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Mirae Asset Life jumps into bid for PCA Life

Sept 9, 2016

[THE INVESTOR] Mirae Asset Life has formally jumped into the race to acquire UK-based PCA Life. Mirae Asset Life submitted a bid on Sept. 8, according to the life insurer the following day. PCA Life was established when Prudential Group acquired then YoungPoong Life in 1999. The preferred bidder is expected to be finalized in October or November this year. PCA is expected to fetch around 300 billion won (US$ 272.57 million).Should Mirae Asset Life be selected as the final bidder, the combined as
Japanese battery material makers step up capacity at Korean plants

Sept 8, 2016

[THE INVESTOR] TOKYO -- Japanese battery makers are rushing to ramp up investment in Korean plants to increase production as more carmakers are pledging to go electric, according to Japan’s Nihon Keizai Shimbun on Sept. 7. Toray, which supplies to both Panasonic and LG Chem, will invest 20 billion yen (US$196.65 million) to increase production of insulators, a key element in lithium batteries -- used in electric cars -- by 70 percent. Sumimoto Chemical, a supplier for electric car battery maker
Samsung’s Note 7 recall to cost up to W1tr: Daishin Securities

Sept 8, 2016

[THE INVESTOR] Daishin Securities said on Sept. 8 it expects Samsung Electronics’ recent decision to recall its Galaxy Note 7 to cost between 700 billion won (US$639.97 million) to 1.2 trillion won. Daishin said given the 31.2 trillion won consensus for the electronic giant’s annual operating profit this year, the recall costs would slash the firm’s profit by 4.8 percent. Local brokerages have been issuing forecasts on the damages that the recall would cost Samsung. Samsung on Sept. 2 issued a g
[EQUITIES] NH Investment & Securities forecasts record Q3 profit for domestic carriers

Sept 8, 2016

[THE INVESTOR] NH Investment & Securities on Sept. 8 forecast that domestic carriers will post record operating profit in the third quarter. Rising passenger traffic and frequency of flights will contribute to the quarterly earnings.In August, the number of passenger traffic via Incheon International Airport reached 543.85 million, up 22.6 percent on-year. The number of international flights reached 29,939, up 18.4 percent on-year. Korean Air’s passenger traffic rose 5.6 percent to 147.86 millio
[EQUITIES] Heungkuk Securities predicts rise in Hyundai Motor’s Q3 net profit

Sept 7, 2016

[THE INVESTOR] Heungkuk Securities forecast Hyundai Motor’s third quarter net profit will rise 24.9 percent to 1.5 trillion won (US$1.34 billion) based on solid sales in China.Operating profit, however, is expected to fall 6.5 percent to 1.4 trillion won, on rising value of the Korean currency, the brokerage said on Sept. 7.In the fourth quarter this year, the brokerage predicted the world’s fifth-largest carmaker will post an operating profit of 1.6 trillion won, up 10.3 percent on-year, with n
Hermes Investment increases stake in Lotte Fine Chemical

Sept 7, 2016

[THE INVESTOR] UK-based Hermes Investment disclosed on Sept .6 that it has purchased 275,830 shares of Lotte Fine Chemical along with five other persons with special interest.Consequently, its stake in Lotte Fine Chemical has risen to 6.12 percent from 5.05 percent. In 2004, Hermes Investment purchased a 5 percent stake in Samsung C&T. It claimed it had no interest in managerial control, but afterward, it demanded improvement in the firm’s corporate governance. By Kim Ji-hyun (jemmie@heraldcorp.
Netmarble, Neptune, Me2On lead IPO rush in 2016

Sept 7, 2016

[THE INVESTOR] This year will see several well-known gaming companies -- such as Netmarble, Neptune and Me2On -- floating their shares. But whether the IPO trend can continue remains to be seen, industry watchers say, citing the intensifying competition with Chinese gaming firms. Me2On, a social casino operator, is one firm that is scheduled for an IPO on KOSDAQ market in October. It is expected to draw up to 30.8 billion won (US$ 27.55 million) funds. Me2On was established in 2010, and it servi
[EQUITIES] NH Securities forecasts increased Q3 profit for CJ CheilJedang

Sept 7, 2016

[THE INVESTOR] NH Investment & Securities said on Sept. 7 that CJ CheilJedang’s third-quarter operating profit would rise significantly on improved performance in food-related businesses and stabilized finances. The brokerage forecast operating profit to rise 11.4 percent to 247.8 billion won (US$221.7 million), and its sales to rise 17.6 percent to 3.95 trillion won in the third quarter on a consolidated basis. By Kim Ji-hyun (jemmie@heraldcorp.com)
Shinhan Card begins operations in Myanmar

Sept 6, 2016

[THE INVESTOR] Shinhan Card, the nation’s largest credit card issuer, on Sept.6 held the opening ceremony for its subsidiary in Myanmar, Shinhan MicroFinance.The ceremony marked the beginning of operations for Shinhan card in the Southeast Asian country. It will soon by followed by Shinhan Bank, which is preparing for entry. This marks the first time for a Korean bank and its affiliated card company to simultaneously penetrate the Myanmar market. Shinhan Bank’s main focus will be on corporate fi
[ANTI-GRAFT LAW] Blank golf memberships to lose attraction on anti-graft law

Sept 6, 2016

[THE INVESTOR] Blank golf memberships are losing their attraction as companies get ready for the Improper Solicitation and Graft Act that goes into effect on Sept. 28. Blank memberships are just as they are called -- golf club memberships that don’t come with nametags. They are usually bought by companies to entertain guests and buyers. The market for blank memberships, which can cost up to 400 million won (US$357,759), has been declining since 2008, in the wake of the financial crisis that forc
[WOORI PRIVATIZATION] Blue chip investors including NPS, Kyobo, Mirae show interest in Woori Bank stake

Sept 6, 2016

[THE INVESTOR] Local blue chip investors including the National Pension Service, Kyobo Life and Mirae Asset Group are considering buying minority stake in Woori Bank as the government is once again pursuing its privatization. Among them, Kyobo Life is reportedly seeking consultation from M&A advisors amid rumors that the insurer is out to buy a 4-8 percent stake in Woori Bank, according to investment bank sources on Sept. 5.The state-run Korea Deposit Insurance Corp. -- the largest shareholder o
[EQUITIES] Daishin Securities forecasts 101% rise in Hanwha Techwin’s Q3 profit

Sept 6, 2016

[THE INVESTOR] Daishin Securities forecast Hanwha Techwin’s operating profit in the third quarter will jump 101 percent on-year to 48 billion won (US$42.93 million). “Hanwha Techwin is likely to show exponential growth in the third quarter, with operating profit growing more than 100 percent. As a result, the firm’s per annum sales are expected to increase 33 percent on-year, while operating profit swings to the black,” the brokerage said in a report on Sept. 6.“A weaker dollar may take a toll i
Hanwha Life mulling stake acquisition in Woori Bank: sources

Sept 2, 2016

[THE INVESTOR] Hanwha Life Insurance is considering acquiring a stake in Woori Bank, according to the life insurer on Sept. 2.“We are considering submitting a bid,” the firm said through its representatives. A final decision is expected to be reached at a Sept. 22 board meeting. Sources said the life insurer may decide to take up a 4 percent stake in the bank, which would be worth around 293 billion won (US$262 million) based on the Sept. 1 closing price of 10,850 won for Woori Bank shares.The s
Angelo, Gordon & Co. puts Metro Tower up for sale

Sept 2, 2016

[THE INVESTOR] Metro Tower, the former headquarters of GS Engineering & Construction, has been put on the selling block.Metro Tower -- wholly owned by US-based investment advisory firm Angelo, Gordon & Co. -- has chosen Samjung KPMG as the lead manager, according to real estate sources on Sept.2.Angelo, Gordon & Co. has also put up its Digitial Dream Tower, located in northern Seoul, for sale. Metro TowerMetro Tower is located in Jung-gu, downtown Seoul. Its spans a total of 39,908 square meters
Maeil Dairies may bid for McDonald’s Korea

Sept 1, 2016

[THE INVESTOR] Korea’s leading dairy maker Maeil Dairies Industry is mulling a bid for acquiring McDonald’s Korea, according to industry sources on Sept. 1.Maeil would be up against Korean food CJ Group and a consortium formed between NHN Entertainment and KG Group. But Maeil declined to confirm, saying “the matter has not been decided yet.”The biggest stumbling block for the firm is the acquisition price, which is estimated to exceed 500 billion won (US$446.50 million). Maeil, contrary to mark