Home > Report > Korea Report

 
 
 
   
  Korea Report - April 2022
  Author : Hwang & Co     Date : 22-05-07 16:44     Hit : 2815    
   Korea Report - April 2022.pdf (418.7K), Down : 8, 2022-05-09 12:43:53

 

HWANG & COMPANY, LTD.

 

T : +82-31-702-1397 

F : +82-31-706-1390 

E : hwangnco@hwangnco.com

H : www.hwangnco.com

 

KOREA REPORT - APRIL, 2022.

 

TOP ISSUES.

 

SKorea lifted all COVID-19 social distancing rules, except mask mandate, starting 18th, PM Kim Boo-kyum said. It is first time in two years for the government to lift all social distancing rules. Eating inside multipurpose facilities, such as movie theaters, gyms and religious facilities, was allowed from 25th. SKorea will lift the outdoor mask mandate from May 2nd, PM Kim said, though people will still need to wear a mask when they attend gatherings of 50 or more people or use multiuse facilities.

 

SKorea plans to build country's first floating airport in Busan by 2035, land ministry said on 26th. Last year, National Assembly approved a bill worth KW13.7 tril ($10.97 bil) to build new airport on Gadeok Island, the biggest island of Busan, to handle growing air traffic demand and facilitate prosperity in the country's southeast region. Read more

 

SKorea's consumer sentiment improved to 103.8 in April, up 0.6 point on-month, as the country lifted most social distancing rules as part of efforts to return to normal from the pandemic, Bank of Korea said on 27th. Daily coronavirus infections peaked at over 600,000 in mid-Mar but have been retreating fast ever since.

 

SKorea reported trade deficit of $2.66 bil in April, amid soaring global energy prices. Exports rose 12.6% on-year to $57.69 bil on the back of brisk demand for chips and petroleum products. Accumulated exports for Jan-April came to $230.6 bil, first time the figure surpassed $200 bil mark. Imports grew 18.6% on-year to $60.35 bil.

 

SK became nations second-largest conglomerate for the first time in 12 years, Fair Trade Commission said on 27th. SK accumulated KW291 tril ($230 bil) in total assets, largely due to increased assets and sales in SK hynix. It outpaced Hyundai Motor, which had KW257.84 tril in total assets. Samsung remained at the top, while LG and Lotte placed fourth and fifth, respectively.

 

A takeover battle for SsangYong Motor has kicked off between three rival bidders: two medium-sized enterprises and a private equity firm, in a KW1.5 tril ($1.2 bil) deal. KG Group, Ssangbangwool and Pavilion PE each submitted letter of intent to lead manager of the deal, EY Hanyoung, industry sources said on 19th. Read more

 

SKorea's foreign reserves stood at $449.3 bil as of end April, down $8.51 bil on-month, shrinking for second straight month, as strong dollar resulted in a fall in converted value of non-dollar holdings and government unloaded greenback to defend local currency. Foreign securities were valued at $408.83 bil, down $1.38 bil on-month. The value of deposits also fell $6.56 bil on-month to $16.25 bil as of end April. SKorea was world's eighth-largest holder of foreign reserves.

 

The Big 3 received orders for 114 vessels worth $15 bil so far this year, filing 43% of their 2022 order targets of $35 bil. What stands out most in the brilliant order sales is quality. Big 3 have been able to cherry pick lucrative projects against a backdrop of new order boom triggered from the end of 2020. It is also said that their strategies to enjoy rising newbuilding price have been working well. 

 

SKorean shipbuilding industry was awarded 1.64 mil cgt (35 units, 51%) of 3.23 mil cgt (88 units) newbuilds ordered globally in March, taking No.1 ranking by beating China that won 1.36 mil cgt (46 units, 42%). For first quarter, according to Clarksons Research, Korea was ranked number one by winning 4.57 mil cgt (97 units) of 9.2 mil cgt total contracting. Its rival China stood second on the list with orders of 3.86 mil cgt (130 vessels, 42%). Korea was ahead of China in 1Q order sales for the first time since 2015. Read more

 

Due to skyrocketing raw material prices resulting from Russia's invasion of Ukraine, Korean steelmakers are set to raise thick plate prices for ships. According to industry sources, steelmakers such as Posco, Hyundai Steel and shipbuilders including HHI, SHI, DSME agreed to raise the price of thick plate for shipbuilding for 1H of 2022. However, they disagreed on the final price. Steelmakers are demanding KW110 mil per ton, but shipbuilders are reportedly sticking to KW102 mil per ton. The steel industry argues that rising prices of raw materials such as iron ore are inevitable. Raw materials account for 60% of the thick plates production cost. Read more

 

-------------------------------------------------------------------------------------------------------

 

ATTACHMENT: Korea Report - April 2022 (PDF FILE)

Please let us know if you have difficulty opening the file.