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Tag: Korea

  • Palace set collaboration with Polo Ralph Lauren in Seoul

    Palace set collaboration with Polo Ralph Lauren in Seoul

    Streetwear label Palace and Polo Ralph Lauren, the luxury fashion brand, have brought their recent collaboration to Seoul after a show in London. The hotly anticipated crossover saw queues forming from the night before its Saturday morning release at the RL Garosu store to secure purchases of premium limited-edition items.

    Popular products included a Kickflip Polo Bear knit sweater and teddy bear, both of which were posted online within an hour of selling out at sizeable markups.

    Buyers were limited to purchases of one item per product and up to 10 products in total.

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  • Apple concerns hit supplier stocks

    Apple concerns hit supplier stocks

    Shares in Asian suppliers and assemblers for Apple fell on Tuesday after several component makers warned of weaker than expected results, leading some market watchers to call the peak for iPhones in several key markets. Following a poor forecast earlier this month, analysts and investors voiced concern over the state of Apple’s business, contributing to growing worries that iPhone sales were stagnating and could hurt suppliers.

    Fresh warnings on Monday from screen maker Japan Display, British chipmaker IQE and Lumentum Holdings, the main supplier of the Face ID technology in the latest generation of iPhones, hurt technology stocks in Asia on Tuesday.

    Taiwan-based assembler Hon Hai Precision Industry (Foxconn) dropped more than 3 percent. Rival Pegatron fell more than 5 percent but later recouped losses. Both companies count Apple as a major customer.

    The world’s largest contract chipmaker, Taiwan Semiconductor Manufacturing, fell 2.6 percent, while Flexium Interconnect was down 1.5 percent. The Taiwan Weighted Index was down around 1.6 percent.

    “Apple’s iPhone weakness has been a long-term issue for the Asia supply chain,” said Arthur Liao, an analyst at Fubon Research in Taipei.

    “For Apple, iPhone shipment has reached its peak. For tech suppliers facing the future, they have no other big client like Apple.”

    The company’s shares fell to their lowest level in more than three months on Monday.

    Last week, a media report saying the iPhone maker had told its smartphone assemblers to halt plans for additional production lines dedicated to its new lower-priced iPhone XR had pressured supplier stocks.

    Analysts said the lack of technological breakthroughs had put a cap on demand.

    “With no new technology in sight next year for the supply chain, this is not ideal for the companies involved,” said Nicole Tu, a Taipei-based analyst at Yuanta Investment Consulting.

    “Up through the first half of 2019, we likely won’t see any breakthrough.”

    Lumentum on Monday slashed its profit and revenue forecast for the current quarter, while IQE warned that current-year results would be lower. Japan Display lowered both sales and margin outlook for the year as well.

    Apple warned earlier this month that holiday sales would miss Wall Street expectations due to weakness in emerging markets.

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  • Start-up fund to create 11,000 jobs in Korea

    Start-up fund to create 11,000 jobs in Korea

    Local banks have invested an additional 345 billion won ($303.8 million) into start-up support. Based on past results, the latest funding could yield 11,000 jobs, D.Camp said on Wednesday. In 2012, 18 local banks teamed up to create and invest 500 billion won into D.Camp, a non-profit organization that supports early-stage start-ups. They decided to pour another 345 billion won into the non-profit in April.

    A total of 320 billion won of the total is being allocated to a private investment firm, K-Growth, to create a fund specializing in local start-ups. K-Growth will pull in other investors to join the new fund, with the total size targeted at 1.6 trillion won.

    The remaining 25 billion won will be utilized by D.Camp for the running of its co-working space and for the organization of various training and meet-up sessions for start-ups.

    D.Camp analyzed the number of jobs created by start-ups that received investments from the non-profit and K-Growth in the past in order to calculate how many jobs the new investment is likely to create.

    “K-Growth’s fund will produce 10,080 new jobs, while D.Camp’s support can add 960 to that figure, so the total will come to about 11,000” in the next three years, said D.Camp head Kim Hong-il at a press event in southern Seoul.

    D.Camp began investing in and incubating early-stage start-ups in 2015. Among 121 start-ups it invested in, 86.4 percent, or 110 companies, managed to survive and expand from seed stage. This is higher than the local survival rate of 38.2 percent and the Organization for Economic Cooperation and Development’s average of 57.2 percent.

    The enterprise value of the companies increased an average of 282 percent after receiving D.Camp investment. Among the 110 surviving today, 37.3 percent weren’t generating any revenue at the time the non-profit decided to participate.

    Kim said a big factor in keeping D.Camp’s success rate high is its monthly demo day, in which start-ups compete and present their businesses in front of other start-up entrepreneurs and investment managers at D.Camp. For teams with good evaluation results, D.Camp recommends investment and support.

    “D.Camp started out as something more like a social responsibility program, but today, we see it as a long-term investment for the country’s economy,” he said. “Start-ups nowadays offer services and products that even customers didn’t know they needed. That kind of innovation is something large-sized companies can’t do.”

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  • Hyundai to offer connected cars in Europe

    Hyundai to offer connected cars in Europe

    Hyundai Motor is introducing its connected-car system in Europe in partnership with Vodafone next year. The carmaker and affiliate Kia Motors signed a memorandum of understanding with Vodafone at the company’s British headquarters on Monday to roll out the service, Hyundai Motor said.

    Its Blue Link connected-car platform will be available in cars launching in Europe in the latter half of next year. The system will utilize Vodafone’s network. Kia’s Uvo connected-car system will be available in new cars sold in Europe in the first half of 2019.

    The connected-car service will offer real-time traffic information as well as information about nearby parking lots. It will also enable the remote detection of the car’s location as well as anti-theft features.

    Voice-recognition will be available in partnership with Nuance, a U.S. company. In Korea, that service is available in partnership with Kakao.

    Vodafone is one of the leading telecom companies in Europe, with 120 million users on the continent. It is established in 51 countries globally.

    The Blue Link service offered in collaboration with Vodafone will be available in eight European countries, including Britain, Germany, France and Spain. Ultimately, it will be available in 32 European countries.

    Europe is the fifth region where Hyundai Motor has introduced its connected-car service. It is already available in Korea, the United States, Canada and China.

    In July, Hyundai Motor partnered with Chinese IT firm Baidu for the introduction of connected-car services. In the United States, it is working with AT&T, and in Canada it utilizes the Bell network.

    “The latest collaboration will enable European customers to use the high-tech service,” said Suh Jung-sik, senior vice president of Hyundai Motor’s ICT department in a written statement. “The connected-car service will launch from early next year and be expanded in the future.”

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  • Korea’s car companies discuss challenges

    Korea’s car companies discuss challenges

    Representatives of Korea’s major automakers and parts makers and industry officials gathered in Seoul Wednesday to discuss ways to breathe new life into the sluggish sector. The chief executives of the big five automakers — Hyundai Motor, Kia Motors, GM Korea, Renault Samsung and Ssangyong Motor — and their local parts makers and industry associations explored ways to tackle daunting challenges facing the industry.

    Korea’s auto industry is going through a hard time after GM Korea shut down its underutilized Gunsan plant in May, and Hyundai and Kia have been posting generally disappointing earnings this year.

    Small and medium-sized companies that make parts for the carmaker were more vulnerable to falling sales, with more than one-third of such Korean auto parts makers posting losses in the first half of this year, data by the think tank Korea Institute for Industrial Economics and Trade showed.

    They are also in the crosshairs as the United States is weighing slapping tariffs on foreign-made autos and auto parts on national security grounds.

    The participants called for the government to boost domestic demand, provide financial assistance to cash-strapped parts makers and lower regulations in emerging sectors, such as autonomous and electric vehicles.

    The automakers said they will seek ways to maintain over 4 million units in domestic car production and raise the number to 4.5 million by 2025.

    Hyundai Motor, the nation’s leading automaker, said it will invest 220 billion won ($193.8 million) over the next two years to develop an advanced lineup of its hydrogen-fuel electric car Nexo, with a goal of releasing over 30,000 units in the domestic market in 2022.

    GM Korea said it will hold trade shows to help its local contractors tap into the global market and supply 70 billion won in subsidies for small- and medium-sized contractors.

    Renault Samsung said it will operate a research and development fund worth 35 billion won by 2020 and form an alliance with Nissan and Mitsubishi to help its contractors make bids overseas.

    Ssangyong Motor promised to expand use of Korean-made parts and support its contractors in India.

    The Ministry of Trade, Industry and Energy said it will join industry efforts to overcome challenges and drive innovation in the sector.

    “If the auto industry and the government work together, we can come up with measures to deal with the hardship,” Industry Minister Sung Yun-mo said during a meeting with them.

    “We will gather opinions to prepare support measures, especially for parts manufacturers.”

    The ministry said it will unveil a comprehensive support package for the auto industry next month, which includes financial and R&D support as well as deregulatory measures.

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  • Korea’s snack prices increase as costs rise

    Korea’s snack prices increase as costs rise

    Nineteen Nongshim snacks, including its famous Shrimp Crackers, will cost more beginning tomorrow, the company announced on Tuesday. “We have decided to raise prices in the face of accumulated pressure from rising production, labor and management costs,” said a Nongshim spokesperson. “We have tried to minimize the scope of the price rise in consideration of our consumers.”

    According to the company, Nongshim will raise the prices of 19 out of its 23 snacks by an average of 6.7 percent beginning from Nov. 15.

    A 90-gram (3.17 ounces) bag of Shrimp Crackers, one of the company’s iconic products, will now cost around 100 won ($0.08) more than the current 1,200 won. The prices of other favorites, such as Onion Rings, Honey Twist Snacks and Tako Chips, will rise by 6.1 percent, while the price of Pretzels will jump by 7.4 percent.

    Tomorrow’s hike will mark the first time in over two years that Nongshim has increased snack prices. It upped the price of 15 of its snacks by an average of 7.9 percent in July 2016. In Feb. 2014, it increased the price of Shrimp Crackers by 10 percent.

    Earlier this year, competitors Crown-Haitai Confectionery and Lotte Confectionery began charging more for some of their snacks, both citing rising production costs.

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  • Foldable phone coming early 2019

    Foldable phone coming early 2019

    Samsung Electronics will make its foldable smartphone available by the first half of 2019, with initial shipments estimated at least at 1 million units, according to Koh Dong-jin, president of the IT and Mobile Communications division at the company.

    The comments were made Thursday in San Francisco on the day two of the Samsung Developer Conference, where he discussed the rollout of the new flagship phone with considerable confidence.

    “We will definitely introduce the phone before the end of the first quarter next year, although I cannot pin down the date at this moment,” he said. “And we will maintain the line each year.”

    His comments indicate that Samsung will be adding foldables to its existing two flagship lines, the Galaxy S – released most recently in February – and the Galaxy Note – released in the fall. But the foldables will be released in a limited number of countries, including Korea and the United States. Koh added that Samsung has yet to confirm the name of the lineup.

    Given Samsung’s status as the No.1 smartphone vendor in the world and the fact that its flagship models sell at least 1 million units, Samsung is gearing up to churn out over 1 million foldables from the outset “if the market reaction is positive,” he added.

    Koh’s meeting came a day after Samsung introduced the foldable phone. The company demonstrated what it calls the “Infinity Flex Display,” which measures 7.3 inches diagonally when the phone is open like a book. The screen is slightly larger than the largest smartphone screen and slightly smaller than those of a conventional tablet PCs.

    The company has so far declined to provide additional specifications, including thickness, weight and the battery power.

    “We showcased the display to show off Samsung having reached the stage of commercializing the device,” he said. “We have overcome several barriers, such as making the central hinge through the screen invisible. What remains to be done is working on the user interface to make it more concrete.”

    He went on to say that Samsung distributed the foldable device to developers before the event so that they could help in designing the best-possible user experience.

    Two months earlier, he met with Google CEO Sundai Pichai to launch a task force for foldable user experience.

    Beginning with foldables, Samsung is getting ready to revolutionize smartphone display form factors – to rollables as well as stretchables.

    “As much as foldables will have a huge technological impact, so will rollables and stretchables. That’s why we are studying them,” he said. “But the entire workforce is devoted to foldables at present.”

    Samsung has been grappling with declining sales and revenue from smartphone business. Operating profit for the division during the third quarter fell 29.8 percent year on year to 2.22 trillion won ($1.96 billion), while revenue slid 10 percent to 24.91 trillion won over the same period.

    Chinese rookie Huawei is rapidly catching up.

    Koh mentioned 5G connectivity, artificial intelligence and the Internet of Things as breakthrough technologies that will help Samsung compete.

    “While we have been maintaining leadership with 4G over the past decade, 5G, AI, IoT and augmented reality will offer a new opportunity in 2019.”

    He added that foldables will achieve another leap when such technologies become reality and are combined with the device.

    “Next year will be the 10th anniversary of Galaxy smartphones, and it’s very meaningful to me,” he said. “We will be coming up with an impressive Galaxy S10 as well.”

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  • JD.com to provide more imported product to China

    JD.com to provide more imported product to China

    JD.com, China’s largest retailer, will purchase nearly RMB 100 billion worth of products from overseas brands. As disposable incomes in China rise, consumers increasingly demand high-quality products, especially imported products.

    E-commerce has rapidly emerged as one of China’s most preferred channels for buying overseas brands. Last year, the number of users purchasing products from overseas brands grew by 37.1% compared to 2016.

    The volume of imported goods in 2018 to date has already skyrocketed 150% as compared with two years ago.

    JD’ “Retail as a Service” strategy has proved enormously appealing to household
    names from all over the world.

    Indeed, the growing family of leading international brands partnering with JD to facilitate their e-commerce strategy now includes the likes of Saint Laurent, Alexander McQueen, Dell, Nestle, Avène and many more.

    As China’s e-commerce transformation continues to unfold, consumers have gravitated especially towards premium, smart, and green products.

    According to JD’s data, the highest performing categories among its customers this year have been mobile phones, computer and office suppliers, home appliances, maternal and childcare, and digital products.

    Advanced economies such as the U.S., Japan, South Korea, Germany, and the Netherlands remain the most popular sources of imported goods.

    Chinese consumers buying online are mostly younger (26-45 years old), white-collar workers with middle-to-high incomes.

    China’s most developed regions, particularly the coastal cities, account for the largest uptake of imported goods.

    The growth rate for purchases of overseas brands, however, is now highest in fourth- and third-tier cities, where these brands are often not available in brick and mortar stores.

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  • With China business back, Korean Air’s net triples in Q3

    With China business back, Korean Air’s net triples in Q3

    Korean Air’s net profit in the third quarter more than tripled in comparison to last year largely due to increased sales of long-haul flight tickets and a business recovery in China, the company said in an earnings report on Tuesday. The company posted 267.8 billion won ($236 million) in net profit for the quarter that ended in September, more than three times the 75.7 billion won it earned last year when the airline suffered from China’s economic retaliation for the deployment of a U.S. anti-missile system in Korea.

    The airline posted a record 3.4 trillion won in revenue for the quarter, up 9.1 percent year on year. For operating profit, the company posted 392.8 billion won, up 3.7 percent year on year.

    Despite a rise in international oil prices and a deterioration in foreign exchange rates, the company said joint venture operations with Delta Air Lines launched in May contributed to an increase in transfer passengers. General increase in demand for travel in Korea also pulled up sales.

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  • LG Chem signs deal to distribute cancer drug

    LG Chem signs deal to distribute cancer drug

    LG Chem has partnered with U.S. bio company Cue Biopharma to develop immunotherapy drugs to treat cancer, the local company announced Monday. Immunotherapy drugs help patients fight diseases like cancer by enhancing their immune system. It is a relatively unusual form of cancer therapy that differs from the conventional approach of using medication to directly fight the cancer cells inside the human body.

    Based in Boston, Cue Biopharma is a Nasdaq-listed company that specializes in developing biologics for immunotherapy. The companies will co-develop and distribute three immunotherapy drugs which were previously developed by Cue Biopharma: its lead product CUE-101, currently in the preclinical stage, and two other cancer antigens that are at an earlier stage of development.

    Cue Biopharma’s core technology is the Immuno-STAT platform that inserts information about a specific cancer cell into a T cell, a white blood cell that will then find and attack the disease. Before the platform existed, T cells had to be pulled out of the human body to have the information injected into them, but Cue Biopharma’s technology allows the process to happen internally.

    Under the agreement, LG Chem will obtain exclusive distribution rights for the three treatments in Asia once they are fully developed. Cue Biopharma will take charge of distribution in other regions.

    LG will offer a maximum of $400 million to the U.S. bio company including milestone payments given at each stage of clinical testing in the development process. Once the treatments are commercialized, Cue Biopharma will additionally receive license fees proportional to sales in the Asia region while LG, in return, will receive royalties from the Asia sales.

    This is the first time in its three decades of history in the bio pharmaceuticals industry that LG Chem has partnered with another company to work on a new drug.

    “We are very pleased to enter this strategic collaboration with Cue Biopharma; it is more than a licensing deal, it is a partnership with a shared vision and great strategic fit,” said Dr. Son Jee-woong, president of LG Chem Life Sciences.

    For Cue Biopharma, the advantage of working with LG is its experience in developing and manufacturing bio pharmaceuticals in the past as well as its business know-how in the Asia region.

    Under the partnership, LG will also conduct development in mass production and quality control methods for the immunotherapy drugs.

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  • LG Chem picks first CEO from outside group

    LG Chem picks first CEO from outside group

    LG Chem said Friday it nominated Shin Hak-cheol, vice chair and executive vice president of 3M, as its new head. It is the first time the chemical company hired a chief executive from outside the company since its foundation in 1947. Current LG Chem CEO Park Jin-su climbed the ladder during his 42-year career at the company.

    LG Chem said it has been looking for a person who can systemize global business operations as overseas production and marketing of lithium-ion batteries has increased along with demand for electric cars.

    “Shin has gained global perspective and experience in operating a global materials and components business,” LG Chem said in statement. “He is the right person capable of responding to a rapidly changing business environment and bringing change in corporate culture and structure.”

    Shin started at 3M Korea in 1984 as a technical supervisor and then joined 3M Philippines in 1995 as its managing director. In 2011, he was named executive vice president of 3M International Operations, becoming the first Korean to lead 3M’s overseas businesses, LG Chem said.

    His most recent role at 3M was leading global teams, including the research and development, strategy and business development and business transformation teams, as vice chair and executive vice president at the 3M headquarters in Saint Paul, Minnesota.

    Shin will begin commute to work and be officially inaugurated as the chief executive during the shareholders meeting in March.

    Park will retire as Shin is inaugurated, but the exact date has not been announced yet. The company grew into a 28 trillion won ($24.8 billion) company under Park. In 2011, it posted around 22.6 trillion won in sales.

    Industry analysts say this may be the beginning of a major transformation at LG under the leadership of 40-year-old Chairman Koo Kwang-mo.

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  • Start-ups in Korea challenged by overregulation and lack of exits

    Start-ups in Korea challenged by overregulation and lack of exits

    Park Jong-hwan is a Korean start-up success story. Twenty years ago, he was living in a basement room with a friend. In 2015, he became a legendary figure after selling his Kim Gisa navigation service to Kakao for 62.6 billion won ($56.0 million).

    The co-CEO of Kim Gisa Company, who now also runs co-working space company Work&All and a start-up accelerator, met with JoongAng Ilbo on Nov. 2 to discuss the challenges faced by start-ups in Korea.

    During the interview, he expressed the need for a change in government regulations.

    “It is difficult for a second Kim Gisa to emerge in this regulatory environment,” said Park. “When I meet start-ups these days, they don’t have the confidence to start new things but instead worry about facing legal or social problems.”

    “In an environment that first regards new ideas or businesses as illegal, start-ups lose confidence and creativity,” complained the Kim Gisa Company founder.

    Park has struggled with regulations and a negative attitude towards the industry since his early start-up years. When nominated for an award, it was almost rescinded as his service didn’t provide location services inside buildings. When Kakao tried to implement Kim Gisa’s technology to match rides, it was met with government opposition. The government’s strong stance against the growing carpool and ridesharing industries is an issue that particularly frustrates the start-up pioneer.

    Park, whose father is a veteran taxi driver of 40 years, said he understands the opposition from the taxi industry but explained that the carsharing service provides a better alternative for taxi drivers.

    “If a company-owned taxi driver opts to operate on a car-sharing platform, the driver will pay two to three percent in fees instead of the payment to the taxi company, leading to increased income,” said Park. “If we set aside a partial fee for every service and provide it to the taxi industry, as it is done in Australia, private taxi drivers will be less opposed.”

    “The government should be a mediator in the changing times,” he added. Park also argued that Korea’s business environment, which make start-ups mergers and acquisitions (M&A) difficult, pose as an unseen stumbling block for tech-based start-ups.

    A positive cycle of investment, growth, profit return and reinvestment can only occur when there are numerous success stories of start-up exits. But complex tax-related regulations, difficult conditions for initial public offerings and a negative attitude toward start-up exits all prevent M&A from taking place, said Park.

    “If start-ups grow and are bought out by large corporations, they then fall under new regulations as they are considered an affiliate company of a large corporation, even if they maintain the same workforce and business structure,” explained Park. “M&A can only be undertaken by large corporations with enough cash, but the reality is that it’s difficult because of such regulations.”

    The start-up founder lamented the lack of successful exits since Kim Gisa, “There hasn’t been a large-scale M&A in the three years since Kim Gisa,” he notes. “Promising local start-ups are leaving to countries abroad.”

    Park’s co-working sharing company aims to ease some of the burdens faced by start-ups and provide an accommodating environment in the country’s tech hub in Pangyo, Gyeonggi. While tech giants such as NHN, Nexon and AhnLab are able to afford the high rent in Pangyo, it is difficult for start-ups.

    Park argues that acquisition of start-ups by tech giants will become more common if start-ups settle down in Pangyo and create an environment similar to Silicon Valley.

    “I would like to provide a mentoring space to help others reduce the time spent on trial and error,” said Park. “I am looking at two to three start-ups in which to make investments.”

    The start-up mentor said that updating regulations that stand in the way of start-up development could help create new jobs – one of the main promises of the government.

    “When the number of start-ups increases and their businesses grow, there will naturally be more recruitment. The quality of jobs will increase as the number of them rises.”

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  • Singles’ Day boosts Korean brands

    Singles’ Day boosts Korean brands

    China’s massive Singles’ Day shopping spree provided a huge boost to Korean retailers, with some companies posting their highest sales figures ever. Since 2009, Chinese retail giant Alibaba Group has transformed Singles’ Day, which falls on Nov. 11, into an online shopping festival with large discounts offered for 24 hours.

    Other ecommerce giants like JD.com soon followed suit, making Singles’ Day into a Chinese version of Black Friday, although much bigger.

    At Alibaba, the number of transactions on Nov. 11 has steadily increased since the event began in 2009.

    Despite concerns that the ongoing trade war between the United States and China may have put a break on the income growth of middle-class Chinese consumers this year, Singles’ Day once again broke records.

    Chinese shoppers purchased a total of 213.5 billion yuan ($30.6 billion), worth of goods on Sunday, a 27 percent surge from last year’s record. The year-on-year growth rate was slower than last year’s 39.3 percent.

    Over 40 percent of shoppers made purchases from international brands, said Alibaba.

    Among the countries that sold products to Chinese customers on Sunday, Korea ranked third after Japan and the United States.

    Korea placed at No. 3 on the list in 2016, but fell two ranks last year after the deployment of the U.S.-led terminal high altitude area defense (Thaad) antimissile system. The incident soured relations between the two countries and provoked a boycott movement against domestic brands in China.

    The exact volume of Korean goods purchased on Sunday was not disclosed, but it was evident that the shopping spree had an impact on local companies, as some of them reported record-breaking figures on Monday.

    Food company Nongshim, famous for Shin Ramyun instant noodles, set a new record for Singles’ Day revenue since it launched online sales in China in 2013.

    The company sold 5 million yuan worth of instant noodles at ecommerce website Taobao on Sunday. This was a 25-percent increase compared to last year’s Singles’ Day and 10 times the average sales made at the Chinese ecommerce website per day.

    The No. 1 best seller for Nongshim was a multipack of its eight most famous noodle brands, including Shin Ramyun, Neoguri and Kimchi Ramyun.

    “We organized huge promotional events ahead of Singles’ Day, as well as collaborating with [social media influencers in China] to air live videos of cooking Shin Ramyun,” the company said.

    Eland Group’s Chinese office sold 444 million yuan worth of fashion goods through ecommerce website Tmall.

    Based on sales records, the fashion group focused on presenting a wide array of outerwear like coats and jackets. A padded jacket from its kid’s brand, Paw in Paw, sold over 20,000 units during Singles’ Day.

    Beauty companies also did well. At LG Household & Health Care, cosmetics sales increased 50 percent compared to last year’s Singles’ Day. Daily necessities jumped even higher by 73 percent year on year. Its brand, The History of Whoo, LG’s biggest success in China, sold 23 billion won ($20.2 million) worth of products, a 72 percent increase year on year.

    Although LG did not disclose the entire sales volume, the company spokesman said that “this year has set a record for Singles’ Day.”

    Rival Amorepacific unexpectedly set positive records as well. The company has been struggling after it lost Chinese consumers in the Thaad row. On Sunday, it generated 37 percent more sales compared to Nov. 11 last year. Several products from brands like Sulwhasoo and Laneige that were prepared for the Singles’ Day promotion sold out.

  • SK Korea keeps building Vietnam ties

    SK Korea keeps building Vietnam ties

    SK Chairman Chey Tae-won met with Vietnam Prime Minister Nguyen Xuan Phuc in Hanoi Thursday to discuss the conglomerate’s plans to invest more in both private and public companies and introduce measures to ease environmental problems there.

    They met for the second time in a year. As a result of the previous meeting, SK purchased a 9.5 percent stake in the holding company of Masan Group, one of Vietnam’s largest private enterprises, for $470 million in September.

    “We are pursuing further cooperation with private companies after our first meeting beginning with investment in Masan Group,” said the chairman of Korea’s third-largest conglomerate. “We expect cooperation in other areas such as privatization of state-owned companies to speed up.”

    Nguyen explained Vietnam’s privatization plans to Chey while asking SK to help develop the country’s growing industries.

    “Chairman Chey is the only foreign company chief that I meet every year, my interest in SK is special,” said Nguyen.

    Chey also said the group will help Vietnam combat environmental problems that stem from industrial development. SK Group currently supports the reforestation of a mangrove forest in Vietnam.

    Mangrove forests used to cover 4,400 square kilometers (1.08 million acres) of Vietnam, but only 30 percent remains. Since last May, SK Innovation has provided support to reforestation efforts in a mangrove forest in Tra Vinh province and reforestation research by Ho Chi Minh City University of Technology.

    SK’s relationship with Vietnam has grown over the years. Energy subsidiary SK Innovation has taken part in oil exploration and crude oil production from the country’s offshore oil fields since 1998. SK’s construction unit, SK E&C, has helped build petroleum complex projects in the country.

    Chey also participated in the Hanoi Forum Friday and Saturday.

    The Korea Foundation for Advanced Studies, an academic non-profit organization, and Vietnam National University in Hanoi jointly launched the forum this year to encourage academic cooperation between the two allies.

    Korea Inc. has been paying increasing attention to Vietnam as an alternative investment destination to China. Vietnam is expediting privatization amid a difficult fiscal situation, putting on sale several government-owned companies.

    In late October, Samsung Electronics Vice Chairman Lee Jae-yong paid a visit to Vietnam and vowed to increase investment during a meeting with the Vietnamese prime minister. Samsung Electronics operates major phone manufacturing lines in Vietnam, which has helped Vietnam become the second-largest exporter of mobile phones after China. As a manufacturing location, Vietnam serves as an important strategic partner for many Korean companies’ global supply chain.

    LG Display and textile giant Hyosung are also Korean companies with manufacturing units in Vietnam.

    During President Moon Jae-in’s visit to the country earlier this year, senior executives from SK and Samsung were in the president’s entourage in an effort to establish stronger business relations.

    In 2017, Korea placed second in terms of direct foreign investment in Vietnam, following Japan. Vietnam is currently Korea’s fourth-largest export partner.

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  • Hyundai to unveil new large SUV Palisade

    Hyundai to unveil new large SUV Palisade

    Hyundai Motor’s new large SUV, set to be unveiled at the Los Angeles Auto Show later this month, will be called the Palisade. According to the carmaker Friday, its new model for the 2020 model year will be revealed on Nov. 28 during a press event at the L.A. motor show.

    The company will start taking preorders for the SUV in the Korean market starting at the end of this month, earlier than other countries. Hyundai Motor America said Thursday the car will be available in the U.S. market in the summer of 2019. Hyundai said the SUV was named after Pacific Palisades in southern California, an affluent neighborhood that boasts a series of coastal cliffs. The carmaker is hoping that the Palisade will live up to its premium-sounding name.

    The three-row SUV will offer seven or eight passenger seats, according to a spokesperson from Hyundai Motor. The major focus in designing the car is enabling everybody inside the car, even those in the third row, can enjoy their own space. In some vehicles with third rows, space is tight.

    The carmaker said its new Palisade will offer the most seating space among competing vehicles in the same segment. It also promised diverse seat adjustment options and an easy-to-use interface for adjusting car settings for passenger convenience.

    “For large SUVs, carmakers need to offer more value than just the basic driving performance,” a Hyundai spokesman said. “The spacious interior and intuitive interface for safety and convenience services offered in the car are its competitive edge.”

    The carmaker is expecting a lot from this vehicle, as it in hopes to make the Palisade its flagship SUV model when families are increasingly lean towards bigger SUVs over sedans. The Palisade will replace the Max Cruze (Santa Fe XL overseas) as Hyundai’s largest SUV.

    Specifications and pricing for the Palisade were not released on Friday.

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