[THE INVESTOR] The combined amount of overseas financial accounts held by South Korean nationals and companies hit the highest level this year, data from the country’s tax agency showed on Sept. 27. They had a total of 56.84 trillion won (US$50.81 billion) in their overseas accounts, surging from 11.48 trillion won in 2011, according to data from the National Tax Service.Hong Kong was the top offshore fund location for South Korea with an inflow of 6.32 trillion won, followed by China with 6.32

[THE INVESTOR] AK Holdings is expected to post its largest quarterly profit in the July-September period result as its key subsidiary Jeju Air rebounds from its sluggish performance, a local securities firm said on Sept. 27. AK Holdings’ consolidated sales and operating profit are likely to beat market expectations by 13.4 percent and 8 percent to log 830.6 billion won (US$746.67 million) and 75.2 billion won, respectively, according to Kang Sun-ah, an analyst at KB Investment & Securities. Net

[THE INVESTOR] The main bidding for the minority stake sale of South Korea’s state-owned Woori Bank will be held on Nov. 11, with 18 parties having submitted letters of intent for the country’s fourth-largest bank by assets last week. The final winners will be announced on Nov. 14.The Financial Services Commission and its Public Fund Management Committee which are in charge of Woori Bank’s privatization set the date for the final bidding during a meeting held on Sept. 26, according to sources. T

[THE INVESTOR] IBK Securities has been picked by a fund of funds management company Korea Growth Investment to manage a private equity secondary fund worth 120 billion won (US$108.25 million), the Korean brokerage house said on Sept. 26. K-Growth will commit 60 billion won for the fund and IBK Securities needs to raise 60 billion won from other institutional investors to launch it. The fund will be run for the next seven years with a 6 percent target rate of return. The secondary fund is designe

[THE INVESTOR] South Korea’s financial watchdog has launched an investigation into China Ocean Resources over the Hong Kong-based firm’s alleged unfair trade practices here, according to sources on Sept. 26. Financial Supervisory Service is currently reviewing data regarding the Seoul-listed deep sea fishing company’s false disclosure statement which led to a fine of 200 million won (US$176,000) and inclusion in blacklist of the country’s bourse operator Korea Exchange in July. People familiar w

[THE INVESTOR] State-run Korea Development Bank is close to kicking off its sale of controlling stake in Daewoo Engineering and Construction, according to sources on Sept. 26. KDB is currently negotiating with builders here and abroad to attract their interest in the disposal its 50.75 percent stake in the construction firm, which is worth some 1.3 trillion won (US$1.17 billion) based on its current share price. In 2011, a private equity fund held by KDB acquired Daewoo E&C’s stake at 18,000 won

[THE INVESTOR] Ahead of the final bidding for local home appliance vendor Tongyang Magic on Sept. 27, potential bidders are forming consortiums to have a better chance of winning the acquisition deal. While industry experts expect large conglomerates’ affiliates such as SK Networks, CJ O Shopping and Hyundai Department Store which have funds to finance the bid will take advantageous positions, private equity firms are moving to form consortiums to defeat them. Two potential bidders -- local chem

[THE INVESTOR] The sale of state-owned Woori Bank has drawn offers from more than 10 preliminary bidders mainly from local financial firms, relieving the government that has been seeking to privatize the bank for the past seven years. Those who submitted letters by Sept. 23’s deadline included Hanwha Life Insurance, Korea Investment & Securities as well as private equity firms like IMM PE, H&Q Korea and Vogo Fund. To buy splinter stakes to become one of the oligopolistic stakeholders of the bank

[THE INVESTOR]  Korea Investment & Securities expressed its intention to bid a stake in state-owned Woori Bank, the brokerage firm’s parent Korea Investment Holdings said in a regulatory filing on Sept. 23. KIS submitted its letter of intent to participate in bidding round to acquire 4 to 8 percent stake in the bank, which the government seeks to privatize again after several failed attempts. The company expects that it will benefit from Woori Bank’s high divided return and improvement in profit

[THE INVESTOR] South Korea’s large investors are targeting loans for global merger and acquisition deals for stable returns. Korean institutional investors including Korean Teachers’ Credit Union and Government Employees Pension Service have committed a total of 870 billion won (US$788.47 million) for private debt funds this year. Private debt fund refers to a fund that is raised from a small group of institutions and wealthy individuals and then invested into companies that pursue M&A deals by

[THE INVESTOR] Talent agency C-JeS Entertainment seeks to float its shares in Seoul’s stock market next year, according to sources on Sept. 23. The agency, which houses popular K-pop boy band JYJ and actress Hwang Jung-eum, has hired Hyundai Securities to handle the planned initial public offering. The firm’s entire stake is owned by Back Chang-ju, the CEO of C-JeS Entertainment who established it in 2009. Among unlisted entertainment agencies in South Korea, C-JeS posted the largest revenue las

[THE INVESTOR]  POSCO’s third quarterly earnings is expected to beat market estimates for the second consecutive quarter due to rising steel prices, a local securities firm said on Sept. 23. The consolidated operating profit of POSCO is likely to increase 40 percent to 915.8 billion won (US$829 million) on-year in the July-September period, according to HMC Investment Securities. “The improvement was driven by steel price hikes in domestic and Chinese markets during the third quarter,” said Park

[THE INVESTOR] Hanwha Asset Management, South Korea’s wealth manager, will set up its wholly owned private fund management in China in a bid to beef up its overseas alternative business, the company said on Sept. 22. The board of Hanwha Asset Management approved its plan to invest US$10 million to establish Hanwha Investment Management in Tianjin. The company will apply to secure a license to establish a wholly foreign-owned enterprise from the Chinese government by end-September. Hanwha is one

[THE INVESTOR]  The state-run Korea Development Bank will loan 50 billion won (US$45.40 million) to cash-strapped Hanjin Shipping to help it unload cargo overseas, according to the lender on Sept. 22.The KDB, main creditor of the ailing shipper, will offer the emergency fund by having accounts receivable asset of the country’s No. 1 shipping line as a collateral for the senior secured loans, it said. It will be used to resolve unpaid cargo unloading fees.The bank will offer the financial aid onl

[THE INVESTOR] Korea Exchange, South Korea’s stock bourse operator, said on Sept. 22 that it will begin listing and trading exchange-traded funds starting in October. Korea Exchange will list ETF tracking the country’s KOSPI 200 Index on Taiwan Stock Exchange while ETFs that track the Taiwan Stock Exchange Capitalization Weighted Stock Index will be available on Seoul’s stock market from next month.This is a follow-up measure after the two Asian stock markets signed a tentative deal to cooperate

[THE INVESTOR] The operating profit of Kolmar Korea, South Korea’s original development manufacturing cosmetics manufacturer, is expected to surge over 30 percent in the third quarter, bolstered by increasing number of new clients, a local securities firm said on Sept. 22. The company is likely to post 20.6 billion won (US$18.64 million) in operating profit in the third quarter, up 31.1 percent from a year earlier, said Lee Sun-hwa, an analyst at Heungkuk Securities. “The Third quarter is the of

[THE INVESTOR] The earnings of Lotte Himart, South Korea’s electronics retailer, is expected to improve in the third quarter, driven by sales of seasonal home appliance products such air conditioner and stronger product lines, a local securities firm said on Sept. 22. According to Meritz Securities, the retailer’s sales is likely to increase 7.6 percent on-year to 1.14 trillion won (US$1.36 billion) in the June-September period while operating profit will grow 15.5 percent to 64.9 billion won. “

[THE INVESTOR] South Korea’s first robo-adviser based publicly place fund, launched by Kiwoom Asset Management, offered a yield of 3.42 percent, the firm said on Sept. 21.The product with a diversified portfolio of exchange-traded funds, has 30.3 billion won (US$27.11 million) in assets under management. It was unveiled by the asset manager and Quarterback Investment, an automated financial investment algorithm startup, in April. Lee Hyun, the chief executive officer at Kiwoom Asset Management,

[THE INVESTOR] A South Korean bankruptcy court said on Sept. 21 that embattled Hanjin Shipping would not be able to stay afloat without resolving mounting debts, including unpaid charter fees. Since the nation’s largest container carrier, filed for receivership last month its unpaid vessel leasing fees have surpassed 40 billion won (US$ 35.74 million). The Seoul Central District Court which oversees the near-bankrupt shipper’s receivership warned that the company could face liquidation if the de

[THE INVESTOR] Dongwon Group, a South Korean food and fisheries conglomerate, seeks to acquire the country’s No.3 logistics company Dongbu Express, according to sources on Sept. 21. Dongwon Enterprise the group’s holding firm, signed a memorandum of understanding with KTB Private Equity and Q Capital Partners, the largest shareholder of Dongbu Express, to secure an exclusive right to negotiations with the sellers over the acquisition deal. The deal size is estimated at around 470 billion won (US