Last Tuesday, the Bank of Korea reported that the country’s net international investment position at the end of June had reached $234.1 billion, or 17% of 2015 GDP, a $103.7 billion increase from a year earlier and the highest level since the country began recording the statistic in 1994. This is credit positive for Korea (Aa2 stable) because it reflects a continued and significant strengthening of the country’s external payments position, which reduces the sovereign’s vulnerability to global fi

[THE INVESTOR] South Korea’s top financial regulator has called on Hanjin Group to resolve chaos in logistics stemming from its shipping unit’s decision to seek bankruptcy protection last week. “Hanjin Group and the large shareholders should step up to tackle the issue and take social responsibility,” said Yim Jong-yong, chairman of Financial Services Commission on Sept. 5. Hanjin Shipping, the country’s largest container line, filed for court receivership on Aug. 31 a day after its credit lende

[THE INVESTOR] South Korean hedge funds are growing at a fast clip with over 6 trillion won (US$5.40 billion) assets under management. According to industry data on Sept. 5, the combined AUM of local hedge funds reached to 6.23 trillion won as of July 31, more than double since it first breached the 3 trillion won mark in January.The growth came as investors are shifting their interest to the hedge fund market due to meager local equity returns. The country’s stock funds have continued to see a

[DISCLOSURE] Sambu Construction (001470), South Korea‘s midsized builder is seeking potential buyers for its affliate Sambu Construction Industrial and history theme park Shilla Millennium Park, the company said on Sept. 2. “If there are any major changes, we will disclosure related information in three months,” Sambu Construction said.By Park Han-na (hnpark@heraldcorp.com)

[THE INVESTOR] Hana Financial Group, a major South Korean banking group, is being sued for damages by US buyout fund Lone Star over its asset sell-off deal closed four years ago. Lone Star’s affiliate LSF-KEB Holdings filed a 559.6 billion won (US$501.16 million) suit against the Korean firm with the International Court of Arbitration, Hana Financial said in a regulatory filing on Sept. 2. “The suit is related to LSF-KEB Holdings’ sale of a 51 percent stake in Korea Exchange Bank to Hana Financi

[THE INVESTOR] E-Land Group, South Korea’s apparel and retail company, said on Sept. 2 it has scrapped the sale of its hypermarket chain Kim’s Club as the firm is set to get cash injection from selling clothing brand Teenie Weenie.E-Land Group picked US private equity firm KKR as the preferred bidder to operate Kim’s Club’s 37 stores in South Korea, but they haven’t reached a deal on the cost. The announcement came after the Seoul-based firm confirmed that it inked a deal to sell its entire stak

Most Korean non-financial companies’ leverage will remain stable or improve. Despite continued macro-related challenges, we expect financial leverage for most of the Korean companies (excluding unlisted government-related issuers) that we rate to remain largely stable or improve over the next 12 months, driven by the corporates’ austerity efforts as well as earnings improvement from 2015 levels. This forecast also reflects our expectations for soft but steady global and domestic economic growth,

[THE INVESTOR] E-Land Group, South Korea’s retail and fashion company, has sold its clothing brand Teenie Weenie to China’s V-Grass Fashion for around 1 trillion won (US$895.42 million), the Korean firm said on Sept. 2. V-Grass Fashion, China-based high-end women’s fashion brand, signed the deal to acquire the trademark rights, design and business operations of Teenie Weenie in a bid to “diversify its business portfolio.”The young and casual clothing with a teddy bear theme has gained increasing

[THE INVESTOR] South Korean cosmetic brands’ dependence on exports to China could pose a risk to investors, said the head of Have & Be, the company behind skincare giants Dr Jart+. “As China accounts for a huge part of Korean beauty brands’ exports, the firms are vulnerable to China’s economic and political situations and change in regulations,” said Lee Chin-wook, founder and president of Have & Be, at Private Equity & Venture Forum, hosted by Asian Venture Capital Journal, in Seoul on Aug. 31.

 [THE INVESTOR]  Feng shui can be laughed off as mere superstition in today’s highly advanced society, but Kim Mee, the founder and president of CEO Suite, believes that selecting the best place with this age-old art is the first step for successful business in Asia.That is why it took more than five years for the firm to open its second location in Seoul, she said during an interview with The Investor at her office in downtown Seoul earlier this month. Kim Mee, the president of CEO Suite“I beli

[THE INVESTOR] South Korea’s institutional investors along with asset mangers are pouring money into overseas real estate mezzanine debt eyeing higher and safer yields. Mezzanine loan, which is repaid after senior debt in case of default for buildings, is emerging as a popular alternative investment option among Korean insurers and pension funds as it is relatively safe compared with equity investment while offering higher yields than senior loans. The latest in a string of such moves is an inve

[THE INVESTOR] Lim Hyong-seok, who has over 23 years of management consulting and operational experience at LG Electronics and McKinsey, has been appointed as managing director of KKR’s private equity investment team in Korea, the company said on Aug. 30. Formally taking office in November, Lim will be in charge of discovering new investment opportunities in Korea along with Park Chung-ho, a director at KKR Korea. The announcement comes as the global private equity firm expands leadership teams

[THE INVESTOR] The creditors of cash-strapped Hanjin Shipping have unanimously decided to end financial support, letting the company go under court receivership, the main creditor Korea Development Bank said on Aug. 30. “All creditors came to a unanimous decision that we won’t offer additional support to the company at a meeting today,” an official at the state-run policy bank said. Related story: Hanjin Shipping fallout has less impact on finance industryHanjin Shipping faces possible court rec

[THE INVESTOR] S&P Global Ratings revised its outlook on SK E&S, South Korea’s power generation and metropolitan gas distribution firm, to “negative” from “stable” on higher debt and weaker profitability, the global credit rating agency said on Aug. 30. “We expect SK E&S to face profitability pressure in its power generation business over the next one to two years, mainly due to weak electricity selling prices in Korea,” said S&P credit analyst Park Jun-hong.S&P said it also expects that the Kor

[[THE INVESTOR] Fitch Ratings has downgraded Lotte Shopping ’s senior unsecured debt rating to “BBB-” from “BBB” as the firm’s operations continue to be in the doldrums, the credit agency said on Aug. 30. The outlook is “stable”.Fitch said the downgrade of the flagship affiliate of retail-oriented conglomerate Lotte Group reflected the company’s continued weak operations in the first quarter of 2016. “The company’s recovery will be slower than expected, especially in its domestic hypermarket and

[THE INVESTOR] Hansol Paper, South Korea’s leading paper manufacturer, is weighing the sale of its thermal and graphic paper mill run by its subsidiary Artone, the company said on Aug. 29. “We are leaving open the possibility of selling the Osan factory and will soon announce whether we intend to sell the asset,” an official at Hansol Artone Paper said. If successful, the disposal of the factory located in Osan, Gyeonggi Province, is expected to help the company to improve its balance sheet.Sinc

[THE INVESTOR]  KEB Hana Bank has sealed an investment deal worth US$200 million with CM International Holding, an arm of China Minsheng Investment, the South Korean lender said on Aug. 29. Singapore-based CM International Holding is preparing to tap into the Chinese insurance market after acquiring the entire stake in global reinsurer Sirius International Insurance Group for about US$2.2 billion in 2015.  Headquarters of KEB Hana Bank in downtown SeoulKEB expects an average return of 12 percent

[THE INVESTOR] KTB Investment & Securities has signed a deal worth US$85.6 million with a Chinese aircraft leasing company to buy an Airbus wide body plane which is being leased by Singapore Airlines in a bid to expand its alternative investment portfolio, the South Korean brokerage said on Aug. 29. KTB Investment raised funds from local institutional investors, including insurers, with an expected annual return of 3 to 6 percent a year for the next six years until Singapore Airlines ends its re

[THE INVESTOR] South Korea’s shipping industry, once the country’s backbone industrial sector before falling into a deep slump, could face multitrillion won losses and massive layoffs if Hanjin Shipping goes under court receivership, according to the Korea Shipowners’ Association. The association estimated that placing Hanjin Shipping into court-led restructuring could cause some 9.24 trillion won (US$8.31 billion) in damages and around 1,193 employees working in the industry could lose their jo

[THE INVESTOR] The main creditor of Hanjin Shipping expressed dissatisfaction with the cargo container carrier’s self-rehabilitation measures, increasing the possibility the financially troubled firm could put under court receivership.“There was not much change from previously submitted self-rescue plans,” said Jeong Yong-seok, vice governor of restructuring at Korea Development Bank, the main creditor of Hanjin Shipping. On Aug. 25, the embattled cargo container carrier mapped out 500 billion w