SK Networks shares rose sharply Thursday on anticipations that its decision to divest its energy retailer unit for 1.3 trillion won ($1.1 billion) would improve the balance sheet. Its shares closed 14.5 percent higher on Kospi bourse compared to the previous session. Analysts said the price was buoyed by expectations that SK Networks would mitigate its debt burden from its acquisition of AJ Rent A Car in December 2019, carry out a 100 billion won share buyback and overhaul the trading firm&rsq

Market March 5, 2020

South Korea’s top financial regulator on Wednesday slapped a combined 36.5 billion won in ($30.8 million) fines on Woori Bank and Hana Bank, along with a six-month ban on attracting investors‘ money into privately pooled funds. The Financial Services Commission’s final decision indicates that the authorities held the banks responsible for their lack of internal control, as they failed to protect retail investors from potential risks implied in the structured products known as

Market March 4, 2020

South Korea’s ship engine parts maker Cape Industries is facing a proxy fight as its activist shareholders are opposing the firm’s excessive compensation to executives despite piling losses. The investor group, led by KH Investment, has proposed a cut on Cape’s four executives pay to half -- 1.5 billion won ($1.3 million) maximum if combined -- and recommended candidates for outside directors and auditors. The alliance is also demanding the first dividend payout of the group

Market March 3, 2020

A coalition led by South Korea’s activist private equity fund Korea Corporate Governance Improvement called Delta Air Lines a “partner” in its pursuit for a control over Hanjin Group and its crown jewel Korean Air in a note Monday. This reflects KCGI’s drastic turn from the previous week when the activist investor questioned Delta’s increase in Hanjin KAL stake -- to 11 percent in February -- as the family-controlled Hanjin Group had entered into a proxy battle tha

Market March 2, 2020

Shares of South Korean companies dedicated to novel coronavirus testing kits soared on Monday, amid rising demand. Local diagnostic kit makers are launching devices that detect coronavirus infections, which allow authorities to test over 10,000 people a day as of current -- from around 1,000 two weeks prior. One of them is Seegene, a maker of the real-time polymerase chain reaction analysis assays. The Seoul-based company closed at 40,400 won ($33.8) per share, up 10.7 percent Monday, on the

Market March 2, 2020

State-run Korea Development Bank said Friday it had chosen two external partners to operate funds with a combined 120 billion won ($99.2 million) of public money to support South Korea’s drive for supply chain autonomy. The two partners are BNW Investment-Industrial Bank of Korea consortium and SKS Private Equity-Korea Investment Private Equity group. These were among nine applicants to manage the funds. Each group is mandated to attract at least 40 billion won investment from the priva

Market Feb. 28, 2020

Hanwha Asset Management said Friday it planned to raise 510 billion won ($421.7 million) capital from its parent Hanwha Life Insurance, which would bring its total capital to over 700 billion won -- the second-largest for an asset management company in South Korea. The fresh capital will be used to enhance overseas alternative investment capacity through acquisitions of foreign asset management firms, expand its overseas units, create a digital infrastructure and nurture more investment opportu

Market Feb. 28, 2020

The initial public offerings of South Korean firms in February were largely successful, despite the impact of the new coronavirus on the domestic stock market. This month through Friday, five companies -- Sunam, Lemon, Kencoa Aerospace, JNTC, Seoul Viosys -- wrapped up IPOs, raising a combined 192.1 billion won ($158.1 million). Four out of five, except for Kencoa Aerospace, were more than successful. The offered prices of the four companies were set at, or beyond, the upper cap of the price

Market Feb. 28, 2020

The Military Mutual Aid Association said Friday it has selected eight South Korean external partners dedicated to investment in private equities and venture capital to back a combined 130 billion won ($107.1 million) this year. The Korean institutional investor will invest a total of 100 billion won to blind pool funds managed by private equity houses KStone Partners, Aju IB Investment, SkyLake Investment, KTB Private Equtiy and Dominus Investment. In the meantime, a combined 30 billion won w

Market Feb. 28, 2020

The National Pension Service, South Korea’s largest public pension fund, reaped record investment return in 2019 largely thanks to a bull run in overseas stock markets, its preliminary data showed Thursday. Its annual rate of return came to 11.31 percent last year, the highest since the launch of NPS Investment Management in 1999, followed by 10.39 percent in 2009 and 10.37 percent in 2010. Over the past year, it earned 73.4 trillion won ($60.4 billion) return, which is 1.5 times large

Market Feb. 27, 2020

South Korea’s private bad bank, United Asset Management Co. (UAMCO), is betting on exiting from an investment in a distressed company here -- highlighting its growing role in corporate restructuring here. Seha, an industrial paper maker based in Daegu, is inching closer to inviting a new group of controlling shareholders led by Hankuk Paper to take the place of UAMCO, after Samil PricewaterhouseCoopers selected it as the preferred bidder for Seha’s majority stake and its bonds. Up

Market Feb. 27, 2020

E&F Private Equity has inked a deal to acquire the ceramics operation of concrete-to-construction business group IS Dongseo for 217 billion won ($178 million), according to a filing on Wednesday. The private equity firm, managing 342.2 billion won in assets as of 2019, agreed to buy a 100 percent stake in the operation on May 15. Prior to the transaction, the ceramics business will be split off from IS Dongseo earlier in May, which will be named Inus. The business, dedicated to making an

Market Feb. 26, 2020

Big Hit Entertainment, the South Korean entertainment management agency behind K-pop sensation BTS, has selected underwriters for its initial public offering in the country’s stock market. Lead underwriters include NH Investment & Securities, Korea Investment & Securities and JP Morgan, while Mirae Asset Daewoo will also participate in the process. An IPO underwriter is responsible for offering privately held or newly issued stocks to public investors, while protecting investors

Market Feb. 25, 2020

Activist private equity firm Korea Corporate Governance Improvement on Tuesday objected to Delta Air Lines decision to hike its stake in Hanjin KAL -- holding firm of Korean Air -- amid the escalating proxy battle that will determine the fate of its owner family. Its disapproval comes amid reports that the US carrier might act as a “white knight” to vote in favor of the Hanjin Group’s controlling family, given its ongoing partnership with Korean Air through a joint venture. K

Market Feb. 25, 2020

South Korean venture capital firm Company K Partners said Monday it has launched a 124 billion won ($101.7 million) vehicle that targets startups at the later stage of growth, bringing its assets under management to over 560 billion won. The vehicle, dubbed Company K High Growth Fund, is backed by major institutional investors including Korea Teachers’ Credit Union and Korea Scientists & Engineers Mutual-aid Association; state-owned risk capital firm K-Growth, as well as Company K&rs

Market Feb. 24, 2020