Korea’s asset management firms eye global markets

South Korean asset management companies are increasingly eyeing global markets to seek higher returns, as local capital markets face low interest rates, industry officials said Thursday.The number of overseas offices operated by Korean asset management companies more than doubled to 35 as of the end of 2015 from 14 in 2008, according to data by the Korea Financial Investment Association.The head office of the Korea Financial Investment Association in Seoul. (KOFIA)Among 35, 14 are run by Mirae A

June 2, 2016

NPS to expand investment in private equities in Asia

Korea’s largest institutional investor National Pension Service said it will increase the proportion of overseas investment in private equities in the Asian region to around 30 percent in its long term strategy.Out of the 512 trillion won ($429 billion) pension fund, 19.5 trillion won is allocated as global private equity investment, according to Yang Young-sig, the head of global private market at the investment division of the National Pension Service.National Pension Service (Yonhap)“NPS aims

June 1, 2016

Korea to support venture capital for fintech start-ups

The government will fully support venture capital to finance start-ups in financial technology business, as digital innovation will play a critical role in the fourth industrial revolution, Korea’s top financial regulator said Wednesday. “With the advent of fintech and ICT-based firms, once-exclusive financial services are evolving into new types of services,” Financial Services Commission chairman Yim Jong-yong said at a forum in Seoul.Financial Services Commission chairman Yim Jong-yong (Yonha

June 1, 2016

GDP credibility questioned amid sluggish growth

Finance Minister Yoo Il-ho suggested last week the government would no longer adhere to its projection that the country’s economy would grow by 3.1 percent this year.Yoo, who doubles as deputy prime minister for economic affairs, said the government would be “cool-headed” in adjusting the growth target when it announces in late June the economic policy directions to be pursued in the latter half of the year.Finance Minister Yoo Il-ho (Yonhap)His remarks came a day after the Korea Development Ins

June 1, 2016

Employment policy worsens job market polarization

President Park Geun-hye’s administration has put top priority on increasing employment. In June 2013, it unveiled a roadmap to boost the country’s employment rate gradually to 70 percent by 2017.Finance Minister Yoo Il-ho, who also serves as deputy prime minister for economic affairs, last week acknowledged the goal might be unachievable.“To be candid, (I) think it may be a little difficult to accomplish the employment rate of 70 percent,” said Yoo during a lecture to a group of regional busines

May 30, 2016

Korea’s OECD growth ranking drops to 12th

South Korea’s annual economic growth fell out of the Organization for Economic Cooperation and Development top 10 for the first time in nine years in 2015.Asia’s fourth-largest economy grew 2.6 percent last year, ranking 12th, behind Eastern European economies including the Czech Republic, Hungary and Poland, according to the OECD. The Czech Republic grew 4.2 percent last year, while Hungary 2.9 percent and Poland 3.6 percent. The country’s growth was also lower than that of small economies such

May 29, 2016

Steel firms seek preemptive restructuring

In light of shipping and shipbuilding companies that are being swept up by debt after years of oversupply, Korea’s steel firms are seeking preemptive steps not to succumb to the same fate. Industry watchers say the steel makers will likely hasten restructuring moves after summer when a new law that eases regulations on small mergers, splits and asset sales takes effect. The act, dubbed the “one shot law,” would clear regulatory hurdles associated with tax codes, commercial code and fair trade la

May 27, 2016

Sales down, profitability up in Corporate Korea in 2015

Sales dropped, but profit margins edged up in Corporate Korea last year, the Bank of Korea said Friday. According to the central bank’s survey of business performance at nearly 20,000 companies in Korea, revenues were down 2.4 percent in 2015 from a year earlier, led by manufacturers, which posted an average 4.2 percent drop. Profit margins, as a ratio of operating profit to revenue, increased to 5.2 percent from 4.2 percent during the same period. This means the companies earned an operating pr

May 27, 2016

SM Group not buying part of SPP Shipbuilding: report

Samra Midas Group, or SM Group, has no intention to acquire part of midsized shipyard SPP Shipbuilding from its creditors, a local news report said Thursday.The business group, which owns listed shipper Korea Line and builder Woobang Construction, could not narrow differences in the price negotiation for SPP’s shipyard in Sacheon, Yonhap said. “We had estimated that additional 140 billion won ($118 million) would be needed for SPP Shipbuilding based on the result of due diligence. But creditors

May 26, 2016

Corporate concern rising on incoming parliament

Corporate executives now seem as jittery as government officials about a controversial bill that will allow lawmakers to hold hearings more frequently.The revision to the National Assembly Act, which was passed by the outgoing parliament last week, gives parliamentary committees the right to hold hearings on all “pending” issues. Existing law stipulates that the hearings can be held if necessary for the deliberation of important matters and parliamentary audit or investigation.Speculation has be

May 25, 2016

KRX to extend stock trading hours from August

Korea’s stock market operator will extend trading hours of the stock and derivatives markets by 30 minutes from August, in a bid to synchronize them with other Asian markets, Korea Exchange said Tuesday. The bourse operator said the markets will be open from 9 a.m. to 3:30 p.m., aiming to invigorate the sluggish equity market. Kim won-dae, the head of the securities market division at KRX, speaks during a press conference, held in Seoul, Tuesday. (KRX)“The Korean equity market is increasingly ex

May 24, 2016

ING Life extends sales offer to find buyer

ING Life Insurance will be extending its sales offer by the end of this week to fuel more potential bids for the insurer owned by Korean private equity MBK Partners following lower-than-expected buyout interests, according to news media citing investment banking sources.MBK and ING could not be reached for comments. Morgan Stanley is the sales manager of MBK’s ING Life Insurance.Only about three companies at home and abroad submitted their letters of intent for the insurer on Monday. MBK seeks t

May 24, 2016

Osstem Implant bets on emerging markets for growth

In the world of dental implants, Korea is an outlier. Nearly 250 out of every 10,000 people in the population receive such treatment here, putting Korea at the top of the world in implant penetration. Getting an implant costs just $1,000-$1,500 (1.3 million won-1.8 million won) in this country with per capita income of $27,340. Credit for the popularity of one of the most expensive dentistry procedures goes to Osstem Implant. Osstem Implant‘s dental implant productsThe company, formed in 1997 by

May 23, 2016

Hotel Lotte IPO expected to become S. Korea's biggest offering

South Korean retail giant Lotte Group's hotel unit said Thursday it will go public on the KOSPI market on June 29, which is expected to fetch over 5 trillion won ($4.19 billion) to mark as the nation's largest-ever initial public offering.Hotel Lotte Co. said in a regulatory filing that it will offer 47.85 million shares at a range between 97,000 won to 120,000 won per share. Hotel Lotte (Yonhap)The offering is estimated to be around 4.6 trillion to 5.7 trillion won, and its medium range of pric

May 19, 2016

Enhancing consumer goods, service sectors needed to boost growth

It seems only a matter of time for Korea’s economic policymakers to revise down the country’s growth target for this year below 3 percent. This downward revision may come next month when the Ministry of Strategy and Finance announces directions of policies to be pursued in the latter half of the year.The Organization for Economic Cooperation and Development this week cut its 2016 growth forecast for Korea to 2.7 percent from 3.1 percent, citing sluggish global trade and a slowdown in China. It w

May 19, 2016

Samsung acquires stakes in five start-ups in Q1

Samsung Electronics has newly acquired stakes in five start-ups in the first quarter of this year as part of its ongoing efforts to elevate its software prowess.According to its quarterly report filed Monday, the five firms include SensiFree (15.09 percent), Unispectral (7.76 percent), Zyomed (2.17 percent), Keyssa (2.06 percent) and Bot Home Automation (0.99 percent).Samsung’s digital city complex in Suwon, Gyeonggi Province (Samsung Electronics)Even though the total spending, worth about 10 bi

May 17, 2016

Buyout giant KKR not eyeing ailing sectors in Korea: CEO

U.S. private equity giant KKR & Co. is not keen on investing in ailing sectors in Korea including shipbuilding and steel, its CEO said Tuesday.“We’ve avoided, not just in Korea but around the world, investing in steel or shipbuilding or auto companies mainly because of cyclical nature of those businesses,” said George Roberts, cochairman and co-CEO of KKR, at a press conference in Seoul.George Roberts, cochairman and co-CEO of U.S. private equity firm KKR, speaks during a press conference in Seo

May 17, 2016

Hitting the sweet spot in the confectionery market

A bag of immensely popular potato snacks has become an unexpected game changer for local confectionery shares. Due to the success of the Honey Butter Chip, its manufacturer Haitai Confectionery and Foods has recovered the No. 2 spot in sales in the Korean confectionery market for the first time in five years. The firm’s share prices have also soared. Honey Butter chip (Yonhap)Haitai share prices closed at 53,800 won ($45.6) on Monday, a whopping 250 percent above its May 11 initial public offeri

May 16, 2016

NPS to up global investments in 2017-2021

Korea’s National Pension Service, which manages the world’s third-largest public pension fund after Japan and Norway, said it decided to increase the fund’s allocation in global investments in its mid-to-long-term fund investment portfolio.According to the plan finalized at the health minister-led fund management committee Monday, the combined proportion of investment in global equities, bonds and alternatives will increase to more than 35 percent of the total fund by 2021 from 24.3 percent as o

May 16, 2016

Family feud escalates over Kumho Terminal merger

Two sons of the Kumho Group founder are likely start a lengthy legal battle over a merger between Kumho Terminal and Kumho & Co., a special purpose company set up by the elder brother to bring his empire back under his control.Kumho Petrochemical, run by younger brother Park Chan-koo, has recently sent an official request to Kumho Terminal to stop the merger with Kumho & Co., threatening to take legal action if it does not drop the case.Calling the deal a serious dereliction of duty, Kumho Petro

May 13, 2016