[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

Aug. 16, 2016

[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

Aug. 16, 2016

[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

Aug. 16, 2016

[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

Aug. 16, 2016

[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

Aug. 16, 2016

[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

Aug. 16, 2016

[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

Aug. 13, 2016

[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

Aug. 12, 2016

[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

Aug. 12, 2016

[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

Aug. 12, 2016

[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

Aug. 12, 2016

[THE INVESTOR] Rising household debt is feeding financial risks for South Korea, and the financial authorities are discussing possible countermeasures, Bank of Korea Gov. Lee Ju-yeol said on Aug. 11. Speaking after the Monetary Policy Meeting where the benchmark rate was frozen at 1.25 percent, Lee said that countermeasures for containing household debt may be needed.“Household debt is rising faster than previous years, and it is acting as a factor that increases risks,” Lee said, adding that th

Aug. 11, 2016