Subpar Asian trade deal shines in splintered world 16 Nov 2020 Fifteen nations accounting for 30% of global GDP will slash tariffs and ease the movement of goods in the region. India’s absence is among the disappointments of the long-awaited pact. Even modest progress counts for a lot considering the sad state of U.S. and UK trade affairs.
Samsung chairman bequeaths a tainted empire 25 Oct 2020 Lee Kun-hee, who transformed a noodle business into a smartphone and chipmaking colossus, has died at 78. The second-generation leader's mark on Korea Inc will endure, as do scandals that follow the family. Their challenge is to clean up the messy parts of his $355 bln legacy.
Hyundai is primed for a chaebol tune-up 23 Oct 2020 Days after heir Euisun Chung officially ascended to run the South Korean conglomerate, it warned of another $3 bln charge for engine problems. The results, however, should show how electric cars are paying off. That would provide momentum to tackle a broader restructuring.
SK Hynix’s $9 bln deal is chip sector’s quick fix 20 Oct 2020 The South Korean semiconductor giant will buy Intel's NAND memory business in its largest acquisition ever. Less competition might prop up prices, which have plunged on uncertain demand. In the long term, a beefed-up SK stands a better chance against Chinese entrants.
Samsung enjoys Washington gift that keeps giving 8 Oct 2020 The South Korean giant expects quarterly operating profit to jump 58% to $10.6 bln, as U.S. sanctions forced Huawei to stockpile chips. Those sales are gravy from U.S. restrictions hitting the Chinese company. Taking its telecom gear and smartphone customers is the real prize.
LG Chem will get a charge from battery spinoff 6 Oct 2020 The $40 bln South Korean conglomerate’s separation plan failed to energise investors. Although it’ll take time for the structure to take shape, it’s fairly clear the Tesla-supplying division’s true value is lost inside a chemical maker. There’s an electric-car spark yet to come.
Asia chip windfall preludes tech’s next challenge 29 Jul 2020 Shares of TSMC and Samsung have leapt on hopes Intel may outsource production. It could enlarge the contract-chipmaking market they dominate by 20%. Still, the $209 bln Intel's woes highlight the high costs of making advanced semiconductors. Finding buyers may get harder.
Seoul’s Green New Deal plants seeds for recovery 17 Jul 2020 Tackling climate change is at the centre of President Moon Jae-in's $133 bln stimulus plan. The country has a dismal environmental record, and previous green initiatives have disappointed. But the pandemic gives Moon a mandate to try again. Sceptics should give him a chance.
Samsung’s M&A controversy will have a final act 9 Jun 2020 Seoul is stepping up a probe into a 2015 group merger led by scion Jay Y. Lee. That might help U.S. fund Elliott which opposed the $8 bln deal and wants payback. Samsung went to great lengths to only narrowly win the first time around. Pressure on the conglomerate is building.
Crisis paves way for South Korea’s New Deal 23 Apr 2020 President Moon Jae-in has long wanted to redirect the emphasis from exports to jobs and wages. As the pandemic’s economic toll mounts, his government has unveiled nearly $200 bln of relief measures. Fresh political support could help make the “income-led” growth plan a reality.
Samsung discovers perks of working from home 7 Apr 2020 A surge in remote working activity lifted demand for chips used in data centres. That helped first-quarter operating profit rise 3% from a year earlier and offset the pain of lower smartphone sales. The South Korean giant is benefiting from the all-pervasiveness of semiconductors.
Seoul’s virus tests yield false economic positive 2 Apr 2020 Laudable containment efforts that helped save lives aren’t sparking obvious wider benefits. Domestic demand is weak and a global recession probably will cause South Korea’s $1.6 trln economy to contract this year. Export dependence means waiting for the rest of the world to heal.
Korean Air drama risks ending in corporate tragedy 25 Mar 2020 Feuding siblings, white knight Delta Air Lines, and a pushy activist are all battling over the country’s top carrier. Change is overdue, but debt worth 862% of equity has left Korean Air more vulnerable than peers to a pandemic. Any victory from the proxy battle will be pyrrhic.
South Korea’s boy band IPO may be peak K-pop 18 Mar 2020 Big Hit Entertainment, the label behind global phenom BTS, is eyeing a public market debut. Revenue hit $474 mln last year, but its fortunes depend on one act in a hit-driven business. With the coronavirus now eating into concert sales, a premium valuation sounds out of tune.
South Korea could spend more on picking itself up 26 Feb 2020 The central bank is expected to cut rates 25 bps to 1%, a record low, but that will have muted impact if consumers stay at home on virus fears and more. Low government debt gives President Moon Jae-in space to deliver a bold spending plan including tax breaks and income support.
Samsung defies corporate governance logic 14 Feb 2020 The South Korean tech titan’s chairman has quit just months after heir Jay Y. Lee left the board. Even with yet another leadership crisis, Samsung stock trades at a record high and its valuation keeps soaring. As questions about growth mount, shareholders may regret the optimism.
Lotte scion gets chance to inspire Korea Inc 21 Jan 2020 Shares in South Korea's fifth-largest conglomerate rallied after the death of founder Shin Kyuk-ho. His son, already in charge of the group, has promised aggressive restructuring. With diplomatic, legal and family spats winding down, he has space to hurry up.
Samsung signals memory-chip cycle’s new normal 8 Jan 2020 The South Korean group ended 2019 with a 34% slump in quarterly operating profit. With fewer rivals, prolonged downturns are less of a worry; supply cuts hint at an unusually quick recovery. Samsung can focus on innovation and curbing added risks of pricing power.
Divorce will test Seoul chaebol’s reform stripes 20 Dec 2019 Chey Tae-won’s wife wants nearly half his $3 bln stake in SK Holdings. That would leave him more reliant on outside support for a mooted corporate rejig to get a tighter grip on a $58 bln chip unit. It’s a potential check on how fast Korea Inc is mending its own awkward past.
Delivery Hero’s $4 bln order corners kimchi market 13 Dec 2019 The German company is buying South Korean food delivery rival Woowa. The price is a big increase from a $2.6 billion valuation a year ago, but the target enjoys hearty growth and healthy profitability. Joining forces in the country makes sense – provided regulators allow it.