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KOREA REPORT - JUNE 2022.
TOP ISSUES.
SKorea¡¯s
ruling People Power Party (PPP) achieved landslide victory in local elections
held on 1st, as its candidates prevailed in most of
major cities and provinces to add support to recently inaugurated Yoon
administration. The ruling party won 12 out of 17 metropolitan mayoral and
provincial gubernatorial elections, winning majority for the first time since
2006. Read more¡¦
SKorea
successfully launched it¡¯s first domestic rocket into orbit on 21st, a landmark step that opens new era of homegrown space
technology. After spending eight months on improving technical problems that
caused early shutdown of third-stage rocket engine, Nuri rocket (KSLV-II),
weighing 200 mt, once again flew to outer space at Korea Aerospace Research
Institute in Goheung, South Jeolla Province. Three-stage rocket reached its
target orbit of 700 km, making SKorea seventh country in the world with
indigenous capabilities to develop and launch satellite greater than 1 ton. The
success is expected to boost nation¡¯s space ambitions to land a lunar module on
the moon by 2031. Starting from 2023 to 2027, SKorea plans to carry out Nuri
Acceleration Project, which will send four additional rockets to space to boost
reliability of Nuri space rocket and promote private enterprises that develop
satellite projectiles.
SKorea¡¯s
high inflation, which has led to a spike in consumer prices since latter half
of 2021, is weakening purchasing power of households, as they spend large portion of their monthly disposable income
on daily necessities, according to Finance Ministry on 7th. Consumer prices of
groceries climbed by 4.1% on-year in first quarter, prices of food services,
rose by 6.1% on-year. Prices for dining out surged by 7.4% on-year in May, the
highest in 24 years. Read more¡¦
SKorea
posted trade deficit of $2.47 bil in June, extending its trade deficit for
third consecutive month due to high global energy
prices. Exports rose 5.4% on-year to $57.73 bil on solid demand for chips and
petroleum products. Imports jumped 19.4% on-year to $60.2 bil on soaring global
energy prices. Exports of semiconductors grew 10.7% to $12.35 bil and petroleum
products spiked 81.7% to 5.48 bil in June. Steel products also saw increase of
5.4% on-year to $3.28 bil. But auto exports fell 2.7% on-year to $3.93 bil due
mainly to truckers' strike and chip shortage, and petrochemicals inched down
0.4% to $4.58 bil.
SKorea's
foreign reserves stood at $438.28 bil as of end June, down $9.43 bil on-month, falling by the largest amount in 13
years, as authorities unloaded the US dollar to help stem won's sharp weakness,
according to Bank of Korea. Foreign securities came to $395.27 bil, down $6.23
bil on-month, accounting for 90.2% of total foreign reserves. Value of deposits
fell $2.64 bil on-month to $19.23 billion. SKorea is world's ninth-largest holder
of foreign reserves.
SKorea's consumer prices soared to 6.0%
on-year in June, the fastest clip in nearly 24 years, due mainly to
soaring energy costs, fanning expectations of a sharp rate in July, according
to Statistics Korea. It marked the sharpest inflation rate since 6.8% jump in
Nov 1998. Core inflation climbed 3.9% on-year, sharpest gain since Feb 2009.
Prices of daily necessities, 141 items closely related to people's daily lives,
such as food, clothing and housing, spiked 7.4% on-year, highest growth since
Nov 1998.
Korean
Big3 have posted achievement rates of over 70% in their yearly order targets.
By company, KSOE was awarded 111 newbuilds worth $13.54 bil so far this year,
filling 77.6% its 2022 order goal of $17.44 bil. SHI has 33 units worth
$6.3 bil, showing 72% achievement in this year's order target $8.8 bil, while
DSME saw 66.6% rate by winning 26 units worth $5.93 bil. In particular, there has been a flurry of profitable orders
this month. SKorean shipbuilders have finally entered into formal contracts for
Qatar's proposed mega-sized LNG carrier building project.
HHI
plans to set up a new repair shipyard on the site of Subic yard in the
Philippines. According to industrial sources, new
facility would be located on a portion of the yard formerly operated by HJ
Shipbuilding and Construction (the former HanjinHIC). HHI plans to operate the
facility for repair and maintenance of vessels which HHI builds for Armed
Forces of the Philippines. Read more¡¦
While
there is rising interest on methanol as shipping front spearheads a transition
towards supply of environmentally friendly ship fuel, prominent shipowners are
actively moving forward with plans for ordering methanol dual-fueled
containerships. China's Cosco Shipping Holdings,
Singapore's Eastern Pacific Shipping (EPS) and Pacific International Lines
(PIL) have been trying to join the ranks of methanol-powered containership
operator. Read more¡¦
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