Japan dims hopes of a Samsung memory chip rebound 31 Jul 2019 Shares of the $260 bln tech giant slid after the company warned of poor visibility into the impact of Tokyo's export curbs. South Korea’s escalating dispute with its neighbour threatens supply chains. It now throws into doubt Samsung's confidence that chip prices will recover.
Sony reaps accidental rewards from unruly sprawl 30 Jul 2019 Sales of chips offset falling video-game revenue at the Japanese group, pushing its quarterly operating profit up 18%. Even so, there's little strategic value keeping the two divisions together. Sony's music and movies arms, though, make for a better kind of conglomerate.
Japan-Korea spat returns chip price error message 25 Jul 2019 Earnings at semiconductor giant SK Hynix plunged 88%, weighed down by a worldwide glut. Yet shares rose on hopes that Tokyo's export curbs to South Korea will depress supply and lift prices. The risks of weaker demand and supply chain ruptures suggest the rally looks premature.
Seoul rate-setters bat for trade accord with Tokyo 18 Jul 2019 A surprise cut to borrowing costs underscores growth concerns as South Korea faces export curbs from its neighbour. The central bank has little more space to ease. That puts the onus on President Moon Jae-in to pass a stimulus package and to de-escalate regional tension.
Tokyo and Seoul can ill afford a standoff 11 Jul 2019 South Korea could take aim at Japanese machinery and equipment as payback for export curbs targeting its vital chip industry. That risks WTO ire and casts a shadow over $85 bln of bilateral dealings. For two economies weakened by one trade war, stoking a second is reckless.
Japan’s testy trade row strikes at Samsung 5 Jul 2019 Tokyo is curbing exports of tech materials to South Korea over a wartime spat. Hardest hit may be the $260 bln handset maker, which expects second-quarter operating profit to fall by 56% amid U.S.-China tensions. If supply chains keep getting disrupted, so too should valuations.
Nexon suitors must clear three tough levels to win 3 Jul 2019 Plans to sell control of the $13 bln maker of “MapleStory” and other video games have stalled, but may yet be revived. Bidders like KKR will have to get past a messy corporate structure. Then there’s South Korean nationalism to slay. And the last big challenge is China's Tencent.
Guest view: Time for Trump to give Seoul its due 25 Jun 2019 Struggling South Korea has been importing more U.S. goods while Lotte Chemical invests in Louisiana. In return, the White House should exempt the country from threatened auto tariffs and take it off a currency manipulators watchlist, says Korea Society President Thomas Byrne.
Delta is uncertain wingman for Korean Air Lines 24 Jun 2019 The $37 bln U.S. carrier bought a 4% stake in the parent of its Asian peer and plans to lift it to 10%. Delta is being regarded by investors as protection for the controlling family’s messy succession plan. Funds aligning against KAL, however, suggest the fight will persist.
South Korean infighting hobbles recovery plan 4 Jun 2019 Revised GDP showed the export-dependent economy shrank more than expected amid a U.S.-China trade spat. The central bank, stuck between anaemic inflation and a plummeting currency, has dithered. A rate cut might help, but political squabbles are short-changing fiscal stimulus.
Samsung reaps benefits of U.S.-China tech war 21 May 2019 Restrictions on Huawei’s use of American chips and software will make it harder to sell telecom gear outside the PRC. And Apple products could be vulnerable to a backlash in China. That leaves openings for the Korean group to sell network equipment as well as more smartphones.
New winds may blow Korean Air successor off-course 8 May 2019 The sudden death of the carrier's patriarch has elevated scion Cho Won-tae to run the parent Hanjin conglomerate. A huge inheritance tax and restive shareholders, including the country's pension giant, threaten his grip, though. Heirs at Samsung and Hyundai face the same forces, too.
Samsung may stay true to its bleak words 30 Apr 2019 The South Korean chipmaker’s quarterly operating profit fell a whopping 60 pct, weighed down by lower prices. Shares are up a fifth this year, however, on an anticipated rebound. Samsung’s abundant use of “weak” and “slow” suggest it could take longer than expected.
Hyundai Motor’s U-turn may stutter in South Korea 25 Apr 2019 The $29 bln automaker's first quarter sparkled, good news after a loss the previous period. New models revved sales despite a slowdown in China and U.S. safety issues. Worsening economic conditions in its home market, however, could put this turnaround into a spin.
Two big clouds eclipse Samsung’s silver lining 3 Apr 2019 South Korea's $270 bln chipmaker already flagged a dismal first quarter because of a glut. Fewer competitors mean supply cuts could more readily lift prices. But Samsung investors may be underestimating the risks of both stockpiled inventory and weaker demand from new industries.
Hyundai shareholders can have it both ways 20 Mar 2019 Activist Elliott wants $7 bln in payouts from the South Korean autos group. Though Hyundai's R&D track record is weak, it can’t afford to throttle investment in the latest technology. Better to back the conglomerate's stingier proposals and then push for another modest dividend.
Botched Korean IPO puts buyout shop in a bind 14 Mar 2019 Weak demand forced MBK to pull a $1.5 bln listing of hypermarket buildings owned by Homeplus, which the private equity firm bought from Tesco. Now the retail chain has to repay a buyout loan, but banks might not help. While embarrassing, an asset sale could be the only option.
Korean pop music can dance past boy-band blues 13 Mar 2019 A prostitution scandal rocked hit group Big Bang and sparked a stock selloff for agencies in the $5 bln industry. It's a reminder of how tricky star-driven investments can be. As streaming services like Spotify help export K-pop, though, the companies can hit high notes again.
Driving hard bargain could backfire on Hyundai 27 Feb 2019 The Korean conglomerate's auto-parts unit has offered less than half the $2.2 bln dividend wanted by pushy Elliott. Meanwhile, Hyundai's carmaker rejected another of the activist's proposals. Stingier options may cost it investor support when it comes to a broader restructuring.
Samsung’s bad news intensifies $70 bln cash bind 8 Jan 2019 The South Korean giant says quarterly operating profit likely fell to a worse-than-expected $10 bln. With chip prices set to drop further, Jay Y. Lee can draw on his cash pile to boost investor returns and invest in new tech, like 5G. His track record in both is less assuring.