Korean Aviation Industry on a Precipice
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FOCUS MONEY INDUSTRY DETERIORATING BUSINESS CONDITIONS DIVIDEND YIELD RATIO AVERAGES 2.3% A 'PRODUCTION CLIFF' S. Korean Oil Refining Companies KOSPI-listed Companies Reduce Korean Companies’ Overseas Factory Facing Triple Whammy Dividend Last Year Shutdowns to Continue until May MARCH/APRIL 2020 / VOL.37 NO.395 www.businesskorea.co.kr Korean Aviation Industry on a Precipice 12,000 won 03/04 ISSN 1016-5304 Contents 2020 / Vol.37 No.395 18 South Korean Government Announces 36 Operating and Net Profits of Listed 50-Tril.-Won-Plus Financing Package Companies Nosedive South Korea’s Fiscal Soundness Worst Large Number of Companies Facing in Decade Credit Rating Cut 19 South Korea’s Government Bond 37 Agenda Items Rejected in Multiple Issuance Hits All-time High in Q1 Listed Companies Korean Government Working on Mandatory External Audit Applied to Largest Supplementary Budget Certain PEFs 20 S. Korean Government to Raise 40 Tril. 38 Korean Investors’ Direct Purchases of Won to Assist 7 Key Industries Overseas Stocks Hit a New High in Q1 S. Korean Government to Set up New of 2020 SPV to Buy More CBs and CPs Foreign Derivatives Trading by Local 21 Reshoring from China Becoming Increasingly Investors Increases Substantially in Q1 Important after Coronavirus Shock 39 Net Assets of Overseas Investment South Korean Government Still Passive Funds Fall 7 Tril. Won in March in Promoting Reshoring Foreign Investors Increase Investment in ETFs 40 4 Virtual Asset Exchanges’ Sales Plunge by 600 Bil. Won in 2019 COVER STORY Competition Intensifying in Dollar 22 South Korean Airlines on the Edge of Insurance Market a Precipice 41 Financial Holding Companies Enhance Capabilities in Insurance Sector FOCUS MONEY 08 South Korean Oil Refining Companies 28 BOK Keeps Benchmark Interest Rate ICT Facing Triple Whammy Frozen at 0.75% 42 R&D Investments by Korean ICT BOK’s Foreign Currency Asset Companies Top 40 Tril. Won in 2018 NATIONAL Management Profit Totals 11.8 Tril. Won 43 Samsung Electronics in Talks with in 2019 Chinese Government to Dispatch 10 CNN Reports N.K. Leader Kim Jong-un 29 Banks' Demand for U.S. Dollars Falls Engineers to Xian Chip Plant 'in Grave Danger after Surgery' Short of Supply LG Display Planning to Dispatch U.S. President Rejects South Korea’s Foreign Currency Deposits Increase Officials to OLED Factory in Guangzhou Defense Cost Offer Substantially Through a Charter Flight 11 South Korea's Ruling Camp Secures Full 30 Banks Advised to Prepare for 44 SK Telecom Accounts for 44.7% of 5G Control of National Assembly Completely New Post-COVID-19 Market in Korea with 2.22 Mil. Users Gangneung-Jejin Railway Section to be Paradigms 45 South Korea Comes in First in 5G Restored Bank of Korea to Provide Loans to Penetration Rate 12 U.S. Embassy in Seoul Suspends Visa Issuance Securities Firms with Corporate Bonds 46 First Exception to Network Separation South Korean Government Tightens as Collateral Expected to Accelerate Fintech Innovation Entry Restrictions 31 Corporate Bond Market Working Well Netflix Refuses to Pay Network Fees 13 S. Korea, China Agree on 'Fast Track' for Despite Concerns By Yoon Young-sil 47 Samsung Electronics Enhances Chip Business People over Crisis Production Efficiency Through Process Number of Travelers to and from Corporate Bond Issuance Market Improvement S. Korea Plunges 92% in March Showing Tendency of Polarization 48 Samsung Cooperating with Rival Companies 14 Foreign Direct Investment in Korea 32 The Amount of Outstanding Bonds Hits to Achieves No. 1 in System Semiconductors Plunges 18 percent amid COVID-19 Crisis Record High of 2,100 Tril. Won Samsung Electronics to Expand South Korea's Foreign Exchange Dividend Payment Likely to Lead to Signage and Foundry Businesses Reserves Show Substantial Decrease Current Account Deficit 49 COVID-19 Disrupts Samsung’s Plan to Mass 15 More Foreign Currency Liquidity to be 33 Shinhan Bank Considering Selling Part Produce EUV-based 5-nm Semiconductors Supplied in Forex Swap Market of Its Stake in Shinhan Bank China Samsung Electronics Ranks 1st in U.S. Effects of U.S.-Korea Currency Swap South Korean Banks Focusing on Patent Registrations for 3 Years Running Likely to Be Short-lived Myanmar's Growth Potential 50 China Becoming Increasingly Aggressive 16 Moody’s Maintains South Korea’s Credit 34 USAO and NYSDFS Imposes US$86 Mil. in Semiconductor Industry Rating and Outlook Fine on IBK 51 Samsung and LG Facing Patent S&P Maintains Sovereign Credit Rating FSS Makes Issue of Internal Control of Litigation in the United States and Outlook for South Korea J.P. Morgan Securities Seoul KT Leading Quantum Communication 17 S. Korean Economy Contracts 1.4% on 35 6 Financial Groups Required to Disclose Technology Standardization Efforts Quarter in Q1, Worst in Decade Governance and Internal Transactions 52 SKT Pushing for International Deflation Looming Large in South from September Standardization of 5G MEC Interworking Korean Economy 30% Market Cap Limit Abolished Technology 04 SK Telecom’s Quantum Key Distribution 62 Three Korean Battery Makers to Hanjin Group Chairman Cho Technology Approved as International Continue Massive Investment in 2020 Reappointed as Inside Director of Standard 63 U.S. ITC to Review Default Judgment Hanjin KAL 53 LG Uplus Exports 5G VR Content to against SK Innovation 71 Shin Dong-bin Takes Full Control of PCCW Group in Hong Kong Battery Companies and Automakers Lotte’s Operations in Korea and Japan Despite U.S. Pressures, More Countries Racing to Develop Allsolid-state Batteries Brotherly Feud Reignited at Lotte Group Approve Use of Huawei 5G Equipment 64 Korea’s Share of Global Shipbuilding 54 OLED Display Panel Sales Forecast to Orders Plunges to 4% SME & STARTUP Enjoy Double-Digit Growth This Year Qatar Signs Deal for First of 120 LNG World Demand for Displays Forecast to Newbuilding Slots with Chinese 72 Government to Prepare 81 Venture Drop 10% Due to COVID-19 Shipbuilder Funds This Year 55 LG Electronics Takes Lead in Narrowing 65 Korea and Japan Fail to Iron Out 73 Startups and Venture Firms Valued over Price Gap between OLED TVs and LCD TVs Differences over Hyundai Heavy 100 Bil. Won Increase 5 Times in 4 Years LG Electronics Makes Investment in AI and Industries-DSME Merger 9 out of 10 Auto Parts Makers Say They Platform Startups at Home and Abroad 66 Korean Steelmakers’ Overseas Plants Have Liquidity Problems Shut Down Due to COVID-19 Spread Korean Steelmakers Driven to Reduce EVENT INDUSTRY Production 56 Samsung Electronics, LG Electronics, 67 Government to Provide 1.25 Tril. Won in 74 BIO KOREA 2020 to Go Fully Digital with Hyundai Motor Shut down Plants in U.S. Emergency Funds to Shipping Companies e-Conference, Online Meeting, and and Europe HMM Raises 720 Bil. Won by Issuing Virtual Exhibition from May 18 to 23 57 Korean Companies’ Overseas Factory Convertible Bonds 75 Egg Drop Supports Production of tvN's Shutdowns to Continue until May Thursday Special Drama 58 Domestic Carmakers Suffer Sharp Drop IR & MANAGEMENT in Exports due to COVID-19 SCIENCE & TECHNOLOGY Auto Production and Exports Increase 68 Both FKTU and KCTU Focusing on in March Unions in Samsung Groups 76 Korean Researchers Develop World's 59 Hyundai Motor Allowed to Export Conglomerate Owners Increasing Stock First Skyrmion-based Artificial Synapse Hydrogen Fuel Cell Systems to U.S. and EU Donation and Repurchase Component Environment Ministry Sets Quota for Low- 69 Hyosung Group to Build World's ETRI and SK Telecom Develop Ultra- Emission Vehicles at 15% of Annual Sales Largest Liquefied Hydrogen Plant low-power AI Semiconductor 60 India’s Mahindra Group Scratches Off Doosan Heavy Industries & 77 KAIST Develops Technology for AI- Support Plan for SsangYong Motor Construction to Restructure Itself based High-resolution Image Creation 61 Renault Samsung and GM Korea Exploring 70 Chung Eui-sun Elected as Chairperson of Innovative Encryption Algorithm Ways to Overcome COVID-19 Crisis Hyundai Motor Co.’s Board of Directors Developed in South Korea 78 UNIST Enhances Quantum Dot Solar Cell Efficiency to 11.53% Korean Researchers Analyze RNA Transcript of Coronavirus for First Time Looking for a house, apartment or office? in World 79 KETI Develops High-performance Real Estate & Relocation Co, LTD. 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