Mexico’s public projects open to Korean firms

MEXICO CITY -- Korean companies will be given bidding rights for Mexico’s public development projects, which are customarily limited to countries that have a free trade agreement with the Central American country. 

Negotiations for an FTA between Korea and Mexico began in 2007, but have been stalled since 2008 due to opposition from Mexican business circles.

President Lee Myung-bak requested his Mexican counterpart Felipe Calderon during their summit talks here on Thursday to let Korean companies take part in the bidding for Mexico’s infrastructure projects, Lee’s spokesperson Kim Eun-hye said. 

“The two leaders vowed to make joint efforts to resume the FTA talks, but we still need to wait for substantial progress,” Kim told reporters. “President Calderon said favorable conditions in various areas will be offered to allow Korean companies to participate in Mexico’s government procurement although it has not signed an FTA with Mexico.” 

Korean companies are mostly interested in Mexico’s oil refinery projects, including modernization of old refineries, Kim said. Mexico’s oil refinery-related orders amounted $2 billion between 2008 and 2009. 

Korean firms are also tapping bidding chances in cogeneration power plants and thermal power station projects.

President Lee Myung-bak and his Mexican counterpart Felipe Calderon on Thursday hold a joint press conference following a summit meeting in Mexico City. Yonhap News

Factional strife to highlight GNP race

Candidates officially registered Sunday to vie for the ruling Grand National Party’s top five posts, including the party leader.

A total of 13 GNP members have joined the race. The national convention to choose the five new members of the top decision-making Supreme Council for a two-year term will be held on Wednesday next week.

The competition is expected to be fiercer than ever as the new leaders would play a crucial role in nominating party members for the 2012 parliamentary elections and managing the party primary for the 2012 presidential vote.

The members will be chosen in a vote by some 9,060 local delegates, paired with the result of public opinion polls. The delegates’ votes account for 70 percent of the final decision while polls make up the rest. Of the five candidates who make it onto the Supreme Council, the one who garners the highest number of votes will become the new leader.

Before the convention takes place, a series of forums, in which candidates will present their respective visions of the party, will be held in major cities nationwide. Three televised debates are also scheduled.

Grand National Party floor leader Kim Moo-sung (center) receives a copy of the statement calling for fair management of the party’s leadership election from GNP legislators Sunday. Yonhap News

Top 30 firms’ debts twice cash assets

The debt of the nation’s top 30 conglomerates was twice as big as their cash assets, data showed on Sunday, raising concerns over their financial health.

The top 30 listed groups, except for state-owned firms and privatized public enterprises, posted 118.5 trillion won ($96.6 billion) of debts in total while 59.3 trillion won of cash, only 48.1 percent of their debts, was reported as of the end of 2009, according to data from chaebul.com.

The average debt ratio of the 30 firms also was 153.6 percent, the conglomerate information provider added.

Experts raised concerns over the firms’ rising debts as the government plans to implement exit strategy and the central bank to raise key interest rate as the country’s economic recovery speeds up.

“Companies with considerable amounts of debt could have to pay a lot of money if the interest rate goes up. And some companies would feel pressure in operating their businesses in the second half,” an analyst said.

Samsung, the country’s biggest conglomerate, had the biggest cash assets with 14.3 trillion won ($11.6 billion), followed by Hyundai Motor and SK with 7.5 and 5.8 trillion won, respectively.

P.M. Chung expected to offer resignation

Prime Minister Chung Un-chan was expected to tender his resignation to President Lee Myung-bak soon, taking responsibility for the failure to secure parliamentary approval for the contentious Sejong City revision bill.

Ever since saying last week that he would take complete responsibility for it, speculation has been rampant that he would offer to resign after Lee arrived in Seoul on Saturday from his weeklong trip to Canada, Panama and Mexico.

“It is right for me not to answer that question,” Chung said on Sunday in response to reporters’ question of whether he had talks with the president over his resignation.

(Yonhap)

NKorean killed for spreading Gospel: report

A news report said Monday that a North Korean was killed for spreading Gospel.

The Associated Press said Son Jong-nam was reportedly tortured to death for spreading the Gospel with 20 bibles and 10 cassette tapes in the reclusive state in 2009, 11 years after living in the neighboring area of China in 1998.

The wire said it obtained the information from his younger brother Son Jung-hun, who lives in South Korea.

South Korean Rev. Han Sang-ryeol, who entered North Korea without the official approval of the South Korean government, gives a sermon at a church in Pyongyang in North Korea on June 27. (Yonhap)

Choi Na-yeon wins LPGA title in playoff

South Korea's Choi Na-yeon claimed her third LPGA victory at the $1 million Jami Farr Owens Corning Classic in Sylvania, Ohio, on Monday, a news report said.

Choi Na-yeon of South Korea holds the winner's trophy after defeating Christina Kim, Song-Hee Kim and In-Kyung Kim on the second hole of a playoff during the final round of the LPGA Jamie Farr Owens Corning Classic golf tournament, Sunday, July 4, 2010 in Sylvania, Ohio. (AP-Yonhap)

With a birdie on the final hole, the 23-year-old joined the leading group including her fellow South Koreans Kim In-kyung and Kim Song-hee to go on to a playoff, according to Yonhap News.

SM3 domestic sales top 60,000

Renault Samsung Motors Co. announced Thursday that the number of SM3compact cars sold in the domestic market broke the 60,000 mark in June, a year since the vehicle made its debut.

SM3

According to the company, the SM3 has maintained an average domestic market share of 20 percent. The company said that the car has been particularly popular among those in their 20s who are buying their first cars, while an increasing number of motorists in their 50s have been purchasing the vehicle. 

By sex, 74 percent SM3 buyers were male and the LE trim was the most popular during the past year, the company said.