Golden Gate Ventures and South Korea’s Hanwha planning a Southeast Asia investment fund

Singapore-based Golden Gate Ventures said Tuesday it is teaming up with South Korean asset manager Hanwha Asset Management to invest in technology start-ups in Southeast Asia. Both Golden Gate Ventures and Hanwha Asset Management declined to comment on the goal for the fund’s size or on how much had been committed so far. Start-ups in Southeast Asia receive fewer investments during Series B funding than their counterparts in the U.K. and the United States, according to Golden Gate Ventures, an e


Singapore-based Golden Gate Ventures said Tuesday it is teaming up with South Korean asset manager Hanwha Asset Management to invest in technology start-ups in Southeast Asia. Both Golden Gate Ventures and Hanwha Asset Management declined to comment on the goal for the fund’s size or on how much had been committed so far. Start-ups in Southeast Asia receive fewer investments during Series B funding than their counterparts in the U.K. and the United States, according to Golden Gate Ventures, an e
Golden Gate Ventures and South Korea’s Hanwha planning a Southeast Asia investment fund Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-03-19  Authors: saheli roy choudhury, bryan van der beek, bloomberg, getty images
Keywords: news, cnbc, companies, gap, investment, southeast, planning, koreas, ventures, golden, gate, asset, south, startups, fund, funds, series, hanwha


Golden Gate Ventures and South Korea's Hanwha planning a Southeast Asia investment fund

Singapore-based Golden Gate Ventures said Tuesday it is teaming up with South Korean asset manager Hanwha Asset Management to invest in technology start-ups in Southeast Asia.

The firms are looking to raise around $200 million in funds and already have about $80 million worth of commitments from investors, according to a source familiar with the matter.

Both Golden Gate Ventures and Hanwha Asset Management declined to comment on the goal for the fund’s size or on how much had been committed so far.

In a press release, however, the companies said investments will focus on start-ups that are raising funds in the so-called Series B round — at that stage, start-ups have moved past the early development phase, achieved a few important initial milestones, and are looking for financing to grow their businesses to meet user demands.

Start-ups in Southeast Asia receive fewer investments during Series B funding than their counterparts in the U.K. and the United States, according to Golden Gate Ventures, an early-stage venture capital fund in the region.

“Just like there was a Seed-stage gap in 2013 that closed by 2015, then a Series A gap in 2015 that closed by 2017, now there’s a Series B gap that started in 2018,” Vinnie Lauria, a founding partner at Golden Gate Ventures, told CNBC by email.

Seed and Series A refer to early-stage fundraising efforts from new start-ups.


Company: cnbc, Activity: cnbc, Date: 2019-03-19  Authors: saheli roy choudhury, bryan van der beek, bloomberg, getty images
Keywords: news, cnbc, companies, gap, investment, southeast, planning, koreas, ventures, golden, gate, asset, south, startups, fund, funds, series, hanwha


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Golden Gate Ventures and South Korea’s Hanwha planning a Southeast Asia investment fund

Singapore-based Golden Gate Ventures said Tuesday it is teaming up with South Korean asset manager Hanwha Asset Management to invest in technology start-ups in Southeast Asia. Both Golden Gate Ventures and Hanwha Asset Management declined to comment on the goal for the fund’s size or on how much had been committed so far. Start-ups in Southeast Asia receive fewer investments during Series B funding than their counterparts in the U.K. and the United States, according to Golden Gate Ventures, an e


Singapore-based Golden Gate Ventures said Tuesday it is teaming up with South Korean asset manager Hanwha Asset Management to invest in technology start-ups in Southeast Asia. Both Golden Gate Ventures and Hanwha Asset Management declined to comment on the goal for the fund’s size or on how much had been committed so far. Start-ups in Southeast Asia receive fewer investments during Series B funding than their counterparts in the U.K. and the United States, according to Golden Gate Ventures, an e
Golden Gate Ventures and South Korea’s Hanwha planning a Southeast Asia investment fund Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-03-19  Authors: saheli roy choudhury, bryan van der beek, bloomberg, getty images
Keywords: news, cnbc, companies, gap, investment, southeast, planning, koreas, ventures, golden, gate, asset, south, startups, fund, funds, series, hanwha


Golden Gate Ventures and South Korea's Hanwha planning a Southeast Asia investment fund

Singapore-based Golden Gate Ventures said Tuesday it is teaming up with South Korean asset manager Hanwha Asset Management to invest in technology start-ups in Southeast Asia.

The firms are looking to raise around $200 million in funds and already have about $80 million worth of commitments from investors, according to a source familiar with the matter.

Both Golden Gate Ventures and Hanwha Asset Management declined to comment on the goal for the fund’s size or on how much had been committed so far.

In a press release, however, the companies said investments will focus on start-ups that are raising funds in the so-called Series B round — at that stage, start-ups have moved past the early development phase, achieved a few important initial milestones, and are looking for financing to grow their businesses to meet user demands.

Start-ups in Southeast Asia receive fewer investments during Series B funding than their counterparts in the U.K. and the United States, according to Golden Gate Ventures, an early-stage venture capital fund in the region.

“Just like there was a Seed-stage gap in 2013 that closed by 2015, then a Series A gap in 2015 that closed by 2017, now there’s a Series B gap that started in 2018,” Vinnie Lauria, a founding partner at Golden Gate Ventures, told CNBC by email.

Seed and Series A refer to early-stage fundraising efforts from new start-ups.


Company: cnbc, Activity: cnbc, Date: 2019-03-19  Authors: saheli roy choudhury, bryan van der beek, bloomberg, getty images
Keywords: news, cnbc, companies, gap, investment, southeast, planning, koreas, ventures, golden, gate, asset, south, startups, fund, funds, series, hanwha


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South Korea’s Moon replaces unification minister to improve ties with Pyongyang

South Korean President Moon Jae-in has replaced his unification minister who played a major role in last year’s detente with the North, his office said on Friday, and named a longtime confidant to lead Moon’s drive for “a new Korean peninsula.” Kim Yeon-chul, a pro-engagement scholar who heads the state-run Korea Institute for National Unification, will replace Cho Myoung-gyon pending a confirmation hearing. The appointment of Kim Yeon-chul, a staunch backer of Korean reconciliation, may further


South Korean President Moon Jae-in has replaced his unification minister who played a major role in last year’s detente with the North, his office said on Friday, and named a longtime confidant to lead Moon’s drive for “a new Korean peninsula.” Kim Yeon-chul, a pro-engagement scholar who heads the state-run Korea Institute for National Unification, will replace Cho Myoung-gyon pending a confirmation hearing. The appointment of Kim Yeon-chul, a staunch backer of Korean reconciliation, may further
South Korea’s Moon replaces unification minister to improve ties with Pyongyang Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-03-08  Authors: pyeongyang press corps pool, getty images
Keywords: news, cnbc, companies, minister, sanctions, korean, improve, ties, moons, moon, pyongyang, unification, replaces, north, summit, factory, koreas, south, office


South Korea's Moon replaces unification minister to improve ties with Pyongyang

South Korean President Moon Jae-in has replaced his unification minister who played a major role in last year’s detente with the North, his office said on Friday, and named a longtime confidant to lead Moon’s drive for “a new Korean peninsula.”

Kim Yeon-chul, a pro-engagement scholar who heads the state-run Korea Institute for National Unification, will replace Cho Myoung-gyon pending a confirmation hearing.

“He’s the right man who can actively embody the president’s vision for a new Korean peninsula, a new peace and cooperation community, by carrying out the Unification Ministry’s main policy tasks without a hitch and implementing inter-Korean agreements in a speedy manner,” Moon’s spokesman told a news briefing.

The change was part of Moon’s largest cabinet reshuffle since taking office in 2017, with new ministers for the interior, land and transportation, culture and sport, oceans and fisheries, science and technology, and small and medium enterprises.

The shake-up allows incumbent aides to run in parliamentary elections next year, analysts said, and turns a page for an administration facing a sluggish economy and sagging popularity.

The removal of Cho, who has yet to say if he will enter politics, comes a week after the second summit between U.S. President Donald Trump and North Korean leader Kim Jong Un failed to narrow their differences on dismantling the North’s nuclear programme and U.S. willingness to ease sanctions.

The failed summit was a blow for Moon, who had hoped U.S. sanctions relief would boost South-North projects including a factory park, tourism zone and railway network.

Ahead of the Hanoi summit, a rift opened within Moon’s administration over how to advance Korean ties without undercutting international sanctions and the alliance with the United States.

Some top aides, including national security adviser Chung Eui-yong, had pushed for the economic projects to go ahead. Cho and other aides favoured sticking to Trump’s “maximum pressure” campaign to force the North’s denuclearisation.

Cho’s advocacy of strict sanctions enforcement surprised — and drew complaints from — many officials.

The appointment of Kim Yeon-chul, a staunch backer of Korean reconciliation, may further improve ties with the North, officials said.

It could also signal deeper divisions within Moon’s government, some analysts said, and fuel U.S. concerns that the South may be moving too quickly with the North.

Kim, 55, is a North Korea studies professor and adviser to a previous administration in which Moon also served.

More recently, he advised Moon’s office on Korean summits before moving to head the think tank affiliated with the Unification Ministry.

Kim was a vocal critic of the 2016 decision to close the Kaesong factory after Seoul’s then-conservative government said the North had diverted wages paid to its workers by South Korean firms to bankroll its weapons programmes.

A private panel appointed by the Unification Ministry under Moon said there was no evidence to back up that charge, and Kim has since called for the factory to reopen.

The factory, alongside a railway and tourism project, are important parts of Moon’s initiative to build a pan-peninsula economic community which he has said will also benefit South Korea’s economy.


Company: cnbc, Activity: cnbc, Date: 2019-03-08  Authors: pyeongyang press corps pool, getty images
Keywords: news, cnbc, companies, minister, sanctions, korean, improve, ties, moons, moon, pyongyang, unification, replaces, north, summit, factory, koreas, south, office


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Trump tries to convince Kim that the summit is North Korea’s chance for an economic boom

When reclusive North Korean leader Kim Jong Un meets with U.S. President Donald Trump this week, he’ll be aiming for a much-needed economic boom for his country. Trump, who says his top priority is for Pyongyang not to conduct any more testing of ballistic missiles or nuclear weapons, may opt to use the lifting of economic sanctions as a negotiating tool with the pariah state, experts said. In fact, Trump has dangled the prospect of a stronger North Korean economy ahead of the talks in Hanoi, Vi


When reclusive North Korean leader Kim Jong Un meets with U.S. President Donald Trump this week, he’ll be aiming for a much-needed economic boom for his country. Trump, who says his top priority is for Pyongyang not to conduct any more testing of ballistic missiles or nuclear weapons, may opt to use the lifting of economic sanctions as a negotiating tool with the pariah state, experts said. In fact, Trump has dangled the prospect of a stronger North Korean economy ahead of the talks in Hanoi, Vi
Trump tries to convince Kim that the summit is North Korea’s chance for an economic boom Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-27  Authors: weizhen tan, wang di, xinhua news agency, getty images, -miha hribernik, head of asia at verisk maplecroft
Keywords: news, cnbc, companies, chance, nuclear, korean, weapons, great, trump, north, president, vietnam, economic, boom, kim, summit, tries, convince, koreas


Trump tries to convince Kim that the summit is North Korea's chance for an economic boom

When reclusive North Korean leader Kim Jong Un meets with U.S. President Donald Trump this week, he’ll be aiming for a much-needed economic boom for his country.

Trump, who says his top priority is for Pyongyang not to conduct any more testing of ballistic missiles or nuclear weapons, may opt to use the lifting of economic sanctions as a negotiating tool with the pariah state, experts said.

In fact, Trump has dangled the prospect of a stronger North Korean economy ahead of the talks in Hanoi, Vietnam. He tweeted hours before meeting Kim: “Vietnam is thriving like few places on earth. North Korea would be the same, and very quickly, if it would denuclearize. The potential is AWESOME, a great opportunity… ”

The U.S. president said in a separate Twitter post on Sunday: “Chairman Kim realizes, perhaps better than anyone else, that without nuclear weapons, his country could fast become one of the great economic powers anywhere in the World.”


Company: cnbc, Activity: cnbc, Date: 2019-02-27  Authors: weizhen tan, wang di, xinhua news agency, getty images, -miha hribernik, head of asia at verisk maplecroft
Keywords: news, cnbc, companies, chance, nuclear, korean, weapons, great, trump, north, president, vietnam, economic, boom, kim, summit, tries, convince, koreas


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South Korea’s SK Hynix plans to spend $107 billion building four memory chip plants

South Korea’s SK Hynix on Thursday said it would spend $107 billion building four factories, as the memory chip maker seeks to maintain its competitiveness in the face of Chinese efforts to become a leading chipmaking nation. The chip fabrication plants will be built on a 4.5 million square meter site south of Seoul beginning 2022, complementing two existing domestic factories that will receive a separate 55 trillion won ($49 billion) investment over the next decade. “Though there is not enough


South Korea’s SK Hynix on Thursday said it would spend $107 billion building four factories, as the memory chip maker seeks to maintain its competitiveness in the face of Chinese efforts to become a leading chipmaking nation. The chip fabrication plants will be built on a 4.5 million square meter site south of Seoul beginning 2022, complementing two existing domestic factories that will receive a separate 55 trillion won ($49 billion) investment over the next decade. “Though there is not enough
South Korea’s SK Hynix plans to spend $107 billion building four memory chip plants Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-21  Authors: seongjoon cho, bloomberg, getty images
Keywords: news, cnbc, companies, worlds, plants, demand, koreas, kim, sk, spend, memory, hynix, plans, building, networks, chip, south, factories, billion


South Korea's SK Hynix plans to spend $107 billion building four memory chip plants

South Korea’s SK Hynix on Thursday said it would spend $107 billion building four factories, as the memory chip maker seeks to maintain its competitiveness in the face of Chinese efforts to become a leading chipmaking nation.

The chip fabrication plants will be built on a 4.5 million square meter site south of Seoul beginning 2022, complementing two existing domestic factories that will receive a separate 55 trillion won ($49 billion) investment over the next decade.

The plans for the factories, producing DRAM and next-generation chips, come as chipmakers prepare for a surge in demand to power new technology such as fifth-generation (5G) communication networks and artificial intelligence, even as a slowdown in smartphone sales kills off a two-year chip boom.

“Though there is not enough chip demand for autonomous cars now, I believe there will be much more demand for self-driving vehicles in the next 10 years or as early as in 2023 or 2024,” said analyst Kim Young-gun at Mirae Asset Daewoo.

“That will create more chip demand for SK Hynix,” as will the commercialization of 5G networks over the next few years, Kim said.

The plan also intensifies an arms race between South Korea, the world’s biggest exporter of memory chips, and China, which has been aggressively encouraging chipmaking investment to curb reliance on imports amid a trade spat with the United States.

China is the world’s largest chip consumer, importing $270 billion worth in 2017 – more than its total imports of crude oil.


Company: cnbc, Activity: cnbc, Date: 2019-02-21  Authors: seongjoon cho, bloomberg, getty images
Keywords: news, cnbc, companies, worlds, plants, demand, koreas, kim, sk, spend, memory, hynix, plans, building, networks, chip, south, factories, billion


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South Korea’s SK Hynix plans to spend $107 billion building four memory chip plants

South Korea’s SK Hynix on Thursday said it would spend $107 billion building four factories, as the memory chip maker seeks to maintain its competitiveness in the face of Chinese efforts to become a leading chipmaking nation. The chip fabrication plants will be built on a 4.5 million square meter site south of Seoul beginning 2022, complementing two existing domestic factories that will receive a separate 55 trillion won ($49 billion) investment over the next decade. “Though there is not enough


South Korea’s SK Hynix on Thursday said it would spend $107 billion building four factories, as the memory chip maker seeks to maintain its competitiveness in the face of Chinese efforts to become a leading chipmaking nation. The chip fabrication plants will be built on a 4.5 million square meter site south of Seoul beginning 2022, complementing two existing domestic factories that will receive a separate 55 trillion won ($49 billion) investment over the next decade. “Though there is not enough
South Korea’s SK Hynix plans to spend $107 billion building four memory chip plants Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-21  Authors: seongjoon cho, bloomberg, getty images
Keywords: news, cnbc, companies, worlds, plants, demand, koreas, kim, sk, spend, memory, hynix, plans, building, networks, chip, south, factories, billion


South Korea's SK Hynix plans to spend $107 billion building four memory chip plants

South Korea’s SK Hynix on Thursday said it would spend $107 billion building four factories, as the memory chip maker seeks to maintain its competitiveness in the face of Chinese efforts to become a leading chipmaking nation.

The chip fabrication plants will be built on a 4.5 million square meter site south of Seoul beginning 2022, complementing two existing domestic factories that will receive a separate 55 trillion won ($49 billion) investment over the next decade.

The plans for the factories, producing DRAM and next-generation chips, come as chipmakers prepare for a surge in demand to power new technology such as fifth-generation (5G) communication networks and artificial intelligence, even as a slowdown in smartphone sales kills off a two-year chip boom.

“Though there is not enough chip demand for autonomous cars now, I believe there will be much more demand for self-driving vehicles in the next 10 years or as early as in 2023 or 2024,” said analyst Kim Young-gun at Mirae Asset Daewoo.

“That will create more chip demand for SK Hynix,” as will the commercialization of 5G networks over the next few years, Kim said.

The plan also intensifies an arms race between South Korea, the world’s biggest exporter of memory chips, and China, which has been aggressively encouraging chipmaking investment to curb reliance on imports amid a trade spat with the United States.

China is the world’s largest chip consumer, importing $270 billion worth in 2017 – more than its total imports of crude oil.


Company: cnbc, Activity: cnbc, Date: 2019-02-21  Authors: seongjoon cho, bloomberg, getty images
Keywords: news, cnbc, companies, worlds, plants, demand, koreas, kim, sk, spend, memory, hynix, plans, building, networks, chip, south, factories, billion


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North Korea’s Kim will likely travel to Vietnam by train

Vietnam is preparing for North Korean leader Kim Jong Un to arrive by train for his summit with President Donald Trump in Hanoi next week, two sources with direct knowledge of security and logistics planning told Reuters on Wednesday. It could take Kim at least two and a half days to travel the thousands of kilometers through China by train, from the North Korean capital of Pyongyang to Vietnam, meaning he would have to set off later this week in time for his planned Feb. 25 arrival. Kim’s train


Vietnam is preparing for North Korean leader Kim Jong Un to arrive by train for his summit with President Donald Trump in Hanoi next week, two sources with direct knowledge of security and logistics planning told Reuters on Wednesday. It could take Kim at least two and a half days to travel the thousands of kilometers through China by train, from the North Korean capital of Pyongyang to Vietnam, meaning he would have to set off later this week in time for his planned Feb. 25 arrival. Kim’s train
North Korea’s Kim will likely travel to Vietnam by train Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-20  Authors: saul loeb, afp, getty images
Keywords: news, cnbc, companies, likely, korean, trump, travel, kim, vietnam, north, summit, told, koreas, sources, train, week


North Korea's Kim will likely travel to Vietnam by train

Vietnam is preparing for North Korean leader Kim Jong Un to arrive by train for his summit with President Donald Trump in Hanoi next week, two sources with direct knowledge of security and logistics planning told Reuters on Wednesday.

It could take Kim at least two and a half days to travel the thousands of kilometers through China by train, from the North Korean capital of Pyongyang to Vietnam, meaning he would have to set off later this week in time for his planned Feb. 25 arrival.

Kim’s train will stop at the Vietnamese border station of Dong Dang, where he will disembark and drive 170 km (105 miles) to Hanoi by car, the sources said.

Separately, three other sources with direct knowledge of the summit preparations told Reuters the preferred location for the Feb. 27-28 meeting between Trump and Kim is the Government Guesthouse, a colonial-era government building in central Hanoi.

All five sources who spoke to Reuters said the plans were subject to change.


Company: cnbc, Activity: cnbc, Date: 2019-02-20  Authors: saul loeb, afp, getty images
Keywords: news, cnbc, companies, likely, korean, trump, travel, kim, vietnam, north, summit, told, koreas, sources, train, week


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South Korea pushes back on Trump claims about more money for troop agreement

South Korea’s presidential Blue House pushed back on Wednesday against comments by U.S.President Donald Trump suggested Seoul had agreed to pay $500 million more towards maintaining U.S. troops in the country. “They were paying about $500 million for $5 billion worth of protection,” Trump said. So they’ve agreed to pay $500 million more.” Under the previous agreement — which lapsed amid disagreements in December — South Korea contributed 960 billion won ($857 million) in 2018. The agreement sign


South Korea’s presidential Blue House pushed back on Wednesday against comments by U.S.President Donald Trump suggested Seoul had agreed to pay $500 million more towards maintaining U.S. troops in the country. “They were paying about $500 million for $5 billion worth of protection,” Trump said. So they’ve agreed to pay $500 million more.” Under the previous agreement — which lapsed amid disagreements in December — South Korea contributed 960 billion won ($857 million) in 2018. The agreement sign
South Korea pushes back on Trump claims about more money for troop agreement Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-13  Authors: seongjoon cho, bloomberg, getty images
Keywords: news, cnbc, companies, seoul, kim, troop, sides, increase, million, korea, pay, pushes, agreement, south, trump, claims, 500, money, koreas


South Korea pushes back on Trump claims about more money for troop agreement

South Korea’s presidential Blue House pushed back on Wednesday against comments by U.S.

President Donald Trump suggested Seoul had agreed to pay $500 million more towards maintaining U.S. troops in the country.

Trump said at a cabinet meeting in Washington on Tuesday Seoul had agreed to pay $500 million more as part of an agreement sharing the cost of keeping roughly 28,500 American troops stationed in South Korea.

“They were paying about $500 million for $5 billion worth of protection,” Trump said. “And we have to do better than that. So they’ve agreed to pay $500 million more.”

Under the previous agreement — which lapsed amid disagreements in December — South Korea contributed 960 billion won ($857 million) in 2018.

South Korean and American officials initialled an agreement on Sunday under which Seoul would increase its contribution to just under 1.04 trillion won ($927 million), an increase of about $70.3 million.

Kim Eui-kyeom, a spokesman for the presidential Blue House in Seoul, said when asked about Trump’s $500 million figure that it “shouldn’t be taken as a fait accompli”. Kim said the figure had been one of Washington’s demands during the negotiations.

The agreement signed on Sunday must still be approved by South Korea’s parliament. Kim said it was valid for only one year, with the possibility of an extension for another year if both sides agreed.

“Both sides will consider whether a raise is needed and it’s also possible that they would agree to maintain the current level,” Kim said.

The two sides had struggled to reach a breakthrough, despite at least 10 rounds of talks since March, amid Trump’s repeated calls for a sharp increase in South Korea’s contribution.

Trump said in his cabinet comments on Tuesday the relationship with South Korea was “great” but that the United States lost “a tremendous amount of money” defending its ally.


Company: cnbc, Activity: cnbc, Date: 2019-02-13  Authors: seongjoon cho, bloomberg, getty images
Keywords: news, cnbc, companies, seoul, kim, troop, sides, increase, million, korea, pay, pushes, agreement, south, trump, claims, 500, money, koreas


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South Korea’s jobless rate jumps to 9-year peak as minimum wage hike roils labor market

Exports declined in January as sales to China shrank for a third month in a row, adding to the strains for South Korea’s manufacturing and services sector jobs. Effective from January, the minimum wage increased 10.9 percent from last year to 8,350 won ($7.46) an hour, following a 16 percent increase made for 2018. Workers at the manufacturing sector were the hardest hit in January, shedding 170,000 jobs from a year earlier. Construction sector and retailers also lost 19,000 jobs and 67,000 jobs


Exports declined in January as sales to China shrank for a third month in a row, adding to the strains for South Korea’s manufacturing and services sector jobs. Effective from January, the minimum wage increased 10.9 percent from last year to 8,350 won ($7.46) an hour, following a 16 percent increase made for 2018. Workers at the manufacturing sector were the hardest hit in January, shedding 170,000 jobs from a year earlier. Construction sector and retailers also lost 19,000 jobs and 67,000 jobs
South Korea’s jobless rate jumps to 9-year peak as minimum wage hike roils labor market Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-13  Authors: carl court, getty images
Keywords: news, cnbc, companies, labor, manufacturing, peak, rate, roils, wage, economy, sector, construction, jobs, market, south, policy, wages, jumps, minimum, koreas


South Korea's jobless rate jumps to 9-year peak as minimum wage hike roils labor market

South Korea’s unemployment rate jumped to a nine-year high in January as more people shunned low-paying work in the face of rising minimum wages, putting further pressure on the economy and deepening policy frustrations for President Moon Jae-in.

The unemployment rate rose to 4.4 percent in January in seasonally adjusted terms, the highest since the 4.7 percent level posted in January 2010, with most of the job losses seen in manufacturing and construction sectors, data from Statistics Korea showed on Wednesday.

Vanishing jobs is hitting Asia’s fourth largest economy at a time when the trade dispute between the United States and China — its two biggest trading partners — threatens to hurt the world’s sixth-largest exporter.

Exports declined in January as sales to China shrank for a third month in a row, adding to the strains for South Korea’s manufacturing and services sector jobs.

“The trade disputes hasn’t hit the nation’s manufacturers yet and recent job losses are more related to local restructuring issues and the minimum wage hikes hitting self-employed businesses,” said Lee Sang-jae, an analyst at Eugene Investment & Securities.

“Having said that, manufacturers are likely to hire even fewer workers should this exports downturn continue.”

In December, the jobless rate was 3.8 percent.

A combined 29 percent hike in the nation’s mandatory minimum wages over only two years have led to a drop in low-paying jobs across retailers, construction and retail sectors in a blow to the economy already grappling with slowing exports.

Effective from January, the minimum wage increased 10.9 percent from last year to 8,350 won ($7.46) an hour, following a 16 percent increase made for 2018.

Workers at the manufacturing sector were the hardest hit in January, shedding 170,000 jobs from a year earlier. Construction sector and retailers also lost 19,000 jobs and 67,000 jobs, respectively.

The spike in the jobless rate adds to economic policy frustrations and political challenges for President Moon whose approval rating has dropped sharply in recent months.

Shortly after the Wednesday data release, finance minister Hong Nam-ki said at a policy meeting the government will be making “all-out efforts to achieve its goal to create 150,000 jobs” this year.

Economists say a combination of falling exports, China’s slowdown and a weaker labor market pose further risks for Asia’s fourth-largest economy this year.

The rising risks to growth has prompted the central bank to adopt a more cautious approach to policy. Last month, the Bank of Korea left the policy rate unchanged at 1.75 percent, while trimming the growth outlook amid a cooling global economy.

Minutes of that meeting released on Tuesday showed a majority of BOK board members see inflation pressures remaining weak, reinforcing market consensus that policymakers would stand pat for some time.


Company: cnbc, Activity: cnbc, Date: 2019-02-13  Authors: carl court, getty images
Keywords: news, cnbc, companies, labor, manufacturing, peak, rate, roils, wage, economy, sector, construction, jobs, market, south, policy, wages, jumps, minimum, koreas


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South Korea signs deal to pay more for US troops after Trump’s demand

South Korean officials signed a short-term agreement on Sunday that would boost the amount Seoul contributes toward the upkeep of U.S. troops on the peninsula, after a previous deal lapsed amid U.S. President Donald Trump’s call for more money. The new deal must still be approved by South Korea’s parliament, but it would boost South Korea’s contribution to 1.03 trillion won ($890 million) from 960 billion won in 2018. Unlike past agreements, which lasted for five years, this deal is scheduled to


South Korean officials signed a short-term agreement on Sunday that would boost the amount Seoul contributes toward the upkeep of U.S. troops on the peninsula, after a previous deal lapsed amid U.S. President Donald Trump’s call for more money. The new deal must still be approved by South Korea’s parliament, but it would boost South Korea’s contribution to 1.03 trillion won ($890 million) from 960 billion won in 2018. Unlike past agreements, which lasted for five years, this deal is scheduled to
South Korea signs deal to pay more for US troops after Trump’s demand Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-10  Authors: chung sung-jun, getty images news, getty images
Keywords: news, cnbc, companies, demand, pay, won, trumps, troops, upkeep, table, korea, south, koreas, boost, trillion, signs, deal


South Korea signs deal to pay more for US troops after Trump's demand

South Korean officials signed a short-term agreement on Sunday that would boost the amount Seoul contributes toward the upkeep of U.S. troops on the peninsula, after a previous deal lapsed amid U.S. President Donald Trump’s call for more money.

The new deal must still be approved by South Korea’s parliament, but it would boost South Korea’s contribution to 1.03 trillion won ($890 million) from 960 billion won in 2018.

Unlike past agreements, which lasted for five years, this deal is scheduled to expire in one year, potentially forcing both sides back to the bargaining table within months.


Company: cnbc, Activity: cnbc, Date: 2019-02-10  Authors: chung sung-jun, getty images news, getty images
Keywords: news, cnbc, companies, demand, pay, won, trumps, troops, upkeep, table, korea, south, koreas, boost, trillion, signs, deal


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