Latest news with #HanwhaGroup
Canada News.Net
15 hours ago
- Business
- Canada News.Net
South Korea offers shipyard plan to dodge U.S. export tariffs
SEOUL, South Korea: With just a day left before a critical August 1 deadline, South Korea is pulling out all the stops to strike a trade deal with the United States that could shield its key exports from steep new tariffs. A potential shipbuilding partnership is at the heart of Seoul's proposal. Finance Minister Koo Yun-cheol, speaking to reporters before departing for Washington on July 29, said he would present a "programme" aimed at fostering long-term cooperation, including in industries like shipbuilding. "We will make the best effort to derive an agreement based on our national interest that would allow South Korea and the United States to co-exist," Koo said. Talks with U.S. Treasury Secretary Scott Bessent are scheduled for July 31. The meeting had originally been set for last week but was postponed due to a scheduling conflict on the U.S. side. "Treasury Secretary Bessent holds the important position of overseeing trade negotiations in the Trump administration," Koo noted. To support negotiations, Hanwha Group, parent company of shipbuilder Hanwha Ocean, has submitted a significant investment plan to South Korean officials. According to two people familiar with the matter, the proposal involves expanding operations at its Philly Shipyard in Pennsylvania. The plan includes participation from Hanwha Group and affiliated companies. Hanwha Group Vice Chairman Kim Dong-kwan also traveled to Washington to aid the talks, according to South Korean media. Seoul is facing mounting pressure to secure a deal before U.S. President Donald Trump's tariff threats take effect, potentially impacting major South Korean exports. Industry Minister Kim Jung-kwan and Trade Minister Yeo Han-koo are already in Washington to negotiate with senior U.S. officials, including Commerce Secretary Howard Lutnick. Lutnick emphasized the intensity of the talks in a Fox News interview Monday. "Think of how much they really, really want to get a deal done," he said, noting that South Korean officials even flew to Scotland to meet with him. In a further show of diplomatic effort, Foreign Minister Cho Hyun is also headed to Washington for talks with U.S. Secretary of State Marco Rubio, after first stopping in Japan to meet his counterpart.
CNBC
21 hours ago
- Business
- CNBC
Hanwha Ocean shares surge over 16% after U.S.-Korea trade deal
Shares of Hanwha Ocean surged as much as 16.06% on Thursday to their highest levels since July 2015, following U.S. President Donald Trump's announcement of a blanket 15% tariff on Seoul's exports to the U.S. According to Reuters, Kim Dong-kwan, the vice chairman of the Hanwha Group, was part of a delegation of business leaders in Washington lobbying to eke out a trade deal. Hanwha Group is expected to expand or upgrade facilities at its Philly Shipyard in Philadelphia, which it acquired last year, Yonhap News Agency reported, while playing a key role in revitalizing U.S. shipbuilding efforts. Thursday marked the South Korean shipbuilder's second consecutive session in the green. Its gains follow a surge in its operating profits in the second quarter ended June, as well as a slew of announcements. Hanwha Ocean reported operating profits of 371.7 billion Korean won ($266.7 million) in its second quarter ended June on Tuesday. This is around 43.6% higher than the 259 billion won reported in the preceding quarter and a reversal from the losses of 10 billion won posted in the same period a year ago. This comes on the back of a 4.8% quarter-over-quarter jump in revenues to 3.3 trillion won, thanks to stronger commercial and offshore sales, the shipbuilder announced. The company also announced that it secured new orders amounting to 353.6 billion won on Tuesday, according to a Reuters report. Separately, the shipbuilder, on Thursday, launched several initiatives, part of a 2023 program, with industry partners to make it more competitive globally, particularly from Chinese shipbuilders. In another move, Hanwha Ocean also set up a new engineering center in India, according to reports from The Korea Bizwire. Citing comments from industry sources familiar with the matter, the South Korean publication noted that the Hanwha Ocean Global Engineering Center India was inaugurated on Sunday at an industrial hub in Noida, some 26 kilometers away from India's capital, New Delhi.
Korea Herald
a day ago
- Business
- Korea Herald
From US to Scotland, Korea chases last-minute deal to dodge tariff hit
Samsung chief joins Seoul's negotiation efforts as tariff clock ticks down With just days remaining before the US imposes steep "reciprocal tariffs," South Korea is ramping up efforts to strike a deal, overhauling its negotiation package and closely shadowing key US officials as it tries to bring the 25 percent rate down. Deputy Prime Minister and Finance Minister Koo Yun-cheol departed Tuesday for Washington, where he is scheduled to meet US Treasury Secretary Scott Bessent on Thursday. Koo said he would press for a 'mutually beneficial agreement,' pitching sectors such as shipbuilding as a cornerstone of bilateral cooperation. 'We'll explain our programs and explore long-term collaboration, especially in areas like shipbuilding,' Koo told reporters before departure. Top economic officials have fanned out across the US and even followed American negotiators to Scotland in hopes of reaching a deal before US President Donald Trump's tariff-pause deadline set for Friday. Seoul's 'Make American Shipbuilding Great Again' proposal, reportedly a multibillion-dollar investment plan aimed at revitalizing the US shipbuilding sector, has emerged as a key bargaining chip. Hanwha Group Vice Chairman Kim Dong-kwan traveled to Washington on Monday to support the talks, following the company's $100 million acquisition of Philly Shipyard and plans for further investment, technology transfer and workforce development. Later on Tuesday, Samsung Electronics Chairman Lee Jae-yong also departed for Washington, raising expectations that Korea may offer expanded semiconductor investments or AI chip cooperation as part of its negotiation package. Industry Minister Kim Jeong-kwan and Trade Minister Yeo Han-koo expanded their outreach beyond Washington, flying to Scotland on Sunday to continue talks with US Commerce Secretary Howard Lutnick, who was accompanying Trump on his UK state visit. They held two consecutive days of negotiations with Lutnick on Thursday and Friday last week. The first round took place at the Commerce Department headquarters in Washington, followed by a second meeting at Lutnick's residence in New York. Lutnick confirmed their meeting in Turnberry in a Fox News interview and said that additional deals might be completed before Friday's deadline. Kim and Yeo appear to have headed directly back to Washington, continuing their pursuit of a deal. National Security Office chief Wi Sung-lac and Trade Minister Yeo have been in the US since July 20, engaging in both formal and informal negotiations. Talks initially stalled after a lukewarm response to Korea's first proposal to the US, particularly on non-tariff barriers concerning agricultural imports. In response, Seoul revised its offer, pledging more than $100 billion in US-bound investments and signaling a more flexible position on agriculture. Growth outlook hinges on US deal Asia's fourth-largest economy is under growing pressure to reach a deal as the US finalizes agreements with other major trading partners. A US-EU pact announced Sunday capped tariffs at 15 percent, following a similar deal with Japan that included $550 billion in investments and increased US agricultural imports. Both Tokyo and Brussels secured 15 percent tariffs on key Korean export items such as automobiles and semiconductors, placing Seoul at a disadvantage if it fails to achieve comparable terms. Failure to secure a deal would deliver a sharp blow to Korea's export-driven economy. The country's gross domestic product grew 0.6 percent in the second quarter, rebounding from a contraction in the first, helped by a pickup in consumer spending and exports. But economists warn that steep US tariffs could reverse those gains, putting pressure on growth in the second half. Automobiles, Korea's top export to the US, would face a 25 percent tariff while Japan enjoys a 15 percent rate, undermining the competitiveness of Hyundai and Kia and triggering potential ripple effects across auto parts, shipping and employment. Adding to the pressure, the Trump administration is expected to unveil semiconductor tariffs as early as next month, fueling concern across the chip supply chain, from raw materials and equipment to tech giants. The outcome could lead to tariffs ranging from 25 to 50 percent, similar to those previously imposed on steel, aluminum and autos. In a worst-case scenario, Korean firms such as Samsung Electronics and SK hynix, whose high-end memory chips are produced domestically and exported to the US, often via Taiwan, could be severely impacted. The fallout could extend to financial markets. 'If the steep tariffs go into effect, the Korean currency could tumble and Korean equities may face a correction,' said Park Sang-hyun, an economist at iM Securities. Citi economist Kim Wook-jin said he still expected a US-Korea trade agreement before the deadline this Friday, citing the precedent set by the US-Japan deal. 'There is a low likelihood that the US will lock in a 25 percent tariff and risk triggering a major economic shock to South Korea. Given the current political climate, the new (Korean) government is unlikely to take an overly aggressive stance on tariffs, and Washington is also seen as motivated to reach a deal,' he said. He estimates a potential 14 percent effective US tariff rate on Korean goods, assuming 15 percent duties on autos and reciprocal items, with no further hikes on the already elevated steel, semiconductor and pharmaceutical tariffs. A successful agreement could lift sentiment and support a rebound. 'If tariffs are lowered, exports could bottom in the third quarter and begin a gradual recovery in the fourth,' said Jeong Yeo-kyung of IBK Securities. Lee Jung-hoon of Eugene Investment & Securities added that with stronger domestic demand in the second half, Korea could see 1 percent growth this year and return to the 2 percent range in 2025.
Mint
2 days ago
- Business
- Mint
South Korean shares end at 4-year high on US trade deal optimism
KOSPI rises, foreigners net buyers Korean won strengthens against dollar South Korea benchmark bond yield falls For the midday report, please click SEOUL, - Round-up of South Korean financial markets: ** South Korean shares rose on Wednesday to their highest in nearly four years, as optimism grew around the country's trade negotiations with Washington amid a flurry of U.S. visits by government officials and business leaders. ** The benchmark KOSPI closed up 23.90 points, or 0.74%, at 3,254.47, its highest closing since August 9, 2021. ** Three South Korean cabinet-level officials met U.S. Commerce Secretary Howard Lutnick in Washington in a push to close a trade deal, Seoul said on Wednesday, squaring off with a key U.S. official driving a hard bargain just ahead of a deadline. ** Samsung Electronics Chairman Jay Y. Lee, Hanwha Group Vice Chairman Kim Dong-kwan and Hyundai Motor Group Executive Chair Euisun Chung are also visiting Washington, according to media reports. ** "This kind of move was not seen in other cases of negotiations with Japan and the European Union. It raises hopes that cooperation in key sectors of shipbuilding, semiconductors and automobiles will be South Korea's unique negotiation card," said Lee Kyoung-min, an analyst at Daishin Securities. ** Among index heavyweights, chipmaker Samsung Electronics rose 2.83%, while peer SK Hynix gained 0.38%. Battery maker LG Energy Solution climbed 0.26%. ** Hyundai Motor and sister automaker Kia Corp were up 2.29% and up 4.45%, respectively. Steelmaker POSCO Holdings shed 1.11%, while drugmaker Samsung BioLogics rose 0.92%. ** Of the total 935 traded issues, 476 shares advanced, while 408 declined. ** Foreigners were net buyers of shares worth 578.5 billion won . ** The won was quoted at 1,382.0 per dollar on the onshore settlement platform, 0.56% higher than its previous close at 1,389.7. ** The most liquid three-year Korean treasury bond yield fell 0.2 basis points to 2.455%, while the benchmark 10-year yield fell 3.7 basis points to 2.795%. This article was generated from an automated news agency feed without modifications to text.
Korea Herald
3 days ago
- Business
- Korea Herald
Hanwha scion heads to Washington to aid tariff talks
Hanwha Group Vice Chairman Kim Dong-kwan has traveled to Washington, reportedly to support South Korea's efforts to leverage Korean shipbuilders' investments in ongoing trade negotiations with the United States. According to media reports, Kim flew to Washington on Monday as part of a South Korean delegation, which also includes Finance Minister Koo Yun-cheol and Industry Minister Kim Jung-kwan. He plans to stay through Friday, the deadline for the negotiations, working alongside the nation's top trade negotiators. A key strategy for Korea to lower the current 25 percent tariff on exports to the US is to offer substantial investments in the country's struggling shipbuilding sector. Minister Kim introduced the government-led 'Make American Shipbuilding Great Again," or MASGA, initiative during a meeting with US Commerce Secretary Howard Lutnick on Friday. Hanwha Ocean, a major shipbuilding arm of Hanwha Group, is a central player in the MASGA proposal. The company reportedly submitted ideas to the Korean government to support the negotiations, including additional US investments, technology transfers and workforce training programs at the US-based Philly Shipyard, which Hanwha acquired in December. Notably, experts say that Kim may propose acquiring additional shipyards in the US. 'Acquiring more shipyards aligns with President Trump's focus on job creation in the US, as it involves Korean companies making direct investments by building factories and expanding local production,' said Kim De-jong, a business professor at Sejong University. 'Such incentives could help lower tariffs to 15 percent or less — similar to Japan's outcome.' Japan previously secured a 15 percent tariff rate with the US, while the European Union also negotiated the same rate on most exports, including automobiles, well below the 30 percent tariff initially set to take effect Friday.
