Tag: business

Debt Ridden Asiana Airlines to Be Sold

We could be seeing the beginning of the end of Asiana Airlines:

Thirty-one years and two months ago, Asiana Airlines was founded. Very soon, it could be history after its controlling shareholder said it would be selling off the debt-laden carrier.

Asiana Airlines was formed in 1988, the year the Olympic Games were held in Seoul, as Seoul Air International. 

The Chun Doo Hwan government in February 1988 approved the Kumho Group, as it was known at the time, to form the country’s second private airline. The market had been monopolized by Korean Air.

The Summer Games put Korea on the global map, but there was a shortage of flights to transport the visitors. In August 1988, Asiana inaugurated its first service and changed its name in December.

While the airline first operated with a single Boeing 737, it enjoyed the Golden Age of travel in the 1990s along with its competitor as the government lifted the overseas travel ban, and Koreans started going abroad en masse.

Joong Ang Ilbo

You can read more about Asiana Airlines at the link. I like flying Korean Air better than Asiana Airlines, but I still thought it was a good airline. I would rather fly Asiana than any of the major US airlines.

Is North Korea A Good Place to Invest?

Here is a lawyer who thinks that North Korea is a great place to invest:

Michael Hay, a foreign legal counsel qualified in New York, talks about his 12-year judicial experience in North Korea in an interview with The Korea Times at his office at HMP Law in central Seoul, Monday. / Korea Times photo by Shim Hyun-chul

North Korea has an advanced arbitration system even compared to developed countries, and foreign companies face an even playing field in dispute resolution, according to Michael Hay, the founder of North Korea’s only foreign law firm Hay, Kalb & Associates. 

“From start to finish, (an arbitration case) could be done in six months… which is much faster than most other countries I have worked in,” Hay said in an interview with The Korea Times at his office in Seoul, Monday. 

He has been a foreign legal counsel at HMP Law since December, after 12 years of operating his law firm in the North.

Hay emphasized that the North Korean regime has no choice but to maintain an advanced dispute resolution system in order to continue reeling in foreign investment and companies.

“One thing North Koreans are very conscious of: If they don’t have a dispute resolution system, people will not come and invest in the country. In my experience they are very supportive (of foreign firms),” he said.

Korea Times

You can read the rest at the link, but Mr. Hay says that the businesses that lost money in North Korea did so because they grandstanded about doing business in North Korea. He says businesses that kept their dealings quiet with the regime were more successful.

Tweet of the Day: South Korean Venture Firm Under Investigation for Cruel Acts to Employees

Homeplus to Take on Costco After Opening Its Warehouse Store in Seoul

It is going to be interesting to see how much market the new Homeplus Special warehouse store is going to be able to capture in South Korea:

Inside of Home plus Special in Mokdong, southwestern Seoul / Courtesy of Home plus

The second basement of Home plus’ Mokdong branch in southwestern Seoul looked totally different, Wednesday, as the discount store’s space selling groceries has been converted into a warehouse store with capacious shelves piled with boxes.

“As I said in March at a press conference about the business strategy of Home plus, we will unveil Home plus Special today to fulfill our promise to make a store satisfying our customers,” Home plus CEO Lim Il-soon said at a press conference, a day before the opening of Seoul’s first Home plus Special. “We opened Home plus Special stores in Daegu and Busan last month, and they have been well-received by consumers.”

Defining Mokdong as the battlefield of retailers in Korea, she predicted fierce competition with Yangpyung Costco Warehouse and Lotte Vic Market’s Yeongdeungpo branch, which are 1.6 kilometers and 2.7 kilometers from Home plus Special, respectively.

Home plus, however, is confident the new warehouse store will be a success.  [Korea Times]

You can read more at the link.

Philadelphia Council Woman Pushes Bill Targeting Korean-American Business Owners

Here is the latest social justice cause that is targeting Korean-American business owners:

Earlier this month, Councilwoman Cindy Bass introduced a bill to better regulate the hundreds of “stop and go” convenience stores that operate predominantly in Philadelphia’s low-income neighborhoods. Among its stipulations, the controversial measure would prohibit any physical barrier that separates cashiers from customers at these so-called “nuisance” establishments – including protective bulletproof glass.

According to Bass, these storefronts take advantage of the city’s lax restaurant liquor license provision while contributing to a variety of quality-of-life issues in low-income communities. Content to rely solely on the sale of cigarettes and alcohol, along with a bag of Doritos or two, many of these business owners don’t even sell the food that they advertise.  [PhillyMag.com]

The councilwoman claims that these stores help promote crime because they sell alcohol and cigarettes.   I find it interesting how she puts the onus on the business owners to stop crime instead of the police or the public.  What else is interesting is that many of these business owners are Korean-American:

Rich Kim’s family has run the deli, which sells soda, snacks, meals and beer by the can for 20 years.  He says the glass went up after a shooting and claims it saved his mother-in-law from a knife attack. Now, he may be forced to take some of the barrier down.

“If the glass comes down, the crime rate will rise and there will be lots of dead bodies,” he said.

A bill moving through city council reads: “No establishment shall erect or maintain a physical barrier.”

It’s called the ‘Stop and Go’ bill and is being offered by City Councilwoman Cindy Bass.

“Right now, the plexiglass has to come down,” she said.

She wants to put some controls on these small stores that she says sell booze, very little food and are the source of trouble in her district.

Rich Kim resents the charge stores like his attract loiters and argues calls to police are often met with a slow response.

Mike Choe runs a non-profit supporting Korean-owned businesses. He plans on raising $100,000 to fight the measure.

“I do think it’s a bad bill that will endanger Korean Americans,’ he said.

Bass says she’s battling for her constituents.

Kim argues as a Korean-American he’s being targeted.

“This bill targets Korean Americans,” Cole asked. Bass responded, “Absolutely not. I find that offensive.” [Fox 29]

The tensions between Korean-American business owners and African-American communities has been simmering since the 1992 LA Riots when Koreantown was a major target of the rioters.  It has continued in recent years when riots in Baltimore and Missouri targeted Korean-American businesses.  There was also the protests to shutdown a Korean-American gas station in Dallas:

Muhammad, 44, who was appointed to his post in 1994 by Nation of Islam leader Louis Farrakhan, says Pak must go. So should other Asian-American merchants in black neighborhoods, he says.

Could you imagine the uproar if legislation was passed that targeted African-Americans to make them more easy victims of crime and to put them out of business?  That is clearly what some of the social justice warriors are trying to do with violence, legislation, and protests to push the Korean-American business owners out of black communities.  Yet racism directed towards Korean-Americans draws little national media attention.

South Korean Ruling Party Leader Surprised President Trump Asked To Move Korean Factories to the US

I don’t see what is so surprising about President Trump’s comment, it is no secret that he has been pushing to bring manufacturing jobs back to the United States:

While circling the sky near the inter-Korean border last week, U.S. President Donald Trump posed a question that later took the leader of South Korea’s ruling party by surprise.

According to Choo Mi-ae of the Democratic Party, Trump was on his Marine One helicopter to the heavily fortified demilitarized zone when he turned to White House chief economic director Gary Cohn and said: “I just saw something amazing. There are so many factories. Can’t they be built in the U.S.?”

The trip to the DMZ was later canceled due to fog and Trump had to turn back to Seoul to continue his two-day state visit. The trip was watched closely because Trump had threatened to use military options against North Korea and engaged in a war of words with the regime over its nuclear and missile programs.

“I think President Trump understood, while he was in the air for 30 minutes, that 25 million people were living in the area below him and that they would be wiped out in the event of war,” Choo said in a meeting with reporters in New York. “But I was so surprised when Director Cohn told me this story. Wasn’t (Trump) essentially saying we should build our auto parts factories in the U.S., too?”  [Yonhap]

You can read more at the link.

President Moon to Hold Beer Summit with ROK Business Leaders

Considering that President Moon has plans to increase taxes on the wealthy and businesses to create a welfare state, President Moon better serve some pretty good beer to get these ROK business leaders on board:

President Moon Jae-in is set to hold his first dialogue with top business leaders here this week over beer to help break the ice and possibly allow more frank discussions, an official from the presidential office, Cheong Wa Dae, said Tuesday.

The talks will be held Thursday and Friday, each day involving part of the top executives from the 14 largest business conglomerates, according to Cheong Wa Dae spokesman Park Soo-hyun.  [Yonhap]

You can read more at the link.