1. Subject: Woori Investment eyeing Asian market
Date: 9 June 2010
Source: Korea Herald Newspaper
Woori Investment & Securities is set to become a player in Asia's regional financial markets, expanding its business overseas. Within the year, Woori Investment & Securities plans to integrate the research center in Beijing and a liaison office in Shanghai into a consultative body, and it will work in line with the investment bank (IB) team in Korea to invigorate business in China. Woori Investment CEO Hwang Sung-ho announced in a press conference, marking the first anniversary of his inauguration in Seoul, Tuesday.
Although its IB center in Singapore swung into the black just two years after its establishment, the first to be set up by a Korean securities company there, its business in Asia's second largest economy has yet to boom. Aside from China, Hwang said Woori, one of the top three players in the local securities industry, is also paying attention to countries in Southeast Asia. It has launched our business - retail banking and IB - in Vietnam and Indonesia on a full scale.
In Indonesia, Woori acquired 60 percent stake of PT Clemont Securities Indonesia in October 2008, thus advancing into the Indonesian financial market at a low cost and with less risk. It plans to expand its income base mainly through IB and brokerage there.
In Vietnam, it acquired a 49 percent stake in Chung khoan Bien Viet in February 2009. Woori has been running an office in Ho Chi Minh since November 2007 looking for business opportunities and examining the market there. The Vietnamese business is currently working closely with the Singapore IB center and Seoul headquarters. Woori Korindo Securities in Indonesia will launch an online trading system next month.
Meanwhile, Woori is cruising to meet its expectation of becoming "the No. 1 financial investment company in every single rank”. It plans to make up for the brokerage sector offline to climb to the top spot. Hence, Hwang had a negative view on the piecemeal sale of Woori Investment & Securities in terms of the privatization of the Woori Financial Group. "A holding company without a non-banking financial firm cannot get a high rating," he said. "That method is not desirable for the financial development and is improbable."
2. Subject: Import cars attracting young, cost-conscious
Date: June 10, 2010
Source: Joongang Daily News
Car imports are rising - and along with that growth, they’re getting smaller and cheaper, according to a report from the Korea Automobile Importers and Distributors Association yesterday.
Kaida said 74.4 percent of imported vehicles sold in the first five months of the year had engines smaller than 3,000 cubic centimeters, up from 68.9 percent for all of last year. At 5 percent, sales of cars with larger engines hit their lowest percentage since 1995.
Due to the increasing popularity of lower-capacity vehicles, the midsize vehicle market is heating up. The Toyota Camry and Volkswagen Golf both grabbed the attention of Korean customers with competitive prices, and helped their manufacturers end up ranked second and fourth respectively among imported vehicle makers from January to May. Thanks to the discounts, the two models are priced closer to their popular domestic competitors such as the Hyundai Sonata.
Both Mercedes-Benz and BMW lowered their premium sedan prices, boosting their sales rankings to first and third, respectively. The BMW New 5 series in particular generated tremendous popularity, with the number of orders surpassing the number of available vehicles.
Among age groups, customers in their 20s and 30s purchased more imported vehicles, with the young people accounting for 38.9 percent of all foreign car sales from January to May, up from 35.4 percent in 2009 overall. Meanwhile, customers in their 40s and 50s bought less than half of imported cars, 48.9 percent, down from 50.6 percent in 2009. Those in their 30s were most likely to opt for an imported vehicle over a local model.
More auto shoppers are also choosing diesel models, a shift from a long-held preference for gasoline. Last year, 22.4 percent of car imports were diesel-powered, but that rose to 24.8 percent in the first five months of 2010. Three of Volkswagen’s diesel models were selling particularly briskly as of May, Kaida said.
Meanwhile, the Ford Taurus was the second-most popular import in April, the first time an American brand had made it to the top five since the Chrysler 300C 2.0 Diesel 14 months ago. Sales of foreign sport-utility vehicles fell, with the release of domestic models such as the Kia Sportage R.
Still, the future is bright for imports overall. With the release of the Mitsubishi Outlander 2.4L in April, other brands are trying to win the local hearts in the second half. Suzuki, Honda with the Insight and Peugeot with its 207 are all eyeing the Korean market with competitive prices. Yoon Dae-seong, executive director at Kaida, said, “The import vehicle market, with its 7 percent growth this year, is grabbing the younger generation’s attention, and we believe that we will easily exceed the sales target for this year.”
3. Subject: Retailers look forward to summer’s arrival
Date: June 09, 2010
Source: Dong-A Ilbo Newspaper
Prospects for local retail in the coming months appear bright, with many stores feeling optimistic about demand in the third quarter, according to a poll released yesterday.
The retail business survey index, compiled by the Korea Chamber of Commerce and Industry, rose for the fifth straight quarter to hit 122 points.
A figure above 100 means there are more optimists than pessimists, while an index below 100 signifies the opposite.
The survey was conducted from April 29 to June 1 and includes responses from 945 retailers including large discount chains, department stores and convenience stores.
“The rise in the index is largely tied to the economic recovery, but the hot weather is also boosting sales for leisure items that consumers enjoy in the summer,” said a KCCI official.
The index for home shopping firms led the pack at 129 points, followed by large discount stores (125 points), convenience stores (123 points), department stores (120 points), online trading firms (120 points) and supermarkets (116 points).
Home shopping firms expect their sales to increase in line with the rising demand for summer items.
Discount stores also hope that they will see a spike in demand for seasonal items including fruit and summer clothing such as swimsuits, camping gear and tools, according to the survey.
“The various sales promotions and events organized by the top three discount stores and their online malls will create synergy that helps sales grow,” the official said.
Convenience stores and supermarkets could benefit from an expected rise in consumer spending in the evening on items such as alcohol, finger foods and ice cream, which help people keep cool. Higher-income families will likely ratchet up spending as well in coming months, helping boost sales for department stores, according to the chamber.
“Amid the rise in spending and sales, competition in the retail industry will likely become more fierce, while each retailer will try to differentiate itself by promoting various marketing events,” said Kim Seung-sik from the chamber’s retail department.
4. Subject: Job market on the upswing
May employment figures inch up 2.5 percent from previous year
Date: June 10, 2010
Source: Yonhap News
More people were newly employed in May than in any month during the previous eight years, as the Korean employment rate reached a 19-month high.
Last month 24.3 million people had jobs - 586,000, or 2.5 percent, more than were employed at the same time in 2009.
That number reflects the largest group of new hires in a single month since April 2002.
Statistics Korea said last month’s employment rate was 60 percent, a 0.7 percentage point higher than May 2009, while the unemployment rate fell a 0.6 percentage point to 3.2 percent.
The employment rate has been on the rise for four consecutive months.
This is the second consecutive month that the unemployment rate is in the 3 percent range, an indication that the job market is rapidly improving.
The private sector saw the most new recruitment since July 2002, adding 517,000 in May. The employment rate in the private sector has been growing rapidly since February, when 142,000 people were added to payrolls.
That number increased to 192,000 in March and more than 300,000 in April.
The Ministry of Strategy and Finance attributed the continuing economic recovery to improvement in the job market. In the first three months, the economy posted an 8.1 percent on-year growth, higher than earlier forecasts.
The ministry added that job market recovery is getting stronger as private consumption increases amid higher manufacturing production rates thanks to rising export and larger investments.
The ministry also forecast that employment in the private sector will likely expand in the second half of the year if the economy keeps to its current course, while the job market in the public sector may drop, largely because that sector increased hiring last year in a move to ease the pinch from the economic downturn.
However, unemployment among young people still remains an issue. The number of employed people in their 20s fell 1.3 percent on-year to 3.82 million, while those in their 30s remained unchanged from the previous year, 5.86 million.
5.Subject: Cheong Wa Dae (Blue House) should lead hansik globalization
Date: 7 June 2010
Source: Korea Times
The globalization of hansik (Korean cuisine) is one of the government's main initiatives, but businessman Cho Tae-kwon believes it will take more than just lip service and money to get solid results. Korean cuisine and crafts should be showcased in the dining halls of power, starting with Cheong Wa Dae.
"The country is very serious about this issue but what they have to do is not just pour money into organizations to pursue this issue. What they have to do is really to make Cheong Wa Dae a showcase of Korean crafts... Let's have Cheong Wa Dae represent our food to all the visitors going there, and the ambassadors' residences abroad, where they are entertaining the VIPs of the country. We have to show them first and let them experience Korean cuisine," Cho told The Korea Times, in an interview at his office in Yangjae-dong, Wednesday.
Cho, CEO of local ceramic ware maker KwangJuYo, is known as an outspoken advocate for the globalization of Korean food in recent years. Aside from KwangJuYo's exquisite hand-made ceramics, Cho's businesses also include Hwayo, a distiller of soju, and a Korean-style pub Knock Knock.
Cho has been steadfast in his belief that the only way to pursue the globalization of Korean cuisine is to start with the high-end. And once high-end Korean cuisine is accepted overseas, it is expected to lead to the mushrooming of mid- and low-priced Korean restaurants.
"Why am I really trying to be a top-class restaurant serving the best food and the best spirits? It's because nobody has done it and we don't have a successful case yet. To be successful, someone has to recognize it. Culture flows from the top to the bottom," he said.
One of the biggest stumbling blocks to the globalization of Korean cuisine just might be the Korean people's low regard for food and reluctance to pay more for Korean haute cuisine.
"If you look at Korean restaurants, they are all at the low-end. But one thing that I find really funny is you can find people from the bottom to the top level of society in these restaurants. Around 95 percent of the market's price range is from 3,500 to 7,000 won. Why? For Koreans, food is just something they just need to survive," he said.
To better promote Korean cuisine overseas, he envisioned a high-end Korean restaurant that serves only the best food and liquor on beautiful ceramic dishes, with a luxurious atmosphere.
Putting his money where his mouth is, Cho decided to open an ambitious fine dining Korean restaurant called the Gaon in Apgujeong in 2003. The menu featured modern reinterpretations of traditional Korean dishes, using only high quality organic ingredients. Unlike traditional Korean hanjeongsik where all the dishes are served on the table at the same time, Gaon adopted a Western-style multi-course meal.
Cho sought to bring together the elements of food, liquor, interior design, architecture, ceramics and costumes in the restaurant. ``I'm like an editor of Korean culture. Everything should be balanced and harmonized. If I'm drinking $100 liquor, I should be eating $100 food. I have to consider the tableware, silverware, atmosphere of the place... All of our history and civilization is in the table of food,'' he added.
However, due to various reasons, the restaurant was shuttered in late 2008. "Everyone said I failed. If I was making products, yes, you could say I failed. But it's not products. This is culture and culture never disappears. It accumulates and becomes invisible assets of Korean culture," Cho said.
Still, Gaon made its mark by introducing the concept of excellent, fine dining Korean cuisine. Even though Gaon was not exactly a success, this hasn't stopped others from trying to replicate its concept. Cho's daughter Lucy, who is also a budding chef, has noticed a domino effect, with several new restaurants attempting the same thing as Gaon. It might only be a matter of time before a restaurant succeeds.
"If that becomes successful, then everybody will follow. Because no one has been successful yet that's why people are afraid to do it," Cho said.
Cho hopes that local conglomerates will become more involved in the globalization of hansik.
"I really hope I can make a coalition with them. It can be done in a year. I'm pretty sure that they're not interested, and that's the problem, but one day they will, because this is the only way we can improve ourselves in order to be an advanced country," he said.
Office of Commercial Affairs, Royal Thai Embassy in Korea
Source : http://www.depthai.go.th