South Korean crowdfunding platform Wadiz said Wednesday it has launched an offline space to help fundraising efforts by showcasing products to visitors and funders. Located in eastern Seoul, Gonggan Wadiz features a display room for “makers,” or those with an ongoing fundraising project on the Wadiz platform, as well as a workstation and networking space, officials said. Visitors and funders will be able to try the products before they invest in a project, they added. The two-sto

Market April 22, 2020

South Korea’s stock market fluctuated as the geopolitical uncertainties triggered by the health condition of North Korean leader Kim Jong-un and historic oil price plunge sapped investor sentiment. The benchmark indexes -- main bourse Kospi and Kosdaq -- had a roller-coaster ride. Kospi sank 3 percent to its lowest in the late morning session and the loss narrowed to 1 percent in its closing. Kosdaq saw a 5.6 percent plunge at its largest, and closed 1.4 percent lower. Market bellweth

Market April 21, 2020

South Korea’s financial institutions and authorities are in talks to create a bad bank to help companies recoup the losses from disgraced hedge fund Lime Asset Management, according to industry sources Monday. The Financial Supervisory Service held a closed-door meeting with 19 private financial institutions including commercial lenders Woori Bank and Shinhan Bank and securities firms Shinhan Investment and Daishin Securities to discuss details of the private bad bank, or an asset manage

Market April 20, 2020

South Korea’s major airlines are likely to suffer a sharp revenue decline due to the coronavirus outbreak, putting further pressure on their liquidity, according to market watchers Sunday. Flag carriers Korean Air and Asiana Airlines are facing a financial slump as services have been curtailed for now, but they are also facing the possibility of a debt crisis if the pandemic lingers. The market has been focusing on one of the frequent leveraging measures for Korean airlines, as they imm

Market April 20, 2020

South Korea’s market volatility is likely to continue as initial public offering plans for April are slipping through the cracks amid the coronavirus outbreak, according to market watchers Sunday. Sencoretech, a Seoul-based engineering firm dedicated to manufacturing steel structures, has withdrawn its listing plan on Kosdaq, which could have raised at least 27.16 billion won ($22.32 million). “Due to the high volatility caused by COVID-19, we decided to cancel the remaining proce

Market April 19, 2020

South Korean companies are bracing for a massive credit rating downgrade as the novel coronavirus spillover threatens their business outlook, according to industry sources Wednesday. The weakening prospect of retailers, petrochemical firms and manufacturers in the wake of the coronavirus spread appears to be putting pressure on their liquidity. On Tuesday, the credit outlook of three companies for straight bonds was revised to “negative,” according to three credit rating agencies -

Market April 15, 2020

Despite the government‘s bond-buying initiative aimed at shoring up liquidity, South Korea’s corporate bond market is rattled by changes in credit outlooks that reflect lingering uncertainties on falling oil prices and the COVID-19 pandemic. On Monday, Hanwha Solutions’ corporate bonds meant to raise 210 billion won were undersubscribed by institutional investors. Absent in the bidding was the vehicle dubbed the “bond market stabilization fund,” a state commitment

Market April 14, 2020

Investors in two funds of Lime Asset Management, a South Korean hedge fund that fell from grace on a deluge of scandals, are expected to lose over half of their money, according to redemption plans issued Monday. Investments in two master funds -- Pluto FI D-1, dedicated to privately placed bonds, and Tethys II, which targeted mezzanine instruments – were frozen due to illiquidity last year. Their total value will fall to a combined 534.7 billion won ($439.18 million) according to the pl

Market April 13, 2020

State-run policy lender Korea Development Bank is in talks with South Korea’s private equity firm JC Partners to sell a life insurer unit as part of its restructuring process, an industry source said Monday. JC Partners is the only bidder participating in the preliminary stage that is undergoing a due diligence for the acquisition, the source added. KDB said further details cannot be disclosed because the talks are ongoing with the potential buyer before signing a deal. “Regardi

Market April 13, 2020

Seoul-based global startup accelerator SparkLabs said Monday it has joined hands with nonbanking lender Shinhan Capital to create a 10.1 billion won ($8.28 million) fund to support early-stage startups. The vehicle is aimed at investing in SparkLabs alumni and other early-stage startups with growth potential, as well as secondary investing in fast-growing companies in the fields of health care, biotechnology and manufacturing. The fund is co-managed by SparkLabs and Shinhan Capital, and

Market April 13, 2020

Attention is centered on what is poised to become the only initial public offering deal in April, as investors are hinging on a change in market tides. Starting Monday, Sencoretech -- a Seoul-based engineering firm dedicated to manufacturing steel structure -- will go on a two-day institutional investor tranche to confirm the IPO price, estimated to be at least 27.16 billion won ($22.35 million). Samsung Securities is a lead underwriter for the IPO on the development bourse Kosdaq. This comes

Market April 10, 2020

South Korea’s midcap buyout fund VIG Partners said Friday it plans to acquire the nation’s leading funeral service firm Preedlife. While neither the acquisition price nor the amount of stake were disclosed, the transaction is expected to close in the third quarter of 2020. This comes amid the private equity firm’s move to carry out a bolt-on strategy, under which its existing portfolio firms Jounlife and Preedlife will be combined to become the biggest funeral goods and servi

Market April 10, 2020

Mirae Asset Financial Group said Tuesday it had topped the 1 trillion won ($820.48 million) mark in the group‘s combined operating profit, net profit and earnings before tax each, quoting its 2019 earnings statement. The South Korean group’s key affiliates, including brokerage Mirae Asset Daewoo, asset management firm Mirae Asset Global Investments, insurer Mirae Asset Life Insurance, nonbanking lender Mirae Asset Capital and Mirae Asset Consulting, recorded a combined 1.16 trillio

Market April 8, 2020

Hotel Shilla, a South Korean operator of luxury hotels and duty-free shops, has closed a $121 million transaction to buy a 44 percent stake in US duty-free shop operator Travel Retail Group Holdings, known for the in-flight retailing service 3Sixty Duty Free, a filing showed Wednesday. The deal, closed Tuesday, allowed the hotel and duty-free unit under Samsung to become the second-largest shareholder after 3Sixty Chairman Bernard Klepach. It marks Hotel Shilla’s first investment in a No

Market April 8, 2020

South Korea’s food service firm Lotte Food saw a moderate success in raising cash through investment-grade corporate bonds, as a state fund has helped fend off risks from the escalating coronavirus crisis. But analysts said Tuesday Korea is still a tough test bed to check whether the government’s stimulus package can normalize the funding market. On Monday, Lotte Food decided to raise 100 billion won ($81.77 million) after it carried out an institutional investor tranche for its AA

Market April 7, 2020