Tag: Korea

  • Kia’s sporty K3 GT balances speed and safety

    Kia’s sporty K3 GT balances speed and safety

    Kia Motors’ compact K3 GT hatchback stays true to its GT moniker with its impressive driving experience, but sacrifices comfort in search of a sportier style. Across an 80 km (50 mile) drive from Namyangju to Paju in Gyeonggi on Nov. 22, the K3 GT zipped across a course that mostly covered highways.

    Its driving performance was a far cry from the original commuter version as the vehicle’s acceleration responded instantaneously thanks to its 1.6 liter turbocharged engine. The GT responded to even the slightest pressure on the pedal, zooming to 180 kilometers per hour (112 miles per hour) with ease. Along with fast acceleration, the K3 GT rumbled when accelerating as the car’s electronic sound generator (ESG) added to the real sound from its new tuned dual mufflers, similar to the ESG included in Kia’s sports sedan, the Stinger.

    Petrol heads will also appreciate the sporty D-cut steering wheel on the front-wheel drive, which produced accurate steering as the vehicle entered and exited corners and a natural feel when switching lanes.

    While the fast GT may please driving enthusiasts with its performance, it doesn’t provide for the most comfortable ride.

    At high speeds of 150 km per hour, the hatchback model produced some road and tire noise that soon became distracting. The sound from the ESG and the unwanted cacophony of warning beeps from its various safety features didn’t help with the situation either.

    The vehicle also comes with tubular seats, which emphasize its racing theme and hold the driver in place during quick acceleration, but feel quite stiff on the passenger’s side.

    The interior has a clean, simple look with red stitching on the front seats that accentuates the sporty aesthetic. But the car will likely tire passengers during long-hour drives due to its tough and hardy feel.

    The sporty vehicle, however, maintains a competitive edge in safety as it comes loaded with a variety of smart features including forward collision warning and lane keeping assist in all its trims.

    While the various beeps that come in a range of pitches may be obtrusive, the lane keeping and changing features worked perfectly during the drive, as the steering wheel shifted on its own to steady the vehicle and issued alerts whenever a car was nearby when switching lanes.

    As for its exterior, the GT is a familiar offshoot of the original K3. It retains much of the original front design, but adds a touch of flair with subtle red accents in its signature Kia tiger-nose grille and 18-inch alloy wheels with an option of Michelin summer tires.

    The vehicle also keeps in touch with the utilitarian side of the original model, marking a return to foldable back seats that provide spacious room for storage.

    The original K3 has sold 37,125 units in the domestic market until October this year, 63 percent more than during the same period last year. The GT, offered either as a sedan or a hatchback, adds a sporty edge to Kia’s compact lineup, competing with Hyundai Motor’s high-performance offerings, such as the Avante Sport and the hatchback i30 N Line.

    “The K3 GT incorporates a powerful engine and technology optimized for high-speed driving to strengthen the driving performance,” said Kwon Hyug-ho, head of domestic sales at Kia Motors.

    The K3 GT starts at 19.93 million won ($17,800) and the entry hatchback version at 22.24 million won, compared to the 15.71 million won entry version of the 2019 K3 model.

    The competitive pricing puts pressure on Hyundai’s Avante Sport, which starts at 19.64 million won and the i30 N Line at 23.79 million won.

  • Troubled Mr. Pizza heads for Kosdaq delisting

    Troubled Mr. Pizza heads for Kosdaq delisting

    Troubled pizza company MP Group may soon be delisted from the Kosdaq after nine years on the exchange. Korea Exchange announced Monday that a committee on corporate evaluation agreed to delist the company, which operates pizza franchise Mr. Pizza, from the secondary board. Another committee, which is specifically responsible for Kosdaq listings, will reach a final decision by Dec. 24 on whether to delist MP Group or grant it time to its improve performance.

    Chances are high that the MP Group will face delisting by the end of this month. The company had already been given 12 months last October to address issues of concern, but was unable to turn its finances around.

    MP Group recorded 11.14 billion won ($10.07 million) in net losses last year, according to the Financial Supervisory Service (FSS). The situation only improved somewhat this year, with the company reporting 1.04 billion won of net losses in the first three quarters of 2018.

    At the height of its popularity, Mr. Pizza was Korea’s largest pizza chain, with around 433 franchisees in 2014. Though the Mr. Pizza brand started off in Japan, it was in Korea where it became a huge success, riding a wave in the domestic pizza market.

    Jung Woo-hyun, a former chairman, introduced the first Mr. Pizza store in Korea in 1990 and eventually bought the Japanese parent in 1996. By August 2009, MP Group was listed on the Kosdaq.

    The pizza company’s affairs took a dramatic turn for the worse in 2016 when Jung made headlines for a series of alleged offenses, ranging from the physical assault of a security guard to fair-trade violations.

    As accusations continued to surface of Jung and the MP Group’s gapjil, or abuse of power, consumers turned their backs on the franchise. The reaction took a toll on MP Group’s profits, and the number of Mr. Pizza stores quickly dropped.

    The biggest blow came last July when Jung was arrested for embezzlement and breach of trust.

  • Hyundai’s Genesis G70 named Motor Trend’s Car of the Year

    Hyundai’s Genesis G70 named Motor Trend’s Car of the Year

    Hyundai Motor’s luxury Genesis G70 sedan was selected as the Car of the Year by U.S. auto magazine Motor Trend, firmly establishing it as a legitimate alternative to BMW’s long-reigning 3 Series. The G70’s victory was proclaimed in Motor Trend’s January issue with the headline “A Star is Born.” The vehicle competed with 20 other models including the Audi A6, Mercedes-Benz CLS and Lexus ES.

    It is the first time a Korean car has won the award since the media outlet began the Car of the Year award in 1949. Last year, the winner was the Alfa Romeo Giulia, while in 2016, it was the Chevrolet Bolt EV.

    The magazine praised the rapid development that Hyundai Motor has achieved in its quality and brand awareness in such a short time, pointing out that the Korean brand first entered the U.S. market in 1985 selling a “Giugiaro-designed hatchback for the low, low price of $4,995.

    “Fast-forward to the present. How beyond belief is that the same cheap and cheerful automaker – Hyundai – not only has launched a luxury brand but has also built a better BMW 3 Series fighter right out the gate than the Japanese luxury brands have in numerous attempts?” the article read.

    The judging panel, made up of the magazine’s editors and engineering experts from top car brands, praised the sedan’s performance, particularly when equipped with a 3.3-liter engine. Its cousin, Kia Motors’ Stinger, which shares the same platform as the G70, missed the spot last year due to its lack of a sporty suspension.

    As an all-rounder, the Genesis G70 “pulls to infinity and beyond,” said Chris Theodore, a guest judge.

    Hyundai Motor expects its triumph to continue next year with the North American Car of the Year award, which will be announced at the North American International Auto Show in Detroit in January.

    “The Motor Trend’s Car of the Year award is expected to have positive effect in Genesis sales,” a Hyundai Motor spokesman said.

    The Genesis G70 was the first model to be released under Genesis after it was launched independently of the Hyundai brand. Other models – the G90 and G80 – were just partially revamped and renamed versions of existing models under Hyundai.

    The model ranked No. 1 in this year’s J.D. Power survey in quality, pushing aside long-running luxury brands like Porsche and BMW.

    The accolades didn’t translate to sales, however, as it continues to struggle in the U.S. market. The Genesis G70 sold 51 units in October in the United States.

  • Factories, tractors and robots benefit from 5G in Korea

    Factories, tractors and robots benefit from 5G in Korea

    All three of Korea’s mobile carriers launched their 5G networks on Saturday, the first day of December, officially kicking off an era of the high-speed network. SK Telecom started transmissions from its Bundang network management center in Seongnam, Gyeonggi; KT from its Gwacheon network control center in Gyeonggi; and LG U+ from Magok Science Park in western Seoul. All of the 5G networks operate on a 3.5-gigahertz (GHz) frequency band.

    5G boasts a 20 times faster data transmission speed than the currently prevailing fourth-generation long-term evolution (LTE). Its competitive edge lies in ultra-wide bandwidth, ultra-low latency and ultra-fast connectivity. Data transmission speed of 5G is more than 20 gigabytes per second (Gbps), meaning a 2.5-gigabyte ultra high-definition video can be downloaded in just one second.

    The network can currently only be accessed by corporate clients, not individual users. Businesses can use the card-shaped mobile routers to pick up the 5G network and convert it into super-fast Wi-Fi.

    Individual subscribers are expected to be able to start using 5G from March, when smartphone devices supporting the new network will become available. Samsung Electronics is expected to unveil its Galaxy S10 smartphone as early as February and may come up with two different versions: one supporting LTE and one that works on 5G.

    SK Telecom’s first 5G customer was Myunghwa, a product quality assessment firm in Banwol Industrial Complex in Ansan, Gyeonggi. The company is using the network to process ultra-high definition photos of auto components taken from different perspectives as the products are being moved on a conveyer belt. The images are transmitted using the 5G mobile router to a cloud server, where a high-performance artificial intelligence interface can instantly tell whether a product is faulty.

    SK Telecom also began test operations of its 5G autopilot vehicles in Hwaseong and Siheung, both in Gyeonggi. The vehicles are able to exchange information about their status while on the road with a control center and traffic lights dozens of times per second.

    KT celebrated the launch of its 5G network by having a robot as its first subscriber. The robot, called Lota, will be guiding visitors to the Seoul Sky observatory at Lotte World Tower in Songpa District, eastern Seoul.

    “We chose Lota to show that 5G doesn’t simply mean a generational shift, but will become a platform that will innovate our overall lives and industry,” said KT in a statement.

    KT plans to prioritize 24 major cities nationwide as well as key public transportation routes and university areas, where traffic demand is expected to be high, for 5G installation in the near future.

    LG U+’s first corporate customer is LS Mtron, an industrial machine developer based in Anyang, Gyeonggi. The two companies have jointly developed a 5G remote-controlled tractor, the first in Korea. LG U+ said 5G-based remote-controlled technologies may minimize human engagement in risky working environments, such as the removal of mines and industrial waste disposal.

  • FTC Korea approves convenience stores’ voluntary rules to curb competition

    FTC Korea approves convenience stores’ voluntary rules to curb competition

    South Korean convenience store operators have agreed not to engage in cut-throat competition in the latest move to better protect struggling franchisees. A key centerpiece of the voluntary deal calls for CU, GS25 and 7-Eleven and three other convenience store brands to decide “carefully” over whether to open a new convenience store near an area where a rival convenience store is already located.

    The deal said that convenience stores of rival brands should be at least 50 metres away from each other. Currently, convenience stores of the same brand should be located at least 250 metres away from each other to make sure that they do not compete against each other.

    The latest move came as South Korea has been struggling to protect franchisees in a country where chaebol, or family-controlled conglomerates, have dominated the economy for decades.

    “The voluntary regulation, if implemented in good faith, could help ease saturation and improve management conditions of franchisees of convenience stores,” Kim Sang-jo, chairman of the Fair Trade Commission, said in a signing ceremony of the voluntary deal in Seoul today.

    Last week, President Moon Jae-in instructed the antitrust chief to support a voluntary deal among South Korean convenience store operators so as to address the saturation of the market.

    Convenience stores have sprung up in commercial areas in Seoul and other major cities in recent years, driven by growth of single-member households.

    Last year, the number of convenience stores surpassed 40,000, a dramatic increase from 1989 when the first convenience store opened in eastern Seoul.

    Kim said the voluntary deal could prevent convenience store operators from recklessly opening new outlets in areas where there are already many convenience stores.

  • Samsung is still top smartphone producer

    Samsung is still top smartphone producer

    Samsung Electronics managed to retain its position as the No. 1 smartphone maker in the world in the third quarter, but it may have a fight on its hands in the fourth quarter as Apple is expected to lower prices and increase production, according to a recent report from TrendForce.

    The report said Samsung was the top smartphone vendor in the third quarter with quarterly shipments of 74.5 million units, or almost 20 percent of the market.

    “While Samsung grew its sales by releasing its flagship Galaxy Note 9 ahead of schedule, the device was not a significant upgrade from last year’s Note 8 and made limited contribution to the brand’s total volume in Q3,” said the report.

    The Galaxy J series, on the other hand, was still instrumental in sustaining the brand’s overall production, the report noted. Samsung has also been promoting the Galaxy A devices, emphasizing their improved cost-to-performance ratios and cameras since the beginning of the fourth quarter.

    In the fourth quarter, however, iPhone production is estimated to reach around 76 million units, which would see it surpass Huawei and compete with Samsung for the top position, the report noted. Samsung’s volume in the last quarter is estimated to reach around 75 million units, in line with the company’s target for the period.

    Huawei was the world’s second largest smartphone producer in the third quarter, beating Apple for the second consecutive quarter. The firm’s production volume stood at a new high of 55.5 million units. iPhone production for the third quarter totaled 47.1 million units.

    “Huawei’s in-house research and development capabilities and extensive product lines across all market segments have benefitted its expansions in overseas markets during the recent years,” the report said.

  • Innisfree lands in the Philippines

    Innisfree lands in the Philippines

    Innisfree Corp., budget cosmetics manufacturer under South Korea’s beauty powerhouse Amorepacific Group opened its first store in the Philippines with hopes to expand its presence in the bourgeoning Southeast Asian market. According to the company, the 148-square-meter store opened at SM Mall of Asia, the largest shopping mall in Manila.

    The naturalism-oriented brand plans to introduce skin-care products made of natural ingredients from Jeju Island such as green tea and volcanic pine mushroom and their effectiveness to consumers in the Philippines to satisfy beauty demand and experience.

    The Philippines is considered a potential market due to the high ratio of young people in their 20s and 30s interested in hallyu, or Korean wave, and Korean beauty.

    An unnamed official from Innisfree said that the company will introduce not only its flagship beauty items but also pore- and oil-treatment mask and powder products tailored for humid and hot climate. The official added that the company will also pursue its environmentally-friendly green life campaign in the Southeast Asian country.

    Innisfree, meanwhile, manages 655 outlets overseas including the latest store in the Philippines.

    The skin-care brand, which opened its first overseas store in China in 2012, has outlets in Hong Kong, Taiwan, Singapore, India, Thailand, the United States, and Japan.

    Innisfree also plans to open stores at three major shopping malls in Metropolitan Manila next year and launch online channel

  • LG Electronics supports Ethiopian entrepreneurs

    LG Electronics supports Ethiopian entrepreneurs

    LG Electronics announced on Thursday that it has opened an entrepreneurship center for young people at an existing technical and vocational education center run jointly by LG and the Korea International Cooperation Agency (Koica) in Addis Ababa, Ethiopia.

    The existing job training center, the LG-Koica Hope TVET (Technical and Vocational Education and Training) College, was established in Addis Ababa in 2014 to help Ethiopia achieve economic growth by offering quality education to young Ethiopians and helping them acquire the foundations of financial independence.

    The new center has been named the LG Social Campus Business Incubator Center. It provides graduation candidates of LG-Koica Hope TVET with the opportunity to receive help building a business model and launching their own company. The center will offer office and co-working spaces, as well as training in law, marketing, leadership and business administration.

    “We hope that a socially-recognized company will be born in Ethiopia with the support of the LG Social Campus,” said Yoon Dae-sik, president of the government relations division at LG Electronics.

    “We will keep up with efforts to help Ethiopian youngsters step up their competitive edge and independence.”

    The Korea International Cooperation Agency is a state-run organization devoted to supporting socio-economic development in developing countries.

  • Hyundai’s Palisade premiers at LA Auto Show

    Hyundai’s Palisade premiers at LA Auto Show

    The Palisade, Hyundai Motor’s latest effort to rework its lineup in the direction of globally-popular SUVs, was premiered at the 2019 LA Auto Show on Wednesday. Chung Eui-sun, Hyundai Motor’s executive vice chairman, was in attendance. The eight-seat vehicle is the biggest model in Hyundai Motor’s SUV lineup, which includes the small Kona, the midsize Tucson and the Santa Fe.

    The vehicle “looks good,” Chung said after the introduction at the LA Convention Center.

    When asked if the Palisade will boost sales in the U.S. market, Chung replied “it remains to be seen” and estimated the carmaker’s sales target next year to be “similar to this year’s or a little more than that.”

    Hyundai Motor, with its sedan-oriented lineup, is seen as being behind the curve with its a-bit-too-late SUV launches. In attending the event in LA, Chung missed the launch of the Genesis G90 in Korea, suggesting that the priority lies with the Palisade.

    With a spacious interior and convenient features throughout the three rows in the back, the Palisade has been developed to suit families.

    “From the driver’s seat to the third row in the back, [the Palisade] suits contemporary customers who have a desire for individual space while also providing comfortable space just like home,” Brian Smith, chief operating officer of Hyundai Motor America, said at the press event Wednesday.

    The car is equipped with a roof air ventilation system, which circulates the air inside the car from the first row to the third row to enhance the air quality. It enables passengers in each row to control the air conditioning on their own. There are USB ports for charging electronic devices in each row as well.

    Two engine types are available: the 2.2-liter diesel and 3.8-liter gasoline. Hyundai Motor started taking preorders in Korea on Thursday and will launch the vehicle officially in December. It will launch in the United States next year.

    The diesel version price starts at 36.2 million won ($32,300) and the gasoline model 34.7 million won.

    Kia Motors, an affiliate of Hyundai Motor, premiered the fully-revamped version of its Soul at the LA Auto Show. It unveiled the electric version of the car as well as the Niro EV.

    The new Soul and the Soul EV will launch in Korea and in global markets in the first quarter of next year.

    Some hefty SUV models from global carmakers were on display at the LA Auto Show. BMW premiered the X7 SUV and Mercedes-Benz unveiled the Maybach GLS, the first SUV model under the premium Maybach label.

    Lincoln, a premium Ford brand, unveiled the seven-seater, three-row Aviator SUV, and Jeep showcased the Gladiator, a midsize pick-up truck.

  • Big success for Korean retailers during shopping festivals

    Big success for Korean retailers during shopping festivals

    South Korean retailers enjoyed a big sales boost from annual shopping extravaganza they launched in November to join the world’s major shopping events like Black Friday in the U.S. or Single’s Day in China. According to industry sources on December 2, Lotte Department Store, one of the country’s retail majors saw its sales from Nov. 1 to 29 grow 1.1 percent against the same period last year. Sales of its hypermarket affiliate Lotte Mart also gained 1.7 percent over the same period.

    Home appliance sold especially well during the big sales period, recording a 12.5 percent jump in revenue compared to the same period last year. High-end products were also showed sharp growth – sales of expensive hanwoo or Korean beef soared 25.8 percent on year and luxury fashion items up 9 percent.

    E-Mart., another leading big-box store chain also held a mega sales event in November, slashing prices of nearly 2,000 items worth 300 billion won (US$267.4 million). It sold 180 tons of hanwoo in just four days, doubling sales against the same period last year.

    Online retailers enjoyed even bigger growth in sales through major discount events. G Market and Auction hosted Big Smile Day sales event from Nov. 1 to 11 and their sales transaction amount more than doubled compared to the same period a month earlier.

    11st.com that runs its biggest sales event on Nov. 11 every year said its daily transaction amount on this year’s big sales day reached a record high of 102 billion won. Last year, it recorded 64 billion won through the same event.

    WeMakePrice Inc. also held bargain sales from Nov 1 to 11 this year. It said the transaction amount over the period jumped 77 percent to 230 billion won compared to the same period last year. By volume, it was up 15 percent on year. The company estimated transaction amount to hit a record high of 600 billion won in November.

  • Blackpink is now Shopee brand ambassador

    Blackpink is now Shopee brand ambassador

    Popular all-girl K-pop group Blackpink has been appointed Shopee’s first regional brand ambassador. The appointment is timed to coincide with Shopee’s 12.12 birthday sale, which has embarked on a two week promotional campaign. The planned deals include discounts of up to 80 per cent for the one-day-only promotion.

    To draw attention to the sale day, Blackpink have released a dedicated shopee commercial currently available for viewing on YouTube.

    The promotion coincides with the launch of Korean entertainment firm YG Group’s official shop on the platform across five Shopee markets, including Singapore.

    K-pop group Blackpink was founded in 2016 and within just two years has built a strong reputation for its unique vocals and the group members’ personalities. Hailed by Billboard as the best-charting female Korean act in history, Blackpink has established prominence with record-breaking releases, including the single Ddu-Du Ddu-Du and albums Square One, Square Two and their most recent mini-album, Square Up.

  • SsangYong launches Rexton Sports in Latin America

    SsangYong launches Rexton Sports in Latin America

    SsangYong Motor, the Korean unit of Indian carmaker Mahindra & Mahindra, said Wednesday it has launched the Rexton Sports sport-utility vehicle (SUV) in Latin American markets to boost sales. SsangYong Motor launched the Rexton Sports SUV in Chile in September, Ecuador in October and Paraguay in November, following its launch in Europe in the second and third quarters.

    The carmaker plans to introduce the car in Africa and Middle Eastern markets in early 2019.

  • Asiana Korea upgrades the system that monitors flight safety

    Asiana Korea upgrades the system that monitors flight safety

    Asiana Airlines completed an upgrade of its flight operational quality assurance system on Friday. The system analyzes data related to flight operations including piloting decisions during unexpected weather conditions and plane speeds or flying altitudes on certain flight routes.

    It was first implemented in 1995 to ensure safety in flight operations and, since 2015, a committee consisting of eight representatives from both the corporate and labor union has been holding monthly meetings to find potential risks in flight operations based on the data.

    Asiana said the upgrade enables the company to collect and analyze all data on flight operations while the previous system only allowed the company to analyze unusual sets of data. This way, the airline can monitor each pilot’s operational habits and provide more detailed feedback to them.

    The airline is also preparing to launch a so-called Asiana Flight Review Assistance System by 2019 in partnership with its IT service affiliate Asiana IDT to further enhance safety in flight operations. This system will help the company manage all analysis on flight operations using big data technology.

  • SK’s Chey says group is committed to U.S. society

    SK’s Chey says group is committed to U.S. society

    The chairman of Korea’s SK Group was in Washington on last Wednesday, vowing to make a commitment not only to the U.S. market but also its people and society. Chey Tae-won, who heads Korea’s third-largest conglomerate by assets, formally opened the Washington office of chipmaker SK Hynix in the presence of dozens of American dignitaries, including former U.S. Secretary of State Colin Powell.

    What was initially meant to be an opening ceremony was expanded under the name “SK Night” to provide a platform for Chey to explain the group’s current operations and investment plans in the United States, group officials said.

    “Past years, every different SK subsidiary … opened up their branches in the East Coast and West Coast, Texas … but they never actually [had] real communication with society,” Chey said in a speech.

    “Well this time, we will be investing in the U.S. about more than $7 billion here and there,” he said, citing as an example the planned construction of an electric vehicle battery plant in Jackson County, Georgia.

    “That’s going to be a $1.6 billion investment, and we’re going to hire right now more than 1,400 people,” he added to applause. “But within five years and if the market allows us, then we can expand [investment to] $5 billion and hire more than 6,000 employees there.”

    The plant is to be built by the group’s energy-chemical business, SK Innovation. On Monday, SK Biopharmaceuticals said it has applied to the U.S. Food and Drug Administration to win approval for sales of a newly-developed epilepsy treatment drug.

    Chey has pushed to expand SK’s presence in North America this year to add to business networks in China, the Middle East and Southeast Asia. During his stay here, he met with American business partners and local subsidiaries to help expand their presence on the continent.

    “[By opening up] the Washington office, I’m trying to show our commitment not only [to the] business side but also social value and commitment to society,” Chey said, adding that the group’s target is to “grow together” with U.S. society.

  • Niche market of coffee lover in Korea

    Niche market of coffee lover in Korea

    South Korea’s cafe market is notoriously crowded pushing some large players to the brink and suffering from price attacks from convenience store operators. Yet niche is still a nice place to be, judging by the experiences of a small Seoul startup.

    Two young entrepreneurs have shared their vision of launching a coffee franchise called That Coffee Roasters.

    Co-CEOs Chin Kyo-hwa and Lee Chang-hoon reported that redecorating their first coffee shop to appeal more to female customers was key to their initial success.

    According to Chin, low early revenues escalated after the change.

    “It took more than three years for our coffee shop to gain popularity,” he said. “The store’s monthly sales more than doubled in the past two months on the back of word-of-mouth online and the new interior design.

    “The store is tiny and small, but we hope to launch at least three more stores in less than five years in Seoul.”

    Chin and Lee also run a roastery factory in Guro, Seoul for direct sale to clients. While the business currently serves a small client base, the pair are already planning to expand operations as the company gains more traction.