Tag: business

Maybe these Korean firms need to be lobbying the Mexican government to start cracking down on fentynal smuggling and human trafficking along the border to get these tarriffs removed:

South Korea’s economy has come under direct impact as US President Donald Trump signed an executive order on Saturday imposing tariffs on Mexico, Canada and China, raising concerns about a prolonged global trade war.

Industry experts warned on Sunday that Korea, heavily dependent on exports, could face significant setbacks if Trump’s tariff war escalates. Major companies, including Samsung Electronics, have manufacturing plants in Mexico and additional trade restrictions could disrupt their supply chains and profitability.

Korean firms strategically expanded their production bases in Mexico after the first round of US trade sanctions against China under the previous Trump administration. Electronics giants such as Samsung and LG, as well as automaker Hyundai Motor Group, bolstered their investments, either expanding existing facilities or establishing new ones.

As a result, Korea’s investment in Mexico surged from $11 million in 2020 to $396 million in 2022.

Korea Herald

You can read more at the link.

Is it really taking advantage of America by producing a product in your own country and selling it to the U.S.? If making the product in the U.S. was cheaper than manufacturing it in Korea for example, these foreign companies would do so:

President Donald Trump’s nominee for commerce secretary accused South Korea and Japan on Wednesday of having “taken advantage of” America’s “good nature,” stressing the need to work together with the allies to bring their production to the United States.

Howard Lutnick, a preeminent businessman, made the remarks during a Senate confirmation hearing, pointing to steel products from Japan and appliances from South Korea, as he responded to a senator’s question over what he will do to foster an environment to encourage joint ventures with U.S. allies.

“Our great allies have taken advantage of our good nature, and they like steel in Japan and appliances in Korea … I mean, they’ve just taken advantage of us. It’s time for them to partner with us and bring that production back home,” Lutnick told the Senate Committee on Commerce, Science and Transportation.

Yonhap

You can read more at the link.

If Trump wants to increase tariffs on South Korea I don’t think it really matters who the leader is:

Korea’s ongoing leadership crisis, triggered by President Yoon Suk Yeol’s attempt to impose martial law, is feared to leave the country vulnerable to potential new tariffs from the incoming Donald Trump administration during upcoming trade and economic negotiations, industry officials said Sunday.

Yoon is suspended from his duties following the National Assembly’s vote on Saturday to impeach him over his short-lived imposition of martial law on Dec. 3. Prime Minister Han Duck-soo has stepped in as acting president.

Officials from the nation’s business community expressed concerns that Korea may have weaker negotiating power under the presidency of the interim head of state.

“Every nation engages in a tight tug-of-war with the United States to minimize any damages from the ultra-protectionist stance of Trump,” an official from a major manufacturing firm here said.

“But it becomes harder for Korea to do so on an equal footing due to the absence of the state leader.”

Korea Times

You can read more at the link.

It appears Korean business owners are expecting the Trump administration to use tariffs on ROK exports if they are this concerned:

More than 8 out of 10 South Korean companies expect Donald Trump’s reelection as U.S. president will have a negative impact on the national economy, a survey showed Sunday.

In the annual survey on 239 companies with at least 30 employees on their management, 82 percent said the Korean economy will be negatively affected by the protectionist policy of the incoming second Trump administration as it has high dependence on exports, according to the Korea Enterprises Federation (KEF).

Only 7.5 percent answered the Korean economy will benefit from his reelection thanks to his China policy, expected to be aimed at curbing the growth of the world’s second-largest economy.

Yonhap

You can read more at the link.

It looks like the Korean defense industry has found yet another potential customer:

Second from left, Vice Admiral Angus Topshee, commander of the Royal Canadian Navy, is briefed about HD Hyundai Heavy Industries’ Aegis destroyer, the King Jeongjo the Great, at the shipbuilding site in Ulsan on Tuesday. [HD HYUNDAI]

HD Hyundai Heavy Industries (HD HHI) is in discussions with Canada regarding potentially contributing to the nation’s naval defense.  
  
Vice Admiral Angus Topshee, commander of the Royal Canadian Navy, toured the HHI’s Ulsan headquarters as part of discussions related to Canada’s upcoming Canadian Patrol Submarine Project (CPSP), estimated to be worth 60 trillion won ($42.8 billion), the company said Tuesday. 
  
Canada’s Department of National Defence is in the process of acquiring up to 12 3,000-ton submarine fleets in a bid to strengthen the nation’s maritime defense as part of the project.

Joong Ang Ilbo

You can read more at the link.

Considering how most of the fatalities from this deadly fire were foreign nationals, it is not surprising the company is being investigated for hiring illegal workers:

Police officers carry boxes confiscated from battery maker Aricell and workforce suppliers in Hwaseong, Gyeonggi Province, Wednesday, as they, together with the labor ministry, ratcheted up the investigation into a deadly fire at the company’s factory that killed 23 workers on Monday. Yonhap

The Ministry of Employment and Labor has launched an investigation into lithium battery maker Aricell over suspected illegal hiring of foreign workers after Monday’s deadly fire at its factory killed 23 employees, including 18 foreign nationals, officials said Thursday.

In particular, the ministry is looking into whether Aricell had directly imposed work orders on foreign temporary laborers hired by subcontractors, which is an illegal practice.

Korea Times

You can read more at the link.

This predictably did not go over well:

A team led by Andrew, comprising James, Chris and Lisa, engages in lively conversations about work while addressing each other by their first names.

This atmosphere is something that some Korean companies are trying to emulate by mandating all employees to use their preferred English name while at work.

The rationale is that they need to move away from the Korean language’s emphasis on honorifics, position titles and other formalities, to facilitate horizontal communication. The thinking is that, by ditching Korean names and the complex honorifics system attached to them in the Korean language, employees should be able to engage in more open and effective communication, encouraging innovation.

But does it actually work?

Predictable resistance

As one can imagine, not all employees welcome mandatory name-change policies with open arms.

At Kyobo Life Insurance, skepticism hangs over the company’s four-month-old English-name policy.

“It’s ridiculous,” said one employee who requested anonymity.

“Communication hasn’t improved, and some colleagues can’t even pronounce the English names, so we’ve had to post Korean pronunciations next to them on our company’s intranet.”

Korea Herald

You can read about all the examples of how this policy worked out at the link. It appears the younger the workforce is the more likely this policy will have better results.

The 52 hour work week is really just 40 hours like in the U.S. but has an additional 12 hours of overtime. I can understand how limiting workers to only 12 hours of overtime can constrain employers and workers in some industries:

The country currently adopts a 52-hour work week — 40 regular hours with 12 hours of possible overtime. It was introduced in 2018 by the liberal Moon Jae-in government to reduce the maximum week from 68 hours at the time to 52. 

Citing its latest survey, the ministry said the 52-hour workweek has substantially taken root, but some industries have still experienced management problems due to a lack of flexibility in working hours and difficulties meeting deadlines.

In the survey, 48.2 percent of the respondents said the 52-hour workweek has helped relieve matters stemming from work overload, but 54.9 percent said the existing system has failed to reflect the characteristics of some industries. 

In particular, both workers and employers in the manufacturing and construction industries as well as the medical, research and engineering sectors said overtime management of the current workweek needs to undergo changes.

Accepting these survey results, the ministry will maintain the 52-hour workweek, while at the same time beginning discussions with industries that have experienced difficulties abiding by the current rule, seeking to come up with complementary measures that could improve flexibility.

The ministry will also prepare measures aimed at resolving workers’ health concerns that could be affected by the long work hours at those industries.

Korea Times

You can read more at the link.