|
|
|
|
|
Home > Report > Korea Report |
|
|
|
|
|
|
|
Korea Report - December 2021 |
|
|
Author : Hwang & Co
Date : 22-01-07 10:51
Hit : 23853
|
|
Korea Report - December 2021.pdf (445.2K), Down : 8, 2022-01-07 10:51:31 |
|
F : +82-31-706-1390 KOREA REPORT - DECEMBER, 2021.
COVID-19 pandemic. Kospi¡¯s new era. Home prices
soar. Presidential election. Korean pop culture. Dictators¡¯ end. Read more¡¦
The
National Assembly passed 2022 government budget on 3rd, a record high of KW607.7
tril ($516.3 bil), to cope with economic
fallout of the COVID-19 pandemic and other expenses. The package is an increase
of KW3.3 tril from government proposal, second consecutive year the budget has
been expanded by the assembly. Next year's budget includes KW68 tril worth of
support measures for small businesses hit by the pandemic. Also included in the
budget are additional funds for child care services, funds to establish a
response system to supply chain risks, such as recent shortage of urea solution,
and an increase in local subsidies following an increase in tax revenues.
SKorea's
oldest coal-powered plant will be shut down for good in line with government's plan to shift toward renewable energy
and to reduce fine dust. Honam Coal Power Plant, located in Yeosu, 450 kms
south of Seoul, will stop operations on 31st, according to Ministry of Trade,
Industry and Energy on 28th. The plant has been in operation since 1973. The
nation's 10 coal-based reactors have now all been retired since 2017. A new LNG
plant will be newly built at the Yeosu site, the ministry said.
SKorea recorded $1.2596 tril in trade in 2021, jumping one notch from ninth place in the world
to eighth place. SKorea's exports rose 25.8% on-year to
$644.54 bil in 2021, to reach all-time high on the back of solid demand for
chips and petroleum products, Ministry of Trade, Industry and Energy said on
31st. Imports spiked 31.5% on-year to $615.05 bil in 2021, resulting in trade
surplus of $29.49 bil.
Samsung
Electronics (SEC) was recognized with a $110 bil Tower of Export at the 58th
Trade Day in SKorea, Ministry of Trade, Industry
and Energy said on 6th. This comes as SEC earned $113.2 bil from July 2020 to
June this year from exports of semiconductor chips, consumer electronic goods and
mobile handsets. This accounted for a fifth of total exports of Korea over the
cited period. This is the first time that a single Korean company exceeded $100
bil in annual exports.
Five
of Hyundai Motor Group¡¯s affiliates have been listed on Dow Jones
Sustainability Index, three of which were added
for first time. Hyundai E&C and Hyundai Steel have been recognized on
world¡¯s first sustainability index for 12 and 4 consecutive years. Hyundai
Motor, Hyundai Mobis and Hyundai Glovis were newly added. DJSI picks top 2,544
listed companies based on free-float market capitalization and evaluates
companies¡¯ environment, social and governance performance and only top 10 are
added to the index. Five Hyundai affiliates were given top tier points in
climate change strategy, human resources management, and risk management.
SKorea¡¯s
consumer prices climbed 2.5% on-year in 2021,
reaching the highest level in 10 years, aggravating the burden on debt-saddled
household sector, according to Statistics Korea on 31st. After reaching 2.2% in
2012, the growth ranged between 0.4-1.9% during 2013-2020 period. The 2021
figure marked the highest since it peaked 4% in 2011. The high growth was led
by price surges in agricultural (8.3% growth on-year), livestock (12.7%) and
petroleum (15.2%) products. Core inflation rose 1.8%, the fastest increase
since 2015. In Dec, consumer prices grew
3.7% on-year. Prices of agricultural, livestock and fisheries goods
grew 7.8% on-year. Those of industrial goods rose 4.7%, slowing from 5.2% on-year
gain in Nov.
The
European Union (EU) is highly likely to veto the proposed merger between HHI
Group and DSME. According to industrial sources, HHI did not submit measures to
allay competition concerns to the national competition authorities in all EU Member
States. Reuters reported, "HHI unofficially showed its intention to sell
some of its shipyards, but competition authorities did not satisfy the
suggestion. The EU is less likely to give approval without appropriate
remedies." The merger has been approved by China, Singapore, and the
Republic of Kazakhstan, but is being held up by the EU, SKorea and Japan. The
approval by the EU has been considered as crucial for the merger. The
European Commission (EC) reported intermediate results for HHI's acquisition of
DSME in June 2020, expressing concerns over the possibility that the merger
would lead to a mega shipbuilder and less bargaining power in the LNG ship
market. HHI noted, "It makes sense for the EU to give an unconditional
approval like Kazakhstan, Singapore and China," and added, "We will
make all efforts to receive approval from the EU."
Newbuilding
contracts worth $46.6 bil have been placed at Korean 'Big3' so far this year,
surpassing their yearly order targets by 47%.
According to industrial source, KSOE won
224 vessels (including three offshore plants) worth $22.5 bil for the year to
date, up sharply from $10 bil posted in 2020. The figure also exceeds
KSOE's 2021 order goal $14.9 bil by 51%. SHI
secured 80 newbuilds worth $12.2 bil, surpassing its yearly order target $9.1
bil by 34%. SHI logged the highest contracting in eight years since 2013
when the yard was awarded newbuilds of $13.3 bil. DSME won 60 vessels worth $10.8 bil so far this year, achieving over
140% of its 2021 order goal $7.7 bil. DSME surpassed yearly order intakes
of a $10 bil level in seven years since 2014 when it was awarded vessels worth
$14.9 bil.
-------------------------------------------------------------------------------------------------------
ATTACHMENT: Korea Report - December 2021 (PDF FILE) Please let us know if you have difficulty opening the file.
|
|
|
|
|
|
|