World Business Quick Take

■ Crime
Fraud climbs in the US
More American companies are reporting fraud -- from theft of office supplies to bid-rigging -- as a result of new government regulations and investor demands, according to a survey released yesterday by audit firm KPMG LLP. The survey of executives at more than 450 medium and large-sized US organizations found 75 percent had reported at least one instance of fraud this year, up from 62 percent in 1998, the last time KPMG conducted the periodic study. The firm did its first fraud survey in 1994. "This reflects not so much an increase in the incidence of fraud but increased awareness resulting in uncovering more instances of fraud," said Richard Girgenti, a partner in KPMG's forensic accounting practice. The cost of fraud is higher, too. Thirty-six percent of companies reported losses of US$1 million or more due to fraud this year, compared with 21 percent in 1998.

■ Automobiles
Turbo venture planned
Japan's Mitsubishi Heavy Industries (MHI) and Sumitomo Corp said yesterday they will establish a joint venture with Shanghai Diesel Engine Co to manufacture and market turbochargers in Shanghai. The aim of the establishment of the joint venture is to boost turbocharger sales in the Chinese market, the two Japanese companies said in a written statement. The new joint venture, Shanghai MHI Turbocharger Co, will be capitalized at US$8.5 million. MHI and Shanghai Diesel will each own a 40 percent equity stake in the venture, with Sumitomo taking the remaining 20 percent. The operation will begin in February with manufacturing of four types of medium-size turbochargers. The turbochargers will be used in industrial machinery, such as construction equipment, as well as trucks and buses.

■ Banking
Kookmin to expand in Asia
South Korea's largest lender Kookmin Bank said yesterday it plans to acquire foreign banks in Asia as part of its new strategy to streamline global operations. "Kookmin will additionally acquire one or two Asian banks a year to grow into an Asia-representative bank," Kookmin president Kim Jong-Tae said. The bank's recent participation in the acquisition of Bank Internasional Indonesia reflects its move to expand its presence in Asia, he said. "We will place the business focus more on Asia than on Europe and the United States down the road to develop into a leading Asian bank." In Asia, the bank will establish one or two new branches every year in accordance with its policy linking India, Thailand, Malaysia, the Philippines, Hong Kong, Japan and China, Kim said.

■ Fiscal Policy
Japan to inject funds
Japan's central bank said yesterday it will inject ?1 trillion (US$9.1 billion) into the financial system to help stabilize markets unnerved by a weekend announcement that the government was nationalizing a regional bank. The Bank of Japan will buy ?1 trillion in discount bills "to ensure stability in the financial markets" following news of the nationalization, a bank spokesman said on condition of anonymity. Prime Minister Junichiro Koizumi approved a decision Saturday to buy all of Ashikaga Financial Group's stocks to temporarily put the company -- including its core unit, Ashikaga Bank -- under government control after it fell into insolvency.