Samsung Posts Record W5 Tln in Quarterly Operating Profit

Samsung Electronics' quarterly operating profits in the second quarter surpassed five trillion won, which is about four-point-two billion dollars, for the first time in the firm’s history.

The company announced Friday that it posted 37-point-eight trillion won in sales and over five trillion won in operating profits in the second quarter. 

Sales were up 16 percent and operating profits 87 percent year-on-year.

First-half sales finished at 72-point-five trillion won, up 18 percent over the same period last year. Operating profits were up nine-point-four trillion won for a year-on-year increase of 188 percent.

Samsung says that semiconductors and liquid crystal display parts performed particularly well.

Samsung, LG Control 30% of Cell Phone Marke

The combined market share held by the country's two major sellers of mobile phones remained at the 30-percent level in the second quarter. 

Market researcher Strategy Analytics said Sunday that Samsung Electronics sold 63.8 million handsets in the second quarter, accounting for 20.7 percent of the world market. 

LG Electronics sold more than 30 million handsets over the same period for a market share of ten percent. 

The two companies combined to control 30.7 percent of the market, up 0.7 percentage points year-on-year. 

World sales leader Nokia sold more than 111 million handsets in the second quarter, accounting for 36.1 percent of world market share.

Big Firms Trump Small in Production Growth

Data from Statistics Korea shows that production at large corporations continues to exceed that of small and medium-sized companies. 

The statistics agency said Monday that the production index for large corporations came to 150-point-five in the second quarter of the year, up 14-point-seven percent from the same period of 2008, shortly before the nation was hit by the global crisis. 

Meanwhile, the production index for smaller companies over the same period rose just six percent to 124-point-five.

In terms of production, it took smaller companies nine months longer than large corporations to return to precrisis levels.

Libya Seeks $1 Bln to Settle Issue of Deported S.Korean

The Libyan government is requesting large monetary compensation for settling a dispute over a South Korean intelligence officer who was kicked out of Libya on charges of espionage. 

A government source said Wednesday that Libya requested more than one billion dollars to settle the issue when a delegation of South Korean government officials recently visited the North African nation. 

The source said South Korea and Libya are likely to face difficulties in recuperating their relationship in the event Seoul refuses Libya’s request. 

A Libyan weekly quoted a local government official as saying that the Libyan government made the request to the Korean government on the deported official and that Tripoli would review Korean firms’ activities in Libya and seek other measures if Seoul turns down Libya’s request. 

The South Korean Foreign Ministry said that Seoul agreed with Tripoli to swiftly settle the issue. 
The official of the National Intelligence Service who was sent to work at the South Korean Embassy in Libya was kicked out of the North African country on June 18th for alleged attempts to obtain information about key members of the Libyan government.

Glimpse of New Gwanghwamun

The splendor of the renovated Gwanghwamun is displayed on Tuesday. Restoration work on the gate is currently under way. 

Statue of Freedom Fighter An Jung-geun

Seoul city has chosen the winning design for a statue of freedom fighter An Jung-geun. Sculpted by Seoul National University Professor Lee Yong-deok, Lee’s winning work will be placed at Namsan (Mt.) Park. The bronze statue will be 7.5-meters tall (including a 3-meter podium) and will be built at the entrance of the yet-to-open An Jung-geun Memorial.

An was an educator and freedom fighter against Japan’s colonial rule in the late Joseon era. He studied Chinese academics, horse riding, archery and shooting from his early years. When the Russo-Japanese War erupted in 1904, he went to Shanghai and opened Korean schools while devoting himself to educational enlightenment. He was involved in the national independence movement in 1907 when he went to Vladivostok, Russia as an exile to join the citizens’ Righteous Army. In 1908, as the army’s senior commander, he led troops into Gyeongheung, North Hamgyeong Province, but was defeated by Japanese forces. In March 1909, with like-minded colleagues in Russia, An founded an organization called Danjihoi. Each member cut a finger and vowed to “remove” Japanese colonial ruler Ito Hirobumi and the Korean collaborator Lee Wan-yong. In October that year, when Ito arrived at Harbin Train Station in China, An fired three shots that killed him. An was arrested and subsequently executed at Lushun Prison on March 26, 1910. He was posthumously granted Korea’s highest commendation, the Medal of Honor, in 1962.

Hangeul as Indonesian Tribe’s Writing System

The Indonesian government has officially approved the use of the Korean Hangeul writing system by the Cia-Cia tribe living in Bau-Bau City.
Bau-Bau Mayor Amirul Tamim conveyed the news of the government’s final approval of the use of the Hangeul writing system in an interview with Seoul's Yonhap News.

Cia-Cia Tribe
This tribe, with a population of 80,000, is a minority living on Buton Island in Sulawesi, Indonesia. The Cia-Cia people mainly produce corn, rice and cassava. Some men fish and build vessels for a living. Some 95% of the tribe consists of Muslim believers, but folk religion also has major influence in their life. About 60,000 of the population live in Bau-Bau, the biggest city and administrative center of Buton Island. They speak the Cia-Cia spoken language which is on the verge of extinction due to lack of a writing system.

Hangeul
The Cia-Cia adopted the Korean alphabet because Hangeul can more accurately record their spoken language than English, Indonesia’s official writing system. Aware of Cia-Cia's predicament, Korea's Hunminjeongem Society proposed the tribe adopt the Hangeul alphabet which it accepted. The two sides signed an MOU on July 21st last year and the society started writing textbooks, training teachers and building a Hangeul center for the tribe. It took a year for the Indonesian government to endorse the tribe’s use of Hangeul.

Approval and Controversy
In the past, Korea tried to introduce Hangeul to minority tribes in China, Thailand and Nepal but the efforts failed because the central governments of those nations objected to the move as ‘cultural invasion.’ Indonesia's approval is therefore highly significant. There has been local controversy and some Indonesia intellectuals are still in opposition. To abate concerns and not to trigger any misunderstanding, Korea should continue support the effort and maintain a prudent approach.

Korean Economy Expands 7.6% in H1

The South Korean economy is demonstrating a strong recovery, looking poised to surpass a simple recovery and head for an expansionary phase. The economy grew a ten-year high of 7.6 percent in the first half of the year, on the back of brisk private spending, robust exports, increased facility investment and a subsequent rise in industrial output. Some even say that it’s time to consider appropriate measures to cool the potentially overheated economy. The domestic economy is expected to follow a steady path to recovery for the time being.

Listing of Two Korean Folk Villages on UNESCO World Heritage List

Two Korean traditional folk villages, Hahoe in Andong and Yangdong in Gyeongju, have been designated as UNESCO World Heritage sites. It’s welcome news, indeed, since the designation will surely boost Korea’s cultural prestige and promote the local tourism industry. Tourists are deeply impressed by the two historic villages, both of which have maintained Korean history and culture while demonstrating their respective unique qualities and profound cultural significance. Following the listing, the nation should work hard to better preserve the historic and cultural values of these two villages. 

100-Day Countdown to G20 Summit

With 100 days left to go before the Group of 20 Summit opens in Seoul, expectations are running high that the largest-ever international event in Korean history will prove a turning point in the nation’s quest to join the ranks of advanced countries. South Korea is not only a member of the group of the world’s major 20 economies but will also play host to the high-profile conference. The upcoming event will surely boost the nation’s international status through, a crucial development for mapping out a new global economic order. We hope Korea will host the G20 Summit successfully, as it has done for a number of major international events so far, and set a new diplomatic milestone in Korea. 

The G20 Summit will be attended by leaders of 20 major economies from around the world and 35 high-ranking figures from international organizations, including the U.N. Secretary General. More than 3,500 aides and bodyguards will be mobilized for the mammoth international gathering. Highly-acclaimed world leaders will gather in one place. On the sidelines of the summit, representatives of hundreds of renowned global companies will participate in a business session. There is no need to reiterate the economic significance of the summit: the G20 nations account for 85 percent of the world’s total gross domestic product. 

‘Hi Seoul Festival 2010’ to Open in October

This year’s “Hi Seoul Festival” will open on October second for a nine-day run. 

Cohosted by the Seoul City government and the Seoul Foundation for Arts and Culture, “Hi Seoul Festival 2010” will feature a wide variety of cultural and art programs including several nonverbal performances in parks near the Han River. 

Some two-thousand citizens will be invited to take part in festival performances.

Apple Wins KCC Radio Approval for iPhone 4

The Korea Communications Commission (KCC) said Tuesday that it has issued an approval certificate for the iPhone 4, the newest version of Apple's smartphone.

The Radio Research Agency under the KCC on Tuesday said that it issued the certificate after evaluating relevant documents and the results of radio conformity tests provided by Apple.

The issuance marks the completion of most of the legal procedures for Apple to launch the iPhone 4 in the Korean market. The launch date will be decided soon following consultations between Apple and local iPhone service provider KT.

Apple submitted to the agency an application for the certificate on July 29th.

UN Chief Urges Japan to Improve Ties with NK

U.N. Secretary-General Ban Ki-moon is urging Japan to improve relations with North Korea. 

Ban made the call during a press conference held after he met with Japanese Foreign Minister Katsuya Okada in Tokyo on Tuesday. 

Ban said that in order to establish peace and stability in Northeast Asia, Japan must improve ties with North Korea and approach the matter sincerely. 

Ban also called for Tokyo’s cooperation in resuming the stalled six-way nuclear talks. 

Ban arrived in Japan on Tuesday to visit Hiroshima and Nagasaki, the two cities on which the U.S. dropped atomic bombs 65 years ago. 

He will meet with Prime Minister Naoto Kan on Thursday.

S.Korea, China Set Fishing Quota for 2011

South Korea and China have set the catch quota for Korean vessels fishing in China’s exclusive economic zone (EEZ) at 64-thousand tons for next year. That’s around two-thousand tons less than this year.

The Ministry for Food, Agriculture, Forestry and Fisheries in Seoul said that the two sides reached the agreement during a bilateral meeting in China.
The two sides also agreed to set the number of Korean fishing vessels allowed in China’s EEZ at 16-hundred next year, or the same as this year.

The number of Chinese fishing vessels permitted in South Korea's EEZ was set at 17-hundred for next year, down 50 from this year, while the fishing quota for Chinese vessels in Korea’s exclusive economic zone was set at 65-thousand tons, down 25-thousand tons from this year. 

The ministry said that during recent talks the two sides also agreed to come up with ways to root out illegal fishing by Chinese vessels, including fishing without permits and violations of territorial waters.

US Asks S.Korea to Join Efforts to Sanction Iran

The United States is requesting that South Korea join efforts to impose financial sanctions on Iran. 

A South Korean official said U.S. coordinator of North Korean sanctions Robert Einhorn visited the Finance Ministry in Seoul on Tuesday and explained the sanctions the U.S. plans to impose on Iran and asked for Seoul’s cooperation on the matter. 

Meanwhile, an official in the financial sector said the U.S. had already asked the South Korean government two months ago for support on slapping sanctions on Iran, including freezing the assets of the Seoul branch of Iran’s state-owned Bank Mellat. The bank is reportedly a financial resource for Iran’s nuclear development. 

The official added that Seoul is studying measures multilaterally on the U.S. request, taking into consideration Iran’s possible protest and the financial difficulties Korean construction companies and exporters will face in the event Seoul joins the U.S. in imposing sanctions on Iran. 

Last year, the trade volume between South Korea and Iran stood at ten billion dollars. If Seoul independently seeks to sanction Iran, transactions between the two are expected to become difficult.

Naval base project in Jeju hits another snag

The project to build a strategic naval base on the southern resort island of Jeju hit another snag when the Jeju provincial government and council called on the central government to suspend its construction Monday, citing unresolved conflicts.

“We make this request that all construction related to the naval base be suspended ... We concur that conflicts in the Gangjeong Village occurred as there was a lack of ‘procedural legitimacy’ in the process of policy decisions related to the naval base,” said the provincial government and council in a joint statement.

“Recognizing the conflicts over the naval base as the top pending issue in the Jeju society, we will work together to resolve them.”

They also said that they will set up a special committee dedicated to addressing the conflicts over the naval base. However, they said, “We are not at that stage yet,” in response to a question of whether the suspension means reconsideration of the entire construction project.

In June 2007, the Navy and the Jeju provincial government designated Gangjeong Village in Seogwipo of the province for the project. On Jan. 29, the Navy signed contracts with two firms for the construction work. A sizable portion of the compensation for the villagers has already been paid. 

However, some villagers and civic groups have continued to object to the construction project, citing reasons including compensation issues and possible negative impact on the environment. 

Kia’s expansion challenges Hyundai

With popular new models, Kia Motors Corp. is continuing to expand its share in the domestic market posing a major challenge to its sister firm Hyundai Motor Co.

Hyundai’s mid-sized sedan Sonata has slipped yet further in the country’s bestselling car list in July, marking the second consecutive month of downward movement. 

In July, 8,469 Sonatas were sold on the local market, down 14.9 percent from the previous month. In addition, July was first time the current model’s sales have fallen under the 9,000 line since its launch last year.

With the changes, the Sonata was ranked as the third bestselling vehicle in the local market behind Kia Motors Corp.’s new mid-sized sedan K5 and the city car Morning. 

For the Sonata, last month’s fall in the rankings marks the second slip in as many months. In June, the first full month with the K5 available, the Sonata was knocked off the top spot to second place. 

Hyundai’s decline in the local market is not limited to the Sonata. 

Hyundai’s share of the local market stood at 50.8 percent for the first half of last year, but fell to 45.2 percent during the same period last year.

In contrast, that of Kia rose from the 31.1 percent recorded for the first six months of last year to 32.1 percent for the same period this year. 

Kia K5

While some have taken the developments as cannibalization of Hyundai’s market share by Kia, the company says that the K5 has complimented the joint group’s sales. 

“If Kia’s sales in the mid-sized market increased while the combined figure for Hyundai and Kia stayed the same, it would clearly be cannibalization, but that is not the case,” a Hyundai official said. According to the Korea Automobile Manufactures Association’s data, 20,630 units of the current Sonata and the K5 were sold in June. In comparison, the combined figure for the Kia Lotze and the NF Sonata for June last year was 17,922.

The Lotze was Kia’s mid-sized model replaced by the K5 and the NF Sonata is the fifth generation Sonata that was replaced with the current model YF in September. 

In addition, Hyundai officials say that Sonata’s slip up could also in part have been caused by last year’s tax incentive, which sapped this year’s demand.

Hyundai Sonata

Following Sonata’s launch in September, its monthly sales soared to over 17,000 units in October, fueled by “the new car effect” and the tax incentive that cut related taxed by as much as 2.5 million won ($2,100) for new vehicles purchased to replace those registered before December 31, 1999. 

Kia Morning

Industry experts, however, disagree. 

“It is cannibalization, and it is likely to continue. Looking at other vehicles like the Sportage R, it maybe that Hyundai’s styling is out of sync with local consumers,” said Eugene Securities analyst Park Sang-won.

However, Park said that cannibalization of Hyundai’s market share by Kia is unlikely to effect Korea’s largest carmaker in the wider market. 

“But as Hyundai vehicles do well in the U.S., its effect on overall sales will be limited,” he said.

“Although the K5 and others have received good reviews and their launch (overseas) in the second half will change Kia’s image, the fact remains that Hyundai has a better brand image outside of Korea.”

Kia’s expansion challenges Hyundai

With popular new models, Kia Motors Corp. is continuing to expand its share in the domestic market posing a major challenge to its sister firm Hyundai Motor Co.

Hyundai’s mid-sized sedan Sonata has slipped yet further in the country’s bestselling car list in July, marking the second consecutive month of downward movement. 

In July, 8,469 Sonatas were sold on the local market, down 14.9 percent from the previous month. In addition, July was first time the current model’s sales have fallen under the 9,000 line since its launch last year.

With the changes, the Sonata was ranked as the third bestselling vehicle in the local market behind Kia Motors Corp.’s new mid-sized sedan K5 and the city car Morning. 

For the Sonata, last month’s fall in the rankings marks the second slip in as many months. In June, the first full month with the K5 available, the Sonata was knocked off the top spot to second place. 

Hyundai’s decline in the local market is not limited to the Sonata. 

Hyundai’s share of the local market stood at 50.8 percent for the first half of last year, but fell to 45.2 percent during the same period last year.

In contrast, that of Kia rose from the 31.1 percent recorded for the first six months of last year to 32.1 percent for the same period this year. 

U.S. urges int'l community to join forces in sanctioning N. Korea, Iran

The United States Tuesday called on the international community to join forces in sanctioning North Korea and Iran under U.N. resolutions banning arms sales and other illegal transactions, a news report said.

"It can't be just one part of the world but not another part of the world," State Department spokesman Philip Crowley was quoted by Yonhap News as saying.

"This has to be done effectively across the international community to have the effect that we want to and convince the leaders of Iran or North Korea to change course."

The news wire said Crowley's remarks came soon after the U.S. Treasury Department announced a new list of 21 Iranian companies and several Iranian officials for their alleged support of terror groups and transfer of weapons banned by U.N. resolution. 

The resolution was adopted in June in light of Tehran's failure to get rid of its uranium fuel, suspected of being used for making nuclear bombs, the news report said.

Robert Einhorn, the State Department's special adviser for nonproliferation and arms control who oversees U.S. sanctions on North Korea and Iran, said Monday Washington will soon list North Korean entities and individuals involved in trading weapons, luxury goods, counterfeit money, cigarettes, drugs and other illegal activities prohibited by U.N. resolutions adopted after the North's nuclear and missile tests early last year.

The U.S. currently blacklists more than 20 North Korean entities and individuals.

Washington has said it will establish "new executive authorities" to that effect and try to persuade the international community to voluntarily cut off ties with listed North Korean entities and individuals.

Barcelona creates confusion over Messi

Spanish La Liga champion Barcelona pulled a u-turn under pressure from promoters on Wednesday saying that Argentinean superstar Lionel Messi would play in a friendly against the K-league All-star team tonight.

The decision came just hours after Barcelona manager Pep Guardiola had revealed that Messi would not feature as he was fit enough to play.

However, following a meeting with Sport and Story, the local promoter, Barcelona sporting vice-president Josep Maria Bartolomeu issued a statement saying that Messi would after all play a role on tonight.
 

Oh vows to lead Seoul into world’s top 5 cities

A dream pursued aggressively, such as making Seoul one of the top five cities in the world, is a positive driving, said recently reelected Seoul Mayor Oh Se-hoon.

“Very few believed in me when I pledged four years ago to bring Seoul within the top 20 ranking, but our city nevertheless made it beyond expectations and even made it near to the top 10,” Oh said last week. “Now that we have laid down the city’s foundation as an advanced metropolitan capital and a sophisticated design city, the dream of attaining the top five ranking may not be that far off.”

The steps taken by Seoul City in recent years have won the heart of foreigners and will eventually influence the city’s reputation internationally, said Oh, who began his second four-year mayoral term on July 1.

“My strength as a reelected mayor is that I may effectively carry on with the policies of the previous administration and develop them even further,” he said.

“I pledged four years ago to realize a dream and acted upon it, so now I shall in my second term, only with a higher goal.”

Another challenging task which the mayor has to face is the G20 summit to take place here in November.

“There is no doubt that we need to deliver to the foreign visitors, especially the global opinion leaders, an impressive image of our city,” Oh said.

“However, unlike in the past, Seoul is fully ready to respond to this kind of international event and no longer needs to make a fuss about it.”

All the city and its citizens are to do is maintain and clean up existing facilities, and then add a touch of heartwarming hospitality, the mayor said.

What counts even more than the summit itself is how Seoul will upgrade itself into a truly global city afterwards, he said.

“In order to be recognized by its foreign visitors and residents, a city is to offer three major factors -- education, medical care and residence,” he said.

“The core in all of them is that the city’s guests should feel as respected as its domestic citizens.”

In his previous term, Oh suggested as the city’s theme “a clean and attractive city.”

For his second term, the motto was altered to “a city which feels like an old friend,” focusing on making newcomers feel at home.

“Under the former motto, we have greatly upgraded our capital into a clean and attractive city, which we may take pride in,” Oh said.

“Now that we have laid down the foundation, it is now time to take further steps and embrace the global society.”

Military struggles to curb sex crimes among soldiers

Soldiers receive CBR training.

The military is stepping up moves against sex crimes among soldiers following a series of recent sexual harassment cases involving ranking military officials.

It has set a special period from July 30-Aug. 31 to “stamp out” sex crimes in the military. It is also striving to enhance military discipline and educational programs against sex crimes, a military official said.



“Sex crimes are things that seriously damage the moral fiber of the military. We have stringently dealt with those involved in the sex crimes and have alerted (military units) against them to prevent the repeat of such cases,” the official said under condition of anonymity.