[THE INVESTOR] South Korean conglomerate AK Holdings is expected to log strong earnings in the third quarter, thanks to healthy growth of its key subsidiaries, a local brokerage firm said Aug. 24. On a consolidated basis, AK Holding’s revenue for July-September of this fiscal year is likely to stand at 708 billion won (US$630.6 million), and its operating profit at 65 billion won, according to analysts at Hyundai Securities.  AK Holdings' flagship affiliate Jeju AirThe Seoul-based holding compan

Aug. 24, 2016

[THE INVESTOR] South Korea’s state-owned Woori Bank pledged a strong push for successful privatization by boosting its stock price after the government announced its new plan to sell its stake in the bank.The country’s No. 3 lender by assets said on Aug. 23 that it welcomes the government’s renewed attempt to sell off 30 percent stake in the bank to several different buyers by the end of this year. “From the experience of previous attempts for privatization, we believe that selling the stake to

Aug. 23, 2016

[Summary] Emerging markets saw inflows continue for a seventh week, prompting yearly fund flows to shift to net inflows for the first time since Bernanke‘s exit comments of 2013Active funds are flowing back into emerging markets, with the increase in Korea allocation indicating intentional growth in foreign investor inflows into Korean stocks The yen has played a major role in US dollar depreciation in 2016, with yen appreciation leading to rising global preference for emerging markets and avoid

Aug. 23, 2016

[THE INVESTOR] IBK Securities finished the first half of 2016 with significantly improved earnings propelled by its investment banking business, the firm said on Aug. 23. The brokerage unit of Industrial the Industrial Bank of Korea posted an operating profit of 28 billion won (US$25.03 million) during the first six months this year, up 36 percent from the same period a year earlier. Net income grew 26 percent year-over-year to 20.5 billion won. The firm’s operating profit growth marked the seco

Aug. 23, 2016

Rights offeringOn Aug 19, Samsung Heavy Industries decided to conduct a W1.1tn of rights offering. Offering rights to existing shareholders to purchase 159.12mn shares at the subscription price of W6,920, the company will make the offering to the general public. The ex-right date will be Sep. 30 and the new shares will be listed on Nov 28. Currently, Samsung affiliates and related parties hold a 24% stake, with Samsung Electronics 17.62%, Samsung Life Insurance 3.38%, and Samsung Electro-Mechani

Aug. 23, 2016

[THE INVESTOR] Hyundai Heavy Industries, South Korea’s largest shipbuilder, has decided to refund advance payment it received from a Norwegian drilling contractor that canceled its order to build a semi-submersible drilling rig, the firm said Aug. 23. Under a settlement the two companies reached, the shipyard will return US$176 million to Fred. Olsen Energy in exchange for the ownership of the semi-submersible drilling rig it built for the Norway-based offshore drilling rig company. The sum amou

Aug. 23, 2016

[THE INVESTOR] Foreign financial investors have expressed interest in acquiring state-run Woori Bank, due to the lender’s attractive valuation, according to local news on Aug. 22.  Woori Bank, for which the government has sought a privatization deal, drew attention from some institutional investors during investor relations meetings hosted by the bank’s president and CEO Lee Kwang-goo in the US, Japan and European countries earlier this year. Woori Bank headquartersThe bank’s relatively low pric

Aug. 22, 2016

[THE INVESTOR] South Korea’s national pension fund, the world’s third-largest with assets of more than 520 trillion won (US$461 billion), is scooping up investments in Europe’s infrastructure, according to a report by Seoul Economic Daily on Aug. 22. The National Pension Service decided to commit some 250 million euros (US$282 million) in the Macquarie European Infrastructure Fund 5, managed by global asset manager Macquarie. The fund plans to raise a total of 600 billion won from Korean institu

Aug. 22, 2016

[THE INVESTOR] McKinsey Korea, which is due to publish an assessment report on South Korea’s three largest shipbuilders, has concluded the trio can stay afloat without merging into one another, according to local newspaper the Korea Economic Daily on Aug. 22. The consulting firm reportedly reasoned it is the best to maintain the three shipyards’ operations separately as the debt-ridden Daewoo Shipbuilding & Marine Engineering’s competitiveness is not lagging behind those of its other two peers H

Aug. 22, 2016

[THE INVESTOR] South Korean mobile social casino game publisher ME2ON seeks to go public in October to raise some 30 billion won (US$26.8 million) for further expansion in the Asian and North American markets.On Aug. 19, the mobile game developer submitted an application to the Financial Services Commission for its listing on the tech-heavy KOSDAQ market. ME2ON will offer a total of 7,160,708 shares of common stock in an expected price range of 3,800 won to 4,300 won. The initial public offering

Aug. 19, 2016

Last Thursday, amid scorching summer temperatures, Korea’s Ministry of Trade, Infrastructure and Energy (MOTIE) raised the electricity range that households can consume at given progressive rates by 50 kilowatts per hour (kWh) from July to September this year. The adjustment effectively reduces tariffs for Korea Electric Power Corporation (KEPCO, Aa2 stable), which will constrain the company’s operating profit growth and weaken its profit predictability, a credit negative.The higher limits under

Aug. 19, 2016

[THE INVESTOR] Mirae Asset Global Investments is set to launch a 200 billion won (US$179 million) fund investing in office buildings in the US in September.The fund will be open to retail investors and backed by four State Farm office buildings in Dallas, Texas, which the asset manager plans to acquire next month.  State Farm office buildings in Dallas, TexasAccording to sources, Mirae Asset Global Investments recently signed a memorandum of understanding with Dallas-based KDC to buy the 211,200

Aug. 19, 2016

[THE INVESTOR] Paradise Group, South Korea’s largest casino operator, has acquired Embassy Suites by Hilton Orlando Downtown in the US for US$353.5 million, the company announced Aug. 18. Clearwater-based Paradise America LLC, the group’s US unit, bought the 167-room, all-suite hotel in downtown Orlando, Florida, which opened in 2000.  Embassy Suites by Hilton Orlando DowntownThe purchase marks Korea-based Paradise Group’s first acquisition in the US.Embassy Suites is the only hotel property tha

Aug. 19, 2016