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Tag: Korea

  • Prosecutors drop charges against Samsung chairman

    Prosecutors drop charges against Samsung chairman

    Prosecutors dropped tax evasion and embezzlement charges against Samsung Group Chairman Lee Kun-hee on Thursday. The decision was based on the judgment that further investigation into the case was impossible due to Lee’s health issues. The investigation may resume if Lee recovers, but the possibility is slim. Lee has been hospitalized for more than four years now since a fall in May 2014.

    Lee was accused of avoiding taxes worth 8.5 billion won ($7.6 million) that involved multiple bank accounts under the names of Samsung executives. More than 1,700 accounts were found to have been used for this purpose since 2008, when the investigation started.

    Another charge against the chairman was the embezzlement of 3.3 billion won from Samsung C&T, which was used to pay for the interior renovation of Lee’s private home.

    The Seoul Central District Prosecutors’ Office, however, did decide to indict four Samsung executives who played a role in the two cases – one for the tax evasion scheme and three for the embezzlement case.

  • Korean iPhone owners claim low trade-in prices

    Korean iPhone owners claim low trade-in prices

    iPhone users are accusing Apple of paying Korean customers less for their trade-ins than the devices are worth, while noting differences between promotions in other countries and those in Korea.  If an iPhone owner wants to return an older model when buying a new device, iPhone Korea said it will offer up to a 300,000-won ($268.56) discount on the latest smartphones, the iPhone XS and iPhone XR. Korean customers are outraged.

    They claim that the deal has been made available to them a full month later than in other countries. In the United States, Japan and China, trade-in opportunities started in late November. The amount in compensation is also said to be too low.

    Apple Korea announced on Dec. 24 that it is taking iPhone trade-ins at its retail store in Garosugil, Seoul, and will continue to do so until late January next year.

    If the user returns an older model, it is possible for them to buy the 990,000 won iPhone XR for 690,000 won and the 1.37 million won iPhone XS for 1.07 million won.

    Internet community Clien exploded with comments on Dec. 25, the day after the announcement. “I might as well sell it at the Gangbyeon Electronics Mart rather than returning it to Apple,” said one. Another added: “It is disrespecting the customers.”

    While iPhone Korea only compensates up to 300,000 won for an iPhone 7+ released two years ago, the price for an iPhone 7+ in the second-hand market near Gangbyeon and Sindorim is around 380,000 won, according to mobile community Cetizen.

    If the product is an S class with almost no cracks, the price goes up to 450,000 won.

    After typing in the serial number for a black iPhone 7 with 128 gigabytes into the trade-in page on Apple Korea’s website, a reporter received a quote of 174,000 won. In the second-hand market, users can sell the phone for at least at 289,000 won. Apple is offering 115,000 won less for the device.

    Lee Doo-hee, a programmer who enjoys using Apple products said, “I can get more money if I sell directly, so I do not feel any need to go to the Apple store in person and exchange my iPhone.”

    Apple U.S. announced that it is offering trade-ins of about $300 for those buying an iPhone XR and iPhone XS. This is about 10 percent more than in the Korean market.

    NTT Docomo, Japan’s No. 1 mobile company, is offering the iPhone XR for 25,920 yen ($235.05), around 260,000 won, for those signing a two-year contract. No similar discounts are offered in Korea.

    “For Apple, Korea is the home turf for Samsung Electronics, Apple’s old enemy,” according to a source in the sector.

    “Apple only has to get a fair amount of earnings from hard-core iPhone fans, which possibly account for 15 percent of all mobile communications users in Korea. That is why it is pursuing unfavorable policies, like excluding certain countries from promotions.”

    It is believed that the current promotion from Apple Korea is due to the slump in sales of recent iPhones. High prices are seen as the main cause of the recent slowing of sales growth.

    Kuo Ming-chi, a Taiwanese Apple expert as well as an analyst at TF International Securities, has revised his first-quarter 2019 sales volume estimate for iPhones from a 47 million to 52 million range to a 38 million to 42 million range.

    A report written by Kuo was titled: “Shipments of iPhones in 2019 could be below 190 million.”

    The market value of Apple exceeded one trillion dollars in September last year. It is now around $700 billion.

  • HK customs seized counterfeit cosmetics

    HK customs seized counterfeit cosmetics

    Hong Kong Customs has seized more than 1300 items of suspected counterfeit cosmetics after raids on three sites this week. In an anti-counterfeiting operation conducted with the assistance of the trademark owners, customs officers took enforcement action at four dispensaries, five medicine stores and a warehouse. The raids took place in Tsim Sha Tsui, Mong Kok and Sheung Shui.

    The suspected counterfeit cosmetics and skin care products have an estimated market value of about $73,000 and included soothing gel, eyebrow pencils and face powder.

    Eight men and five women were arrested, including seven shop owners and six salespersons, aged from 19 to 60. They have all been released on bail as investigations continue.

    In a statement, Hong Kong Customs said it has been carrying out stringent enforcement against the sale of infringing goods and will continue to step up patrols and enforcement actions against infringing activities during the Christmas season.

    “Customs reminds consumers to procure goods at reputable shops and to check with the trademark owners or their authorised agents if the authenticity of a product is in doubt.”

    Retailers were warned to be cautious and prudent in merchandising since the sale of counterfeit goods is a serious crime and offenders are liable to criminal liability.

    Under the Trade Descriptions Ordinance, any person who sells or possesses for sale any goods with a forged trademark commits an offence. The maximum penalty upon conviction is a fine of $500,000 and imprisonment for five years.

  • Hyundai reveals a glimpse of the future

    Hyundai reveals a glimpse of the future

    Hyundai Motor Group offered a glimpse of its new concept autonomous car Friday in a short video. The concept car is electric. In the video, the electric car finds its way to a charging station inside a nearby parking lot on its own after the driver gets off at its destination. The station offers wireless charging. When charging is finished, the car then parks itself in an empty lot to make room for other vehicles to charge. When the driver calls the car back using their smartphone, the car drives itself to the requested meeting point.

    The Korean automaker described the feature as an “automated valet parking system.” The feature could take the burden off drivers struggling to park and also save time as they won’t need to find charging stations or empty lots.

    For this system to work, parking lots, cars and drivers need to continuously share information through a connected network, Hyundai said. For instance, parking lots need to send the location of charging stations and empty parking lots to cars, and wireless chargers need to notify drivers of cars’ battery status via text message or other means.

    “In the upcoming era where autonomous driving cars become prevalent, there will be growing demand for various driving control features using self-driving technology,” a spokesperson from Hyundai Motor Group said. “We will focus on developing services that enable drivers to make convenient and safe use of self-driving cars.”

    The company said it expects the wireless charging system and automated valet parking system to be applied to its autonomous driving cars scheduled for launch in 2025.

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  • Woowa Korea gets $320 million from overseas

    Woowa Korea gets $320 million from overseas

    Woowa Brothers, the operator of the popular food delivery app Baedal Minjok, said Thursday that it succeeded in securing $320 million from major foreign investors including Sequoia Capital, famous for investing in leading tech companies such as Apple and Google.

    According to Woowa Brothers, other major investors include China’s Hillhouse Capital – which is also known for investing in Chinese tech giants including Tencent and Baidu and led this round of funding – and the Singapore government-owned wealth fund GIC.

    The food delivery app developer said the investment has solidified its position as a unicorn company – an unlisted start-up worth over $1 billion – as its post-money valuation is now worth 3 trillion won ($2.66 billion).

    The company said it was able to secure such a large investment thanks to its exceptional growth.

    The Baedal Minjok app, normally referred to as Baemin, now processes nearly 27 million food delivery orders every month, up from 20 million in July. The app has 8 million monthly active users.

    Food delivery sales have more than doubled in the past three years. Baemin processed around 5 trillion won worth of food delivery orders this year, up from 2 trillion won in 2015.

    Since its founding in 2010, Woowa Brothers has received a total of 506.3 billion won in investment. Previous investors include Goldman Sachs, which invested 40 billion won, and Naver, which invested 35 billion won.

    “It’s significant that our company’s growth and future potential was recognized by reputable global investors,” said Oh Se-yoon, Woowa Brothers’ executive vice president and CSO.

    Woowa’s business interests go beyond food delivery. Its other projects include developing delivery robots powered by AI and self-driving technology and building an online system to help restaurant owners manage revenue and customers.

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  • LG Household’s History of Whoo makes history

    LG Household’s History of Whoo makes history

    LG Household & Health Care’s skin care brand The History of Whoo generated 2 trillion won ($1.79 billion) in sales this year as of Thursday. This is the first time a Korean beauty brand has reached that threshold. The 2018 record is also a 40.8 percent increase from last year’s annual sales.

    “For us, the achievement is meaningful in that it’s a sign we’re nearly able to compete shoulder-to-shoulder with global beauty brands,” LG said in a statement.

    The 2 trillion won in sales figure is based on manufacturer price. Counting the consumer price tag, the figure jumps up to 3 trillion won. According to market research firm Euromonitor International, the top three global beauty brands – Lancome, Shiseido and Estee Lauder – generate between 4.4 trillion and 5.3 trillion won a year based on the same standard.

    The last time The History of Whoo set a record was in 2016, when the brand made 1 trillion won in annual sales, 14 years after its launch. Breaking the 2 trillion won threshold came just two years later.

    The rapid growth is notable in that Whoo successfully survived a widespread boycott of local brands in China last year, following the installment of the U.S.-led antimissile system Thaad. This is in contrast to a score of other beauty companies like local leader Amorepacific, which have suffered huge blows from the loss of Chinese customers and some have yet to recover to pre-Thaad revenue levels.

    A spokesman explained that the brand kept its positive image thanks to word-of-mouth marketing and repurchases from Chinese customers.

    In terms of strategy, LG believes Whoo’s positioning as a high-end beauty brand has proven effective. Among its wide brand portfolio, The History of Whoo is one of LG’s premium brands with a higher price tag.

    Its main concept is that the products are based on records from Korea’s past dynasties which use oriental medicine as main ingredients. The brand story is also reflected in its product packaging, which emphasizes gold and red, which industry watchers say fits well with Chinese consumers’ taste for glamor.

    “We also concentrated a lot of our marketing activities to target VIP customers that have buying power,” said an LG spokesman.

    For next year, the company plans to continue its drive to push premium brands. Another brand LG is hoping to develop in the price range is SU:M, which is less flashier than Whoo, but emphasizes the use of fermented plants. Although smaller than Whoo, SU:M is also expected to reach 440 billion won in sales this year, a 15.8 percent increase year-on-year. During this year’s third quarter, LG’s three luxury brands – Whoo, SU:M and O HUI – were responsible for more than 60 percent of its beauty revenue.

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  • How the retail industry has fared in 2018

    How the retail industry has fared in 2018

    The overall retail market in India 2018 stood at Rs 43,251 billion and is forecast to grow by 6.4 percent CAGR in 2018-2023. Retailing in India still predominantly takes place in physical stores and shopping behaviour between urban and rural consumers continues to be vastly different. Smaller independents (both grocery retailers and non-grocery specialists) continued to dominate the landscape they faced growing competition from modern outlets opening in out-of-town shopping centres and malls capturing the Tier II & III markets.

    This year, we witnessed modern retailers launch interesting payments schemes and effective pricing strategies to propel the sales. For example, leading retailer Future Group launched its payment wallet Future Pay which can be used in all its retail brand outlets. Retailers also capitalised on growing acceptance of modern retail by developing new marketing schemes and strategies to attract shoppers.

    Additionally, multi-channel strategies remained key for retailers as they are developed online platforms that are also smartphone and tablet compatible to drive Internet sales.

    Furthermore, retailers also increased their new private labels products. This is was done for certain grocery categories like: packaged foods, non-alcoholic drinks, beauty and personal care and home care products.

    Finally, subscription-based retailing practices started to pick up in 2018. Although still relatively niche, and limited only to urban India, the subscription-based model for beauty and personal care and consumer health became quite popular in metropolitan cities.

    What are the retail trends that are going to rule the roost in retail in 2019?

    – Retailing will continue to offer potential for grocery retailers. Convenience stores and forecourt retailers are likely to continue to see healthy growth rates as their format can meet the demands arising from changing lifestyles by offering more convenient shopping solutions, both in terms of location, business hours and product range.

    – Given the rising maturity of retailing in metros/urban areas, retailers have slowly started to focus on the semi-urban consumer base. This has resulted in the slow and steady urbanisation of shopping styles amongst semi-urban consumers.

    – As the labour crunch and high rentals continue to affect the retail landscape in India, hypermarkets are looking to ramp up investment on self-service technology and automation to reduce costs and improve customer experience. Some hypermarkets chains have implemented self-service kiosks at checkout counters, generally with positive results because of reduced waiting times. Investments have also been made into automated ordering systems, which has helped brands reduce storage space at outlets, hence control rental costs. This can be expected to grow during 2019 as well.

    – Furthermore supermarkets are likely to push the broadening of key product categories, such as organic fresh food, soft drinks and packaged food. They are also likely to further narrow the line between foodservice and grocery retailing, with the introduction and integration of new foodservice elements within their stores.

    – Non-grocery retailing will likely be impacted by the growth of internet retailing at the expense of specific store-based retailers and other non-store channels. Consumers are expected to increasingly shop and research products online, with the popularity of smartphones making mobile-optimised sites and shopping apps crucial in attracting consumers. Moreover, social media will be used more often to alert consumers to attractive price promotions and build interest in new product launches. Also, omni-channel strategies will remain key for non-grocery retailers.

    – Non-grocery retailers will increasingly integrate their online brand information with store inventory, as consumers expect to find the same products in both channels. Moreover, to minimise showrooming, players will also need compelling reasons for customers to buy their brands in store, whether in terms of product selection or price competitiveness.

    – The entry of Amazon and Flipkart could stimulate a much-needed increase in the competition, which will bring both opportunities and threats for existing food and drinks retailers in India. Amazon with ‘Amazon Pantry’ and Flipkart with ‘Flipkart Supermart’ eventually launched its online grocery business in 2018. Millennials and affluent consumers were encouraged to change from shopping in physical stores to online in 2018 with convenience and heavy discounts on offer. Also, with increasing investments from player such as Amazon who are expected to buy skate in Future Retail and PayTm who have partnered with BigBasket and Future Group to strengthen its online grocery business, the food and drinks internet retailing is expected to show tremendous growth in 2019.

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  • LG U+ says it can download things 10 times faster on 5G

    LG U+ says it can download things 10 times faster on 5G

    LG U+ said Wednesday that it has demonstrated 10 times faster download times compared to 4G LTE on its 5G network. While 4G LTE offers 133.43 megabits per second download speeds on average, according to data from the Ministry of Science and ICT, LG U+ said it realized 1.33 gigabits per second on its 5G network.

    LG U+ claims it is nearly the fastest speed consumers can practically experience on 5G. Next year, when 5G is commercialized for smartphones, the smallest carrier in the country projects data download speeds will increase to as fast as 2 gigabits per second when the 5G network will be coupled with the 4G LTE network.

    LG U+ believes 5G is its chance to move up the mobile carrier ranking, currently dominated by SK Telecom and KT.

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  • Vietnam FDI disbursement in 2018 tops $19 bln

    Vietnam FDI disbursement in 2018 tops $19 bln

    Foreign direct investment disbursement in Vietnam reached a record $19.1 billion in 2018, a year-on-year increase of 9.1 percent. However, FDI pledges for new projects, capital supplements and stake acquisitions were down 1.2 percent from a year earlier to $35.46 billion, according to the Ministry of Planning and Investment.

    A total of 3,046 new projects have been granted investment certificates since the beginning of the year, with a total registered capital of nearly $18 billion. Nearly 1,170 projects registered to increase their capital by a total of $7.5 billion. The rest of the registered capital was reported in a total of 6,500 instances of capital contribution and share purchases by foreign investors.

    This year, foreign investors injected capital into 18 fields and sectors. The processing and manufacturing industry attracted the highest capital at $16.5 billion, followed by real estate with $6.6 billion, and wholesale and retail sectors with $3.6 billion.

    Japan ranked first in FDI contributions to Vietnam this year, followed by South Korea and Singapore. Localities that attracted the most FDI were Hanoi, Ho Chi Minh City and the northern city of Hai Phong.

    Meanwhile, Vietnam invested nearly $380 million abroad this year, mainly in banking and finance, forestry, and fishing. Vietnamese investors injected capital into 38 different countries and territories, with the highest investment in Laos, followed by Australia, the U.S. and Cambodia.

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  • 6 months of recalls, but BMWs are still burning in Korea

    6 months of recalls, but BMWs are still burning in Korea

    Things aren’t looking good for beleaguered German automaker BMW, with yet another vehicle reported to have burst into flames on Christmas Day. A BMW 520 sedan caught fire at around 6 p.m. on Tuesday in Gongju, South Chungcheong.

    Earlier that day at 1 a.m., the driver of a BMW 5GT sedan saw black smoke coming out of the back of their vehicle while driving on a highway bound for Pohang, North Gyeongsang. The car, subject to recall, had already gone through safety checks.

    The driver said the car was moving at 110 kilometers per hour (68 miles per hour) on cruise mode, but it started slowing down even though it was moving downhill and then smoke came out the back. The car didn’t burst into flames as the driver immediately pulled over and called the police.

    There were no casualties caused by either incident, but the news stoked fears over the safety of BMW vehicles. Just one day earlier, on Dec. 24, a BMW 320d sedan caught fire in Gwangju.

    The burnt 320d was a 2009 model not included in the 65 models currently subject to recall.

    A public-private investigation team under the Ministry of Land, Infrastructure and Transport had already raised the need of an additional recall for defective designs in exhaust gas recirculation (EGR) system when it released its examination report on BMW fires on Monday.

    The team confirmed that the major cause of the fires was a leaky EGR module, the same conclusion that the German carmaker came to, but disputed BMW’s claims that changing the faulty hardware resolves the issue. The team said there may be a fundamental problem with the EGR design and a simple replacement may not completely resolve that.

    “We spotted coolant boiling within the EGR cooler, and we think the boiling is due to a faulty design of the EGR,” the joint investigation team said in a statement. “If boiling continues, this could lead to a crack in the EGR cooler, [making them leaky.]”

    “New EGR systems won’t lead to fires right away, but the team found that after several years of constant driving heating up the EGR cooler, a similar fire could reoccur as long as the design stays the same,” a spokesperson from the Land Ministry said in a phone call on Wednesday. “We demanded that BMW come up with an explanation regarding EGR design.”

    The joint team also said the intake manifold connected to the leaky EGR coolant should be recalled as well after check-ups if it has been polluted or weakened by a mixture of leaked coolants and engine oil sticking to pipes. The team has delivered its research findings to the carmaker, which has to consult with its German headquarters and come up with a recall plan.

    In the meantime, an increasing number of BMW car owners are signing up to file a suit against the company. Barun Law, which is currently preparing for a class action suit against the carmaker, has collected around 1,000 car owners who would like to take part in the suit as of Wednesday. The Korea Consumer Association is also preparing for a separate suit and has gathered roughly 2,000 participants.

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  • Beer tax prioritized as foreign brands build market share

    Beer tax prioritized as foreign brands build market share

    The government is planning to overhaul the current cost-based alcohol-tax system to a quantity-based system, which may address concerns from local alcohol companies about cheap imported beer. According to the Ministry of Economy and Finance on Tuesday, current taxes on alcohol are based on costs, such as manufacturing or import prices. The government is currently working on a reform that will transition the system, established back in 1969, to a new one based on quantity, such as total volume or alcohol content.

    The initiative has been in the spotlight with Finance Minister Hong Nam-ki addressing the issue during his recent confirmation hearing.

    “[We] will consider a change next year without increasing prices,” said Hong. “[We] will consider strengthening the future competitiveness of the alcohol sector and the fairness of the alcohol-tax system as a whole.”

    The comments come as criticism mounts against importers that reportedly declare low import prices for foreign beer and maintain competitive or even cheaper prices than local beer.

    The tax base for local beer is based on the price of beer shipped out from distilleries, which includes costs for production and sales and a margin. For imported beers, the tax is calculated based on the import price paid by the importer and the customs duty. As importers can lower taxes by reporting low prices, foreign beers can maintain price competitiveness against local offerings.

    Local beer companies have argued against this cost-based tax system, saying it is a form of discrimination against Korean manufacturers.

    “The tax rates are identical, but because the tax base is high, there is a twofold difference,” said Kang Seong-tae, chairman of the Korea Alcohol & Liquor Industry Association at the annual National Assembly audit in October.

    The favorable tax system has allowed for the competitive pricing of imports and an increasing market share for foreign beers, rising to 16.7 percent last year from 4.9 percent in 2013.

    While the tax change may provide a level playing field, it raises concerns that widely popular promotions in which four beer cans are sold for 10,000 won ($8.89) may not survive the reform.

    The change, however, is unlikely to eliminate the promotions altogether.

    The government is considering a plan to introduce alcohol taxes of 850 won per one liter (33.8 ounces) of beer. The current average beer tax works out to roughly 850 won per liter, though it is calculated in a different way.

    When converting the current alcohol tax to an amount per liter based on figures by imported country from the Korea Customs Service, imported beers that are taxed higher than 850 won per liter include those from the United Kingdom at 1,194 won per liter on average; the Philippines at 1,032 won per liter; Ireland at 1,004 won per liter and Japan at 958 won per liter.

    Beers from these countries will likely attract a lower tax after the reform.

    Meanwhile, beer from countries that have lower average taxes per liter compared to the 850 won per liter standard will become more expensive. Beers from the Netherlands are currently taxed at 519 won per liter, Belgium 567 won per liter, the United States 654 won per liter and Germany and Denmark 735 won per liter.

    In general, premium imported beers have expensive import prices.

    With the introduction of a quantity-based system, taxes levied will become lower and the current promotions of four cans at 10,000 won will likely remain.

    However, promotions of six cans for 10,000 won will probably disappear as cheap imported beer will face higher taxes.

    “[We] will establish a reform plan for alcohol tax as early as the first half of next year by conducting research and gathering opinions,” said Kim Byung-gyu, director general of the Tax and Customs Office at the Finance Ministry. “[We] have an objective to ensure overall fairness in taxation and make changes without increasing the burden on the consumer.”

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  • Korean passengers break record in November

    Korean passengers break record in November

    Korea’s air passenger traffic reached a new record for November on the back of the rise in the number of Chinese tourists and increased overseas travel demand, government data showed Tuesday. The number of air passengers came to 9.57 million last month, up 5.6 percent from a year earlier, making it a new record for November, according to a tally from the Ministry of Land, Infrastructure and Transport.

    The ministry attributed the surge to the return of Chinese visitors and the steady increase in overseas travel demand.

    Passenger traffic on Chinese routes spiked 24 percent to 1.32 million, slightly lower than the same month in 2016, when a row between the two countries over the U.S. Terminal High Altitude Area Defense (Thaad) missile system had yet to emerge.

    China banned the sale of group travel packages to South Korea in March 2017 due to a diplomatic row with Seoul over the deployment of a Thaad battery in Korea. China has since partially lifted the ban.

    International air passenger traffic rose 8.8 percent on year to a record 7.01 million last month, while domestic passenger traffic dropped 2.5 percent to 2.56 million, according to the ministry.

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  • Samsung to sell latest generation chip to IBM

    Samsung to sell latest generation chip to IBM

    Samsung Electronics will supply next-generation microprocessor chips to IBM, which will use the chips for artificial intelligence (AI) computing and cloud system applications, both companies said Friday. The product Samsung will manufacture for IBM is a seven-nanometer processor made by extreme ultraviolet (EUV) lithography technology. The seven-nanometers in the name refers to the width of the circuit through which electricity flows on the semiconductor. The dominant product until recently has been rated 10-nanometer.

    Narrower circuits ensure faster data processing speeds, less electricity consumption and higher area efficiency, with more transistors printed on a given amount of silicon, the base material for semiconductors.

    IBM said in a press release that the strategic partnership will position the two companies to lead “the new era of high-performance computing specifically designed for AI.”

    “IBM selected Samsung to build our next generation of microprocessors because they share our level of commitment to the performance, reliability, security and innovation that will position our clients for continued success on the next generation of IBM hardware,” said John Acocella, vice president of Enterprise Systems and Technology Development for IBM Systems.

    The U.S. company and Samsung have been research and development partners for 15 years.

    For Samsung, the deal is a significant milestone for its foundry business, which is to manufacture semiconductors for external clients that do not have chip fabrication facilities.

    The company is already a leader in DRAM and NAND memory chips, but it is now focusing on the fast-growing foundry market. IHS Markit estimates that the subsector will grow an average of 7.8 percent a year until 2021-which is faster than 5.3 percent expected for DRAMs and 6.1 percent for NANDs.

    Samsung is currently ranked global No. 4 among foundries, with a market share of less than 10 percent. As it works to climbing up the rankings, a client like IBM helps establish momentum for future deals.

    In February, Samsung signed a foundry deal with Qualcomm to supply seven-nanometer processors for 5G mobile devices. The company hopes the seven-nanometer processor chip will help as it works to expand its market share. It is currently one of two foundries known to manufacture the product. The other is Taiwan Semiconductor Manufacturing Company, the No. 1 semiconductor foundry with more than 50 percent market share.

    Samsung’s EUV lithography technology was developed earlier this year to mass produce seven-nanometer semiconductors, as the conventional way of printing circuits on 10-nano chips were not sophisticated enough to print thinner circuits.

    A new facility specializing in EUV lithography is under construction at Hwaseong, Gyeonggi, and is due for completion by the second half of next year. Samsung also revealed in May that it plans for the mass production of three-nanometer processors by 2020.

  • SUVs are selling more in Korea

    SUVs are selling more in Korea

    Korea’s domestic car market moved in two different directions this year. The rising popularity of large sedans and sport utility vehicles (SUVs) stood in sharp contrast to weaker demand for smaller vehicles, industry data showed Sunday. In the January-November period, Hyundai Motor, Kia Motors, GM Korea, Renault Samsung Motors and SsangYong Motor sold a combined 698,326 units, up 0.3 percent from 696,403 cars sold a year earlier, the data showed.

    Demand for medium SUVs, such as Hyundai’s all new Santa Fe, reached 207,269 units, up a sharp 29.5 percent from the same 11 months in 2017.

    The total so far is expected to push medium-sized SUVs to become the country’s top-selling vehicle type on an annual basis in 2018. This will mark the first time such crossovers have taken the top spot in Asia’s fourth-largest economy, where car buyers generally tended to favor mid- to large-size sedans.

    In regard to larger crossovers, the popularity of SsangYong’s G4 Rexton caused sales of such cars to jump 12.9 percent on year to 46,734 units, further pushing up overall SUV numbers.

    Industry watchers said the release of Hyundai’s three-row Palisade and a longer version of SsangYong’s G4 will further fuel sales going into 2019, with numbers likely to get a further boost once Kia releases its own large SUV that is expected to get the Telluride name.

    Besides SUVs, sales of large sedans, centered on Kia’s K9 luxury sedan, caused total numbers to rise a respectable 5.7 percent to 52,945 units up till November despite drop in demand for Hyundai’s luxury Genesis EQ900 falling off compared to the year before.

    On the other hand, sales of midsize and smaller vehicles dipped 0.9 percent on year to 481,542 units, with demand for small city cars dropping 7.5 percent to 115,647 units.

    “Vehicles like the Sante Fe clearly bolstered demand this year, with this trend likely to continue with the release of the Palisade and new versions of the G90 and G80 to further contribute to sales growth for bigger cars going into 2019,” an industry source said.

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  • Galaxy A9 has a camera ready for every occasion

    Galaxy A9 has a camera ready for every occasion

    Samsung Electronics started domestic sales of its mid-range Galaxy A9 smartphone today – the company’s first model to be equipped with four rear cameras. The Galaxy A9 was first revealed in October in Kuala Lumpur, Malaysia, and has already started sales in China, India and several countries across Southeast Asia and Europe. In Korea, the device will cost 599,500 won ($530), nearly half the price of Samsung’s most recent premium phone release, the Galaxy Note9.

    Overseas, the A9 comes with either six or eight gigabytes of RAM, but in Korea only the six-gigabyte option will be available. The device comes with 128 gigabytes of data storage, which is expandable to 512 gigabytes with a microSD card. There are three color options – black, blue and baby pink.

    Its most notable feature is its five cameras – one on the front and four on the back – which are the reason it is known as a “quad camera” smartphone. The front camera can take photos up to 24 megapixels and comes with a function to blur out the background when taking a selfie.

    Until a few years ago, Samsung was one of the top manufacturers of smartphones along with Apple. Recently, its global performance has dwindled as demand for up-scale premium phones have retreated. Another big threat is the advance of Chinese manufacturers like Huawei that upped their game in technology and released a wide range of mid-priced smartphones. Budget phones are especially important in that they cater to the massive Chinese and Indian markets, explaining why global smartphone makers are getting so competitive in the price sector. The main rear camera can also take photos up to 24 megapixels with a very low aperture of F1.7, which means the camera will perform better in darker environments. The other three cameras have slightly different functions.

    A 10-megapixel telephoto camera offers a 2X optical zoom lens, while an eight-megapixel ultra-wide camera can capture a up to 120 degrees. The final camera, a five-megapixel depth camera, is used to blur out the background of an image.

    Despite being a budget model, the A9 is equipped with smart camera functions normally found in top-of-the-range models. The “intelligent camera” function can optimize an image’s brightness and contrast after automatically recognizing the object or scene. It also alerts the user if the image is shaky or somebody blinks.

    Samsung said in a statement that it anticipates the five cameras to make the A9 “an optimal model for generations of ‘visual communication’ who mainly communicate with photos and videos.”

    The inclusion of quad cameras on a budget model reflects Samsung’s shifting smartphone strategy that Koh Dong-jin, CEO and head of the IT giant’s mobile business, stressed earlier this year – to apply state-of-the-art functions to mid-priced models.

    “In the past, I brought the new technology and differentiation to the flagship model and then moved to the mid-end. But I have changed my strategy from this year to bring technology and differentiation points starting from the mid-end,” Koh said to CNBC in an interview in October.

    The A9 isn’t the first affordable Samsung phone with high-end features. On Dec. 10, it unveiled the Galaxy A8s, a smartphone in the mid-price range and the first to have a so-called hole display. Its screen covers the phone’s entire front, except for a small hole in the display’s corner for the front camera. The unpacking event, which was Samsung’s first in China, also sent a signal that Samsung is determined to win back market share in the country.

    “You might think this is an ordinary unpacking event, but it’s more of an occasion to send an ambitious message to you all – Samsung Electronics will embark on a full-fledged competition with Chinese manufacturers,” said Kwon Gye-hyun, the company’s vice president for its China business, during the event.

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