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  Korea Report - September 2019
  Author : Hwang & Co     Date : 19-10-05 16:08     Hit : 729    
   Korea Report - September 2019.pdf (476.4K), Down : 3, 2019-10-05 16:08:27

 

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KOREA REPORT - SEPTEMBER, 2019.

 

SKorea excluded Japan from its export controls whitelist on 18th in retaliation for Tokyos earlier decision to remove Seoul from its list of favored trade partners. Korea divides countries into group A and B, under its export controls system. Japan falls into the newly established group A-2. Nations in group A-2 will be treated the same as countries in group B with respect to the level of export controls, the ministry said.

 

Posco said on 18th that it succeeded in commercializing super-alloy stainless steel, labeled S31254, for vessel scrubbers, and it has been supplying steel to clients including Hyundai Heavy Industries Power Systems, Kangrim Heavy Industries and STI. Posco predicted more than 12,000 vessels would apply scrubbers over the next five years.

 

During the '16th Korean Shipbuilding & Offshore Day', held on 24th at El Tower, Seoul, HHI Co-CEO Ka Sam-hyun told reporters, "The merger of HHI and DSME is going to be all right. Preliminary discussions with Japan have been ongoing since a month ago. There is no negative reaction or concerns yet associated with the merger." Regarding whether to increase the number of countries to which HHI submits application for the merger, Ka said, "We are considering adding some more, but the number of countries would be less than expected. Demands are also high from the EU, so we are actively submitting the relevant data to it. There is no particular negative issue yet." He also added, "The screening of the merger is expected to finish by the end of this year." So far, Korea Shipbuilding & Offshore Engineering (KSOE) has submitted the request to six countries including Korea, China (both in July), Kazakhstan (in Aug.) and Singapore (in Sept). 

 

DSME is reportedly marketing its VLCC slots for early delivery. According to industry sources, DSME is offering some of its remaining 2Q or 3Q 2021 slots for 300K VLCCs. It also said that DSME is quoting a $92 mil - $93 mil level for the vessel (non-scrubber specification). One source in Asian shipping business points out winning normal VLCC is an uphill task for DSME, noting, "More and more operators are seeking for LNG-powered VLCC, as well as clean ship fuel."

 

Ministry of Trade, Industry and Energy (MOTIE) of Korea said that Minister Sung Yun-mo visited New York to participate in signing ceremony between KOGAS and BP of an LNG sale and purchase agreement on 23rd. Through the agreement, KOGAS will buy 1.58 mil tons of LNG per year during 2025-2039 period plus three optional years. The total import value of 18 year period is estimated to be up to $9.612 bil. The cargoes will come from Freeport LNG or Calcasieu Pass LNG. MOTIE stated that this is the first long-term LNG S&P since inauguration of Trump administration. The Korea-US energy trade volume has increased seven folds since 2016. Korea has been the US largest LNG importer since 2018.

 

 

TOPICS.

 

SKorea excluded Japan from its export controls whitelist on 18th [p.2]

President Moon Jae-in on 9th appointed six minister-level officials [p.3]

Calls for Justice Minister Cho Kuks resignation are growing [p.4]

Kim Jong-un may visit SKorea to take part in Special Summit in Nov [p.7]

President Trump said Washington is not looking for a leadership change in NK [p.7]

OECD slashed its growth outlook for SKorea's economy this year to 2.1% [p.10]

SKorea's trade surplus came to $5.97 bil in Sept, 92 straight months of surplus [p.10]

Posco to commercialize super-alloy stainless steel for vessel scrubbers [p.15]

Aekyung and KCGI submitted initial bids to acquire Asiana Airlines [p.15]

Hyundai Motor Group to mass produce self-driving cars within next 5 years [p.17]

Hyundai E&C landed $2.2 bil refinery development project with PT Pertamina [p.18]

SKorea's consumer prices fell 0.4% on-year in Sept, first drop since 1965 [p.19]

HHI Co-CEO said, the merger of HHI and DSME is going to be all right [p.20]

Korean shipbuilders stood atop in global new order intakes [p.20]

HHI posted a revenue of $4.5 bil for the first eight months of 2019 [p.23]

DSME is reportedly marketing its VLCC slots for early delivery [p.24]

Kogas signed 15-year contract with BP to purchase 1.58 mil tons of US LNG [p.24]

 

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