Carrefour’s ills demand Tesco-like revamp and more 31 Aug 2017 The French supermarket said full-year operating profit could fall 12 percent, partly due to stiff competition at home. The grocer’s new CEO faces even more challenges than Tesco’s Dave Lewis did three years ago. Domestic market share is shrinking and its online offering is weak.
Samsung Electronics is due a board upgrade 31 Aug 2017 The $300 bln tech giant is in disarray after the third-generation leader of its founding family was sentenced to jail. This would be a good time for other shareholders to push for a stronger board, bolstered by experienced outsiders and led by an independent chairman.
Samsung guilty verdict is a victory for reformers 25 Aug 2017 The de facto leader of South Korea's biggest business faces five years in jail after an historic corruption trial. Assuming the sentence is not overturned, this boosts President Moon, who vowed to rein in powerful conglomerates. It should scare other bosses into behaving better.
Samsung is worse off regardless of trial verdict 24 Aug 2017 A jail sentence for de facto leader Jay Y. Lee would leave Samsung’s flagship $300 bln unit rudderless. A legal victory would create problems, too: Lee’s defence of wielding little power at the wider group damages his authority. It has a leadership deficit either way.
South Korea’s Moon, 100 days in, moves too slowly 18 Aug 2017 The president's bold plans to revitalise the economy are off to a slow start, even allowing for distractions from North Korea and Trump. Populist handouts to boost consumption are no substitute for reforming the family conglomerates that dilute the nation’s economic energy.
Pyongyang nudges Seoul onto Trump’s bad-boy list 15 Aug 2017 The U.S. president is unhappy with South Korea's softer approach to hostile North Korea, putting pressure on other disputes. America is scrutinizing its ally over currency manipulation and trade barriers. With China squeezing the economy, compromise would be advisable.
M&A leaks further erode Asian markets’ credibility 11 Aug 2017 India, South Korea, Japan and Hong Kong were the leakiest M&A markets last year, a survey suggests. That is embarrassing given Asia is already a corporate governance laggard. Regulators can work harder to alter the risk-reward tradeoff, but a complete cleanup is near impossible.
Samsung rides the semiconductor cycle to new peak 7 Jul 2017 The South Korean firm expects a record quarterly operating profit of $12 bln, thanks to soaring demand for memory chips. Rivals are boosting supply, and prices will probably fall. Still, Samsung's size and diversity will help it handle the sector's inevitable boom and bust.
Lotte’s Malaysia IPO has bad chemical reaction 4 Jul 2017 The South Korean conglomerate is raising $877 mln through a cut-down IPO of its petrochemical unit. It still ranks as Malaysia's biggest listing since the 1MDB crisis. But a chunky valuation discount to peers suggests toxic air around the issuer and destination is yet to clear.
China can remake North Korea in its own image 6 Jun 2017 Beijing's influence over Pyongyang gets weaker daily, but it resists U.S. pressure to get tough. The alternative is for the People’s Republic to intervene and rebuild the Hermit Kingdom along its own economic model. It may be the best of a range of unattractive options.
Samsung gambles on an heirless future 31 May 2017 The South Korean giant will keep a structure that lets Jay Y. Lee keep control with a small stake. But a new left-leaning government might make it harder for the de facto leader to rule this way. Samsung looks unprepared for a future without its scion.
Private equity offers tonic Korea Inc needs 17 May 2017 State-run banks are injecting an extra $2.6 bln into Daewoo Shipbuilding but lack the expertise to fix problems. The government has finally learnt its lesson and wants private equity help with other ailing firms. The new approach will be better for patients and the public purse.
Viewsroom: Comey ouster bad for business 11 May 2017 Donald Trump’s surprise firing of the FBI director could bog down policies from tax cuts to regulatory reform and even throw the rule of law into question. South Korea elects a new leader to put its own presidential scandal in the past. Plus: Coach goes shopping for Kate Spade.
Moon win offers South Korea ray of sunlight 9 May 2017 The election of liberal Moon Jae-in to the presidency heralds a softer stance on North Korea and restores domestic stability. That’s welcome. But he will need to unite a polarized nation to succeed where his ousted predecessor failed in resetting South Korea's growth model.
Samsung trial tests South Korea’s rule of law 9 May 2017 Bribery charges have turned the group's de facto leader, Jay Y. Lee, into a public enemy. A guilty verdict, if merited, could help rebuild trust in the system after an epic corruption scandal. It is equally important that he gets a fair trial despite the popular outrage.
Markets call Trump’s war bluff on North Korea 8 May 2017 Investors are ignoring the U.S. president’s war rhetoric against Pyongyang, snapping up South Korean securities and modestly buying protection against default. Optimism over the global economy and a new leader in Seoul result in a mute reaction compared to past flashpoints.
Samsung’s choice of Plan A doesn’t quite add up 27 Apr 2017 The South Korean giant's board rejected a restructuring pushed by Elliott, the hedge fund. Possible legal changes do indeed threaten the transformation. But that does not justify ruling out any future overhaul. Investors deserve an answer on how it will fix its odd structure.
Samsung’s enemies pick the wrong battle 20 Apr 2017 Politicians in Seoul want to stop Samsung restructuring using treasury stock. They argue it's a trick for the ruling Lee family to gain more control cheaply. But the resulting firms would be worth more, and be better run. Keeping the status quo would be a Pyrrhic victory.
Fantasy gaming IPO has real-life charms 6 Apr 2017 Netmarble wants a valuation of up to 65 times last year's earnings in a $2 bln-plus IPO. The South Korean maker of online role-playing games is growing fast, and profitability is improving vastly. So that figure is not as fantastical as it looks - provided the hits keep coming.
Crisis can make South Korea great again 30 Mar 2017 The country has ousted its president and put its top business leader, Samsung’s Jay Y. Lee, on trial. The frustration with crony capitalism suggests South Korea's "chaebol"-driven growth model has hit its limits. The turmoil provides a golden opportunity to reform.