Time for Samsung to pay Galactic return to owners 26 Oct 2012 The smartphone giant’s stock has recovered some since losing to Apple in court. But for a company that seems to mint record earnings with every new Galaxy gizmo it launches, it still looks undervalued. Doling out some of its $27.7 bln in cash might help ease investor scepticism.
South Korea’s slowdown response lacks urgency 13 Sep 2012 Falling exports mean the economy is cooling fast. Token tax rebates for homeowners and car buyers won’t have much impact. For debt-addled consumers to loosen their purse strings, interest costs must fall. Yet the central bank seems surprisingly reluctant to cut rates.
Sun Myung Moon was a sort of business success 4 Sep 2012 True, his Unification Church’s commercial operations made large losses and ran up huge debts. But even with weak operating management, the church’s knack for religious services was outstanding. Moon’s followers provided more than enough donations to repeatedly bail out disasters.
Oil’s climb raises risk of Asian stagflation 30 Aug 2012 Growth is slowing, but crude has climbed by a quarter in the past two months. That’s not good for energy-hungry Asia, which relies heavily on imports. Higher fuel costs could keep inflation high, making it more difficult for central banks to cut rates as economic growth slows.
Consumers can hope Apple patent victory is Pyrrhic 27 Aug 2012 The iPhone maker won big with a $1 bln U.S. judgment against Samsung. In a sense that’s fair, as Apple revolutionized cell phones and rival products mostly look like copycats. But if Google and others push the technology forward to avoid further lawsuits, users may benefit.
Samsung’s stock swoon overstates Apple triumph 27 Aug 2012 The Korean company’s value dropped by $12 bln following its rival’s $1 bln court victory. But even if the damages triple and Samsung loses a year’s U.S. phone sales, the pain won’t be that severe. And it’s still beating Apple in China, where patents aren’t in dispute.
Korea, Taiwan are global stimulus weather vanes 23 Aug 2012 The two export-reliant economies are suffering as global growth slows. Yet foreign investors have been snapping up their stocks to wager that China, Europe or the U.S. will respond with major stimulus measures. If they do, Asia’s exports could be among the first beneficiaries.
South Korea can’t kick debt habit 22 Aug 2012 Loan limits for younger homebuyers have just risen by about 15 percent, thanks to a decision to let lenders estimate borrowers’ future incomes. More credit might help counter the current weakness in demand, but will only increase the stress on Korea’s over-indebted households.
Asia’s slowdown may heighten tension over isles 14 Aug 2012 A Korean soccer player may have lost an Olympic bronze amid his country’s spat with Japan over mid-sea islands. Asian politicians’ interest in aquatic outposts reflects a desire to look patriotic, and an economic slowdown increases the acrimony over disputed rocks and reefs.
Hot money working in Asia’s favor, for a change 1 Aug 2012 When the region’s central bankers were worried about inflation, foreign portfolio investors were their enemy. Rate increases lured hot money, adding to price pressure. Now the Asian authorities want to spur growth, and foreign investors’ thirst for yield is helping them out.
Samsung’s phones look smarter than its valuation 6 Jul 2012 A record quarterly operating profit estimate of $5.9 billion elicited only a market raspberry. Yet the Korean firm’s shares look cheap, its Apple-rivalling smartphones are booming and the Samsung brand just came out top in Asia. Investors may be missing the wood for the trees.
Bond market misses Korea’s youthful monetary tilt 14 Jun 2012 Global exports are slowing, so investors are buying South Korean bonds to bet its central bank will have to cut rates. But young Koreans increasingly want to work in domestic services, not welding Hyundais. With inflation low and joblessness falling, the bank may just sit tight.
Samsung investors should worry less about Apple 17 May 2012 The Korean company’s shares slid over fears Apple might use fewer of its chips, and buy more Japanese ones instead. Apple may diversify its suppliers, but that just reflects the fact that smartphone demand is outpacing parts supply. Samsung’s valuation looks too low.
Samsung moves on from Japan to nibble at Apple 27 Apr 2012 The Korean company learned by pulling apart Japanese electronics, then reverse-engineering the business model. Having taken the lessons, it has built a commanding position in TVs and smartphones. As Apple tackles emerging markets, Samsung is showing it is still hungry.
South Korean election rewards decent economic job 12 Apr 2012 Park Geun-hye’s ruling party victory in legislative elections is a reflection of her predecessor’s success in overcoming recession and nurturing growth. If she wins the Blue House in December, Park even has a shot at conquering the remaining ills of corruption and corporatism.
Samsung’s $41 bln binge may shake Apple’s tree 18 Jan 2012 At least half of the Korean conglomerate’s planned investment will probably go to expanding its global lead in smartphones and the electronics inside them. It’s a bold bet in a slowdown, but Samsung’s record is good. This may lengthen the company’s lead over its chief U.S. rival.
Korean spending spree sets right tone 4 Jan 2012 Seoul plans to blow most of its budget in the first half and is likely to end the year in deficit. It might seem an election-year stunt. But promoting domestic jobs instead of using a weak currency to boost exports is a path the rest of Asia should follow.
Dear Leader’s death may prise open hermit state 19 Dec 2011 Kim Jong-il managed to keep North Korea cut off from the world. Trade flows barely exist, Chinese energy and French cognac aside. The intellectual seclusion is at least as great. Autarky has brought economic hardship, a heavy burden Kim’s successor will struggle to lift.
China won’t be Asia’s importer of last resort 25 Nov 2011 Slower manufacturing in the second-largest economy is bad news for other Asian exporters like Japan and Korea. They’re counting on China as U.S. and European demand ebbs. But at least a fifth of China’s imports go to making exports, so China may not prove the hedge they hope.
LG rights issue won’t help it win smartphone wars 3 Nov 2011 Investors dumped shares in the Korean electronics maker even before it announced a surprise $1 billion cash call. Loss-making LG has fallen behind Samsung and Apple in the race to make trendy smartphones. It’s not clear how throwing good money after bad will help.