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Tag Archives: Korea

Latest Act in the Crisis of the Enormous Korean Shipbuilders

And now not even their foreign subsidiaries are immune. By MC01, a frequent commenter on WOLF STREET: In February 2019, Hyundai Heavy Industries (HHI) was selected by the Korea Development Bank (KDB) as the “sole bidder” for the ailing Daewoo Shipbuilding and Marine Engineering (DSME), in which the State-owned Korea Development Bank holds a 55.7% stake. Samsung Heavy Industries (SHH) had already announced they had no interest in taking over DSME, making this selection process little...

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Fun on Friday: Finders Weepers; Losers Keepers?

And they say crime doesn’t pay.Remember the South Korean custodian who found gold bars in the garbage can at the  Incheon International Airport? I wrote about it a little over a year ago. The real travesty is that the janitor who found the gold probably won’t get a dime. It was a sad case of finders weepers.Well, the story has another twist. It seems it may be losers keepers.So, our intrepid custodian was emptying the trash when he/she found seven gold bars. They are valued at around...

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US Cleanest Dirty Shirt Among Manufacturing Giants: Germany at Crisis Level. China, Japan, South Korea Contract

Exports-at-all-costs for economic growth comes home to roost. Manufacturing in the biggest manufacturing countries, particularly those focused on exports, has hit various levels of malaise, ranging from slowing growth to panic-inducing decline, according to the manufacturing Purchasing Managers Indices for May released on Monday. The PMI data shows that in the US, manufacturing is growing more slowly, but it’s still growing, and so the US continues to be the cleanest dirty shirt in...

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More Airline Woes: Avianca Brazil Gets Dismembered, Korea’s Asiana Airlines Gets Taxpayer Bailout, Air India Gets Rumors of Default

It Just Doesn’t Let Up With Airlines. By MC01, a frequent commenter, for WOLF STREET: Here’s an example of what should happen to an airline which has become unprofitable and failed to turn around its financial situation. On May 7, the assets of Avianca Brazil, formerly Brazil’s third-largest airline, will be auctioned off to pay creditors. To streamline sales and maximize proceeds, Avianca Brazil has been broken up in seven lots. The best assets are prime slots at the Congonhas and...

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“Asia Will Be the Next Source of Downside Systemic Risk for Financial Markets”

Emerging Markets turmoil: The price of cheap debt & misallocation of capital. “Excess liquidity usually leads to the misallocation of capital, masking any balance sheet constrains. As this tide of excess liquidity recedes, it reveals the misallocation of capital and the mispricing of risk,” Nedbank CIB strategists Neels Heyneke and Mehul Daya write in a note. And this is particularly the case for excess dollar-liquidity in the Emerging Markets (EMs). Sovereign credit ratings – such...

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The Largest Ships in the Huge Iron-Ore Trade

Exports are dominated by two countries, imports by three. And everything revolves around China. By MC01, a frequent commenter on WOLF STREET: China’s phenomenal and somewhat worrying rise as the top steel producer in the world has fueled an absolutely unprecedented boom in the trade of iron ore. The latest data available (2016) put the worldwide seaborne dry bulk trade at 4,553 million metric tons, of which 1,354 million metric tons, or 30%, were iron ore. The iron ore tonnage is up...

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GM Threatens Bankruptcy for GM Korea

Government bailout and union concessions by April 20, or else… Government accuses GM of “opaque” management. Manufacturing small cars profitably is tough in a world where SUVs are hot. But this… Barry Engle, GM executive VP and president of GM International, threatened on Monday during a meeting with the union leader that GM Korea would file for bankruptcy if the union doesn’t make the concessions GM seeks by April 20, according to union document reviewed by Reuters. He also said the...

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How GM Is Shaking Down South Korean Taxpayers

The threat of Carmageddon for jobs. It follows the playbook: It started on February 12, when General Motors announced the “first step” in the “necessary restructuring” of its GM Korea unit. It would “cease production” and shut down its factory in Gunsan “by the end of May 2018.” The “next steps” would affect the three remaining plants, whose fate would be decided “by the end of February.” Here’s the verbalization of the shakedown: The company has proposed to its key stakeholders —...

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South Korea Asks US To Halt Joint Military Exercises Until Olympics End

North Korea may have successfully bluffed its way into getting the US to stop holding massive army drills with South Korea's army. According to the FT, South Korea has politely asked the US to "delay" joint military exercises until after the Winter Olympics, in order to lower the chances that North Korea takes provocative actions during the Pyeongchang Games, which Seoul wants to use to showcase the country’s development. The unexpected request means that Seoul will want to postpone the...

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“We’re Getting Close To Military Conflict”: Sen. Graham Urges Evacuation Of Americans From South Korea

Neocon Senator Lindsay Graham was stoking the flame of what is looking like increasingly probable war with North Korea today, when he warned on national TV that rising tensions between the the US and Pyongyang means preparations for war need to be taken, and that dependents of U.S. military personnel in South Korea should be relocated after the latest North Korean missile test. Speaking on CBS News' "Face the Nation", Sen. Graham said that "we're getting close to a military conflict because...

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