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Tag: Korea

  • Samsung signals big 5G equipment push, again, at factory

    Samsung signals big 5G equipment push, again, at factory

    Samsung Electronics Vice Chairman Lee Jae-yong’s first appearance in the field this year was to celebrate the start of production at a 5G network equipment factory Thursday. His field visit comes as the company puts more weight this year on the 5G network-equipment business, which involves components used in 5G networks. These components are supplied to telecommunications companies.

    Lee and several other top executives, including Koh Dong-jin, CEO and president of the IT & mobile division, were present at the celebration ceremony held at the company’s factory and office complex in Suwon, Gyeonggi.

    “The 5G market is a new field, and we have to build competence with the mindset of a challenger,” Lee told employees during the event.

    Lee and the team of executives stopped by the cafeteria of the complex for lunch, resulting in posts on Instagram featuring Lee and employees.

    The manufacturing line for 5G equipment in Suwon is the first in the industry to be designed using “smart factory” principles. It utilizes 5G connections to enhance productivity and reduce the rate of defects.

    The company originally manufactured 5G network equipment in Gumi, North Gyeongsang, but had the production line relocated to Suwon, the site of its R&D center. This was done to help create synergies between the manufacturing and R&D facilities, said a spokesman.

    Samsung signaled last August that 5G connectivity is one of its four growth engines for the future when it announced a plan to invest $161 billion by 2021.

    The business area is receiving considerable attention from global technology companies. 5G connectivity is vital not only to telecommunications in the future, but will also be an essential component of other, related state-of-the-art technologies, such as autonomous cars, AI-powered robots and virtual reality.

    Samsung’s presence in the global telecommunications equipment market is relatively low, with a share of around 11 percent for fourth-generation LTE equipment, according to market research firm Dell’Oro. The larger players include Huawei, Ericsson and Nokia, all with shares of more than 25 percent.

    The company’s current goal is to hit a 20 percent market share in the 5G equipment market next year.

    Samsung has been expanding its client base for 5G equipment mainly in Korea and the United States. Names on the list include SK Telecom, KT, AT&T and Verizon. Samsung hopes to leverage those client relationships to attract other customers.

    The company plans to release the Galaxy S10 in March. It will be its first smartphone to support 5G connections.

    Kim Young-ki, Samsung’s president of network business, said at an event last November that the company will invest a total of $22 billion to develop 5G-network technology.

  • Hyundai sales ups a bit in December

    Hyundai sales ups a bit in December

    Hyundai Motor, Korea’s largest carmaker by sales, said Wednesday its December sales rose 0.4 percent from a year earlier on weak overseas demand. Hyundai sold 410,326 vehicles last month, up from 408,637 units a year earlier, the company said in a statement. Domestic sales jumped 22 percent to 64,835 units last month from 53,361 a year ago. Overseas sales fell 2.8 percent to 345,491 from 355,276 during the same period, the carmaker said.

    The slowing global economy and lower vehicle demand from China and the United States, the world’s two biggest auto markets, restricted monthly sales results, it said.

    To boost sales, Hyundai launched the all-new Santa Fe SUV and the face-lifted Tucson SUV in the United States and other markets last year. But the SUV models did not greatly boost overall demand for the carmaker.

    For all of 2018, sales gained 1.8 percent to 4.59 million autos from 4.51 million units a year earlier.

    Kia Motors said its December sales rose 6.3 percent from a year earlier on improved overseas demand for its vehicles.

    Kia sold a total of 241,199 vehicles in December, up from 226,875 units a year ago. Domestic sales fell 13 percent to 42,200 from 46,502 during the same period, while overseas sales rose 10 percent to 198,999 from 180,373, the company said in a statement.

    For all of 2018, sales gained 2.4 percent to 2.81 million units from 2.75 million in the year-ago period, it said.

    GM Korea, the Korean unit of General Motors, said its December sales fell 6.7 percent from a year earlier due to weak demand for its models.

    GM Korea sold 42,424 vehicles in December, down from 45,466 units a year earlier, the company said in a statement.

    Domestic sales declined 12 percent to 10,428 units last month from 11,852 a year ago. Exports were down 4.8 percent to 31,996 from 33,614 during the same period, it said.

    For all of 2018, sales dropped 12 percent to 462,871 autos from 524,547 a year earlier, the statement said.

    To revive sales, the carmaker plans to introduce 15 vehicles into the local market over the next five years. It launched the U.S.-made Equinox SUV and the upgraded Chevy Spark minicar last year.

    The Traverse SUV will be the next model to be added to its lineup.

    Renault Samsung Motors’ December sales plunged 30 percent from a year earlier on weaker overseas demand for its vehicles.

    Renault Samsung sold 18,462 vehicles in December, down from 26,515 units the previous year, the company said in a statement.

    Domestic sales rose 8.6 percent to 10,805 units last month from 9,953 units a year ago. But exports nosedived 54 percent to 7,657 autos from 16,562 during the same period last year, the statement said.

    For the whole of 2018, sales dropped 18 percent on year to 227,577 from 276,808, it said.

    The company’s current lineup includes the SM3 compact, the all-electric SM3 Z.E. sedan, the QM3 small SUV, and the SM5, SM6 and SM7 sedans.

    France’s Renault S.A. has an 80 percent stake in Renault Samsung

    SsangYong Motor sales fell 0.2 percent last month from a year earlier on weak exports.

    SsangYong Motor sold 14,177 vehicles in December, down from 14,208 units a year earlier, due to weak overseas demand for its vehicles, the company said in a statement.

    Domestic sales edged up 0.1 percent to 10,656 units in December from 10,647 a year earlier. But exports backtracked 1.1 percent to 3,521 units from 3,561 during the same period, it said.

    For the whole of 2018, the maker of the flagship G4 Rexton and compact Tivoli SUVs sold a combined 141,995 vehicles, down 1.2 percent from 143,685 a year earlier, the company said.

    Indian carmaker Mahindra & Mahindra owns a 72.85 percent stake in SsangYong Motor.

  • Korea e-commerce hits high of 10.62 trillion won in November

    Korea e-commerce hits high of 10.62 trillion won in November

    The total value of online shopping in Korea reached a record high in November, government data showed Wednesday, in the latest sign that a growing number of Koreans are using computers or mobile devices to buy things ranging from clothes to electronic goods. Total online transactions reached 10.62 trillion won ($9.5 billion) in November, up 22.1 percent from a year earlier, according to the data compiled by Statistics Korea.

    The reading marked the highest amount since January 2001 when the statistics office started collecting data on online shopping.

    Sales of electronic goods and computers rose 22.7 percent on year to 1.68 trillion won, and demand for clothes jumped 10.4 percent to 1.45 trillion won in November, while online sales of food and beverages surged 32.3 percent to 911.4 billion won.

    Purchases made through smartphones, tablets and other mobile gadgets soared 28 percent on year to a record 6.59 trillion won, accounting for 62.1 percent of all online sales in November.

    Korea is one of the most wired countries in the world, with one of the highest smartphone penetration rates.

    The number of smartphones in Korea came to 50.5 million as of October, compared with 48.3 million a year earlier, according to separate government data.

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  • SsangYong Motor rehires 60% of its workers

    SsangYong Motor rehires 60% of its workers

    SsangYong Motor said Monday that it has rehired 60 percent of workers who were sacked amid the carmaker’s restructuring efforts over a decade ago. The maker of the Rexton and Tivoli SUVs has been mired in protracted disputes with those who left the company against their will in 2009 after it was placed under court receivership. At that time, 900 workers who carried out a strike at the company’s main Pyeongtaek plant in Gyeonggi were ordered to choose between unpaid leave or voluntary retirement.

    Those who decided not to pick either option were later fired.

    In 2013, the 454 workers who had chosen unpaid leave were all reinstated, but the 165 fired workers were not permitted to return to work.

    After a series of negotiations in 2015, the company and its union agreed to gradually reinstate the fired workers, although some were left out of the agreement.

    In September 2018, the company and its union reached an agreement to rehire the remaining 119 fired workers by this year.

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  • GM Korea to cut prices after disappointing sales

    GM Korea to cut prices after disappointing sales

    GM Korea, the Korean unit of General Motors, said Tuesday it has cut the prices of mainstay models in an effort to revive lackluster sales. Starting Tuesday, GM Korea revised the prices of its major models — such as the Impala sedan, Trax, and Equinox sport-utility vehicles — by up to 3 million won ($2,700). The company expects its “customer-focused pricing approach” to strengthen the position of those key Chevrolet vehicles in the Korean market, Cesar Toledo, vice president in charge of sales, customer care and aftersales at GM Korea, said in a statement.

    “Winning more customers, growing market share and sustaining trust in our brand are all crucial ingredients in building a sustainable GM Korea for the long term,” he said.

    GM Korea struggled with weak sales in Korea due to a lack of new models and labor-management disputes over jobs last year.
    In the January-November period, GM Korea’s sales fell 12 percent to 420,447 vehicles from 479,058 a year earlier. Sales figures for December are set to be released today.

    To drive up sales, the carmaker plans to introduce 15 vehicles into the local market over the next five years. It has launched the U.S.-made Equinox and the upgraded Chevy Spark since June. The Traverse SUV will be the next model to be added to its lineup.

    GM holds a 77 percent stake in GM Korea, with the state-run Korea Development Bank and SAIC Motor controlling 17 percent and 6 percent, respectively.

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  • Japanese cosmetics surges in export number

    Japanese cosmetics surges in export number

    Japan’s cosmetics exports are on track to surpass 500 billion yen ($4.53 billion) for the first time in 2018, marking a sixth consecutive record year, thanks to Asian tourists who continue to buy these products after returning home. Exports in the January-November period grew 44% on the year to 482.8 billion yen, according to a tally of 16 types of cosmetics compiled from trade data by Nikkei. Demand for gifts tends to boost exports in December, and with major cosmetics makers’ plants running at high capacities, the full-year figure is expected to reach around 520 billion yen.

    Mainland China was the top buyer from January through November, accounting for 34.9% of exports by value, followed by Hong Kong at 25.9%, South Korea at 10.3%, Taiwan at 7.3% and Singapore at 7.3%. Asia accounted for 90% of the total.

    Japan’s cosmetics exports have tripled in the last four years along with a rise in visitors to Japan. Exports exceeded imports for the first time in 2016 as inbound tourism creates new customers for high-quality Japanese goods who continue to buy them online or in stores upon returning home.

    Cosmetics exports are likely to keep climbing in 2019. China will implement in January its first e-commerce law, which will require domestic online platforms to register with the government. With the crackdown on illegal marketing, direct exports of Japanese cosmetics are expected to increase as smaller Chinese retailers that sell goods procured directly from shops in Japan decline.

    Top cosmetics makers are also actively expanding their sales. Shiseido plans to begin in 2019 officially selling new products in China from its namesake mainstay brand, which launched worldwide this fall. The company will open a facility for collaboration with Alibaba Group in Hangzhou from January and jointly develop products with the Chinese e-commerce empire.

    Kao plans to double the number of stores in China carrying its popular Freeplus skin care brand to more than 2,000 by 2020. It will also cultivate sales for its makeup brand Kate, which launched a Chinese marketing campaign in December. Kose is accelerating the online sales campaign it began in China this autumn for its luxury brand Decorte.

    Japanese cosmetics makers are increasing the capacity of domestic plants to meet the surging export demand. Shiseido plans to bring a new domestic factory online in 2019 for the first time in 36 years, in Tochigi Prefecture, to produce more items like skin care products. It will also begin operations at a new facility in Osaka Prefecture in 2020.

    Kao will roughly double production for its Freeplus brand from 2017 levels, too, by investing in its main factory in Kanagawa Prefecture. Boosting domestic production is likely to encourage exports further by increasing supplies of “made-in-Japan” cosmetics.

  • Samsung Heavy lands $189 million LNG carrier deal

    Samsung Heavy lands $189 million LNG carrier deal

    Samsung Heavy Industries said Monday that it has clinched a deal worth 210 billion won ($189 million) to build a liquefied natural gas (LNG) carrier. The contract, with a European shipper, calls for Samsung Heavy to deliver the vessel by March 2021, the company said in a regulatory filing.

    With the latest contract, Samsung Heavy has clinched deals valued at a combined $6.3 billion so far this year to build 49 ships, including 18 LNG carriers and 13 container vessels.

  • Korea to ban plastic bags in supermarkets

    Korea to ban plastic bags in supermarkets

    Large supermarkets are banned from giving or selling plastic shopping bags to customers. The Ministry of Environment announced Monday that it will completely prohibit grocery franchises and supermarkets over 165 square meters (1,776 square feet) from selling or giving away single-use plastic bags from New Year’s Day. While it discouraged stores from providing plastic bags before, the ministry enforced a total ban through a revision to the Act on the Promotion of Saving and Recycling of Resources in an effort to cut plastic waste.

    Some 13,000 supermarkets are affected. If they offer disposable plastic bags, they risk fines of up to 3 million won ($2,690). The only kind of one-use bags stores can sell are the disposal bags accepted by district waste collectors. Stores will be encouraged to sell or offer paper and other non-plastic grocery bags instead.

    Supermarkets can continue to offer customers small plastic bags for wrapping items like fish and meat.

    The revision to the law also prohibits some 18,000 bakeries from handing out plastic bags free of charge.

    The ministry said it will give a grace period of around three months to help stores adjust to the change and work with local government bodies to ensure that the regulations are followed.

    Earlier this year, seven of Korea’s largest grocery and bakery franchises, including E-mart and Lotte Mart, signed voluntary agreements with the ministry to reduce disposable waste.

    That initiative has produced notable results. Paris Baguette and Tous Les Jours, for example, used 74 percent fewer plastic bags in November last year compared to the same period 2017, according to the ministry.

    “It’s necessary to reduce use of disposable waste for the environment and future generations,” said a spokesman from the ministry. “We request the people’s active participation to promote a green consumer culture.”

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  • Korean drug companies anticipate a strong 2019

    Korean drug companies anticipate a strong 2019

    Korean pharmaceutical companies are entering 2019 with high expectations as several domestic drugs are expected to gain approval from overseas regulators this year. Though the Samsung BioLogics accounting fraud scandal made 2018 a less-than-stellar year for the pharmaceutical industry, bio firms are ready to get back on their feet with new drugs and licenses.

    Daewoong Pharmaceutical is one firm hoping to get the green light for sales of a product in the United States and Europe this year. Nabota, a botulinum toxin, or botox product, was submitted for approval to the U.S. Food and Drug Administration (FDA) and the European Medicines Agency in 2017.

    Last August, Nabota became the first domestic botox product to gain sales approval in Canada after Daewoong acquired the necessary permit from the country’s health authorities.

    Green Cross is another company awaiting FDA approval. Its I.V.-Globulin SN, an immunoglobulin product that treats immune deficiencies, is being reviewed by the agency.

    Though the FDA postponed approval of the drug last September when it requested supplementary documents from the company, Green Cross is optimistic that it will eventually get the go-ahead since I.V.-Globulin SN is already being sold in both Korea and overseas markets, such as Brazil.

    SK Biopharmaceuticals is waiting for the FDA to approve Cenobamate, an antiepileptic drug. Cenobamate is the first drug for which a Korean company has applied for FDA approval independently without going through global partner companies.

    If the drug is approved, SK expects that Cenobamate will become a huge cash cow that can generate up to 1 trillion won ($898.8 million) in annual sales just in the United States. The United States is the world’s largest market for epilepsy drugs.

    Last Thursday, Hanmi Pharmaceutical filed a license application for Rolontis, a drug intended to treat chemotherapy-induced neutropenia, with the FDA through Spectrum Pharmaceuticals. Hanmi is hoping to gain approval by the first half of 2020.

    Korean drug makers are hoping to make progress with clinical trials and technology exports this year.

    Yuhan is currently working with Janssen Biotech to conduct clinical trials for lung cancer drug Lazertinib. Two months ago, Janssen purchased out-licensing rights from Yuhan for Lazertinib in a deal valued at $1.25 billion.

    One of Chong Kun Dang Pharmaceutical’s most highly anticipated drug candidates is the CKD-702 bispecific antibody, an artificial protein used for cancer immunotherapy. Given the growing interest in bispecific antibodies around the world, industry experts predict Chong Kun Dang will be able to export the drug technology as early on as the pre-clinical stage.

    Hanmi and Jeil Pharmaceutical are also expected to complete Phase 2 clinical trials for their obesity drug HM15211 and stroke treatment JPI-289 this year, while SillaJen is due to complete Phase 3 clinical trials for its cancer treatment Pexa-Vec in the coming months.

    “Domestic pharmaceutical firms have tried to venture into the United States, the world’s biggest drug market, and their efforts will lead to real results next year,” said one spokesman from a pharmaceutical firm.

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  • Korean Air’s jets get name of East Sea badly wrong

    Korean Air’s jets get name of East Sea badly wrong

    Korean Air, the country’s flag carrier, displayed maps with the “Sea of Japan” aboard some its flights rather than the East Sea, the name supported by the Korean government. The Japanese name of the sea, which is opposed by Korea, was found on a number of passenger-entertainment monitors. According to news reports Sunday, 3-D maps on the displays aboard 787-9 Dreamliner aircraft were found to make the designation.

    Korean Air confirmed Monday that seven of its nine B787-9 planes had the problem. All other aircraft marked the location as the East Sea.

    A spokesman explained that a software upgrade was undertaken to change the maps into 3-D visuals, and that the company failed to notice the wording supplied by the developer.

    “The developer of the 3-D map is a company in the United States,” he said.

    Adjustments to replace the Sea of Japan by the East Sea in the seven aircraft were to be finalized Monday.

    “I was told that the modified version was sent to us today and delivered to the division in charge by 5 p.m,” added the spokesman, saying that the changes would be made by the end of the day.

    He said the company did not know why the other two B787-9 aircraft did not have the same problem.

    The controversy is the result of an ongoing dispute between Korea and Japan over the name of the sea located between the two countries. Both argue that their respective names had been used historically.

    Since South and North Korea first raised objection to the “Sea of Japan” name in 1992, the research on the subject has yielded conflicting conclusions.

    Korean Air received similar criticism in 2012, when its official homepage used the “Sea of Japan” name instead of the East Sea. The problem resulted from the company’s use of the Google Map service.

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  • 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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