Latest news with #KimDae-jong
Korea Herald
05-08-2025
- Business
- Korea Herald
Hanwha outpaces chaebol rivals in market cap growth
Hanwha Group has witnessed the biggest increase in corporate value among South Korea's top 10 conglomerates this year, highlighting its key role in the country's recent trade negotiations with the US. As of Aug. 1, the market capitalization of Hanwha Group and its 12 listed subsidiaries on the nation's main bourse, the Kospi exchange, skyrocketed 177.5 percent to 120.7 trillion won ($86.9 billion) compared to the end of 2024. This marks the highest growth rate among South Korea's 10 biggest corporate groups. Following Hanwha, HD Hyundai's market cap grew 51.7 percent and SK Group's rose 35.7 percent in the same period, respectively. Industry watchers indicated that Hanwha Group's surge in corporate value is primarily driven by its defense and shipbuilding affiliates. As of Aug.1, the combined market cap of Hanwha Aerospace, Hanwha Ocean and Hanwha Systems achieved 95.7 trillion won. Notably, Hanwha Aerospace saw its stock price soar by 245.1 percent, reaching 939,000 won on Aug. 1, up from 326,000 won at the close of last year. The defense subsidiary has been accelerating its push into the rapidly emerging US defense industry. It is vying for the US Army's self-propelled howitzer (SPH-M) program, with plans to invest about $1 billion by 2028 to set up a production facility for 155 millimeter artillery propellant charges in the US. Hanwha Ocean's stock price rose by 200.1 percent, from 37,350 won to 117,400 won over the same period, following the news of its pivotal role in aiding the Korean government's recent tariff negotiations with the US. In particular, it surpassed tech giant Naver to rank 13th in market cap at the company level with 36 trillion won. When Hanwha Group acquired Hanwha Ocean — formerly Daewoo Shipbuilding & Marine Engineering — in 2023, the company was valued at 3 trillion won. Hanwha Ocean, the only Korean shipbuilder with a shipyard in the US, has been in the spotlight for providing leverage for Korea in offering a strategic advantage in negotiations to lower tariffs on Korean exports from 25 percent to 15 percent. Underscoring the influence of the US in the global defense industry, Hanwha Group established Hanwha Global Defense in Washington in May to oversee international operations for Hanwha Aerospace, Hanwha Ocean and Hanwha Systems. 'While it is disappointing that we lost an FTA advantage, major companies like Hanwha partly contributed to completing the trade negotiations with the US within the deadline of (Aug. 1),' said Kim Dae-jong, a business professor at Sejong University.
CNA
24-04-2025
- Business
- CNA
South Korea's economy shrinks in first quarter as trade war hits exports
The country's economy expanded 1.3 per cent in the first quarter of last year but grew less than expected in the fourth quarter, as the fallout from Yoon's declaration of martial law hit consumer confidence and domestic demand. According to the Korea Customs Service, as of mid-April, the country's exports had dropped by more than 5 per cent compared to the previous year, with declines reported in nine out of the country's ten major export categories excluding semiconductors. The sharpest fall was in exports to the United States, which fell by more than 14 per cent. This week, the International Monetary Fund sharply revised down its growth forecast for South Korea this year, cutting it from 2 per cent to 1 per cent. "The South Korean economy is facing structural burdens of high inflation and a weak won-dollar exchange rate, and under this dual pressure, a slowdown in growth is becoming increasingly evident," Kim Dae-jong, a professor at Sejong University, told AFP. Last week, Bank of Korea governor Rhee Chang-yong said the country's annual growth rate is now "expected to fall short of the 1.5 per cent forecast made in February". "The tightening of tariff policies, which is much stronger than initially projected, will likely further weigh on growth prospects," he told reporters in a press conference. He added that "political uncertainty has dragged on longer than expected, delaying the recovery of economic sentiment." Sluggish domestic demand, along with factors such as large-scale wildfires which tore through swaths of the country's southeast in late March, had also contributed to the downturn, Rhee said.
