Battery IPO leaves LG Chem low on power 17 Jan 2022 The South Korean group's $11 bln spinoff was partly designed to unlock value. But the parent now trades at a discount to its 82% stake in its newly unleashed subsidiary. Its unloved petrochemicals-to-materials rump is failing to electrify investors. That looks harsh.
LG revs up Asia’s green-car capital engine 11 Jan 2022 The South Korean company’s $11 bln battery spinoff is just the start of a regional deal frenzy that also includes CATL’s $7 bln share sale. Unlike in Chinese tech, government policies are lifting growth and valuations. For now at least, investors will go along for the ride.
Southeast Asia still loves New York 10 Jan 2022 While U.S.-listed Chinese companies move home, Indonesian and Vietnamese startups are eyeing a berth in the Big Apple. Unlike their northern peers, these hopefuls are starting with home floats. Ensuring IPOs fill local coffers first is good politics and makes financial sense too.
Walmart gets taste of the Lotte treatment in China 7 Jan 2022 Officials lambasted the U.S. retailer for network security problems, in what looks like blowback over allegations that Xinjiang-made products were yanked from shelves. The South Korean chain was hounded out of China by similar methods. Worst case, Walmart could share that fate.
Samsung tech prowess drained by governance woes 7 Jan 2022 Operating profit at the maker of microchips and Galaxy phones is set to hit a four-year high of $11.5 bln. Despite the dominance, it trades at a discount to Apple and TSMC. A recent management shakeup provides a chance to tidy up the leadership mess and boost shareholder returns.
LG’s $11 bln battery spinoff is fully charged 8 Dec 2021 The South Korean group is eyeing a $60 bln valuation for its crown jewel in what could be the country's biggest IPO. The hot play on electric vehicles hopes to entice investors by offering a discount to peer CATL. LG's track record of recalls, though, warrants caution.
Viewsroom: Oz goes green-ish; “Squid Game” 21 Oct 2021 Australian climate policy is a work in progress, and Antony Currie fears the country’s net-zero plans may yet prove to be a damp squib. On the other hand, the South Korean drama is anything but: Jennifer Saba explains why the show is a major victory for Netflix and its investors.
South Korea’s app-store sandbox is worth watching 1 Sep 2021 A new bill stops Apple and Google from forcing local developers to use their payment systems, which carry hefty commissions. It’s good for the country’s tech champions, like the $60 bln Kakao. But it’s only worth copying elsewhere if users end up with cheaper or better services.
Samsung boss parole sets high bar for dealmaking 10 Aug 2021 Jay Y. Lee’s early release from prison ramps up pressure on him to use the tech powerhouse’s $82 bln cash pile to make splashy investments to close a gap with rivals in chipmaking, autos and more. Samsung’s heft will force creative thinking. It’s a tricky combination to manage.
Samsung scrambles signals out of Southeast Asia 29 Jul 2021 The Galaxy maker partly blamed Vietnam’s virus resurgence for a 24% decline in mobile unit sales from the previous quarter. Low vaccination rates are thwarting the region’s recovery and raise fresh questions about just how reliable it can be for suppliers shifting out of China.
South Korea plays foolish game of IPO Whac-A-Mole 23 Jul 2021 Dizzying valuations are prompting regulators to meddle in stock listings including Krafton’s. It's a misguided attempt to rein in retail traders and an overheating market. Kakao Bank escaping scrutiny is just one indication of how hard it will be to keep up with the frothy deals.
SoftBank checks in early for post-Covid hotel boom 21 Jul 2021 The Japanese group’s Vision Fund 2 is investing $1.7 bln in South Korean unicorn Yanolja. As travel returns, it’s a bet on the upstart’s AI-powered software and contactless services for guests. Business is booming, suggesting the sector is eager to master new tech.
South Korea’s Krafton plays hit-or-miss China game 9 Jul 2021 The maker of blockbuster video-game franchise "PUBG" wants to go public at a $21 bln valuation. Geopolitical tension between Seoul and Beijing hampers access to its biggest market by sales. Krafton and top backer Tencent devised a workaround, but too much depends on it.
South Korean retailer shops eBay to battle Coupang 25 Jun 2021 A unit of Shinsegae Group, which opened the country's first department store 90 years ago, is paying $3 bln for 80% of the U.S. company’s local business. It’s a bold attempt to challenge its fast-growing, domestic online rival. E-Mart’s big brick-and-mortar presence will help.
South Korean self-driving deal spins its wheels 10 Jun 2021 Car-parts maker Mando has the right general idea carving out its autonomous-tech unit into a new business. But the company is keeping full control and not raising any new money. That may yet change. For now, though, the partial overhaul offers shareholders a shabby ride.
After public listing, Coupang keeps much private 13 May 2021 South Korea's e-commerce darling posted quarterly sales of $4.2 bln, up 74% from a year ago. But operating losses more than tripled, and Coupang is tight-lipped about costs and new investments. Shares are already below the March IPO price. Such opacity tries shareholder patience.
South Korean digital comics sketch animated future 30 Apr 2021 Content giants have lapped up Japanese storytelling, spurring on Korean “webtoon” makers. Kakao Entertainment’s boss reckons the unit might be worth $18 bln in an IPO. Compatriot Naver is eyeing a similar course. The fast-growing, quirky genre could draw up creative valuations.
India Insight: Electric cars charge up tycoons 12 Apr 2021 A drive on Mumbai’s pot-holed roads in Tata’s slick Nexon EV brings to life an opportunity that disruptors Tesla, Reliance and Uber rival Ola are all chasing. Incumbents are playing down the potential, but India is set for the fast lane of the battery-powered vehicle revolution.
Family feud presses Korea Inc to cry uncle 17 Mar 2021 A power struggle between Kumho Petrochemical’s chairman and his nephew is headed for a shareholder showdown. The dissident’s Elliott-like playbook already has persuaded the $6 bln company to improve governance and hike dividends. Winning a board seat would send a strong message.
Coupang lives up to Masayoshi Son’s vision 11 Mar 2021 The South Korean e-commerce phenomenon is worth $109 bln after its shares popped 81% on their New York debut. Coupang has qualities synonymous with SoftBank tech bets: fast growth, lofty valuation, and a hyped-up founder. At least its path to profit has been modelled by Amazon.