asia.

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  • South Korea’s CU fined US$1.4 million for unfair trading

    South Korea’s CU fined US$1.4 million for unfair trading

    South Korean convenience-store operator BGF Retail has been fined for pushing exorbitant sales promotion costs onto its suppliers.

    The firm was ordered to pay KRW1.67 billion (US$1.4 million) for its breach of the Act on Fair Transactions in Large Retail Business, according to a report in The Korea Times.

    While the act forbids any retailer from forcing its supplier to shoulder more than half of any promotional cost, BGF was found to have run “two-for-one” promotional events from early 2014 to late 2016 at its CU-branded stores and passed on the majority of expenses.

    The firm pushed KRW2.39 billion ($2 million) in costs on 79 suppliers to pay for 338 promotions conducted during the period at more than 13,000 CU locations. It also failed to sign written agreements with suppliers prior to holding sales events in 76 cases.

    “This is the first time that the FTC has punished a company for forcing suppliers to shoulder more than 50 percent of the cost for two-for-one events,” said an official at Korea’s Fair Trade Commission. “The FTC will enhance monitoring and punishments for similar violations.”

    CU is currently in second place among Korea’s leading convenience store chains, with a 31.14 percent market share.

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  • South Korean convenience stores in delivery-service battle

    South Korean convenience stores in delivery-service battle

    Competition among South Korean convenience stores over delivery services is heating up.

    One chain, GS25, recently launched delivery services from seven stores in Seoul in partnership with food-delivery service Coupang Eats operated by e-commerce giant Coupang.

    First of all, the South Korean convenience store company plans to implement delivery services through Coupang Eats at seven stores in Seoul before expanding the scope of the service to franchise stores nationwide.

    Through the service, customers can receive about 200 products at home, including prepared lunches, sandwiches, and beverages that are being sold at convenience stores.

    Meanwhile, GS25 had already launched a delivery service for store products in cooperation with another delivery company, Yogiyo, in April of last year.

    It is running a pilot project at 10 direct management stores, and the service has been especially popular with workers during lunch and dinner time. In the nine months since the service was introduced, the monthly average number of orders reached 3000.

    Furthermore, CU, another convenience store chain, is also working with Yogiyo to provide delivery services at 3000 stores across the country.

    CU plans to increase the number of delivery service stores to 5000 within the first quarter and introduce around-the-clock delivery at some stores centered in the Gangnam area.

    Emart24, a convenience store chain run by large discount store chain E-Mart, on the other hand, has also joined the market by offering delivery services at 35 stores since earlier this year.

    South Korean convenience stores are scrambling to expand its delivery service area due to a growing number of customers accustomed to online orders and deliveries.

    The delivery service also serves as a growth engine in increasing sales at convenience stores. Additional sales are generated from deliveries, and the service is quite popular especially in rainy or cloudy weather.

    “We are planning to expand the number of stores that offer delivery services through various delivery platforms and partnerships to increase sales and secure customers,” a GS25 official said.

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  • LG robotic waiter serves food in Seoul restaurant

    LG robotic waiter serves food in Seoul restaurant

    An LG robotic waiter has made its debut at a local restaurant in Seoul.

    The LG CLOi ServeBot comes with indoor autonomous driving technology and an obstacle avoidance system so it doesn’t crash into furniture, customers or colleagues.

    The robot is capable of delivering food to the table where customers are seated as well as returning the dishes after the customers finish their meal.

    The robot has been put to work at CJ Foodville’s Cheiljemyunso restaurant in Seoul Station.

    The LG robotic waiter – called CLOi ServeBot – avoids obstacles with a voice message saying, “I’m sorry, may I please go through?”

    It also plays a song while moving to help prevent collisions with customers by making them aware of its presence.

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  • South Korean convenience stores in delivery-service battle

    South Korean convenience stores in delivery-service battle

    Competition among South Korean convenience stores over delivery services is heating up.

    One chain, GS25, recently launched delivery services from seven stores in Seoul in partnership with food-delivery service Coupang Eats operated by e-commerce giant Coupang.

    First of all, the South Korean convenience store company plans to implement delivery services through Coupang Eats at seven stores in Seoul before expanding the scope of the service to franchise stores nationwide.

    Through the service, customers can receive about 200 products at home, including prepared lunches, sandwiches and beverages that are being sold at convenience stores.

    Meanwhile, GS25 had already launched a delivery service for store products in cooperation with another delivery company, Yogiyo, in April of last year.

    It is running a pilot project at 10 direct management stores, and the service has been especially popular with workers during lunch and dinner time. In the nine months since the service was introduced, the monthly average number of orders reached 3000.

    Furthermore, CU, another convenience store chain, is also working with Yogiyo to provide delivery services at 3000 stores across the country.

    CU plans to increase the number of delivery service stores to 5000 within the first quarter and introduce around-the-clock delivery at some stores centered in the Gangnam area.

    Emart24, a convenience store chain run by large discount store chain E-Mart, on the other hand, has also joined the market by offering delivery services at 35 stores since earlier this year.

    South Korean convenience stores are scrambling to expand its delivery service area due to a growing number of customers accustomed to online orders and deliveries.

    The delivery service also serves as a growth engine in increasing sales at convenience stores. Additional sales are generated from deliveries, and the service is quite popular especially in rainy or cloudy weather.

    “We are planning to expand the number of stores that offer delivery services through various delivery platforms and partnerships to increase sales and secure customers,” a GS25 official said.

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  • South Korean restaurants remain empty as coronavirus fears spread

    South Korean restaurants remain empty as coronavirus fears spread

    South Korean consumers are opting to avoid crowded places, causing restaurant bookings to plunge by as much as half as fears grow of the spreading coronavirus.

    “Lunar New Year, followed by graduation and enrollment ceremonies, should have been a chance to boost our sales,” said the owner of one Seoul Chinese restaurant. “This year, though, reservations have dropped by more than half.”

    Group dinners, accounting for a significant portion of all sales at this time of the year, have dwindled, and schools are canceling graduation and enrollment ceremonies.

    “It’s important that I don’t get infected, but it is also important not to take any chance of spreading the disease to other people. It doesn’t hurt to stay careful,” said a local office worker.

    Some companies have chosen to axe group dinners.

  • Japanese chocolatier Royce closing South Korea stores

    Japanese chocolatier Royce closing South Korea stores

    Japanese chocolatier Royce is shuttering its operations in South Korea.

    The brand’s local retailer Royce’ Confect Korea said in an announcement last Wednesday that it will close all nine of its locations in the territory, including five shops in Seoul.

    The closures will be completed by the end of next month.

    Sales for the brand’s chocolates have sharply declined in recent months and were strongly affected by a recent general boycott of Japanese products in the country.

    A company statement read: “Thank you very much for loving Royce’ chocolate. We will try our best to the very end with the best possible services”.

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  • South Korea’s foodservice industry thriving despite rumours

    South Korea’s foodservice industry thriving despite rumours

    Rumors that South Korea’s foodservice industry is in a slump have been scotched by new data showing the sector is actually growing at a steady 9 percent annually

    And it’s the thriving coffee sector which is driving much of the growth.

    Analysts say the gap between business sentiment and the real economy is widening as the polarisation between sectors is deepening.

    According to a survey conducted by Kim Young-gap, a professor at Hanyang Cyber University, using a big data business analysis system from consulting firm Nice Genie Data, the size of the Korean foodservice industry was estimated to exceed US$155.2 billion last year.

    Unlike other sluggish industries, the coffee and beverage sectors grew at a fast pace of more than 20 percent, leaving other industries far behind.

    The growth rates of carb food, accounting for 15.2 percent, Chinese food, accounting for 14.3 percent, and bakeries, accounting for 11.7 percent, were also notable.

    On the other hand, bars saw a negative growth of -1.3 percent, buffets grew by 0.5 percent and Western food grew by 3.8 percent, which also illustrates poor growth.

    The total number of restaurants rose 3.2 percent annually from about 604,000 in 2016 to about 663,000 last year.

    In the number of restaurants, coffee and beverage companies also ranked first with a 19-per-cent increase, far ahead of the confectionery, baking, rice cake, and cake industries with an 8.7 percent increase.

    Major customers of South Korea’s foodservice industry are likely to be reorganized into those in their 20s and 50s and 60s.

    In terms of the rate of increase and decrease for consumers by gender and age at food service establishments, the number of people in their teens and 30s and 40s declined, while that of men in their 50s and 60s and 20s increased.

    This trend translated into an increase in the number of customers in their 20s, mainly at fast-food restaurants, as well as a growing number of customers in their 50s and 60s opting for Korean food, according to Kim.

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  • GS25 opens futuristic c-store concept

    GS25 opens futuristic c-store concept

    South Korean convenience-store chain GS25, owned by GS Retail, has opened a futuristic convenience store without a checkout counter in Jung District, Seoul this week.

    The store, which is located in the headquarters building of a local credit card company BC Card, is similar to Amazon Go, checkout-free offline malls in the US.

    One can enter the convenience store by scanning a BC Paybook QR code from BC Card’s mobile payment app at the speed gate.

    When customers enter the store, 34 ‘deep-learning cameras’ will recognise their behaviour. In addition, some 300 weight sensors installed throughout the store detects the number of items that customers choose.

    When a customer chooses their purchases and exit the speed gate, all the items will be automatically paid for through a payment system using artificial intelligence (AI) technology, and a mobile receipt will be issued.

    A video-recognition speaker is also installed, where a pre-set voice will guide the customers through speakers. If customers are standing at some point or do a particular action, the speaker will provide assistance.

    In the future, the company will gradually introduce technologies that guide customers to promotions when they approach a presentation product stand.

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  • South Korean beauty firms flourish as hopes rise of end to China sanctions

    South Korean beauty firms flourish as hopes rise of end to China sanctions

    Stocks of major South Korean cosmetics and duty-free operators traded higher yesterday amid hopes that China may lift its retaliatory economic measures underway for years against Seoul’s decision to deploy a US anti-missile system there.

    AmorePacific, the country’s largest cosmetics maker, closed at 232,000 won (US$200), up 5.22 percent from the previous session’s close, after touching as high as 236,000 won, the highest mark since April 24 last year.

    Shares in LG Household & Health Care, the second-largest homegrown beauty giant, finished at 1,404,000 won, up 4.54 percent from the earlier session’s close, after touching 1,425,000 won, the highest since April 30.

    “We are expecting a gradual recovery of the cosmetics sector, with signs of growth in the Chinese high-end cosmetics market,” said Na Eun-chae, an analyst at Korea Investment & Securities.

    “In the past two to three years, Sulwhasoo and Hera have expanded retail and marketing in China,” referring to two of AmorePacific’s premium brands.

    Na expected AmorePacific’s sales in 2020 to rise 10.5 percent to 6.2 trillion won and the firm’s operating profit to soar 31.1 percent to 586 billion won.

    KTB Investment & Securities analyst Bae Song-yi estimated the beauty product maker’s yearly sales to grow 9.4 percent to 6.1 trillion won and its annual operating profit to gain 29 percent to 583 billion won.

    With an expected rise in demand from Chinese travelers, South Korean duty-free operators also continued to build up gains.

    Shinsegae, a major duty-free operator, closed up 4.58 percent at 262,500 won, after rising to a yearly high of 265,500 won.

    Lotte Shopping, another major duty-free operator, also advanced 5.06 percent to a yearly high of 135,000 won from the previous session’s close.

    The advance in cosmetics and retailer stocks was fuelled largely by rising speculation that Chinese President Xi Jinping will visit Seoul as early as March and move to relieve economic sanctions that have been hurting China-exposed companies.

    Last week, South Korean President Moon Jae-in struck an upbeat note on Seoul’s relationship with Beijing in his address for the New Year, saying Xi and Chinese Premier Li Keqiang are scheduled to visit South Korea this year.

    South Korea’s cosmetics industry had enjoyed robust growth until 2016, helped by “hallyu,” or the Korean Wave, referring to the growing popularity of Korean pop culture abroad.

    Exports of South Korean goods to China, its largest buyer, have shrunk drastically since 2017 as the Chinese government imposed economic sanctions over Seoul’s deployment of the Terminal High Altitude Area Defense (THAAD) system.

    In its latest sign of sanctions easing, a 5000-strong incentive-travel group from a Chinese health food company visited South Korea last week, marking the largest incentive travel by a company since 2017.

    The number of inbound visitors to South Korea reached the 17.25 million mark last year, surpassing the previous annual record of 17.24 million set in 2016.