Seoul stocks rebound as investors scoop up undervalued assets

South Korean shares rose more than 1 percent Tuesday as investors went bargain hunting, after COVID-19 fears led to the sharpest fall in 16 months in the previous session. The benchmark Kospi opened slightly low at 2,075.55 -- down 3.49 points, or 0.17 percent, from the previous session. The index fluctuated between losses and gains in the early morning, then moved upward throughout the day to close at 2,103.61. Institutional and individual investors scooped up undervalued shares, with net pu

Feb. 25, 2020

Kakao Bank expands partnerships for brokerage services

Kakao Bank, an online-only bank in South Korea, said Tuesday that stock trading services of brokerage firm NH Investment & Securities are now available on its mobile application. Since users’ personal data is already registered on the online bank’s mobile platform, Kakao Bank users can open a securities account on the mobile banking platform more easily than with other services via stock traders’ home trading systems or brick-and-mortar branches, according the banking f

Feb. 25, 2020

Banks initiate emergency response plans against coronavirus

As the number of coronavirus cases continued to surge in Korea on Tuesday, all major banks here launched emergency response plans to protect their core networks. Commercial banks -- including Woori, Hana, KB Kookmin and Shinhan -- have temporarily shut down around a combined 20 brick-and-mortar branches across the nation, as of Tuesday afternoon. They have been following basic quarantine procedures, such as ordering employees at branches that came in contact with coronavirus patients into se

Feb. 25, 2020

BTS’ management agency gears up for IPO

Big Hit Entertainment, the South Korean entertainment management agency behind K-pop sensation BTS, has selected underwriters for its initial public offering in the country’s stock market. Lead underwriters include NH Investment & Securities, Korea Investment & Securities and JP Morgan, while Mirae Asset Daewoo will also participate in the process. An IPO underwriter is responsible for offering privately held or newly issued stocks to public investors, while protecting investors

Feb. 25, 2020

KCGI opposes Delta Air Lines' Hanjin stake purchase

Activist private equity firm Korea Corporate Governance Improvement on Tuesday objected to Delta Air Lines decision to hike its stake in Hanjin KAL -- holding firm of Korean Air -- amid the escalating proxy battle that will determine the fate of its owner family. Its disapproval comes amid reports that the US carrier might act as a “white knight” to vote in favor of the Hanjin Group’s controlling family, given its ongoing partnership with Korean Air through a joint venture. K

Feb. 25, 2020

Hit by COVID-19 fears, Seoul stocks plunge

South Korean stocks plunged about 4 percent Monday, after the number of new coronavirus cases confirmed here nearly tripled over the weekend. The local currency closed at 1,220.2 won against the US dollar -- down 11 won from the previous session’s close -- marking the weakest won since Aug. 13 last year, when the trade spat between the US and China had escalated. The benchmark Kospi opened sharply lower at 2,114.04 -- plummeting 48.8 points, or 2.26 percent, from the previous session. Th

Feb. 24, 2020

Company K Partners launches W124b later-stage venture fund

South Korean venture capital firm Company K Partners said Monday it has launched a 124 billion won ($101.7 million) vehicle that targets startups at the later stage of growth, bringing its assets under management to over 560 billion won. The vehicle, dubbed Company K High Growth Fund, is backed by major institutional investors including Korea Teachers’ Credit Union and Korea Scientists & Engineers Mutual-aid Association; state-owned risk capital firm K-Growth, as well as Company K&rs

Feb. 24, 2020

LH plans projects worth W20.5tr to stimulate economy

State-run Korea Land & Housing said Monday it plans to place a series of housing and land development project orders worth 20.5 trillion won ($16.8 billion) across the peninsula this year, in order to prop up the nation’s shrinking economy hit by the COVID-19 outbreak. The amount is double that of the previous year. Of the total, 34 percent of the total budget will be spent within the first half of this year, in a bid to address the economic downturn as Korea struggles to contain the

Feb. 24, 2020

Investors in troubled Lime Asset lose over W634b

Troubled hedge fund Lime Asset Management on Monday confirmed total investor losses of 634.1 billion won ($520.3 million) from 173 feeder funds, which were injected in two of its master funds, Pluto FI D-1 and Tethys 2. The company said the estimate is based on the combined subscription amount of the feeder funds -- investor’s money that initially went to the funds -- at 1.6 trillion won minus their current net asset value. The estimate came as Lime Asset wrapped up the revision of the v

Feb. 24, 2020

JR AMC gets green light for Korea’s 1st cross-border REIT listing

South Korean real estate investment firm JR Asset Management (JR AMC) said Monday that it had obtained government approval for the initial public offering of its real estate investment trust, which invests in Belgium’s second-tallest skyscraper. The REIT, called JR Global, is hoping to carry out the nation’s first listing of a cross-border REIT. The Land Ministry authorized JR Global to embark on the IPO process and submit a prospectus. Under the Korean rules, a REIT listing does n

Feb. 24, 2020

Shinhan Bank closes branch on confirmed COVID-19 case

Shinhan Bank said Sunday that it is temporarily shutting down its branch at the Seongnam Industrial Complex Financial Center, Gyeonggi Province, after one of its employees tested positive for COVID-19. The confirmed patient had visited a hospital funeral center in the southern city of Daegu, where the epidemic has been spreading at a fast pace over the past week, officials said. After experiencing fever and other symptoms, the patient visited a designated inspection station in the vicinity.

Feb. 23, 2020

Homeplus unionists, MBK lock horns over asset disposal, dividend payout

The labor-management feud at South Korea’s hypermarket chain operator Homeplus escalated Sunday, with union members accusing its majority shareholder MBK Partners of profiteering at the expense of the company. The controlling private equity firm denied having done so, accusing the union of misleading the public. According to the labor union, MBK Partners has pulled 1.9 trillion won ($1.6 billion) out of Homeplus hypermarkets through the sale of its properties and brought in 1.2 trillio

Feb. 23, 2020

Hyundai Capital Bank Europe inks deal to control German lender

Hyundai Capital said Sunday that its German subsidiary has become the largest shareholder in a local lender, in an extended move to enhance the group’s mobility strategy. Hyundai Capital Bank Europe GmbH has signed an agreement with German car rental service provider Sixt SE to acquire 8.64 million shares, or a 41.9 percent stake, in Sixt Leasing SE for 155.6 million euros ($168 million). After the due regulatory clearance procedure is completed in both Europe and Korea, HCBE will gain a

Feb. 23, 2020

[Herald Interview] Booming business at fabric maker amid soaring demand for masks

POCHEON, Gyeonggi Province -- Amid coronavirus fears, local fabric maker Environment & Human’s machines have been in full operation night and day. The non-woven fabric manufacturer churns out thin sheets of meltblown non-woven fabric, an essential material for face masks. Demand for masks has been skyrocketing, driving the government to take full control over the supply and distribution of masks. The surge -- likely to continue for some time -- reflects concerns about the virus but

Feb. 23, 2020

Early-stage VC Bass Investment closes new W37.7b vehicle

South Korea’s early-stage venture capital house Bass Investment said it had closed its second fund worth 37.7 billion won ($31.1 million) last week, in the latest addition to its initial 28.6 billion won fund. The new vehicle’s backers include K Cube Holdings, Com2uS, as well as ex-entrepreneurs -- including Chang Won-gui, founder of secondhand marketplace Bungae Jangteo who exited from the firm in January. No state fund has joined as its limited partner. The fund will “not

Feb. 23, 2020

Coronavirus outbreak shakes up retail, realty markets in Korea

The COVID-19 outbreak is likely to deliver a severe blow to the South Korean economy, especially in the retail sector and real estate investments, according to global real estate service provider Cushman & Wakefield. Asia’s fourth-largest economy’s growth prospects in the near term will be affected as the fast-spreading coronavirus disrupts supply chains, reduces exports and weakens consumer sentiment, the company said in its recent report on the Asia-Pacific region. “

Feb. 23, 2020

Seoul stocks shed over W12tr on coronavirus woes

With the number of COVID-19 patients expanding rapidly across South Korea, the domestic stock market saw its market capitalization shed over 12 trillion won ($9.95 billion) over the past month, data showed Sunday. According to data released by financial market tracker FnGuide, the market cap of both the nation’s benchmark Kospi and secondary tech-heavy Kosdaq listed firms shed a combined 12.78 trillion won as of Thursday since the country reported the first case of COVID-19 on Jan. 20.

Feb. 23, 2020

Seoul stocks extend losses late Friday morning on virus woes

South Korean stocks extended losses late Friday morning amid rising concerns over the fast spreading novel coronavirus in the country. The benchmark Korea Composite Stock Price Index (KOSPI) fell 25.94 points, or 1.18 percent, to 2,169.56 as of 11:20 a.m. The index started weak, tracking overnight Wall Street losses, and struggled to move upward. The index took a further hit after South Korea reported 52 new cases of the new coronavirus Friday morning, raising the total number of infections i

Feb. 21, 2020

KCGI slams KAL owner family for losses, rules out heiress' return to management

Holding the ownership family of the nation’s flag carrier Korean Air responsible for its indebtedness, the head of a Korean private equity fund on Thursday reiterated calls to oust the incumbent chairman and bring in professional managers to run the struggling transport empire. Kang Sung-boo, chief executive of Korea Corporate Governance Improvement, also ruled out the possibility of Cho Hyun-ah -- the heiress to Korean Air, with whom he had forged an alliance to dethrone her brother -- r

Feb. 20, 2020

Hyundai Capital eyes stake in vehicle leasing unit of German firm

South Korean auto financing firm Hyundai Capital said Thursday that it is in talks with German car rental giant Sixt SE to acquire a stake in the latter’s vehicle leasing unit, Sixt Leasing SE. The announcement came after recent news reports that the Seoul-headquartered company was trying to acquire Sixt Leasing SE, via its European office Hyundai Capital Bank Europe, to increase its presence in the European car leasing market and gain a competitive edge in the emerging fuel cell elect

Feb. 20, 2020