Samsung hits a sweet spot in new technology cycle 6 Jan 2017 The world's biggest smartphone-maker expects fourth-quarter operating profit to top $7.7 bln, smashing expectations. As more devices move to new-generation memory chips and displays, Samsung's early investments in those areas are starting to pay off. That bodes well for 2017.
Seoul’s top buyout firm dodges missile-shield hit 5 Jan 2017 MBK wanted to sell ING Life Korea for $3 bln. But Chinese buyers fled after a U.S.-South Korea defence pact riled Beijing. So the private equity group plans to float it. After more than doubling the value of the once-struggling insurer, MBK can still profit nicely.
Korea scandal shows risk of pension giant 29 Dec 2016 Prosecutors detained the head of South Korea's $450 bln pension fund over suspicion that it voted for a Samsung merger under government pressure. The case highlights how the country's largest investor could be manipulated at shareholders' expense. Korea could use a safeguard.
Qualcomm’s big Korea fine is small part of problem 28 Dec 2016 The U.S. giant says it will fight a record $854 mln fine from the country's antitrust watchdog. But the bigger threat will be if South Korea forces the company to license patents to rivals. If other governments follow suit, the financial damage to Qualcomm could be high.
Bank of Korea stuck between Park and a hard place 15 Dec 2016 The day after the Fed raised rates, the South Korean central bank kept them unchanged for a sixth straight month. The won can take a hit, but the country's sagging economy could use some stimulating. That's especially true as a president-less government creates added uncertainty.
Breakdown: Park impeachment leaves Korea in limbo 9 Dec 2016 The National Assembly ousted President Park Geun-hye amid a corruption scandal. Though politicians swiftly made the historic move, clouds will still linger over the Korean economy and markets. A court can shoot down the bill after a lengthy review. Overseas risks also abound.
China is still firmly on the menu for McDonald’s 8 Dec 2016 The U.S. burger giant is nearing a $2 bln sale of its local unit to an investment consortium. Viewing this as a simple retreat is tempting but misguided. As elsewhere, franchising is a better business than owning and operating stores. A big Chinese partner brings myriad benefits.
South Korea can offer roadmap to cashless Asia 2 Dec 2016 The country wants to go coinless by 2020. That sounds achievable. Electronic payments are already commonplace in one of the most wired nations in the world. It’s the latest currency experiment in the region that offers valuable lessons for a continent hooked on cash.
MBK takes a $1.3 bln wide swing at golf in Japan 30 Nov 2016 The South Korean buyout firm has bid for golf-course operator Accordia. This business was a good post-bubble investment for Goldman Sachs, and then a disappointing one for public investors. A full price now makes it hard to see MBK teeing up a high return.
Samsung sets cautious tone with activist fund 29 Nov 2016 The $224 bln giant says it will consider using a holding company structure, a measured but welcome response to Elliott Management's restructuring proposals. Plans to boost dividends and buy back more stock also show the group is serious about improving shareholder relations.
Presidential scandal can spur reform at Korea Inc 24 Nov 2016 Popular fury over a corruption scandal in South Korea could give President Park Geun-hye’s successor a mandate for sweeping political and corporate changes. For investors, that could mean better governance at the likes of Samsung – and a revaluation of Seoul-listed shares.
Samsung buys $8 bln shortcut to smart car market 14 Nov 2016 The South Korean group is buying U.S. car component maker Harman in its biggest-ever deal. As cellphone growth slows, Samsung is betting big on "connected" auto technology. Harman's dominant market share and relationships with carmakers should put Samsung at the head of the pack.
Scandal in Seoul masks bigger economic problems 3 Nov 2016 A furore over a quirky confidante is buffeting South Korean President Park Geun-hye. The regularity of such crises attests to poor governance. But that's only part of a larger challenge: avoiding Japan-style stagnation despite heavy debts, weak exports and an ageing population.
Samsung’s biotech IPO is an $8 bln medical mystery 2 Nov 2016 The giant conglomerate's BioLogics unit is valuing itself generously. Demand for biological drugs is soaring, but the group's untested technology and model – touted as analogous to the contract manufacture of semiconductors – mean investors have to take its prospects on trust.
Samsung heir’s new job comes with tough to-do list 27 Oct 2016 Shareholders put Jay Y. Lee, son of the electronics group's patriarch, on the board. That makes his role official just as Samsung grapples with the Note 7 fallout and an activist investor's demands. Lee's accountability and signs of greater transparency come at the right time.
Viewsroom: Samsung’s fiery future 13 Oct 2016 Cancelling production of its self-combusting Note 7 smartphone puts the company's reputation as well as $17 bln or more at risk. Cities, businesses and investors are putting Trump and Clinton to shame on climate change. Plus: Brexit politics get shaken up by the pound's decline.
Huawei and Lenovo salivate at Samsung phone fail 12 Oct 2016 The South Korean group's decision to scrap the Note 7 smartphone is a golden opportunity for Chinese rivals like Huawei and Lenovo to capture share in developed markets, while expanding into the premium segment. Execution will be key, and Huawei looks better prepared.
Chips power Samsung and activist case for change 7 Oct 2016 The tech giant shrugged off the impact of its Note 7 fiasco in its quarterly results, thanks to growth in chips. Yet investors undervalue this and other exciting units based on a near 50 pct discount to the sum of its parts. It boosts Elliott's call for the Lee family to act.
Activist attack gives Samsung cover to restructure 6 Oct 2016 Activist fund Elliott is picking on the South Korean group again. This time it wants Samsung Electronics to split in two and pay a special dividend. Yet the proposal would also strengthen the ruling Lee family's control. Samsung may actually gain by cooperating with Elliott.
Elliott puts Asia Inc on notice 6 Oct 2016 The feisty U.S. hedge fund has done a lot to establish activism in Asia, with a number of big wins. Now it wants a radical restructuring at Samsung. The move cements Elliott's reputation for taking on powerful targets and is a strong incentive for Asia's tycoons to behave better.