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Korea Report - October, 2015.

All the major yards except for SHI & HMD posted a loss again during the third quarter, which they expect to be the last for losses. For the final quarter, through massive restructuring of organization and exposure of the previous hidden losses, the management of the yards are in confidence to improve their performance eventually to return to the black.

India’s GAIL project attracted international recognition and keen interests from Korean and Indian shipbuilders when the tender was re-issued on Sept 15. But, the pre-bid meeting, held on Sept 30 in GAIL’s office, missed the most prominent participants like Larsen & Toubro and SK Shipping due to its unusual tender terms. The bid closing date of Dec 14 is coming by and less bidders are expected to move forward for final bid. Many observers are harbored with doubts that this valuable Indian project, India’s first LNGC project, may not find its way into the right direction if the tender terms are not amended to a usual form.

TOPICS.

SKorea, China and Japan agreed to further “institutionalize” trilateral cooperation (p.2)

SKorea and China on 31st agreed to strengthen bilateral cooperation (p.2)

Park and Abe agreed to try thawing years of frozen ties in their first- summit (p.3)

Family reunion of South-North was held during 20-26th (p.6)

Industrial park in NK’s Gaeseong registered production of $2.996 bil as of end July (p.7)

SKorea regarded as most attractive and less risky to invest among emerging economies (p.8)

Korea’s exports decreased 6.6% on-year in the first nine months of this year (p.9)

SKorea is enjoying its busiest M&A deal spree in a decade (p.11)

Major conglomerates are to adopt the wage peak system (p.11)

Performance of Chaebol s on the third quarter (p.11)

Samsung Group decided to sell its affiliate’s stake in chemical units to Lotte Group (p.12)

SEC’s share of global DRAM market came to 45.2% in 2nd quarter, with 27.3% of SK Hynix (p.12)

Hyundai Motor’s cumulative sales in USA topped 10 mil units (p.14)

KWon has been extremely volatile against USD and Jyen over the past few months (p.16)

All the major yards except for SHI & HMD posted a loss again, seeing brighter future (p.18)

GAIL may lose its most prominent project partners (p.18)

Creditors decided to pour KW4.2 tril ($3.68 bil) into DSME (p.21)

MOF is to select foreign Class to serve ship inspection services for government (p.23)

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