Korean Air failed to attract investors to its bonds due to growing risks stemming from its cash-strapped subsidiary Hanjin Shipping, according to news reports that cited investment banking sources.The listed Korean flag carrier, with a credit rating of BBB-plus, was seeking to issue bonds worth 250 billion won ($218 million) with a two-year maturity through its underwriters – Dongbu Securities, Kiwoom Securities, Korea Investment & Securities and Hyundai Securities.However, the company only saw

April 11, 2016

Korea’s Financial Services Commission chairman Yim Jong-yong said Wednesday that the time is ripe for the country to have a brokerage with competitive investment banking operations.In a regular media briefing, the chairman added that he supports the recent mergers and acquisitions of brokerages, pointing to NH Investment & Securities taking over Woori Investment & Securities, Mirae Asset Securities acquiring KDB Daewoo and KB Financial Group selected as a preferred bidder for Hyundai Securities.

April 6, 2016

KT&G, the KOSPI-listed tobacco maker, is expected to “surprise” the market by posting solid earnings in the first quarter of this year, analysts say.Although the country’s representative sin stock is likely to see its consolidated operating profits fall 27.5 percent to 310.6 billion won ($268.8 million) on-year, the company will perform above the market consensus of 271.5 billion won.“Low base effect and high exchange rate (a weak won) spurred its profitability,” said Hong Se-jong, an analyst at

April 6, 2016

South Korea posted a fiscal deficit of 38 trillion won last year on the back of increased bond issuances to finance its extra spending on boosting the economy, welfare and job creation following the Middle East respiratory syndrome epidemic, according to the Finance Ministry on Tuesday.The deficit recorded in the government’s fiscal account, excluding balances of social security funds – a key indicator of public financial soundness – is the biggest in six years. In 2009, Korea had a fiscal defic

April 5, 2016

Hyundai Heavy Industries is expected to face increasing debt repayment burden stemming from its bond issues using its shares in unprofitable shipping company Hyundai Merchant Marine as collateral.To secure liquidity to revive its sluggish operations, the Korea-listed shipbuilding giant issued bonds worth $220 million exchangeable to HMM equities last year.However, with HMM going through debt structuring and losing share value on the global shipping downturn, investors in Hyundai Heavy’s exchange

April 3, 2016

The Korean won gained the fastest among Asian currencies last month on the back of the U.S. Federal Reserve’s dovish stance on raising interest rates and slower depreciation of the Chinese yuan, according to data by Yonhap Infomax and Capital Economics.The Korean strengthened against the U.S. dollar by 8.15 percent in March, the highest gain followed by the Malaysian ringgit’s 7.97 percent appreciation; Singaporean dollar’s 4.32 percent; Taiwanese dollar’s 3.44 percent; Philippine peso’s 3.16 pe

April 3, 2016

Hanwha Techwin, a listed defense manufacturer, has been chosen as the preferred bidder for Doosan DST, according to local news reports.Hanwha Techwin was said to have offered around 700 billion won ($600 million) for a 100 percent stake in Doosan DST owned by Doosan Group’s special purpose company DIP Holdings and private equity partners -- IMM and Mirae Asset.Hanwha had closely competed with LIG Nex1 over DST, which was put on sale by Doosan last year as the group was facing a liquidity shortag

March 30, 2016

Facing a liquidity shortage and high debt ratio, Hanjin Shipping, a listed subsidiary of Korean Air, has sold its London office building to an undisclosed real estate investment company, according to a regulatory filing.Hanjin Shipping Seoul office (Hanjin Shipping)The shipping company said that it would use the proceeds from the sale worth about 66.7 billion won ($57.4 million) to improve finances. Industry sources say this means that Hanjin Shipping would use the cash it secured from the sale

March 29, 2016

The Export-Import Bank of Korea and the Center for Creative Economy and Innovation in Seoul have joined forces to support start-ups to become global exporters in the fields of cosmetics, biotechnology, fashion and food.The state-run export financing bank said in a press statement Monday that it would provide financial consulting to Korean start-ups developing their businesses in those fields. The innovation center will do its part, and help and recommend start-ups to the Korea Eximbank for finan

March 28, 2016

To hold or not to hold Korea’s monetary stabilization bonds? -- this will be the question the local capital market will be asking foreign asset manager Franklin Templeton Investments this week.Korea’s MSBs worth 1 trillion won ($860 million) held by Franklin Templeton will mature on April 2, and it remains to be seen whether the asset manager will roll over, or redeem and exit its investment. The Bank of Korea issues MSBs to control market liquidity as part of its open market operations.Citing p

March 28, 2016

Hanwha Techwin and LIG Nex1, two of Korea’s leading weapons manufacturers, will be racing to bid for Doosan Group’s armored vehicle manufacturer Doosan DST. Doosan DST's armored vehicle (Doosan DST)Doosan Group opened bids for DST on Friday, with analysts forecasting that Hanwha could be the “last bidder standing,” given that Hanwha has secured sufficient cash following its recent block sale of its 4 percent stake in Korea Aerospace Industries. Private equity funds such as MBK Partners and IBK P

March 25, 2016

STX Engine, a listed diesel engine manufacturer, said in its regulatory filing that it is considering selling its communication equipment business as part of its debt restructuring.“The company has been in talks with its creditors (led by state-run Korea Development Bank) regarding the possible sale of the communication equipment unit as part of its self-rehabilitation plan,” STX Engine said in a disclosure filing.STX Engine has been in a creditor-led debt workout since September 2013 following

March 25, 2016

Lotte Chilsung Beverage, a listed subsidiary of Lotte Group, said in its disclosure statement that it is currently negotiating a deal to take over a PepsiCo bottler in Pakistan.It added that the company would further disclose details when the deal progresses in three months.This comes as the Korea Exchange sought clarifications from the soft drink maker to verify reports that it is seeking an acquisition of Lahore PepsiCo in Pakistan last month.Lotte Chilsung, whose majority shareholder is Lotte

March 25, 2016

Hanjin Shipping, a listed subsidiary of Korean Air, said in its disclosure report Wednesday that it has been considering selling assets including the company’s office building in London and some of its overseas terminals in an effort to improve finances. Hanjin Shipping's container ship (Yonhap)It added that the company will disclose further information in detail after it decides on the matter within six months. This comes as the Korea Exchange demanded the listed Korean shipping company to veri

March 23, 2016

SK Telecom’s Iriver, a KOSDAQ-listed audio device-maker, has lowered the value of bonds convertible to equities from 5,162 won to 4,422 won per share, it said in a regulatory filing Wednesday.The company said that this was due to a decline in its share price, which ended at 4,300 won on Wednesday, down more than 2 percent. It shares reached a 52 week high of 9,980 won, and low of 3,605 won.Holders of Iriver bonds worth an aggregate of 5 billion won ($4.3 million) could convert them to 1,130,780

March 23, 2016