[THE INVESTOR] The second quarter operating profits of major South Korean brokerages were halved from a year ago, industry data showed Aug. 17. According to financial industry information provider FnGuide, the combined second quarter operating profit of the country’s 10 largest securities companies fell 49.2 percent from a year ago to 538.8 billion won (US$489.2 million).  The Korean Wallstreet YeoidoThe drop is thought to have been caused by the effects of the UK’s decision to leave the Europea

[THE INVESTOR] Samsung Heavy Industries has no immediate plans to push for a merger with Samsung Engineering, Samsung Heavy CEO Park Dae-young said on Aug. 17.With the Special Act on Corporate Revitalization taking effect on Aug. 13, speculation rose that the two Samsung Group companies would push to merge. The two companies had attempted to merge in 2014, but the plans were called off on opposition from shareholders. However, Park rejected the speculation, saying a merger is not in the company’

[THE INVESTOR] Foreign investors bought more shares of cosmetics-maker AmorePacific than any other South Korean stock, data showed Aug. 16. According to Korea Exchange, foreign investors have bought 951.6 billion won (US$867.2 million) in AmorePacific shares so far this year, making it the most purchased KOSPI-listed stock for foreign investors. With foreign investors buying more AmorePacific shares this year, foreign investors’ holdings in the company stood at 35 percent as of Aug. 12. Foreign

[THE INVESTOR] The Special Act of Corporate Revitalization which took effect on Aug. 13 is raising hopes of the country’s mergers and acquisitions market receiving a much needed boost. Aug. 16, the first working day since the act took effect, saw four companies, including Hanwha Chemical, apply for review for eligibility. The Yeouido financial district in western SeoulIn addition, industry sources say that some of the country’s largest conglomerates, including Hyundai Motor Group and Samsung Gro

[THE INVESTOR] Hanwha Chemical applied for review under the new Special Act of Corporate Revitalization on Aug. 16. The government will review Hanwha Chemical’s application and make its decision within 60 days.Hanwha Chemical, one of four companies that applied for review in relation to the new act on Aug. 16, plans to sell its caustic soda and chlorine production facility in Ulsan to UNID, a local chemicals manufacturer. Under the act, eligible companies are able to restructure their business p

[THE INVESTOR] Woori Bank announced on Aug. 16 that a 70 billion won (US$64 million) fund will be established to invest in companies with high technological capacities. The fund will invest in companies scoring in the top five grades for technological capabilities, as recognized by credit rating service providers.Woori Bank and Korea Growth Investment Corp. will each raise 15 billion won, with the rest to be raised from institutional investors and other organizations. By Choi He-suk (cheesuk@her

[THE INVESTOR] Delays in the final bidding for the Korean unit of ING Life Insurance are fueling speculations the sale may through, or that MBK Partners will scrap the sale. According to finance industry sources, Morgan Stanley, which is overseeing the sale, had originally planned to receive bids until Aug. 12. However, with a number of candidates experiencing delays, bids are to be accepted until the end of the week.  ING Life Korea internet homepageMBK Partners, which is selling its stake in I

[THE INVESTOR] Finding a new majority shareholder for HI Investment and Securities continues at a sluggish pace, despite earlier hopes. Those overseeing the sale have been sending out information for potential buyers since mid-July, but have received no positive responses. Hyundai Heavy Industries plans to sell 85.3 percent stake in HI Investment within the year as part of plans to streamline its operations. However, market watchers had forecast difficulties due to the disparity between its mark

[THE INVESTOR] Daewoo Shipbuilding and Marine Engineering is speeding up sales of nonessential subsidiaries, recently naming law and accounting firms to oversee related processes.The move is part of the company’s revival plans under which 14 subsidiaries will be sold, as well as its production capacity being cut by about 30 percent. According to reports, DSME recently selected accounting firm EY Han Young to oversee the sale of its Chinese subsidiary DSME Shandong. The ailing shipbuilder also ch

[THE INVESTOR] Mirae Asset Group is rapidly expanding its portfolio of alternative investments, amid concerns the company could be exposing itself to greater risks. According to the Korea Financial Investment Association, Mirae Asset Group currently holds more than 8.82 trillion won (US$8.02 billion) in alternative investments. The figure is more than 6 trillion won higher than that recorded at the end of 2007. The KFIA’s definition of alternative investments includes real estate, social overhea

[THE INVESTOR] Korea Electric Power Corp. has more than 10 trillion won (US$9.1 billion) in bonds set to mature by the end of 2018, industry data showed on Aug. 16.According to the data, KEPCO needs to repay bonds with a combined value of 10.2 trillion won by the end of 2018. That represents about 40 percent of all the corporation’s outstanding bonds, which comes to 26 trillion won. The value of bonds the company needs to repay by the end of 2020 stands at 16 trillion won. Although 3 trillion wo

[THE INVESTOR] Chinese investors are rapidly expanding their presence in Seoul’s real estate market, data showed on Aug. 12. According to government data, the number of plots in Seoul held by Chinese nationals rose 10.2 percent during the first three months of the year. At the end of last year, 3,192 plots were held by Chinese nationals, and the figure at the end of the first quarter of this year came to 3,516. According to the data, Chinese real estate investments in Seoul have been rising 40 p

[THE INVESTOR] Samsung BioLogics issued 50 billion won (US$45.31 million) worth of private placement bonds, local media reported on Aug. 12.Citing financial industry sources, the news reports stated that the company issued 1-year private placement bonds. This is the third time the company has issued bonds this year. In January and March, the company had issued bonds with a combined value of 120 billion won. The company said that the bonds were issued to raise money to cover the cost of building

[THE INVESTOR] Samsung BioLogics on Aug. 12 applied to the Korea Exchange for a preliminary listing review. The world’s third largest biologics contract manufacturer by capacity will be the first pharmaceutical firm to be listed on the benchmark KOPSI in 10 years. The company is 51 percent held by Samsung C&T, and 46.8 percent by Samsung Electronics.  A screen welcoming visitors to Samsung BioLogics/ The InvestorSamsung BioLogics is expected to be the largest IPO this year. The industry estimate

[THE INVESTOR] South Korean insurance companies are expected to be given a freer rein in investing in foreign-currency denominated assets.According to sources, revisions to the Insurance Business Act allowing more investment in foreign currency assets will be proposed in September. The revision is expected to be passed without much friction with neither the conservative ruling party nor the opposition parties having raised issue with the proposed changes.At present, local insurers’ investments i

[THE INVESTOR] Conglomerate chiefs and high-level officials passed over in the presidential pardon were not included in light of “public sentiment and severity of the crimes,” according to South Korea's justice minister Kim Hyun-woong.Those passed over include SK group Vice Chairman Chey Jae-won, Hanwha Group Chairman Kim Seung-yeon and LIG Nex1’s Koo Bon-sang. Chey, a younger brother of SK chairman Chey Tae-won,  was released on parole last month, and Kim was released from custody in late 2014

[THE INVESTOR] CJ Group is in high spirits with Chairman Lee Jay-hyun being included in the presidential pardon. In a widely anticipated move, President Park Geun-hye on Aug. 12 approved the pardon of the CJ Group chairman. The pardon will take effect on Aug. 15, the 71st Liberation Day. CJ chairman Lee Jay-hyunLee was found guilty of embezzlement and tax evasion, and was sentenced to 32-month imprisonment. He had appealed the decision, and until July 19 he had been reappealing the case. The rea

[THE INVESTOR] CJ Group chairman Lee Jay-hyun has been included in the special Liberation Day presidential pardon. Lee was found guilty of embezzlement. Hanwha Group’s Kim Seung-yeon, SK Group vice chairman Chay Jae-won and Koo Bon-sang of LIG Nex1 were excluded from the list.(theinvestor@heraldcorp.com)

[THE INVESTOR] South Korean money is flowing into dollar-based investment vehicles, as won continues to gain against the greenback. One Aug. 10, the won-dollar rate dropped below 1,100, and experts say that foreign entities consider the won to be undervalued. As the won strengthens against the dollar, local investment companies have seen the influx of funds into dollar repurchase agreements soar in July. The amount put into dollar RP at Daishin Securities went from US$82.96 million at the end of

[THE INVESTOR] Foreign Investment banks project that the Bank of Korea will lower the benchmark rate in the final quarter of the year, the Korea Center for International Finance said on Aug. 12.The KCIF’s analysis of foreign investment banks’ projections showed they expect that slowing international trade may force BOK to lower the rate it in October. The banks also projected that the ongoing corporate restructuring will begin to take its toll on the economy later in the year. BOK govenor Lee Ju