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☆ South Korea vows thorough investigation into deadly Halloween crush
▼ + stars: | 2022-10-31 | by ( ) www.reuters.com time to read: +1 min

SEOUL, Oct 31 (Reuters) - South Korean Prime Minister Han Duck-soo on Monday promised a thorough investigation into the Halloween crush over the weekend that killed more than 150 mostly young people in the capital, plunging the country into mourning. Officials said 154 had been killed and 149 injured, with 33 people in serious condition. Tens of thousands of partiers had crowded into narrow streets and alleyways of Seoul's popular Itaewon district on Saturday for the first virtually unrestricted Halloween festivities in three years. But chaos erupted when people poured into one particularly narrow and sloping alley, even after it was already packed, witnesses said. "We will do our best to provide necessary support by reflecting the opinions of the bereaved families as much as possible."

☆ South Korea's deadly Halloween crush was avoidable, experts say
▼ + stars: | 2022-10-31 | by ( Joyce Lee | ) www.reuters.com time to read: +3 min

District authorities for Yongsan, where Itaewon is located, discussed measures to prevent illegal drug use and the spread of COVID-19 during the Halloween weekend, according to a district press release. But there were only 137 police officers in Itaewon at the time, the city of Seoul said. Moon Hyeon-cheol, a professor at the Graduate School of Disaster Safety Management at Soongsil University, said this type of crush had the potential to happen in any populous city. "We need to take this tragedy and learn to prepare for the risk of disaster," he said. Reporting by Joyce Lee; Additional reporting by Hyonhee Shin and Soo-hyang Choi; Editing by Edwina GibbsOur Standards: The Thomson Reuters Trust Principles.

Samsung's (005930.KS) operating profit fell to 10.85 trillion won ($7.7 billion) for the July-September quarter, from 15.8 trillion won a year earlier, the first year-on-year decline in nearly three years. That was in line with Samsung's (005930.KS) own estimate of 10.8 trillion won earlier this month. Revenue rose 4% to 76.8 trillion won. Profit in its chip business fell to 5.12 trillion won from 10.07 trillion won a year earlier. This was relatively more upbeat than its smaller rival SK Hynix (000660.KS), which warned of an "unprecedented deterioration" in memory chip demand and slashed investment by more than 50% on Wednesday.

☆ Samsung boss Jay Y. Lee to build on late father's legacy
▼ + stars: | 2022-10-27 | by ( Joyce Lee | ) www.reuters.com time to read: +5 min

Lee, 54, has been vice chairman of Samsung Electronics, the crown jewel of South Korea's biggest business conglomerate, since 2012. That is a major business risk for Samsung, which counts both China and the United States as major markets. But Samsung insiders say his quiet, urbane manner disguises a steely determination Lee will need if he is to grow Samsung. As an only son, Lee was groomed by his father to take over the core business of Samsung Group, which his grandfather founded in 1938. Shares in construction affiliate Samsung C&T (028260.KS), in which Lee owns a 18% stake, rose as much as 7.1%.

☆ Samsung Elec names Jay Y. Lee executive chairman
▼ + stars: | 2022-10-27 | by ( ) www.reuters.com time to read: 1 min

SEOUL, Oct 27 (Reuters) - Samsung Electronics' (005930.KS) de facto leader Jay Y. Lee has been named executive chairman of the company, it said on Thursday, a symbolic move heralding that South Korea's most valuable company will be officially run by the third generation of its founding family. The change reflects a role Lee has held since his father, the late patriarch and Samsung Group chairman Lee Kun-hee, was hospitalised in 2014 and died in 2020, analysts said. Lee, 54, has been vice chairman of Samsung Electronics, the crown jewel of South Korea's biggest business conglomerate, since 2012. Reporting by Joyce Lee; Editing by Christian Schmollinger and Stephen CoatesOur Standards: The Thomson Reuters Trust Principles.

It missed an average forecast of a 474 billion won loss from 12 analysts polled by Refinitiv SmartEstimate. Revenue fell 6% to 6.8 trillion won, LG Display said in a regulatory filing. "Under the conservative stance that poor management performance may be prolonged...we will accelerate our exit from the LCD TV sector," said LG Display Chief Financial Officer Sunghyun Kim told analysts on Wednesday, without providing an updated timeline. In third quarter, the company derived around 9% of its revenue from LCD TVs, a spokesperson said. Shares in LG Display fell 0.8% after the earnings result, versus a 0.6% rise in the wider market.

☆ LG Display's Q3 loss is larger than expected on falling demand
▼ + stars: | 2022-10-26 | by ( ) www.reuters.com time to read: 1 min

SEOUL, Oct 26 (Reuters) - South Korean flat-screen maker LG Display Co Ltd (034220.KS) posted on Wednesday its second consecutive quarterly loss, as soaring inflation and a gloomy economic outlook dealt a further blow to lacklustre demand for TVs and smartphones. The Apple Inc (AAPL.O) supplier posted an operating loss of 759 billion won ($532.13 million) for the quarter from July to September, compared with a profit of 529 billion won in the year-earlier period. It missed an average forecast of a loss of 474 billion won from 12 analysts polled by Refinitiv SmartEstimate. ($1=1,426.3300 won)Reporting by Joyce Lee & Heekyong Yang; Editing by Jacqueline Wong and Clarence FernandezOur Standards: The Thomson Reuters Trust Principles.

Investors looked beyond the bleak outlook to welcome the aggressive investment cut, sending SK Hynix shares 1.7% higher in a bet the scale of the action would help control chip oversupply and prop up chip prices. SK Hynix said its operating profit fell to 1.66 trillion won ($1.16 billion) in the July-September quarter, from 4.2 trillion won a year earlier. The result was below analysts' expectations of a 1.87 trillion won profit, according to Refinitiv SmartEstimate. SK Hynix said its 2022 investment is expected to be at the "upper range of 10-20 trillion won ($7-14 billion)", meaning 2023 investments could fall below 10 trillion won. SK Hynix also warned of uncertainties involving its chip plants in China due to U.S. export restrictions on advanced chip equipment to China aimed at slowing Beijing's technological advances.

[1/3] The logo for Google LLC is seen at the Google Store Chelsea in Manhattan, New York City, New York, U.S., November 17, 2021. Google's results bode ill for Facebook parent Meta Platforms (META.O), which is especially reliant on advertising and reports results on Wednesday. Microsoft fell 2% and chipmaker Texas Instruments , which forecast quarterly revenue and profit below estimates, was down 5%. Shares in Spotify (SPOT.N), which also warned on slow advertising growth, slid 4%. "During the quarter we experienced expected weakness in personal electronics and expanding weakness across industrial," said TI boss Rich Templeton.

☆ SK Hynix Q3 profit plunges as economic downturn hurts chip demand
▼ + stars: | 2022-10-25 | by ( ) www.reuters.com time to read: +1 min

[1/2] Memory chips by South Korean semiconductor supplier SK Hynix are seen on a circuit board of a computer in this illustration picture taken February 25, 2022. REUTERS/Florence Lo/IllustrationSEOUL, Oct 26 (Reuters) - South Korea's SK Hynix Inc (000660.KS) posted a 60% drop in third-quarter profit, missing estimates as red-hot inflation hurt demand for electronic devices and memory chips that go in them. The world's second-biggest memory chipmaker said on Wednesday its operating profit fell to 1.66 trillion won ($1.16 billion) in the July-September quarter, from 4.2 trillion won a year earlier. Analysts expected a profit of 1.87 trillion won, according to Refinitiv SmartEstimate. Prices of DRAM chips, used in devices and servers, fell around 20% in the third quarter from the second, SK Hynix said.

☆ S.Korea's POSCO Holdings sees steel demand remaining weak; Q3 profit tumbles
▼ + stars: | 2022-10-24 | by ( Joyce Lee | Heekyong Yang | ) www.reuters.com time to read: +2 min

SEOUL (Reuters) -South Korea’s POSCO Holdings on Monday forecast weak steel demand would persist into the first half of next year after a price slump and a production halt at its second-biggest plant led to a 71% fall in third-quarter operating profit. FILE PHOTO: The logo of POSCO is seen at the company's headquarters in Seoul, South Korea, July 20, 2016. The fall in earnings comes as global steel demand is weakening amid surging inflation, interest rates and a property market slump in China, the world’s biggest steel market. Global steel demand is expected to grow by about 1% next year, while demand in South Korea is expected to remain flat, POSCO said. The company’s head of marketing strategy, Eom Gichen, said steel demand was expected to remain to weak in the first half of next year because of economic factors like austerity measures.

"The impact of the Inflation Reduction Act on Hyundai's EV sales in the U.S. market seems inevitable as EV incentives are the key factor to U.S. EV shoppers," Lee Jae-il, an analyst at Eugene Investment & Securities. In a mixed outlook, Hyundai raised on Monday its full-year revenue growth forecast range by six percentage points to 19-20% from its previous estimate in January. Reuters GraphicsThe provision, announced last week, amounted to more than half of estimated third-quarter net profit of 2.4 trillion won drawn from 17 analysts. Revenue for the quarter jumped 31% to 37.7 trillion won, above the 36 trillion won analysts had expected. But overall vehicle supply remains tight globally due to the chip shortage and COVID-related restrictions.

But in a mixed outlook, the company slashed its 2022 vehicle sales forecast by 7% to 4.01 million, as the auto industry struggles with supply chain disruptions involving chips and other components. Despite that upheaval, the company raised its full-year revenue growth forecast range by six percentage points to 19-20% from its previous estimate in January. The provision, announced last week, amounted to more than half of estimated third-quarter net profit of 2.4 trillion won drawn from 17 analysts. Revenue for the quarter jumped 31% to 37.7 trillion won, below the 36 trillion won analysts had expected. But overall vehicle supply remains tight globally due to the chip shortage and COVID-related restrictions.

☆ Google, Netflix under scrutiny in South Korea over network fees
▼ + stars: | 2022-10-21 | by ( Joyce Lee | ) www.reuters.com time to read: +3 min

REUTERS/Dado RuvicSEOUL, Oct 21 (Reuters) - South Korea's parliament saw heated debate on Friday over proposed legislation to make global content providers such as Netflix (NFLX.O) and Alphabet's (GOOGL.O) Google pay South Korean network fees. Others disagreed, saying imposing fees on the big tech companies could mean they could raise their own fees and undermine South Korean content creators. Liz Chung, a director at Netflix's South Korean unit, said her company was looking for ways to handle surging traffic. YouTube has 41.8 million active South Korean users, out of a population of 51.6 million. South Korean network provider SK Broadband has gone to court in the hope of making Big Tech pay fees.

☆ S.Korean chat app Kakao's co-CEO steps down after widespread outage
▼ + stars: | 2022-10-19 | by ( ) www.reuters.com time to read: +2 min

SEOUL, Oct 19 (Reuters) - Kakao Corp's (035720.KS) co-CEO Namkoong Whon has stepped down, the company said on Wednesday, after an outage that shut down South Korea's largest mobile chat app and other services, triggering widespread backlash from authorities and the public. The resignation, effective Wednesday, leaves co-CEO Hong Euntaek as sole CEO. The company apologised for the outage that started on Saturday due to a fire at a data centre run by SK C&C (034730.KS) near Seoul. More than 500 small businesses complained about lost sales due to the Kakao outage, lobby group Korea Federation of Micro Enterprise said. ($1 = 1,415.6400 won)Register now for FREE unlimited access to Reuters.com RegisterReporting by Joyce Lee; Editing by Sam HolmesOur Standards: The Thomson Reuters Trust Principles.

☆ Kia shares edge up in choppy trade after booking extra $1.1 bln provision
▼ + stars: | 2022-10-19 | by ( ) www.reuters.com time to read: 1 min

SEOUL, Oct 19 (Reuters) - Shares of South Korea's Kia Corp (000270.KS) reversed losses and edged up on Wednesday after the automaker said on Tuesday that its third-quarter earnings will reflect an additional provision of 1.54 trillion won ($1.08 billion) for engine recalls from years ago. Kia's shares fell shortly after the market open. Hyundai Motor (005380.KS) and affiliate Kia on Tuesday said they will book a combined 2.9 trillion won ($2 billion) provision in their third-quarter results. read moreShares of Hyundai Motor (005380.KS) were trading up 0.9%, versus benchmark KOSPI's (.KS11) 0.2% rise as of 0025 GMT. ($1 = 1,424.6400 won)Register now for FREE unlimited access to Reuters.com RegisterReporting by Heekyong Yang and Joyce Lee; Editing by Kim Coghill & Shri NavaratnamOur Standards: The Thomson Reuters Trust Principles.

The costs, of which Hyundai accounted for 1.36 trillion won and Kia for 1.54 trillion won, amount to more than half of Hyundai's estimated third-quarter net profit and 77% of Kia's profit, Refinitiv data shows. APOLOGY"We sincerely apologise for repeated quality issues and additional costs related to the Theta II GDI engine recall," Cha Seong-ju, head of the quality division at Hyundai Motor Group, told analysts. "We will put our utmost efforts to secure engine quality... and manage quality related cost in order to prevent a repetition of quality issues." In 2020, Hyundai and Kia together made 3.6 trillion won in provisions related to engine issues. Hyundai Motor is scheduled to report its July-September earnings next Monday, while Kia has not yet announced when it will report its third quarter results.

☆ Hyundai Motor, Kia say $2 bln provision to hit Q3 earnings
▼ + stars: | 2022-10-18 | by ( ) www.reuters.com time to read: +1 min

SEOUL, Oct 18 (Reuters) - Hyundai Motor (005380.KS) and affiliate Kia Corp's (000270.KS) third-quarter earnings will reflect provisions totalling a combined 2.9 trillion won ($2 billion), they said on Tuesday. The costs include provisions related to their Theta GDI engines, the South Korean automakers said in regulatory filings. Hyundai Motor said a provision of 1.36 trillion won would be reflected in its earnings, while Kia flagged a hit of 1.54 trillion won. In 2020, Hyundai and Kia together made 3.6 trillion won in provisions related to engine issues. Hyundai Motor is scheduled to report its July-September earnings next Monday, while Kia has not yet announced when it will report its third quarter results.

☆ Shares in BTS' management rise after band clears uncertainty over military service
▼ + stars: | 2022-10-18 | by ( Joyce Lee | ) www.reuters.com time to read: +3 min

REUTERS/Heo Ran/File PhotoSEOUL, Oct 18 (Reuters) - The announcement by K-pop mega band BTS that members would serve mandatory military service in South Korea has removed a cloud of uncertainty that has hung over their plans. Investors in HYBE Co (352820.KS), BTS' management group, responded to the news by driving its shares up as much as 7.8% on Tuesday. In 2020, BTS accounted for 730 billion won in sales out of the company's 796 billion won revenue, she noted. The Korea Culture and Tourism Institute estimated that BTS' 2020 No. Hyundai Research Institute estimated that BTS' average annual production impact is about 4.1 trillion won, and the value-added economic effect is about 1.4 trillion won, in a 2018 report.

Kakao shares plunged as much as 9.5% on Monday to their lowest since May 2020, wiping out 2 trillion won ($1.39 billion) in market capitalisation at one point, while shares in affiliates KakaoPay (377300.KS) and KakaoBank (323410.KS) lost more than 8% before paring losses. South Korea's technology ministry is probing whether the outage violated any laws while the communications regulator is reviewing the matter, including questions of user compensation, officials said on Sunday. An initial probe on Sunday found electrical issues around battery racks in third basement floor of the data centre, which is operated by SK C&C (034730.KS), may have caused the fire. REPUTATIONAL HITThe Kakao messaging application and the Kakao T taxi booking application are seen on a mobile phone in this illustration photo March 13, 2018. It said on Monday it would discuss compensation with data centre operator SK C&C for losses it and its key units have sustained.

☆ Kakao shares slump as outage sparks calls for regulatory scrutiny
▼ + stars: | 2022-10-17 | by ( Joyce Lee | ) www.reuters.com time to read: +5 min

Kakao shares plunged more than 9% on Monday to their lowest since May 2020, while shares in Kakao affiliates KakaoPay (377300.KS) and KakaoBank (323410.KS) also plunged more than 8% in morning trade. Police and the National Forensic Service are conducting a second investigation on Monday at the data centre, which is operated by SK C&C (034730.KS). After an initial probe on Sunday, police said electrical issues around battery racks in third basement floor of the data centre may have caused the fire. It said in a regulatory filing on Monday that after it normalises services, it will discuss compensation with data centre operator SK C&C for losses sustained by Kakao and its key units. A Kakao spokesperson declined to provide the total number of servers it uses, citing security concerns.

☆ Kakao shares slump after widespread service outage
▼ + stars: | 2022-10-17 | by ( Joyce Lee | ) www.reuters.com time to read: +2 min

SEOUL, Oct 17 (Reuters) - Shares in South Korea's Kakao Corp (035720.KS) plunged more than 9% on Monday after a fire at a data centre south of Seoul damaged servers on the weekend, causing an extensive service outage in the country's main chat app. President Yoon Suk-yeol said on Monday that Kakao's services are "like a fundamental national telecommunications network as far as the public is concerned," and follow-up measures over the service outage will be pursued. Kakao shares fell to its lowest since May 2020, while shares in Kakao affiliates KakaoPay (377300.KS) and KakaoBank (323410.KS) also plunged more than 8% in morning trade. A Kakao spokesperson told Reuters on Monday services such as messaging have been restored, but miscellaneous services are still being restored. Kakao said on Monday the financial effects of a widespread service outage were expected to be limited on Kakao and its key units.

SEOUL, Oct 11 (Reuters) - Renault (RENA.PA) Chief Executive Luca De Meo said on Tuesday the automaker was looking to find a partner for a carve-out of its combustion-engine business that would bring scale and drive down costs on technology, including hybrids. Register now for FREE unlimited access to Reuters.com RegisterDe Meo said Renault was in talks with the French government over its evolving strategy. De Meo has said Renault needs new partnerships because of the scale of the investment needed to shift toward battery-powered cars and charging. In exchange for investing in the EV venture, Nissan is looking to Renault to reduce its stake in the Japanese automaker, a person familiar with the talks said. Renault currently owns about 43% of Nissan, which in turn has a 15% stake in its long-term partner with the French state holding another 15%.

The Renault CEO was scheduled to speak to reporters in Seoul on Tuesday evening, his first public appearance since news broke of the talks with Nissan. In exchange for its investment in Renault's EV unit, Nissan has asked Renault to take steps to sell down its 43% stake in Nissan, people with knowledge of the talks have said. Nissan has a 15% stake in Renault, as does the French government, but the Japanese automaker does not have voting rights. Nissan would also have to sign off on the plan for Geely to take a large stake in Renault's gas-engine business, code-named "Horse." Volvo and Geely created a joint-venture under the name Aurobay to shift their own combustion-engine business into a new stand-alone business.

☆ Exclusive: KLA to stop sales and service to China to comply with U.S. export curbs
▼ + stars: | 2022-10-11 | by ( Josh Horwitz | ) www.reuters.com time to read: +4 min

The move underscores huge business headwinds facing chipmakers and chip equipment makers around the world, as the Biden administration published a sweeping set of export controls on Friday aimed at slowing China's progress in advanced chip manufacturing. The source added that the company would also cease supplying China chip plants owned by Intel (INTC.O) and SK Hynix, the world's second-largest memory chipmaker. SK Hynix reiterated its stance that it would seek a license under new U.S. export control rules for equipment to keep operating its factories in China. Another source at an overseas chip equipment company told Reuters that all of the major suppliers to fabs were working round-the-clock to assess the long-term impact of the regulations. Shares in KLA tumbled nearly 5% on Monday, hit by the latest U.S. export control measures.

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