Korean Gov't to Inject 2 Tril. Won Into Biotech Industry
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FOCUS INDUSTRY ICT CAUGHT IN THE CROSSFIRE A TARIFF BOMB OF 2 TRIL. WON DREAMING A ROBOT EMPIRE US-China Trade War Threatening Hyundai, Kia to Face Huge Extra Burden When LG Makes Foray into Smart Factory S. Korea’s Exports US Imposes Tariffs on Imported Cars Market in China AUGUST 2018 / VOL. 32 NO. 386 www.businesskorea.co.kr Korean Gov’t to Inject 2 Tril. Won into Biotech Industry 12,000 won 08 ISSN 1016-5304 Contents 2018 / Vol.32 No.386 FOCUS 08 A Local Asset Management Firm Calls for Eviction of Macquarie from Domestic Market NATIONAL 10 US-China Trade War Threatening S. Korea’s Exports 11 S. Korea, India Agree to Open Additional Markets Including Service Sector 12 S. Korea’s Current Account Surplus Reaches Eight-month High Record High Inward FDI 13 Dongah Construction Claiming Rights to Sunken Russian Vessel Donskoii 14 More Incentives Needed for Companies Returning Home Visa Rules on Foreign Scholars Eased 15 U.S. Issues Warning against Companies Trading with N. Korea Will AIIB Invest in N. Korea Infrastructure? 16 Korea’s 3 State-run Resource Developers Lose Nearly 16 Tril. Won from Overseas Projects 17 South Korea Builds Hospital for Moms and Children in Paraguay 18 Korean Investment in India Expected to Increase Significantly 19 S. Korea’s Exports Top $50 Bil. for Fourth Consecutive Month in June 20 Mayor Park Pledges to Make Incheon a ‘Special Peace City in Northeast Asia’ COVER STORY 22 Korean Gov’t to Inject 2 Tril. Won into Biotech Industry While Easing Regulations 24 Korean Refineries, Chemical Firms Look to Biotech for Future Growth 25 S. Korean SMEs Scramble to Acquire Foreign Biotech Firms 26 Korean Bio-Health Venture Companies Gathering in Osong 27 A String of Bad Events Raises Questions about Growth Potential of Korean Bio Industry MONEY 28 Non-bank Financial Groups Need to Expand Capital under New Rule 29 Number of 1 Trillion Won KOSDAQ Companies Drops Sharply 10 Enough to Avert Financial Crisis? 30 Multiple Major IPOs around the Corner in Seoul Bourse 31 Will S. Korean Gov’t Phase in IFRS17 and K-ICS in Insurance Industry? 32 Foreign Investors’ Korean Bond Holdings Hit Record High 33 Foreign Financial Firms Send Nearly 7 Tril. Won to Headquarters for Past 5 Yrs. 34 KOSDAQ Venture Funds Fuel Bio Stock Bubbles 35 KDB, Korea Eximbank Provide 8.7 Tril. Won to Korean Firms for Overseas Expansion 36 Foreign Investors Continued to Dump Korean Stocks in June 37 Only Asian Investors Net Purchase S. Korean Stocks 38 Short Sellers Target Samsung Group Affiliates 36 ICT 40 Samsung, Tencent Forge an Alliance to Face Apple and Google 41 Korean Gov't Launches System Semiconductor Design Support Center 42 Competition Heating Up for Leadership in Foldable Smartphone Development 43 S. Korean Internet Portals Aim for Video Sharing Market 44 Debate over Network Neutrality Rekindled as 5G Era Approaches 45 Korean Banks to Roll out Blockchain-based Authentication Service 46 Korea’s Three Mobile Carriers to Roll out 5G Services On Same Day Next March 47 Google Launches Android Auto in Korea 48 Is Global Memory Chip Boom Coming to an End? 41 04 49 S. Korea to Make Massive Investment in Nano Technology 50 Competition Getting Severe to Secure Leadership in AI Speaker Ecosystem 51 Chinese Firms Seeking to Undermine Samsung’s Dominance in OLED Market INDUSTRY 52 Hyundai, Kia to Face Huge Extra Burden When US Imposes Tariffs on Imported Cars 53 Patent Right Protection in S. Korea Still Far From Adequate 54 S.Korea’s Petroleum Product Exports Hit a New High Again S. Korea EV Market is Entering a Stage of Popularization 53 55 Korean Auto Parts Manufacturers Are Being Driven into Dead End 56 Korean Research Hospitals to Be Allowed to Establish Bio Ventures 57 Medical Device Stocks Get Big Boost from Korean Gov't Deregulation Initiative 58 S. Korea’s Two Big Shipbuilders Suffer from Severe Deficits 59 S. Korean Steel Companies Going Through Tough Times 60 S. Korea to Work with US, UAE for Nuclear Power Plant Project in Saudi Arabia 61 S. Korea's Key Manufacturing Industries in Structural Crisis IR & MANAGEMENT 62 Concerns Grow over the Rush to Introduce Stewardship Code 66 63 Could NPS Prevent Corporate Owner Families from Lining Their Own Pockets? 64 Korean Companies’ Profitability Stays at Lowest Level among 17 Nations 65 NPS Excludes Management Participation from Stewardship Code 72 Hyundai Motor Decides to Invest in Car 66 Korean Gov't Moving to Toughen Rules on Holding Companies Sharing Start-Up in Australia 68 Will the New LG Chairman Change the Group’s Conservative Management? 73 VisualCamp Successfully Attracts 69 'Asiana Chairman Was Not Honest in Press Conference': Meal Supplier Says Investment of 1.85 Billion Won 74 Venture Capital Invigoration Is Key to SME & STARTUP Faster Economic Growth 70 Korea's Fresh Venture Investment Reaches Record High in 1H 71 ‘Korean Startup Town’ to Be Built in India SCIENCE & TECHNOLOGY 76 World's First Antarctic Microbial Blood Preservative Developed Agelas Extracts Effective in Treating Looking for Liver Cancer a house, apartment or office? 77 Researchers Develop Artificial Nerves Real Estate & Relocation Co, LTD. that Move Dead Insects’ Legs Korean Research Team Discovers a Way We look forward to helping you to find your next dream property anywhere in Seoul. to Enhance Plant Productivity 1. Residential or Commercial Property Searching 3. After Service - Ability to explore and reserve a variety of properties - Moving arrangements and furniture set-up EVENT - Recommendations of suitable properties - Interior decoration and design - Enrollment in fire, theft and other types of insurance 78 ‘Robot World 2018’ to Offer Direction 2. Contract 4. Support for the Fourth Industrial Revolution - Careful review of all related documents - Registration of residence at the local district office, etc - Negotiation of drafting terms and other conditions - School enrollment for children, etc - Closing lease agreement in contract - Assistance for opening a bank account, etc LIFESTYLE 80 K-beauty Fever in Mexico and Europe Korea's Largest Cruise Terminal to Open in Incheon Next April 81 Lotte World Adventure to Develop ) www.rentcorea.com email. [email protected] Head Office 02 730-0001 Theme Park-Type VR Corporate Headquarters : RentCorea B/D 1F~2F, #36-1, Seongbuk-dong, Seongbuk-ku, Seoul, Korea. Shinsegae Chosun Hotel to break into Registration No.209-06-83139. Permit No.9230000-1709. The President/Realtor. Kiwan, Sung. hotel business on Jeju Island 05 Korea’s Most Influential Business Monthly Since 1983 TO OUR READERS S. Korea, Publisher & Editor-in-Chief: Park Jung-hwan Nation Hard Managing Editor: Youn Won-chang, Matthew Weigand General Editor: Lee Kwang-soo Culture/Tourism Editor: Choi Mun-hee Supplementary Editor: Lee Song-hoon to Run Business Reporter: Cho Jin-young, Marie Kim, Jung Suk-yee, Jung Min-hee, Michael Hurh, Sara Rai Contributing Writers: Seok Joon, Suh Bo-yun, Gho Chang-soo Designer: Jang Seung-eun International Liaison: Sara Rai On July 9, South Korean President Moon Advertising Manager: Jung eui-jung Administration Manager: Jung Min-hee Jae-in attended Samsung Electronics’ new Circulation Manager: Lim Moon-joo smartphone factory completion ceremony in PUBLISHED BY : BusinessKorea Co., Ltd. : 301 Samdo Building, 12-1 Yeoido-dong, Yeongdeungpo-gu, Seoul, Korea 150-010 Noida, Uttar Pradesh Province in northern India. While greeting President Mailing Add.: 301 Samdo Building, 12-1 Yeoido-dong, Yeongdeungpo-gu, Seoul, Korea 150-010 Moon, Samsung Electronics vice chairman Lee Jae-yong bowed deeply at the Tel: (02)578-3220 Fax: (02)578-3224 Government Registration Number: RA-2743 Dated March 18, 1983. waist several times. I wonder how Indian Prime Minister Narendra Modi, who Printed by Hwashin Printing Tel: (02)2277-0624 saw the scene, would think of it. Did he think it’s just a courtesy for the leader of the nation? Overseas Representatives Australia Samsung Electronics invested US$650 million in the Noida plant. It is McLean Media Representations Pty., Ltd. P.O.Box 544, Newtown NSW 2042, Australia the biggest mobile phone manufacturing plant in the world. With the comple- Tel: (612) 519-6455, Fax: (612) 577-1614 Belgium tion, the new plant will produce 120 million mobile phones a year. This will Staf Wuyts, AD International Bld. Lambermont 140 B-1030 Brussels, Belgium create 35,000 jobs in India. President Moon mentioned the Noida plant as “a Tel: (02) 216-0730, Fax: (02) 216-4632 Canada symbol of mutual growth cooperation between India and South Korea” at the Globe Media International 444 Front Street West, Toronto, Ontario, Canada M5V 2S9 ceremony. Tel: (416) 585-5415, Tlx: 06-219629, Fax: (416) 585-5275 Finland However, Samsung, which created such a strong diplomatic asset for the Seppo Lehtinen, Seppo Lehtinen Oy Fredrikinkatu 33 B, 00120 Helsinki, Finland nation, wasn’t treated properly. When cutting tapes, vice chairman Lee was Tel: (90) 611471, 647412, Tlx: 12-2814 sigco sf, Fax: (90)609114 Germany pushed aside. President Moon and Prime Minister Modi stood at the center. Franz Brunsing, Industrial Export Services Buttgenweg 18, D 4000 Dusseldorf 11, Federal Republic of Germany Minister Hong Jong-hak of the Ministry of SMEs and Startups (MSS) and Tel: (0211) 59 26 22, Tlx: 8587465 SERV D, Fax: 49-211-59-611-43 Hong Kong Foreign Minister Kang Kyung-wha stood by President Moon and then Vice Serina Cheung, Managing Director, Media Services Network 10/F Flat A, Sun Hey Mansion, 72 Hennessy Road, Wanchai, Hong Kong Chairman Lee. Only people directly involved will know whether the power Tel: 529-3677, Fax: 866-2398 Indonesia Yoly de Rivera made such a request or Samsung voluntarily did so studying the pleasure of P.T.