2010년 5월 30일 일요일

LG Display Shines Amid Downturn



Rising Demand Curbs Panel Price Drop


The global economic downturn has left a serious dent on some of the world's biggest technology firms, but not LG Display, South Korea's flat panel maker.

The company did go through its share of lows from the end of last year to the beginning of this one, posting two straight quarters of losses due to weak panel prices and sinking demand for electronics. But starting in the second quarter, it rebounded, moving into positive territory as it continuously beat market forecasts.

The world's No. 2 maker of liquid crystal displays (LCDs) earned 302 billion won in the April to June period, which was a sharp turnaround from a 255 billion won loss the previous quarter and the first profit it saw in three quarters.



In the third quarter, LG Display reported 559 billion won in net profit, almost doubling the figure from the previous year, which stood at 295 billion won.

The global slump significantly reduced global demand for LCD panel-equipped consumer electronics, such as televisions and computers. But strong demand for TV panels from China and Japan, coupled with a shortage of raw materials, largely helped push figures up again.

``The LCD industry was fortunate enough to climb out of the downturn quicker than others in the technology sector,'' said Lim Seung-beom, analyst at Hanwha Securities, who forecasts that demand will continue to grow firmly.

And to meet the rising need, LG Display began mass production at its eighth-generation LCD production line in Paju, about 40 kilometers north of Seoul, in March.

Hyundai Motor Spurts Ahead



Kia’s Forte Koup

New Models, Improved Reputation Boost Carmaker



What a year for Hyundai Motor.

Launching upgraded models and opening new plants in emerging markets amid the global recession were no easy achievements, but the South Korean auto giant marched right through and rolled out record results.

Hyundai built up its momentum from the start of the year to eventually hit record quarterly profits.

In the third quarter, the world's No. 4 automaker, combined with its affiliate, Kia, posted a record quarterly net profit of 979.1 billion won, up 270 percent from a year earlier.

Corporate Giants Defy Downturn


The top South Korean firms are successfully exploiting the recession to strengthen their positions in key global markets and expand to new business areas.

LG Maintains Upward Growth Trajectory


LG Electronics continues to build up its brand in key global markets, relying on sleek and sophisticated products such as smart phones, left, and light-emitting diode (LED) backlit liquid-crystal display (LCD) televisions. 

LIG Nex1 Unveils New Military Communication Radio



Tactical multi-band and multi-role radio



LIG Nex1 showcased its up-to-date tactical multi-band and multi-role radio (TMMR) that allows an integrated transmission of voice, image and video data as well as text messages and e-mail, during the Seoul International Aerospace & Defense Exhibition 2009 that ended Sunday.

Changwon Chosen as Host of 2012 IAEC Congress


The opening session of the 11th four-day biennial congress of the International Association of Educating Cities (IAEC) is under way in Guadalajara, southwestern Mexico, on April 22, local time.

Japan PM backs Seoul in seeking response to NK


President Lee Myung-bak, center, joins hands with Japanese Prime Minister Yukio Hatoyama, left, and Chinese Premier Wen Jiabao for a photo prior to the first round of their two-day trilateral summit at the International Convention Center in Seogwipo, Jeju Island, Saturday. The second round of talks, focusing on the crisis brewing on the Korean Peninsula following North Korea's torpedo attack on the South Korean Navy vessel Cheonan in March, will be held Sunday.

Why is China so supportive of NK?



Marcus Noland


Why is it so difficult for China to join the South Korea-led initiative to bring North Korea to the U.N. Security Council and to force the North to take responsibility for its provocative act?

In a nutshell, North Korea is useful for China and therefore the latter wants to keep the former intact, just the way it is, observed Marcus Noland, deputy director of the Peterson Institute for International Economics.

In an interview Friday for the Peterson Perspective series on the rising tensions on the Korean Peninsula, Noland said Beijing doesn't share Washington's interest on the Korean Peninsula in that the former likes to have a divided Korea.

"China can basically have North Korea do things such as cooperate in nuclear weapons programs with Pakistan and then maintain possible deniability," the North Korea watcher said.

Korea, Japan, China to cooperate on Cheona


President Lee Myung-bak, Japanese Prime Minister Yukio Hatoyama, left, and Chinese Premier Wen Jiabao stroll after attending a “2020 Time Capsule” event at the Sculpture Park on Jeju Island Sunday. The Time Capsule contains letters written by 2,020 10th grade students from South Korea, Japan and China in a symbol of close cooperation for the next 10 years.

Joint press release of the third Trilateral Summit Meeting


Joint Press Release of the Third Trilateral Summit Meeting among the Republic of Korea, Japan and the People’s Republic of China
[May 29-30, 2010 Jeju, Republic of Korea]

1. We, the leaders of ROK, Japan and PRC, concurred that, as the third meeting of its kind following the December 2008 Fukuoka Summit and the October 2009 Beijing Summit, the Jeju Summit has strengthened momentum for holding the Trilateral Summit Meeting on a regular basis.

2. We engaged in an in-depth and constructive exchange of views on ways to enhance trilateral cooperation, as well as on regional and global issues, such as the current situation in Northeast Asia and the G20 Summit Meeting.

3. We shared the view that this year’s Trilateral Summit Meeting is all the more meaningful since it comes as we embark on a new decade of trilateral cooperation. We further recognized that the continued development of trilateral cooperation is important not only for the prosperity of the three countries, but also for peace, stability and common prosperity of the region and the world.

2010년 5월 25일 화요일

SM5 Legacy Continues With Redesign


The new and improved SM5, a mid-sized sedan by Renault Samsung Motors, has been garnernig glaring reviews from the local car market

The Red Devils, or official fan club of the South Korean national football team, cheer the Korean players during the 2002 Korea-Japan World Cup match against the United States at Daegu World Cup Stadium on June 10, 2002. The Red Devils brought together offline and online worlds. They refined the concept of nationalism and upgraded national image. The world remembers the images of patriotic and organized gatherings of millions of the Red Devils, which replaced the past memories of militant and angry protesters.

Korea, long divided, will inevitably reunify



Soldiers from South and North Koreas stand guard at Panmunjom inside the Demilitarized Zone that divides the two Koreas in this file photo. The recent North Korean sinking of a South Korean ship has pushed the two Koreas to one of the most dangerous points since the Korean War. / Korea Times

By Ralph Hassig
Adjunct professor
at the University of Maryland University College

Several themes run through the history of inter-Korean relations. First, the Korean nation was divided by foreigners. Second, the division was sustained because of the incompatibility of the two Korean governments. Third, despite their sharp political divisions, the two Koreas have begun to develop economic and social relations. And fourth, the two Koreas will inevitably reunify, although their sharp diversion will make the social and economic costs of reunification staggering.

GS chairman at construction site




GS chairman at construction site: GS Group Chairman Huh Chang-soo, center, talks with managers at the construction site of Mokpo Bridge in Mokpo, South Jeolla Province, Tuesday. GS Engineering & Construction is leading construction of the 4.1 kilometer long bridge linking Mokpo and Goha Island, which is scheduled for completion in June 2012. Huh encouraged GS employees and executives at the site to improve quality and pay heed to safety precautions. 

Changwon Chosen as Host of 2012 IAEC Congress



The opening session of the 11th four-day biennial congress of the International Association of Educating Cities (IAEC) is under way in Guadalajara, southwestern Mexico, on April 22, local time.

Changwon, capital of South Gyeongsang Province, has been chosen as the host of the next general assembly meeting of the International Association of Educating Cities (IAEC) slated for 2012.

The selection was made at the opening day of the 11th four-day IAEC Congress in Guadalajara, southwestern Mexican state of Jalisco, on April 22.

Kim Tae-yul, director of Changwon City in charge of lifelong learning affairs division, and chief of the steering committee of the 12th biennial IAEC World Congress, said in an acceptance speech that the city will successfully host the next general assembly meeting under the theme of "Green Environment, Creative Education" from April 26-28, 2012.

"Our city will be reborn as a mega Changwon on July 1, integrating two neighboring cities of Masan and Jinhae," Kim said. The integrated Changwon will have 1.08 million population, compared to the current half a million population, become the largest primary local administrative unit in Korea.

He introduced "world-class prime city" of Changwon in a video to participants, along with a recorded congratulatory message of Mayor Park, attracting their interest to "Changwon," the first Asian city ever hosting its congress. Mayor Park Wan-su was unable to take part in the congress due to local elections slated for June 2, he added.

IAEC was set up in 1990, aimed at working together on projects and activities for improving the quality of life of city inhabitants according to the approved Educating Cities Charter. It has some 400 member cities from 35 countries.

Park Ji-sung to Promote Asiana Airlines



By Bae Ji-sook
Staff Reporter

Asiana Airlines said Wednesday it has renewed its honorary ambassador contract with the Manchester United striker Park Ji-sung for another year. Park has been honorary ambassador to the flight company for three consecutive years and this will be his fourth.

The carrier will offer free first-class seat tickets to Park and his parents for all service routes, while his staff will also receive free business class tickets.

Yoon Young-doo, CEO of Asiana, said, ``We hope Park inspire use once again at the World Cup.''

2010년 5월 24일 월요일

Hyundai Motor Spurts Ahead


Kia’s Forte Koup

New Models, Improved Reputation Boost Carmaker

By Jane Han
Staff Reporter

What a year for Hyundai Motor.

Launching upgraded models and opening new plants in emerging markets amid the global recession were no easy achievements, but the South Korean auto giant marched right through and rolled out record results.

Hyundai built up its momentum from the start of the year to eventually hit record quarterly profits.

In the third quarter, the world's No. 4 automaker, combined with its affiliate, Kia, posted a record quarterly net profit of 979.1 billion won, up 270 percent from a year earlier.

In the April-to-June period, it earned 811.9 billion won, which was also a strong gain from the previous year.

The better-than-expected results were racked up at a time when the world's top car makers were sinking in the industry's worst-ever downturn. So what was behind the earnings surprise?

Stimulus measures put out by governments around the world boosted demand and the weak currency helped lift sales. But besides these factors, analysts say Hyundai's cheap and fuel-efficient vehicles and lineup of new models largely helped win over consumers who were skittish to spend.

``Hyundai got a nice lift from its new models this year,'' said Sohn Myoung-woo, an analyst at Woori Investment & Securities, adding that the company's strong performance is likely to continue through the fourth quarter.

There are concerns that the Korean firm will see weaker results at the end of this year as the local currency strengthens and governments around the world phase out measures to boost auto demand, says Ko Tae-bong, analyst at IBK Securities.

But he said Hyundai will post higher quarterly results in the October-to-December period with a more diversified sales mix.

LG Maintains Upward Growth Trajectory


LG Electronics continues to build up its brand in key global markets, relying on sleek and sophisticated products such as smart phones, left, and light-emitting diode (LED) backlit liquid-crystal display (LCD) televisions.
/ Korea Times

By Kim Tong-hyung
Staff Reporter

LG Electronics doesn't intend to be in second place forever behind its bitter industry rival Samsung Electronics. And the domestic battle has grown into a global one in recent years, with the two Korean high-tech juggernauts emerging as world beaters at the expense of competitors from Japan, Europe and North America.

Obviously, Samsung clearly has the upper hand in the Korean business sector's fiercest rivalry, as it is now the world's largest maker of consumer electronics products and memory chips.

However, LG is now starting to give Samsung Electronics a run for its money, gaining ground in the two areas Samsung calls its major markets ― flat-screen televisions and mobile phones.

LG recently edged Sony to trail Samsung as the second-largest maker of liquid-crystal display (LCD) televisions. The company is also the world's No. 3 handset vendor behind Nokia and Samsung, passing companies like Sony Ericsson and Motorola.

LG officials believe that 2010 will provide a truer test of the company's mettle, with Samsung eager to cement its leadership, and other global electronics giants such as Sony, Sharp and Motorola looking to put up a stronger fight to regain their lost market share during the recession.

However, LG seems confident of meeting the challenge head-on, inspired by a robust third-quarter driven by brisk sales of flat-screen televisions and mobile phones.

LG, which currently trails Samsung as the No. 2 liquid-crystal display (LCD) television maker, posted a sharp increase in net income and operating profit during the July-September period and expects its momentum to carry on to the holiday season.

The third-quarter net income of 807.2 billion won was more than a 30-fold increase from the 24.9 billion won during the same period last year, while global revenue rose to 13.9 trillion won, compared to the 12.1 trillion won a year earlier.

LG's third-quarter operating profit rose to 850.2 billion won from 570.5 billion won during the same period last year.

There are worries that LG will post more modest numbers in the fourth-quarter, with the price erosion in the television and mobile phones business and also an expected increase in marketing expenses resulting in lower profitability.

Broadband, IPTV put SKB back on track


SK Broadband, the fixed-line unit of SK Telecom, is garnering positive reviews among customers for its new telephone and broadband Internet brand, “B,” launched in April. / Korea Times file

By Kim Tong-hyung
Staff reporter

The past few years have been tough for SK Broadband, formerly Hanaro Telecom, which has struggled to compete with industry giant KT in fixed-line telephony and broadband Internet services in a quickly-saturating domestic market.

However, the company finally appears to be nearing the end of the tunnel, as it has acquired a growing number of customers for new ``convergence'' services like Internet telephony and Internet protocol television (IPTV).

These products are becoming a crucial part of SK Broadband's discount packages that offer fixed-line, wireless, broadband and Web-enabled television under a single bill, allowing them to win over customers in markets where KT reigns.

SK Broadband, the fixed-line unit of mobile telephony king, SK Teleocm, reported a loss of 44.3 billion won (about $39 million) during the first quarter on revenue of 493 billion won, which was a 12.5 percent increase year-on-year. But industry watchers believe the company will likely turn back to black during the second-half of the year.

Such optimism is supported by SK Broadband's continuously expanding customer pool, as the company continues to strengthen its position in its main markets and gain traction for new services. The company is targeting 600 billion won in revenue for 2010, which would represent a 15 percent annual increase.

``Our goal is to deliver valuable services to our customers and build on a foundation for sustainable growth. We will also strengthen our alliance with SK Telecom and achieve enhanced competitiveness both in fixed-line and mobile businesses,'' said Kim Young-chul, SK Broadband's chief financial officer (CFO).

``We believe the company will really be firing on all cylinders next year, when our strengthened customer pool for broadband Internet, IPTV and Internet telephony improves our profit structure.''

SK Broadband is gaining a healthy influx of subscribers for its telephone services, adding more than 292,000 users to its customer pool during the first quarter alone. The company also gained 32,000 customers for its premium broadband services, which provides Internet speeds of 100 megabits per second (Mbps) or faster, during the first three months of the year, pushing up the total number of customers to 3.15 million.


STX in Ghana: STX Group Chairman Kang Duk-soo, left, and Ghanaian Vice President John Dramani Mahama hold an artist's concept on the infrastructure construction plan at the Ghanaian presidential office in Accra. The meeting was held last week. STX will build 200,000 homes and other infrastructure in the African country.

/ Courtesy of STX Group


Top money-spinner: Kang Shin-woo, center, senior executive vice president of Korea Investment Trust Management, poses with officials of Asian Investor during an award ceremony held in Hong Kong, Sunday, after the investors’ magazine picked his firm as the best on-shore fund house in South Korea.

/ Courtesy of Korea Investment Trust Management

Seoul halts trade, shuts sea lanes to NK

President Lee Myung-bak delivers an address to the nation regarding the March 26 sinking of the Navy vessel Cheonan, at the War Memorial in Seoul, Monday. / Korea Times photo by Wang Tae-seog



Lee vows firm response to military provocation



By Na Jeong-ju

Staff reporter



President Lee Myung-bak warned North Korea, Monday, of potential armed retaliation against any provocative acts in the future, saying South Korea will immediately exercise its right of self-defense if its land, territorial waters and airspace are violated by the communist country again.



He also pledged to take the North's torpedo attack against the Navy vessel Cheonan on March 26 to the U.N. Security Council (UNSC) for an international response to the act of aggression.



As part of its own countermeasures, South Korea has banned North Korean ships from using any sea routes under its control and suspended all inter-Korean trade and exchange except for aid programs for infants and children, and the joint industrial complex in the North's city of Gaeseong.



"From now on, we won't tolerate any provocative acts by North Korea," Lee said in a nationally televised address to the nation at the War Memorial in Seoul, which commemorates the 1950-53 Korean War.



"If our territorial waters, airspace and land are violated again, we will immediately exercise our right of self-defense."



He vowed to refer the issue to the UNSC to have the North pay the price for its actions, while strengthening combat readiness based on the strong alliance with the United States.



"The attack on the Cheonan violated the Charter of the United Nations and the existing agreements the two Koreas had reached for the sake of peace and stability, including the Korean War Armistice Agreement and the Basic Agreement between South and North Korea," Lee said.



The conservative leader also urged North Korea to apologize for the ship sinking, which claimed the lives of 46 sailors, and to punish those who were behind the attack.



He stopped short of mentioning North Korean leader Kim Jong-il, but said, as a compatriot, he was ashamed of what North Korea was doing.



"What is the situation in North Korea? Nothing has changed over the last 60 years," Lee said. "It is a country still holding on to an empty ambition of forcefully reuniting the Korean Peninsula under the banner of communism. It is a country that still believes in making threats and committing terrorist activities.



"North Korea's goal is to instigate division and conflict," he charged.



The address came days after an international team of investigators concluded a North Korean torpedo destroyed the 1,200-ton Cheonan near the West Sea border. The ship was conducting a routine patrol mission, according to the South Korean military.



Regarding claims about the poor initial response to the disaster, Lee admitted that the military had failed somewhat and vowed its reform.



"We have to admit that our Armed Forces made mistakes," he said. "As follow-up measures, we will reestablish the discipline of the Armed Forces, rectify the military and reinforce our combat capabilities. Joint Korea-U.S. defense readiness will be further strengthened as well."

2010년 5월 18일 화요일

Samsung SDI Pushes Ahead With Rechargeable Batteries

By Kim Yoo-chul
Staff Reporter

From laptops to cars, advanced batteries have become a major factor in innovation.

Samsung SDI hopes to compete in this fast-growing business by strengthening partnerships with the world's leading auto-related manufacturers, boosting battery production and simplifying its business structure.

Electronics makers have been scrambling to
develop or procure batteries that are smaller, reliable and more powerful to run mobile devices with an increasing number of functions.

Additionally, the main batteries fueling these gadgets ― based on lithium-ion technology ― also are being adapted to next-generation, eco-friendly cars.

Analysts say this has spurred technology companies to team up with automakers in alliances that are changing the manufacturing landscape.

Samsung SDI is the first mass producer of next-generation active matrix organic light emitting diode (AM OLED) displays, while it also makes plasma display panels and outdated cathode-ray tubes for emerging markets.

SDI has already spun off its AM OLED and LCD division in a joint venture with Samsung Electronics ― the new entity is named Samsung Mobile Display.

Now, SDI wants to transform itself as an authoritative battery maker by boosting production of lithium-ion batteries.

'Risk-Based Capital' to Change Paradigm of Insurance Industry


Allianz Life Insurance CEO,
Cheong Mun-kuk
By Yoon Ja-young
Staff Reporter

The adoption of risk-based capital (RBC), an evaluation system designed to provide a capital adequacy standard related to risks and to raise a safety net for insurers, will change the paradigm of the insurance industry, Allianz Life Insurance CEO said.

"The adoption of RBC means much more than the strengthening of regulations on insurers' solvency ratio. It means the paradigm of the whole industry would change," said Cheong Mun-kuk, president & CEO of Allianz Life Insurance, in an interview with The Korea Times. Solvency ratios are measures to assess a company's ability to meet its long-term obligations.

Currently, the regulator simply assesses insurers' ability to pay out insurance money. With the adoption of RBC system, however, the regulator will be assessing the level of risk each insurance firm faces in asset management from 2011.

The new rule, which is used to set capital requirements considering the size and degree of risk taken by the insurer, is likely to pull up the solvency ratio of Allianz, which has managed its assets conservatively.

"In the past, it was OK to do business in a risky way as long as you generated profit. It won't be so anymore. The insurers will have to think about risk," Cheong said. As the risk will be linked with capital, risky management will result in shareholders having to pay more as companies will need to hold more capital.

Celebrity Marketing Buoys Anycall

The driving force behind the explosive growth of Samsung's mobile business over the past 10 years is the diverse, innovative and market-leading handsets and technologies, including its latest Ultra Edition series, and Mobile WiMAX technology. They have reinforced Samsung's position as a design-led, forward-thinking company that heavily invests in research and development to advance into the market and fuel consumer demand for innovative new technologies.

As a result of such efforts, the D500 and D600 models sold 10 million each in global sales. Samsung Mobile is now recognized as one of the most prestigious mobile brands in many countries including France, Britain, Russia and the United States, not to mention its home country South Korea, where it uses the Anycall brand.

It is not only the technology that has made today's Samsung and Anycall. Cleverly planned marketing strategies have also played a big part in the process, and now many of the world's celebrities are working as brand ambassadors for Samsung's mobile phones.

In March, Samsung teamed up with 11-time Grammy-winning singer Beyonce Knowles for its music phones.

``Samsung is thrilled to be working with Beyonce because we share a lot in common _ both of us have a strong passion for music, video and entertainment, and are considered icons in our respective industries,'' said Choi Gee-sung, president of Samsung's Telecommunications Network Business. ``We both aspire to deliver seamless satisfaction, bringing music to life.''

In Germany, it is football star Michael Ballack who promotes Samsung's mobile phones. The company kicked off a TV commercial this month starring Ballack, the captain of the German national football team and an iconic figure on the European sports scene.

``The introduction of Samsung's new Ultra Edition II range is a testament to our strategic focus on the premium segment,'' Choi said. ``In addition, Samsung's vision for the future of mobile technology is increasingly becoming a reality with our successful Mobile WiMAX demonstration, underlining the converged mobile device as the future hub of all communications.''

LG XCanvas-When Art Meets Technology


LG Electronics' XCanvas brand has enjoyed an ever-lasting popularity in the large-screen TV market, fending off challenges from formidable local and foreign competitors such as Samsung Electronics and Sony. While focusing on creating well-designed, feature-rich TVs, the company never forgets that technology alone cannot make a big difference _ it needs a brand name that has an impact on consumers.
The XCanvas Quidam and XCanvas Gallery series epitomize LG's brand power.

LG has paid tribute to the Canadian performance group, Cirque du Soleil, by introducing the XCanvas Quidam series that combines both technology and art. The Quidam sets come with a ring-shaped stand and concealed speakers, and sensors that are capable of adjusting the brightness level dynamically without being prompted by a remote.

The Gallery series incorporates wooden frames in two colors _ walnut and ash. LG sells the luxury TV set, priced at 9.9 million won, only on direct orders from consumers.

From the technological aspect, the LG XCanvas full-HD TV range allows viewers to truly feel the sensation through the screen, whether they are watching their favorite TV shows, sports matches or the latest blockbuster. To accompany the first-class technology and picture quality, the range is accented with a wave-inspired design that gives it a simple yet elegant look.

On the back of the growing popularity of the XCanvas _ especially the Time Machine automatic recording models, LG's market share is believed to have risen to more than 50 percent in the large-screen TV market.
With built-in hard disk drive, the Time Machine TVs automatically record the first hour of broadcasting once turned on. It helps people watch missed parts of live TV shows later even if they forget to record it when they leave. It is also capable of recording high-definition broadcasting.

The XCanvas series have also helped LG's design team win several prestigious design awards in the world, such as the Red Dot Award and iF Award.

The wave design at the bottom accentuates the contrast between elegant dynamism and precise geometry. Its LED has become its distinctive icon, its singular decorative element.

Arumchan Kimchi Enjoying High Popularity

The National Agricultural Cooperative Federation (NACF), also known as Nonghyup, has sold Arumchan Kimchi since the second half of 2002 and it has gained strong popularity among housewives.

Its sales have steadily risen to 10.3 billion won in 2006 from 9 billion won in 2005 and 7.2 billion won in 2004. NACF aims to raise its sales to 13.7 billion won this year.

The sharp rise in sales reflects the effect of the growing brand power of Arumchan. Its 11 plants produce kimchi and sell them under the joint brand name of Arumchan.

The joint brand strategy has proven successful so far. On top of brand power, the recipe for the success of the kimchi is the use of homegrown materials and a tough quality control system. It uses high-quality peppers, seasonings and cabbages under a standardized process.

NACF also put a greater focus on strengthening its marketing through its outlets nationwide and the Internet (www.arumchan.com). Customers also can get the kimchi at shopping.nonghyup.com. It also plans to expand exports to Japan, New Zealand and other countries via online sales.

Demand for kimchi in Korea is estimated at 1.5 million tons annually, with 500,000 tons worth 600-700 billion won being sold domestically. South Korea's demand for kimchi produced at plants is expected to continue to rise despite falling per capita consumption.

NACF, established in 1961 to improve the economic and social status of farmers, has pursued various projects to benefit farmers.

Nonghyup wants Arumchan Kimchi to help the nation maintain its status as the original kimchi maker. It also seeks to provide products that consumers can eat with trust, and to sell kimchi with identical tastes nationwide. Nonghyup also aims to diversify its kimchi market to Europe and Southeast Asian nations.

Arumchan Kimchi has won a series of top brand awards and been selected as a favorite brand among consumers.

Obama backs Seoul over Cheonan


President Lee Myung-bak speaks with U.S. President Barack Obama, seen in a file photo, from Cheong Wa Dae, Tuesday. During the 25-minute phone conversation, they discussed a joint response to the March 26 sinking of the South Korean Navy vessel Cheonan. Obama pledged his country’s full support for South Korea and its handling of the incident. / Korea Times

Clinton to visit next week to discuss joint response

By Na Jeong-ju
Staff reporter

U.S. President Barack Obama expressed his full backing for South Korea and its investigation into the sinking of the Navy vessel Cheonan near the inter-Korean West Sea border, Cheong Wa Dae said Tuesday.

President Lee Myung-bak and Obama spoke over the phone for about 25 minutes earlier to discuss a joint response to the naval tragedy.

"Obama told Lee that he fully trusts Seoul and backs its handling of the incident," the presidential office said in a press release.

Obama said Secretary of State Hillary Clinton will fly to Seoul next week to discuss the case, adding the U.S. will closely cooperate with South Korea to deal with the aftermath. Clinton is scheduled to hold high-level meetings in Beijing from May 24 to 25.

Following weeks of joint investigations by naval experts from the United States, the United Kingdom, Sweden and Australia, the South Korean military will announce the results on Thursday.

Sources say the investigators have concluded that the cause of the sinking, which claimed the lives of 46 sailors, was a surprise torpedo attack by North Korea.

President Lee plans to call the leaders of the countries involved in the six-party talks on Pyongyang's nuclear program this week to share the outcome and urge a joint international reaction to the alleged act of provocation, his aides said.

The Lee administration is seeking to refer the case to the U.N. Security Council, but it's not clear whether Obama would back the move.

Following the conversation between Lee and Obama, the White House said in a statement, "They emphasized the importance of obtaining a full accounting of the event and committed to follow the facts of the investigation wherever they lead."

It, however, stopped short of blaming North Korea.

"The leaders reiterated that North Korea must live up to its commitment to eliminate its nuclear-weapons program, comply with its international obligations under relevant U.N. Security Council resolutions, and put an end to belligerent behavior toward its neighbors," said the statement.

Secretary Clinton will make another visit to Seoul in July, along with Defense Secretary Robert Gates, for the first-ever two plus two security talks with their South Korean counterparts. The upcoming meeting is the result of an agreement made between Lee and Obama in Seoul last November.

The two leaders also agreed to hold a bilateral summit in late June on the sidelines of the G-20 Summit in Toronto, Canada, Cheong Wa Dae said.

2010년 5월 16일 일요일

LG Scores Big With 'Borderless' TV



Daniel Phillip Henney, an American actor and spokesman in commercials for LG Electronics’ borderless flat-panel TVs, poses with the TV. Seamless TVs, which have been selling in the global market since September this year, are strategically important for LG to decide the profit curve of its TV-making unit in 2010. / Korea Times

By Kim Yoo-chul
Staff Reporter

LG Electronics, the world's second-biggest liquid crystal display (LCD) TV maker, plans to widen the market gap with its bigger rivals, including Sony, in 2010 by propelling its borderless flat-panel TV sets.

LG has been set to sell some 6 million borderless LCD TVs with LED backlights, next year, inspired by highly impressive initial moves in such sets after their debut, company officials say.

In September, LG has unveiled the seamless TVs that eliminate the seam between the screen and the surrounding bezel, available both in traditional LCD and LED-backlit LCD models.

Available in sizes ranging from 32- to 47-inches, the "SL90 LED-backlit LCD" and "SL80 LCD TV" series are adorned with a seamless front.

LG officials say the company was able to create these svelte TVs by using a new manufacturing technique that creates a sleek, uninterrupted glass-like surface.

The screen also sports laminate film on the surface, which reduces glare and improves picture quality.

The SL90 is distinct from the SL80 line thanks to its LED backlighting technology, which pumps up the contrast ratio to a whopping 3,000,000:1.

"Both lines feature an invisible sound system that hides slim speakers at the bottom of the TV, enhancing the visuals with quality audio. Bluetooth is integrated, too, which lets viewers hook up the set to compatible mobile phones wirelessly to easily share music and movies on the big screen," a company spokesman said.

Sales have been on a good roll. Within the two months since the global debuts of borderless TVs, over 100,000 units have been sold, according to the company.

In Europe alone, 46,000 sets were sold, while 19,000 and 12,000 were sold in North America and LG's home turf, South Korea, respectively, from September to November, LG said in a statement.

Of the LED-backlit SL90 model, 42,000 were sold, while sales of the traditional SL80 LCD model reached 58,000.

Citing the successful launching of the seamless TVs, analysts are positive about the profit outlook of LG’s home entertainment unit in 2010.

"We can say the borderless TV series will lift its TV-making unit in 2010. Enhanced user-friendliness of the products will appeal to premium buyers in LG's key markets," So Hyun-cheol, an analyst at Shinhan Financial, said.

LG aims to sell 25 million LCD TV sets next year.

SM5 Legacy Continues With Redesign



The new and improved SM5, a mid-sized sedan by Renault Samsung Motors, has been garnernig glaring reviews from the local car market. / Korea Times

By Jane Han
Staff Reporter

Renault Samsung Motors’ SM5 sedan has been the car maker's consistent bestseller for the past decade, but it is aiming to secure a bigger market presence next year with its highly-touted 2010 redesign.

The local unit of French auto firm Renault SA says it plans to start selling a new version of its SM5 sedan early next year to boost its sales and compete with the recently redesigned Hyundai Sonata.

The updated model, which has been in development since 2006, is equipped with either a 2-liter gasoline or diesel engine, both of which are available with a six-speed automatic transmission.

The new SM5 offers a full range of features and options, including a navigation system, massage seats and a body kit, according to company officials.

It is available in five different trims ― PE, SE, SE Black, LE and LE Exclusive ― with each of the trims showing off its own unique set of features. For example, the PE trim is equipped with a back warning system and 16-inch aluminum wheels, while the SE trim comes with a convenience package that includes power seat controls.

Officials claim that the third-generation SM5 promises to give drivers and passengers a new and improved experience as the model has been revamped both inside and out.

Renault Samsung has sold more than 700,000 units of the SM5 and the car maker says the ongoing popularity owes to the vehicle's continued enhancements.

The improvements led SM5 to win numerous industry recognitions, including awards in design, power brand and consumer satisfaction. And such good reputation, in turn, has helped the model retain top-level status in the used car market as well.

The car maker says the most pivotal factor that led SM5 to keep its market position against intensifying competition is its impeccable quality.

Marketing Insight, an industry research firm, conducted a consumer satisfaction survey on domestic cars earlier this year and the results showed that Renault Samsung ranked No. 1 for eight years in a row. Respondents said SM5 had the best quality with the least quality stress

Kyobo Life Climbs to Top With Strategy to Cut Risks



Headquarters of Kybo Life in Seoul
By Yoon Ja-young
Staff Reporter

Kyobo Life Insurance employees wondered when they heard a whistle fill the auditorium of the insurer's headquarters in Gwanghwamun, downtown Seoul, last March.

It was Kyobo Life Insurance Chairman Shin Chang-jae who blew the whistle. The former medical professor, who was often spotlighted for special, meaningful events by washing the feet of insurance salespeople or baking cookies for them, blew the whistle to mark beginning of fiscal year 2009.

With the whistle, he meant that all should be as passionate and fully ready like a runner lined up for the start, to mark growth for the year despite difficulties in the global financial market.

The whistle seems to have paid off. Kyobo Life Insurance made a notable achievement despite the global economic crisis.

Kyobo marked 291.6 billion won in net profit in 2008, rising to the top of the life insurance industry. Hence, Moody's, a global credit rating agency, maintained its rating on Kyobo at ``A2,'' while it lowered ratings on numerous financial businesses around the world.

The ``A2'' rating is the highest among Korean financial companies. Kyobo's total assets have breached 50 trillion won, and it has had the highest return on equity (ROE) among the top three players in the life insurance industry here for the past five years.

These accomplishments saw the company win the 2009 Asia Insurance Industry Award, the first Korean life insurance company to do so.

``In the end, risk management paid off,'' a spokesman at Kyobo Life Insurance said. The insurer learned that key for survival is risk management. Kyobo successfully overcome the Asian financial crisis without any government support.

Kyobo Life Insurance stopped overseas investments before September last year when Lehman Brothers collapsed. The thorough risk management enabled it to minimize losses while others faltered.

The insurer set up committees to examine investment and asset management, excluding investment in risky assets from its portfolio. It stuck to its conservative investment principle confined to safe assets that it knows well.

It also focused on non-savings type insurances, which paid off with a good performance. Under the slogan that ``Insurance is love for family,'' the insurer increased sales of whole-life insurance and annuity insurance products.

``Kyobo Life Insurance aims at making good growth of a virtuous circle, in which customer satisfaction leads to increases in sales and profits, and eventually benefiting customers as well as all Kyobo workers and shareholders,'' the spokesman said.

Seoul Milk Assures Quality, Freshness



Seoul Milk labels the production date, as seen in the red penciled part, of its products as well as expiration date, although the current law only requires food manufacturers to print just one of the dates. / Korea Times
By Kim Tong-hyung
Staff Reporter

Seoul Milk, the country's oldest and biggest dairy producer, has been recognized for its leading quality of products such as milk, yogurt and other beverages for more than 70 years.

And the company isn't resting on its laurels, as it continues to commit to improving quality to let customers know that they are getting the best and freshest products available at all times.

In July, Seoul Milk became the first dairy producer to put the production date on its milk cartons. The country's current food safety law requires food makers to reveal either the production or expiration date of products, but not both, often leaving consumers questioning how long the products have been sitting on store shelves.

Seoul Milk's decision to disclose both dates on its milk cartons seems to be drawing positive reviews from consumers.

Since implementing the labeling policy on July 14, the company has been selling about 9.38 million cartons per day, up from its previous level of about 8 million per day.

During September, the company even sold more than 10 million cartons for four straight days, which is around 44 percent of the 23 million milk cartons sold daily in the country.

The sharp increase in the company's milk sales is impressive when considering that overall milk consumption has been dipping in the past few years due to low birth rates, Seoul Milk officials said.

``The decision to label our milk products with the production dates is also connected with our efforts to innovate production and delivery procedures to enhance the freshness of our products,'' said Noh Min-ho, an official from Seoul Milk's marketing unit.

``Printing the production dates means we need to increase our efforts to reduce the time between production and shipment of our milk products, which means that the produced amount and the level of consumer demand should be matched more precisely. This has us providing fresher milk, which also contributes to reducing our inventory.''

Seoul Milk is planning to eventually expand the printing of production dates on all of its products, which include flavored milk, yogurt, coffee, fruit beverages, cheese and ice cream.

Seoul Milk is currently running a prize competition on its Web page (www.seoulmilk.co.kr), which continues through the end of January.

The high scorers of the online quiz will be awarded a selection of prizes, including 375 grams of gold to the first-place winner, 20 1 million won gift certificates, cosmetic products, agricultural products and of course, Seoul Milk's dairy products to others. The winners will be announced on Feb. 11.

Micro-robot to clean vessels

Korean scientists have developed a tiny robot, about the size of a grain of rice, which can swim along inside human veins and unplug clogged vessels.

According to the team of researchers led by Park Jong-oh at Chonnam National University, the ``micro-robot,'' measuring a millimeter long and 5 millimeters from end to end, successfully cleared blockages of vessels inside a pig.

Scientists around the world have been competing to develop micro-robots that could be sent through the body to clear blocked vessels, track down diseases and deliver drugs, proving the 1987 Dennis Quaid film, ``Innerspace,'' as prophetic. However, this marks the first time that such a device was successfully tested in a living laboratory animal, Park said.

``The navigation and control system, which allows us to steer the robot in any direction and monitor the movement in real time, will likely contribute as the crucial core technology in developing medical-purpose robots of the future,'' Park said during a presentation at his university in Gwangju.

``Robots like these may open new possibilities in the treatment of cardiovascular diseases ― our device measures just 1 millimeter wide, an ideal size to probe through coronary arteries, which average around 2 millimeters in diameter.''

Vein-cleansing mini-robots have been a subject of particular interest for Korean scientists, with their research getting significant financial backing by the government with hopes that such devices could be injected into humans to treat cardiovascular diseases by as early as 2020.

Park's research was one of the projects under a 7-year, 20.3 billion won ($17.8 million) plan by the Ministry of Knowledge and Economy to develop such robots that was introduced in 2007.

Once entered into blood vessels, the robot is guided by an outside electromagnetic field that allows it to navigate through the body automatically to a designated point or be controlled by computer with joystick-like controls.

The robot can travel up to 50 millimeters per minute, and once inside a clogged vessel, it pierces through blockages and plaque with its built-in drill that rotates up to 1,800 times per minute.

The robot's drill can also double as a drug injector, and Park said the next version of the robot will be equipped with better disease detection and treatment capability, including ultrasound signals.

``The hardest part was developing a technique to precisely control the robot's movement, which was difficult due to the ever-changing nature of blood flow velocity and blood pressure. But our electromagnetic system has proved efficient enough,'' Park said.

``The next step in the development is to combine the robot's navigation and treatment capability that includes ferrying drugs.''

POSCO, KT lead ‘Work Smart’ drive


Digital age driving out old office custom of staying within eyesight of bosses

By Cathy Rose A. Garcia
Staff reporter

In the past, working hard meant getting in early and staying late. But the long hours do not necessarily mean workers produce good work.

These days, a growing number of Korean companies are realizing the value of ``working smart,''' in order to compete in the global market.

POSCO, the world's largest steelmaker, is leading in ``work smart'' efforts. When he assumed his post as CEO last year, Chung Joon-yang introduced the concept and implemented measures, such as reducing paperwork. Employees were asked to submit just one page reports ― complying with the ``3Ss'' ― short, simple and specific.

Smart phones are also being recognized as key tools in the workplace, encouraging ``mobile offices.'' POSCO, as well as Kolon Group and other companies, have distributed smart phones to their employees in order to raise work productivity.

Even Samsung Electronics president Choi Ji-seong was quoted as saying: ``Smart workers will enjoy more benefits from the company.'''

Even the government is jumping on the bandwagon, with a plan to establish telecommuting work centers or ``Smart Work Offices'' for public employees by 2013.

For Korean companies who want to compete in the global market, Samsung Economic Research Institute analyst Ahn Byung-wook said working smart is a must.

``Smart work is an imperative for Korea, which is on the verge of joining the ranks of advanced countries. Global competition makes work smart a prerequisite for survival, not an option,'' he said, in a recent paper.

Ahn highlighted five areas that companies should purse innovation, with the acronym SMART ― Space, Method, Acquaintance, Result, and Time management. This means, creating a work space that is conducive to creativity; reevaluating work methods; utilizing acquaintances inside and outside the companies; focusing on results and eliminating time-wasting factors.

``In terms of diligence, Korea faces tough competition from China and India, while it does not have any competitive advantage coming from abundant natural resources or capital. Korea has no other choice but to take advantage of its relatively competitive human resources. Therefore, the surest way to beat the competition is to create an environment and organizational culture where employees can balance between life and work, and do their work creatively,'' he said.

Korean companies can take their cue from tried-and-tested practices of international companies. In advanced countries, work smart initiatives are aimed at enhancing the work hours with value-added elements by working creatively.

The importance of the office space cannot be underestimated. It should be designed in such a way as to make it conducive to improving work performance and creativity.

For example, Japanese clothing giant Uniqlo removed chairs in meeting rooms to encourage faster decision-making, ditched personal desks to encourage better project work, and turned off lights after 7 p.m. to discourage overtime work. SAS Institute, a leading software firm, provided personal offices to its employees, as well as a fitness center and swimming pool.

Efficient management of the work processes is also an important element to consider. For example, Samsung Electronics regularly evaluates value-added work and restructures on a regular basis.

Many companies also efficiently collect ideas from people inside and outside the workplace. ``The latest global management trend features the sharing of knowledge across all sectors of business management ― benchmarking of other industries, convergence and the collapse of industrial barriers,'' Ahn said.

Procter and Gamble (P&G) developed a Web site www.tremor.com, a community of over 280,000 members, to promote its products even before they are launched. It is considered the largest group of word-of-mouth marketing, as it combines market research expertise with principles of cognitive science.

An employee's performance should be evaluated not by the amount of working hours, but with value-added work. Ahn noted companies should improve their evaluation system, in order to provide appropriate incentives that match the performance of individual workers.

``To maximize their performance, companies need to operate a system that enables employees to challenge without fear of failure and to present their ideas freely,'' he said.

Time management is another significant thing to consider. Among OECD countries, Korean workers log in the most hours, an average of 2,261 hours a year. This is significantly more than the 1,798 hours put in by American, 1,655 hours by British, 1,457 hours by French and 1,808 hours by Japanese workers.

Companies should reduce overtime work in order to allow employees to have a better work-life balance. In line with this trend, KT and POSCO have introduced limited overtime. However, employees also need to change their working attitudes and methods to eliminate wasting time.

More companies are expected to follow the ``work smart'' trend in Korea, as its benefits for employees and the organization become more apparent.

``To secure and motivate core human resources, which determine the competitiveness of businesses, companies need to introduce and promote a smart work approach. Their effort can be an effective tool for immersing today's young workers into organizations as they prefer enjoying their own personal life rather than devoting themselves to companies,'' Ahn said.

Female executives still rare in Korea

The glass ceiling is still in place in corporate Korea, with a new survey showing that only one in five top companies have women on their executive boards. 

Women account for only 51 spots in the management boards of 21 companies from the top-100 listed firms this year, management magazine HR Insight said yesterday. 

Women in the management positions of KOSPI-listed companies have increased four-fold from 22 in 2006 this year. 

KT Corp., the country’s largest telecom operator, had placed 12 women in their board of directors, by far the most. Samsung Electronics had seven,LG Electronics five, and Korean Air four.

“The number of women promoted internally to executive positions is quite small here,” Oh Il-sun, managing editor of the magazine said.

A 54.9 percent, or 28 of the total, had been promoted internally and the rest were recruited from elsewhere. The fastest career track-record among them is held by Han Hyun-mi, 50, who joined Asiana Airlines in 1990 and became vice president in 2006. The youngest is Jun Jin-soo, 39, deputy vice president of Amore Pacific, the country’s largest cosmetics manufacturer.

Kim Jin, vice president of LG Electronics, had kept her executive position for nine years, the longest any Korean woman had in a listed local company.

Ten among the 51 are Seoul National University graduates, followed by Yonsei University with six and Ewha Womans University with five.

Genesis gets top safety rating in U.S.

Hyundai Motor Co. announced on Friday that its sports sedan Genesis was named a “Top Safety Pick” by the United States’ Insurance Institute for Highway Safety.

Insurance Institute for Highway Safety or IIHS is a non-profit organization supported by U.S. insurance companies. 

Hyundai Genesis
The IIHS names vehicles equipped with the vehicle dynamic control system that receive the top ratings in front, side-on, rear and roof integrity tests. 

In the latest test, the Genesis was named a “Top Safety Pick” by the IIHS along with the Mercedes-Benz E Class, the Korean carmaker said.

Ministers discuss Cheonan, bilateral ties


 Foreign Minister Yu Myung-hwan (left) and his Chinese counterpart Yang Jiechi hold talks prior to the three-way talks among Seoul, Beijing and Tokyo later today in Gyeongju. 
Yonhap News

By Kim Ji-hyun

 GYEONGJU - China today said the ongoing investigation into the recent sinking of a South Korean warship should be conducted in an “objective” and “transparent” manner.

 Chinese Foreign Minister Yang Jiechi expressed such thoughts in a one-on-one with South Korean Foreign Minister Yu Myung-hwan ahead of a three-way meeting of the foreign ministers of South Korea, China and Japan.

 “The Chinese foreign minister also called the sinking of the Cheonan as an unfortunate incident, and said China has extended its condolences. The two ministers said they would closely communicate and cooperate over the issue,” said Foreign Ministry spokesman Kim Young-sun.

 The Cheonan sank near the de facto inter-Korean border in March. More than 40 sailors were killed or remain missing. 

 Seoul has strongly indicated it believes North Korea to be the culprit of an external blast that allegedly sank the Cheonan. An official investigation is due to end around May 20. 

 China, as one of the reclusive regime‘s closest allies, has maintained a noncommital stance.

 Others, such as the U.S. has indicated that the six-nation talks aimed at ending Pyongyang’s nuclear weapons programs cannot continue when the investigation is ongoing.

 A group of U.S. senators on Thursday introduced a resolution calling for a thorough probe into the sinking of the Cheonan.

 The two foreign ministers of South Korea and China also discussed the North Korean nuclear issue.

 China is chair of the six-way dialogue, which has been stalled since Pyongyang said it would permanently boycott the discussions in April last year.

 The North issued the declaration after the United Nations criticized a rocket launch. 

 Regarding bilateral relations, Yu and Yang discussed measures for bolstering their “strategic cooperation partnership.”

 Chinese Prime Minister Wen Jiabao is currently scheduled to visit South Korea for a meeting with President Lee Myung-bak later this month. 

 Seoul and Beijing said they would also seek to beef up cooperation for developing atomic energy, in addition to making efforts to start shuttle flights between the two nations at an earliest possible time.

 South Korea further enlisted support for extraditing North Korean defectors and those kidnapped by the North or prisoners of war who took refuge in China.

    The foreign ministers of China and Japan arrived in Gyeongju earlier today for bilateral and trilateral meetings with their South Korean counterpart Yu.

Seoul, Tokyo pledge to cooperate on Cheonan

GYEONGJU -- Foreign Minister Yu Myung-hwan and his Japanese counterpart Katsuya Okada yesterday agreed to work closely together regarding the recent sinking of a South Korean warship.

The two ministers also pledged to jointly act against those found to be accountable for the incident, ministry officials said. 

“The Japanese foreign minister expressed Japan’s condolences again for the sinking of the Cheonan, and also reaffirmed support for South Korea’s efforts for an objective and scientific investigation,” said Foreign Ministry spokesman Kim Young-sun following the meeting. 

Yu and Okada sat down for a one-on-one as part of a two-day meeting between the foreign ministers of South Korea, Japan and China. 

Yu held bilateral talks with his Chinese counterpart Yang Jiechi on Saturday, which was followed by a trilateral meeting of the three ministers. 

Foreign Minister Yu Myung-hwan (second from right) poses with his Chinese counterpart Yang Jiechi (right) and Japanese counterpart Katsuya Okada yesterday during their visit to Bulguk Temple in Gyeongju, North Gyeongsang Province.  (Yonhap News)
The Cheonan was a Navy corvette that sank on March 26 in the West Sea, killing more than 40 sailors on board. Some remain missing. 

Seoul has indicated that it believes North Korea to be responsible for the incident, although the results of the investigation are still pending.

During the foreign ministerial talks, South Korea reportedly enlisted support from Japan and China who are both regional partners and members of the six-way talks aimed at ending North Korea’s nuclear ambitions.

Seoul has indicated that it would not attend the six-party dialogue until the Cheonan investigation has been wrapped up. 

Beijing appeared to hold a different stance. Chinese President Hu Jintao earlier this month met North Korean leader Kim Jong-il for a summit during which the two sides discussed the six-way talks.

During their three-way talks on Saturday, the three ministers held discussions related to the Cheonan. 

They also talked of ways to cement their trilateral relations, including setting up a permanent secretariat on regional cooperation in Seoul.

The presidents of the three nations are to meet on South Korea’s southern resort island of Jeju during May 29-30 to intensify the three-way cooperation and discuss regional issues.

Regarding bilateral ties, the South Korean and Japanese foreign ministers yesterday said they would take steps to further cement the relationship between the two countries. 

“The Japanese side stressed the importance of a Korea-Japan free trade agreement for building new bilateral relations and expressed hope for an early start of negotiations on the trade deal,” said the Foreign Ministry spokesman. 

The two ministers said history should not undermine bilateral ties, but Yu stressed to his Japanese counterpart South Korea’s stance on Japan’s claims to sovereignty over Dokdo islets.

Both Yu and Okada agreed that they would work together so that the territorial issue would not harm the ties between the two countries. 

Tokyo will be hosting the next round of three-way talks.