■ SOUTH KOREA
GDP grows 4.9 percent
South Korea's economy grew sharply in the second quarter, expanding at its fastest rate in a year, fueled by strong output of semiconductors, ships and automobiles, the Bank of Korea said yesterday. GDP expanded 4.9 percent in the three months ended June 30 from the same period last year, the central bank said in a statement. That was up from the 4 percent rate in the first quarter. Separately, Moody's Investors Service raised South Korea's long-term foreign currency and local currency ratings to A2 from A3, citing the country's sound fiscal policies, solid economy and easing international tensions surrounding North Korea.
■ THAILAND
Bank to cool down baht
The Thai Cabinet approved measures on Tuesday to try to curb the strength of the baht, which has hit a 10-year high against the US dollar and started to hurt the country's export sector. The measures, drafted by the Bank of Thailand, were a response to the baht's steady appreciation over the past one 18 months. So far this year, the baht has risen 7 percent in value against the US dollar. The baht's closing trading price on Tuesday was 33.64 to the US dollar, up from Monday's close of 33.72.
■ RETAIL
Mitsukoshi eyes alliance
Mitsukoshi, one of Japan's top department stores, has begun talks on joining rival Isetan to form a new industry No. 1 in the face of an increasingly tough market, reports said yesterday. Mitsukoshi, which started out in 1673 selling kimonos and is now Japan's fourth-largest department store operator, may set up a joint holding company with fifth-ranked Isetan, the Nikkei Shimbun and other media reported. They would become the top industry player with combined annual sales of ?1.58 trillion (US$13 billion), surpassing the alliance between operators Daimaru and Matsuzakaya, the reports said, quoting unnamed sources. The two companies, however, said no such plan had been decided.
■ AUTOMOBILES
Hyundai opens Thai factory
Hyundai, South Korea's top automaker, said yesterday that it is setting up a production facility in Thailand, in its first investment in the country since pulling out of the country after the 1997 Asian crisis. Hyundai Motor (Thailand), capitalized at about US$12 million, has been set up for local production and distribution of three models. The automaker aims to begin production of its mid-sized sedan Hyundai Sonata in Thailand in the fourth quarter of this year, with part of the output for export to the rest of Southeast Asia, it said. The company is still determining how many vehicles the facility will produce, a spokesman for Hyuandai's Thai unit said.
■ HOUSING
Meltdown unlikely: Moody's
The downturn in the US housing sector, which has sparked market jitters, is of serious concern but poses no major risk of an overall US financial meltdown, the ratings agency Moody's said yesterday. "The shock-absorption capacity of the `core' of the financial system is very high," Moody's said in a comment. While the crisis in the US "subprime" mortgage lending market "does not raise genuine systemic risk concerns ... there are still serious reasons to worry," the report said. Moody's yesterday maintained that the accounts of the leading US financial institutions were sound.
RETHINK? The defense ministry and Navy Command Headquarters could take over the indigenous submarine project and change its production timeline, a source said Admiral Huang Shu-kuang’s (黃曙光) resignation as head of the Indigenous Submarine Program and as a member of the National Security Council could affect the production of submarines, a source said yesterday. Huang in a statement last night said he had decided to resign due to national security concerns while expressing the hope that it would put a stop to political wrangling that only undermines the advancement of the nation’s defense capabilities. Taiwan People’s Party Legislator Vivian Huang (黃珊珊) yesterday said that the admiral, her older brother, felt it was time for him to step down and that he had completed what he
Taiwan has experienced its most significant improvement in the QS World University Rankings by Subject, data provided on Sunday by international higher education analyst Quacquarelli Symonds (QS) showed. Compared with last year’s edition of the rankings, which measure academic excellence and influence, Taiwanese universities made great improvements in the H Index metric, which evaluates research productivity and its impact, with a notable 30 percent increase overall, QS said. Taiwanese universities also made notable progress in the Citations per Paper metric, which measures the impact of research, achieving a 13 percent increase. Taiwanese universities gained 10 percent in Academic Reputation, but declined 18 percent
CHINA REACTS: The patrol and reconnaissance plane ‘transited the Taiwan Strait in international airspace,’ the 7th Fleet said, while Taipei said it saw nothing unusual The US 7th Fleet yesterday said that a US Navy P-8A Poseidon flew through the Taiwan Strait, a day after US and Chinese defense heads held their first talks since November 2022 in an effort to reduce regional tensions. The patrol and reconnaissance plane “transited the Taiwan Strait in international airspace,” the 7th Fleet said in a news release. “By operating within the Taiwan Strait in accordance with international law, the United States upholds the navigational rights and freedoms of all nations.” In a separate statement, the Ministry of National Defense said that it monitored nearby waters and airspace as the aircraft
UNDER DISCUSSION: The combatant command would integrate fast attack boat and anti-ship missile groups to defend waters closest to the coastline, a source said The military could establish a new combatant command as early as 2026, which would be tasked with defending Taiwan’s territorial waters 24 nautical miles (44.4km) from the nation’s coastline, a source familiar with the matter said yesterday. The new command, which would fall under the Naval Command Headquarters, would be led by a vice admiral and integrate existing fast attack boat and anti-ship missile groups, along with the Naval Maritime Surveillance and Reconnaissance Command, said the source, who asked to remain anonymous. It could be launched by 2026, but details are being discussed and no final timetable has been announced, the source