[THE INVESTOR] Two local car rental companies have emerged as favorites to acquire home appliance vendor Tongyang Magic, as the short-listed seven potential buyers in preliminary bidding have been revealed, Money Today reported Aug 26. AJ Networks and SK Networks made it to the second round of bidding and were thought to be favored by Tongyang Magic’s management. NH Investment & Securities, the main manager of the takeover deal, narrowed the field to a shortlist of seven bidders, including the t

[THE INVESTOR] Responding to the recent record-high issuance of risky financial derivatives, South Korea’s financial watchdog urged local brokerages to do a better job managing the tricky instrument. “Securities companies should thoroughly assess risks (involved with derivative-linked securities) autonomously and remember the difficulties they faced when global stock markets plunged in the early part of this year,” said Jin Woong-sub, governor of the Financial Supervisory Service, while speaking

[THE INVESTOR] The volume of South Korean bank‘s non-performing loans to be publicly auctioned in the third quarter is expected to increase over 20 percent from a year earlier, while some bidders are likely to return to the market after being absent for several years. Based on outstanding principal balance, a pool of 1.06 trillion won (US$950 million) of distressed assets owned by South Korea’s major banks is to be on sale during the July-September period, up 23 percent from 865.4 billion won in

[THE INVESTOR] IBK Capital, the private equity and venture capital arm of the Industrial Bank of Korea, has launched operations in Myanmar, the firm said on Aug. 25. The company will offer a range of agriculture loans, consumer durable loans and student loans to Burmese customers. Three branches -- two in Yangon and one in Mandalay -- will be run by IBK Capital. IBK Capital CEO Yoo Seok-ha said the company will seek a new growth engine by expanding its presence in the Southeast Asian region afte

[THE INVESTOR] STX Offshore & Shipbuilding, the South Korean shipyard that has been undergoing a court-led restructuring scheme, is revitalizing a plan to sell STX France by hiring a manager for its sale this week after two previous attempts failed. Local accounting firm Samil PwC has been tapped as a lead adviser by STX, but the decision is subject to approval from the Seoul Central District Court, which is expected to come by the end of this week, sources said Aug. 25. The court has been super

[THE INVESTOR] GDK Cosmetics, South Korea’s No. 1 facial mask manufacturer, is in talks with local private equity firm Quintessa Investment to sell its majority stake in a deal that could be worth over 100 billion won (US$89.6 million), the company said Aug. 25. The cosmetics company seeks to sell a 56 percent stake in the company, including 44 percent stake owned by GDK Cosmetics founder Kim Sung-ho and 12 percent owned by L&P Cosmetics. “The largest shareholder is currently negotiating the acq

[THE INVESTOR] China Merchants Securities, China’s eighth-largest brokerage firm, is set to begin operation in South Korea by the end of the year amid Korean investors’ growing interest in Chinese stocks ahead of the Shenzhen-Hong Kong market tie-up.On Aug. 25, Seoul’s Securities and Futures Commission granted a preliminary license to the Chinese securities firm to set up business here. If China Merchants Securities receives the final approval from Korean financial regulators, it will become the

[THE INVESTOR] Competition between private equity firms to acquire Logen Logistics, South Korea‘s fourth-largest package delivery firm, is intensifying as two new potential buyers have emerged, sources said Aug. 24. According to officials at an investment bank, US-based private equity firm the Carlyle Group and KKR have been conducting due diligence on Logen to join the bidding race. The two firms are the latest to express interest in the acquisition deal that fizzled out when short-listed globa

[THE INVESTOR] Woori Bank, the country‘s third-largest lender by assets, said on Aug. 24 it will categorize loans to financially troubled Daewoo Shipbuilding & Marine Engineering as “precautionary,” one notch down from “normal.”“As the largest creditor Korea Development Bank revised down its loan rating on the company, we decided to follow suit by the end of this month,” an official at the lender said. The state-owned bank’s loans extended to the shipbuilder stand at around 490 billion won (US$4

With a week left until the Jackson Hole Meeting, we expect global bond markets to take a wait-and-see approach. But, as the US Fed chair is unlikely to give hints also whether there will be a FF rate hike in September, global bond markets should resume strengthening after the meeting. Against this backdrop, we suggest expanding duration on KTBs.▶ Major issues in global bond marketsThis week, global bond markets will likely take wait-and-see approach in the run up to the US Fed’s Jackson Hole Mee

[THE INVESTOR] South Korean conglomerate AK Holdings is expected to log strong earnings in the third quarter, thanks to healthy growth of its key subsidiaries, a local brokerage firm said Aug. 24. On a consolidated basis, AK Holding’s revenue for July-September of this fiscal year is likely to stand at 708 billion won (US$630.6 million), and its operating profit at 65 billion won, according to analysts at Hyundai Securities.  AK Holdings' flagship affiliate Jeju AirThe Seoul-based holding compan

[THE INVESTOR] South Korea’s state-owned Woori Bank pledged a strong push for successful privatization by boosting its stock price after the government announced its new plan to sell its stake in the bank.The country’s No. 3 lender by assets said on Aug. 23 that it welcomes the government’s renewed attempt to sell off 30 percent stake in the bank to several different buyers by the end of this year. “From the experience of previous attempts for privatization, we believe that selling the stake to

[Summary] Emerging markets saw inflows continue for a seventh week, prompting yearly fund flows to shift to net inflows for the first time since Bernanke‘s exit comments of 2013Active funds are flowing back into emerging markets, with the increase in Korea allocation indicating intentional growth in foreign investor inflows into Korean stocks The yen has played a major role in US dollar depreciation in 2016, with yen appreciation leading to rising global preference for emerging markets and avoid

[THE INVESTOR] IBK Securities finished the first half of 2016 with significantly improved earnings propelled by its investment banking business, the firm said on Aug. 23. The brokerage unit of Industrial the Industrial Bank of Korea posted an operating profit of 28 billion won (US$25.03 million) during the first six months this year, up 36 percent from the same period a year earlier. Net income grew 26 percent year-over-year to 20.5 billion won. The firm’s operating profit growth marked the seco

Rights offeringOn Aug 19, Samsung Heavy Industries decided to conduct a W1.1tn of rights offering. Offering rights to existing shareholders to purchase 159.12mn shares at the subscription price of W6,920, the company will make the offering to the general public. The ex-right date will be Sep. 30 and the new shares will be listed on Nov 28. Currently, Samsung affiliates and related parties hold a 24% stake, with Samsung Electronics 17.62%, Samsung Life Insurance 3.38%, and Samsung Electro-Mechani

[THE INVESTOR] Hyundai Heavy Industries, South Korea’s largest shipbuilder, has decided to refund advance payment it received from a Norwegian drilling contractor that canceled its order to build a semi-submersible drilling rig, the firm said Aug. 23. Under a settlement the two companies reached, the shipyard will return US$176 million to Fred. Olsen Energy in exchange for the ownership of the semi-submersible drilling rig it built for the Norway-based offshore drilling rig company. The sum amou

[THE INVESTOR] Foreign financial investors have expressed interest in acquiring state-run Woori Bank, due to the lender’s attractive valuation, according to local news on Aug. 22.  Woori Bank, for which the government has sought a privatization deal, drew attention from some institutional investors during investor relations meetings hosted by the bank’s president and CEO Lee Kwang-goo in the US, Japan and European countries earlier this year. Woori Bank headquartersThe bank’s relatively low pric

[THE INVESTOR] South Korea’s national pension fund, the world’s third-largest with assets of more than 520 trillion won (US$461 billion), is scooping up investments in Europe’s infrastructure, according to a report by Seoul Economic Daily on Aug. 22. The National Pension Service decided to commit some 250 million euros (US$282 million) in the Macquarie European Infrastructure Fund 5, managed by global asset manager Macquarie. The fund plans to raise a total of 600 billion won from Korean institu

[THE INVESTOR] South Korea’s top financial regulator said on Aug. 22 it will divide a 30 percent stake in Woori Bank to sell to multiple investors after its block sale attempts have fallen through several times. The Financial Services Commission which is in charge of privatizing, decided to sell a total of 30 percent out of the 48.09 percent stake held by the Korea Deposit Insurance Corporation to multiple suitors, both Korean and international. The FSC said it wants to auction off a series of s

[THE INVESTOR] McKinsey Korea, which is due to publish an assessment report on South Korea’s three largest shipbuilders, has concluded the trio can stay afloat without merging into one another, according to local newspaper the Korea Economic Daily on Aug. 22. The consulting firm reportedly reasoned it is the best to maintain the three shipyards’ operations separately as the debt-ridden Daewoo Shipbuilding & Marine Engineering’s competitiveness is not lagging behind those of its other two peers H