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KOREA REPORT - FEBRUARY, 2023.
TOPICS.
Helping
rebuild Turkey following the earthquakes that killed at least 35,000 people is
the new priority for SKorea, Foreign Ministry said on
15th, moving away from the role of first responders to helping Ankara set
¡°long-term recovery goals.¡± Seoul is to field a second rescue team on 16th.
¡°It¡¯s all about reconstruction now, rather than rescue,¡± senior ministry
official said. The official noted that second team replacing current 118 member
mission staying in Antakya, will not only deliver relief packages worth KW1 bil
($780,000), but share expertise in facilitating return to life before the
tragedy. Read more¡¦
NK is
already prepared to conduct another nuclear test, but is biding its time to
gain leverage in negotiations with China and other powers, according to Rep. Tae Yong-ho, former NKorean diplomat. Tae said
on 2nd that whether NK decides to test its nuclear weapons for the seventh time
was ¡°between Kim Jong-un and Xi Jinping.¡± ¡°The question of the next nuclear
test is a useful card for Kim to play in leveraging economic assistance from
China. Read more¡¦
SKorea's
extended export slump is attributable to higher energy prices, falling chip
shipments and lower demand from China,
Finance Minister Choo Kyung-ho said on 16th. In Jan, SKorea suffered an
all-time monthly high trade deficit of $12.69 bil, far higher than previous
record of $9.44 bil set in Aug last year. The economy, which relies heavily on
imports for its energy demand, has suffered a trade deficit for 11 straight
months. Read more¡¦
SKorea
suffered a trade deficit of $5.3 bil in Feb,
first time since 1997 that the country has logged trade deficit for 12 months
in a row. Outbound shipments fell 7.5% on-year to $50.1 bil. The decline came
as exports of semiconductors dived 42.5% on falling demand and a drop in chip
prices. Exports to China sank 24.2% to $9.88 bil in Feb, extending losing
streak to ninth month. Exports to the US rose 16.2% to $9 bil on solid demand
for cars, batteries and other related items, and those bound for the EU climbed
13.2% to $6.2 bil. Imports rose 3.6% on-year to $55.4 bil, as energy imports
went up 19.7% on-year.
SKorea¡¯s
top four financial groups, Shinhan, KB, Hana and Woori, saw their combined net
profit last year hitting a record high of KW15.85 tril ($12.53 bil), largely buoyed by robust interest. This figure broke last year¡¯s
record of KW14.54 tril, as there was 8.99% increase in net profit on-year.
Shinhan reclaimed the top position by posting a net profit of KW4.64 tril. KB
marked KW4.41 tril net profit, while Hana achieved KW3.62 tril. Woori logged
the lowest net profit at KW3.16 tril, but this figure is still 22.47% higher
than its 2021 figure. Read more¡¦
SKorean
tech giants are shifting their production operations away from China to India
to lessen the damage from lingering uncertainties
surrounding the US-China rivalry and to tap further into world's fifth-largest
economy. Samsung Electronics (SEC) has recently decided to produce latest
Galaxy S23 flagship smartphones in India for local sales. SEC has been
operating world¡¯s largest mobile manufacturing plant in Noida, which is backed
by Indian government¡¯s tax benefits. Read more¡¦
Artificial
intelligence has become a part of our lives, sparking innovation around every
corner. California-based startup OpenAI released ChatGPT to the public
in Nov last year and gained over 1 mil users within a week. The AI-powered
chatbot is already being hailed as a game changer for various industries with
its ability to learn and adapt quickly to new information as it was designed to
generate responses in a conversational style. ChatGPT is the latest evolution
of the GPT, Generative Pre-Trained Transformer, a family of text-generating
AIs. Read more¡¦
SKorea's
foreign reserves came to $425.29 bil as of end Feb, down
$4.68 bil on-month, shrinking for the first time in four months as stronger
dollar reduced conversion value of holdings in other currencies. Foreign
securities came to $374.49 bil, which accounted for 88.1% of total foreign
reserves. The value of deposits stood at $26.75 bil. SKorea was ranked world's
ninth-largest holder of foreign reserves at the end of Jan.
SKorea¡¯s
consumer prices rose 4.8% on-year in Feb,
falling below 5% for first time in 10 months. The prices of agricultural,
fisheries and livestock products moved up 1.1% on-year. Industrial product
prices increased 5.1% on-year, due mainly to rises in diesel and bread costs,
which advanced 17.7% and 4.8%. Those of gasoline and computers moved down 7.6%
and 6%. Core inflation rose 4% on-year in Feb. Prices of utility services went
up 28.4% on-year, a new high amid soaring energy prices.
Hanwha
Group received approval of planned takeover of DSME from Turkish authorities.
Hanwha Group must pass screenings from authorities of eight countries including
SKorea, the EU, Japan, China, Singapore, Turkey, Vietnam, and the UK. Most of the new vessel orders in the shipbuilding industry come
from overseas shipowners, so the merger can only be completed after obtaining
permission from competition authorities. Also, British authorities have given
an effective approval. Read more¡¦
SKorean
shipbuilding industry, known for its success in building LNG carriers over the
past 20 years, is now shifting its focus to the future by investing in
next-generation eco-friendly technologies. KSOE recently signed a Joint
Development Project (JDP) agreement with Lloyd's Register to develop new cargo handling system (CHS) for 12K cbm liquefied
carbon dioxide (LCO2) carriers. KSOE will create the CHS and receive an
Approval in Principle (AiP) from LR. Read more¡¦
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Report – February 2023¡· in a
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