[THE INVESTOR]  Daewoo Shipbuilding & Merchant Engineering has redeemed the entire commercial paper worth 400 billion won (US$363.47 million) maturing in September, the company said on Sept. 9. The redemption dispelled speculation that the cash-strapped shipbuilder would face a “September crisis” by failing to pay off the massive debt.The shipyard‘s liquidity crunch has been eased partly as four ship owners paid some 600 billion won to DSME in advance for ships they had ordered. DSME also said i

[THE INVESTOR] LIG Investment & Securities has submitted a letter of intent to purchase its smaller peer Hi Investment & Securities on Sept. 9. LIG is the only firm that has been confirmed to participate in the bid to takeover the midsized securities firm so far.Failing to attract sufficient potential buyers, Hi Investment decided to leave the door open indefinitely. Except LIG Investment, no companies have expressed interest in the deal in the past one month until Sept. 9, the deadline for a le

[THE INVESTOR] Deloitte Anjin, a local member of the global accounting and consulting firm Deloitte Touche Tohmatsu, is facing the largest number and costliest lawsuits among accounting firms operating in South Korea this fiscal year, data showed on Sept. 9. As of March this year, Deloitte Anjin has been involved in 28 lawsuits worth 75.07 billion won (US$68.21 million) during the period. It is the biggest number of the 84 suits filed against 157 accounting firms, according to the data compiled

[THE INVESTOR] Doosan Bobcat, a unit of power and construction equipment conglomerate Doosan, said its initial public offering next month could raise up to 2.45 trillion won (US$2.25 billion). Doosan Bobcat will make its market debut on South Korea’s main bourse KOSPI on Oct. 21. The company submitted listing plans to financial authorities on Sept. 8. The preliminary price range for the planned IPO was 41,000 to 50,000 won per share, with a total 49 million existing shares to be listed. Doosan I

[THE INVESTOR] The merger between Mirae Asset Daewoo and Mirae Asset Securities passed its second hurdle on Sept. 7, securing regulatory clearance from the Securities & Futures Commission, a special legal entity within South Korea’s top financial regulator. The deal still needs review and approval by Financial Services Commission which will announce its decision on Sept. 21. The new merged firm, to be called Mirae Asset Daewoo, is expected to be launched on Nov. 1 after receiving approval from s

[THE INVESTOR] Korea Investment & Securities has forged a partnership with two Chinese brokerage houses to bolster its investment banking business in the Chinese market, the firm said on Sept. 8. The major South Korean securities broker signed a memorandum of understanding with Beijing-based Founder Securities and China Minzu Securities for strategic alliance for cross-border M&A advisory services and real estate investment.The alliance is expected to enable Korea Investment & Securities to expa

[THE INVESTOR] Korea Exchange is targeting companies in Indonesia for listing on the Seoul bourse in its efforts to attract foreign blue chip stocks for investors hungry for returns.The bourse operator plans to hold a conference to promote initial public offerings on the main KOSPI market in Indonesia in October. “We seek to list Indonesian companies established by Koreans and subsidiaries of Korean conglomerates as well as firms that want secondary listing in Seoul,” a KRX official said. Since

[THE INVESTOR] A new bill that seeks to tighten regulation on merger and acquisition brokers has prompted conflict of interest between securities and accounting firms here. The bill, proposed by Rep. Park Yong-jin of the main opposition Minjoo Party of Korea in August, outlines that companies offering advice concerning corporate acquisitions require authorization for financial investment business, by revising the current Capital Market Act. In South Korea, private company M&A advisors and busine

[THE INVESTOR]  KB Financial Group, South Korea’s major financial holding company, said Sept. 6 it is exploring the sale of Hyundai Savings Bank. “We are currently seeking potential buyers after hiring Ernst & Young Hanyoung as a lead advisor for the transaction,” KB said in a regulatory filing. Hyundai Savings Bank is one of subsidiaries of Hyundai Securities which was acquired by KB Financial Group.The group said it plans to sell the savings bank unit within two years after Hyundai Securities

[THE INVESTOR] South Korea’s maritime minister has sought the cooperation of domestic and foreign container carriers to deal with the shipping chaos triggered by Hanjin Shipping, the country’s No. 1 container shipping line, that filed for court receivership last week. The Minister of Oceans and Fisheries Kim Young-suk expressed his concerns over disruptions in the wake of Hanjin’s collapse such as drop in container traffic and negative impact on local economy, during a meeting with 13 shipping f

[THE INVESTOR] Even as  Hanjin Shipping is grappling with court receivership, data showed on Sept. 6 that one in three affiliate companies of Hanjin Group are zombie companies. A total of 12 companies, or 31.6 percent of the total number of affiliates of the family-dominated conglomerate, don’t make sufficient profit to pay down the principal on their debt or face capital encroachment, according to data by corporate information provider Chaebol.com. The average debt-to-equity ratio of Hanjin Gro

Korean Hanjin Shipping‘s filing for receivership reflects an unsustainable supply-demand imbalance in container shipping, Fitch Ratings says. We expect more defaults and M&A activity in the short and medium term but these will only restore equilibrium and boost freight rates if they prompt capacity reduction.Bankruptcies in shipping are not unusual, especially in the current dire industry conditions, but Hanjin is the seventh largest container shipping company in the world and its filing for rec

[THE INVESTOR] South Korea‘s Prime Minister Hwang Kyo-ahn has urged ministries to push ahead with contingency plans to unsnarl the chaos in the logistics industry after the country’s largest ocean container shipper Hanjin Shipping filed for court receivership last week. “Related ministries including the Ministry of Oceans and Fisheries should immediately take emergency transportation measures such as sending container ships to replace seized vessels to minimize disruption on trading companies,”

[THE INVESTOR] The South Korean government will extend a long-term loan of 100 billion won (US$90.54 million) to financially troubled Hanjin Shipping at low interest rate following its court receivership filing last week. “The government agreed to provide cheap long-term loans to Hanjin Shipping if Hanjin Group or Chairman Cho Yang-ho offer loan securities that have asset value in Hanjin Shipping,” said Saenuri policy chief Kim Gwang-lim after attending a ruling party-government meeting on Sept.

[THE INVESTOR] British asset manager Baring Asset Management has named Ike Bae as new chief executive officer of its unit in South Korea, the firm said on Sept. 5. Joining Baring Asset Management Korea in 2011, Bae has been in charge of sales and client service of Barings’ offshore funds and global investment service to Korean retail distributors and institutional clients. Ike BaeHe previously served as the head of alternative investment and private banking department at Korea Investment & Secur

[THE INVESTOR] South Korea’s state-run Korea Development Bank seeks to sell its life insurance unit after two failed attempts in 2014. The policy banks will dispose an 85 percent stake in KDB Life Insurance, owned by KDB Consus Value Limited Liability Company and KDB Consus Value PEF, companies jointly managed by KDB and Consus Asset Management. Credit Suisse, the main manager of the deal, will receive a letter of intent until Oct. 13 from potential buyers. Two years ago, KDB tried to sell the u

[THE INVESTOR] AmorePacific, South Korea's largest cosmetics maker, plans to build a plant in Malaysia by 2020 in response to the growing demand from Southeast Asian markets, the company said on Sept. 5. The board of AmorePacific has decided to invest some 110 billion won (US$99.38 million), which is 3.26 percent of the firm’s equity capital, for setting up the new factory in Nusajaya, Johor, in Malaysia. It will be the beauty product maker’s third overseas plant after establishing one in France

A decision by the creditors of South Korea‘s Hanjin Shipping Company on 30 August to withdraw financial support for the company was a proactive step towards restructuring the country’s shipping and shipbuilding industry, and a sign that troubled entities in this sector will not be propped up indefinitely, says Fitch Ratings. Fitch believes taking a more commercial approach towards financially ailing large corporates should ultimately bolster the health of the banking sector, and lift Korea‘s lon

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