Business News
Reporting, analysis, and commentary on business from Breeze in Busan.
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Why Are Busan's Department Stores Transforming into Mixed-Use Complexes?
In recent years, the city of Busan has witnessed a significant shift in its urban landscape. Prominent department stores and shopping malls, once the epicenter of retail activity, are increasingly being transformed into mixed-use developments. This trend reflects a broader move toward integrating residential, commercial, and recreational spaces within single complexes, reshaping the way urban environments are designed and utilized. Parallel trends can be observed globally, particularly in citie
5 min read
South Korea's Shipbuilding Renaissance Faces Workforce Challenges
South Korea's shipbuilding giants are riding the wave of a resurgent industry, amassing significant orders throughout the year. However, the surge has illuminated a significant workforce gap, raising concerns about their ability to fulfill the booming demand in the long run. According to Clarksons Research, a UK-based shipping and shipbuilding research entity, the Newbuilding Price Index (NPI) touched 173 points in August. Established in 1998 with a base of 100 points reflecting average ship pr
2 min read
Surge in Japanese Steel Imports Stirs Concerns in South Korea
SEOUL — Recent data reveals a significant influx of high-quality, hot-rolled steel plates from Japanese steel companies into the South Korean market, igniting concerns about the stability of the domestic steel industry. With a devalued yen in play, Japan's steel exports to Korea have surged, offering both quality and price advantages. The Korean steel industry, symbolized by major players like POSCO, is currently facing an existential threat, as high-quality hot-rolled steel plates are being du
3 min read
BNK Kyongnam Bank Embezzlement Scandal: The Largest in Korean Financial History
In a startling revelation, the Financial Supervisory Service (FSS) announced that the recent real estate project financing (PF) scandal involving BNK Kyongnam Bank has reached a staggering 298.8 billion won ($224 million). This marks the most substantial embezzlement in the annals of the Korean financial market, surpassing the previous record involving Woori Bank's scandal last year. The wrongdoer, an employee surnamed Lee, orchestrated this elaborate scheme over thirteen years, from 2009 to Ju
2 min read
Evergrande's Economic Quake: China's Property Crisis Spills Over Borders
In a dramatic turn of events, China's property titan, Evergrande Group, once hailed as the country's second-largest developer, lodged a bankruptcy petition in New York on Thursday. This move traces back to the severe debt crisis the company faced in 2021, which has since rippled across China's property sector and potentially even its broader economy. Borrowing, Defaulting, and Bankruptcy Evergrande's financial debacle began when it heavily borrowed and subsequently failed to service its debt.
2 min read
South Korea’s Semiconductor Cluster Dilemma
South Korea, as a powerhouse in the global semiconductor industry, has recently launched an ambitious project, the "semiconductor cluster," set to invigorate its leadership position. A total of 120 trillion won will be invested in this project over the next decade, aiming to establish specialized industrial parks for semiconductor production. SK Hynix, the world's second-largest DRAM market player, spearheads this ambitious project, in collaboration with more than 50 partner companies. The commi
2 min read
South Korean Construction Industry Faces Unprecedented Challenges Amid Economic Downturn
South Korea's construction industry is experiencing stark polarization amidst a real estate market downturn and rising Project Financing (PF) interest rates. Large-scale construction companies like Hyundai Construction, Daewoo Construction, DL E&C, and POSCO E&C have responded to these economic conditions by expanding overseas orders and transitioning to digital platforms. In stark contrast, many medium and small-sized construction firms are teetering on the brink of bankruptcy. According to a
2 min read
Netflix's South Korea Expansion Faces Tax Evasion and Network Fee Controversy
In a significant announcement, Netflix has committed to invest $2.5 billion in South Korea over the next four years, marking an unprecedented investment in a specific country by the streaming giant. The South Korean Presidential Office actively promoted the decision, highlighting the investment as a breakthrough achievement. Discussions regarding the investment commenced in January, with President Yoon Suk-yeol engaging in direct correspondence with Netflix executives. The Presidential Office n
2 min read
South Korean Semiconductor Industry Caught in Crossfire Between US and China Amid Supply Adjustments
The South Korean semiconductor industry is increasingly concerned about the potential fallout from the escalating US-China semiconductor dispute. As the industry grapples with production cuts and falling prices, it now finds itself stuck in the middle of a geopolitical tug-of-war. According to recent reports, the US government has requested that South Korea refrain from exporting semiconductor replacement products to China ahead of the US-South Korea summit. In response, Chinese state-run media
1 min read
Over Half of Industries in South Korea Expected to Struggle Amid Global Economic Slump
SEOUL, South Korea – A majority of South Korea's industries are expected to face declining performance in the first quarter of the year, as they struggle to recover from the effects of the COVID-19 pandemic and a global economic slowdown. The downturn comes after many sectors enjoyed a temporary boost during the pandemic. According to recent earnings projections from at least three research centers, 10 out of 14 major South Korean industries are expected to see a decline in profitability in the
2 min read
The Rise of the Petroyuan: Saudi Arabia's Potential Game-Changer in Global Oil Markets
Saudi Arabia, a steadfast ally of the United States for decades, is considering a historic shift in its economic and geopolitical approach. The kingdom is actively discussing the possibility of pricing some of its oil sales to China in yuan, a move that could challenge the U.S. dollar's longstanding dominance in the global petroleum market. This development could have far-reaching implications for the international financial system, the U.S. dollar, and the delicate balance of power in the Middl
2 min read
OPEC+ Output Cuts Fuel Inflation Concerns as Oil Prices Soar
OPEC+ is a group of 23 oil-exporting nations that meets regularly to decide the quantity of crude oil to sell on the world market. At its core are the 13 members of OPEC (Organization of the Petroleum Exporting Countries), primarily consisting of Middle Eastern and African countries. OPEC was formed in 1960 as a cartel aiming to fix the global supply of oil and its price. Today, OPEC nations produce around 30% of the world's crude oil, with Saudi Arabia being the largest single oil producer with
2 min read