South Korean real estate investment firm JR Asset Management (JR AMC) said Monday that it had obtained government approval for the initial public offering of its real estate investment trust, which invests in Belgium’s second-tallest skyscraper. The REIT, called JR Global, is hoping to carry out the nation’s first listing of a cross-border REIT. The Land Ministry authorized JR Global to embark on the IPO process and submit a prospectus. Under the Korean rules, a REIT listing does n

Market Feb. 24, 2020

The labor-management feud at South Korea’s hypermarket chain operator Homeplus escalated Sunday, with union members accusing its majority shareholder MBK Partners of profiteering at the expense of the company. The controlling private equity firm denied having done so, accusing the union of misleading the public. According to the labor union, MBK Partners has pulled 1.9 trillion won ($1.6 billion) out of Homeplus hypermarkets through the sale of its properties and brought in 1.2 trillio

Market Feb. 23, 2020

Hyundai Capital said Sunday that its German subsidiary has become the largest shareholder in a local lender, in an extended move to enhance the group’s mobility strategy. Hyundai Capital Bank Europe GmbH has signed an agreement with German car rental service provider Sixt SE to acquire 8.64 million shares, or a 41.9 percent stake, in Sixt Leasing SE for 155.6 million euros ($168 million). After the due regulatory clearance procedure is completed in both Europe and Korea, HCBE will gain a

Market Feb. 23, 2020

South Korea’s early-stage venture capital house Bass Investment said it had closed its second fund worth 37.7 billion won ($31.1 million) last week, in the latest addition to its initial 28.6 billion won fund. The new vehicle’s backers include K Cube Holdings, Com2uS, as well as ex-entrepreneurs -- including Chang Won-gui, founder of secondhand marketplace Bungae Jangteo who exited from the firm in January. No state fund has joined as its limited partner. The fund will “not

Market Feb. 23, 2020

Holding the ownership family of the nation’s flag carrier Korean Air responsible for its indebtedness, the head of a Korean private equity fund on Thursday reiterated calls to oust the incumbent chairman and bring in professional managers to run the struggling transport empire. Kang Sung-boo, chief executive of Korea Corporate Governance Improvement, also ruled out the possibility of Cho Hyun-ah -- the heiress to Korean Air, with whom he had forged an alliance to dethrone her brother -- r

Market Feb. 20, 2020

IMM Private Equity is conducting due diligence as it looks to buy some of the operations of cosmetics-to-pharmaceutical business group Kolmar Korea, according to Kolmar Korea on Thursday. The South Korean investment house is proposing to buy Kolmar Korea Holdings’ contract manufacturing subsidiary Kolmar Pharma and Kolmar Korea’s pharmaceutical division, except for CJ Healthcare. They are roughly valued at a combined 750 billion won ($628.6 million).  Kolmar Korea sa

Market Feb. 20, 2020

Seoul-based private equity house Hahn & Co. on Wednesday agreed to sell its 40 percent stake in IT system integrator Ssangyong Information & Communications for 27.4 billion won ($23 million) by April, in a move to offload noncore businesses of its portfolio firm Ssangyong Cement Industrial. According to regulatory filings Wednesday, the new shareholder group, composed of information technology system integrator Itcen and its affiliate Comtec Systems, will buy the stake for 1,695 won per

Market Feb. 19, 2020

Korean companies are facing imminent threats of credit downgrades, as they face a double whammy of weak 2019 earnings and novel coronavirus fears weighing on the global economy. Some of the firms have already experienced credit rating downgrades by agencies in the past week. Seoul-based NICE Investors Service last week downgraded credit ratings of panel maker LG Display and retailer E-mart by one notch each, as their business prospects are clouded and they are shouldering increased debt. LG

Market Feb. 18, 2020

Investors in beleaguered hedge fund Lime Asset Management are facing a bumpy road to get compensation for their losses. By no later than Friday, every investor in the hedge fund is expected to find out their confirmed individual losses in their combined 1.7 trillion-won ($1.4 billion) investment made under the convoluted master-feeder fund structure -- involving four master funds and 173 feeder funds as of end-2019. The losses of Lime Asset’s feeder funds may vary, but in some cases be

Market Feb. 17, 2020

South Korean investment houses are moving to reap windfalls from listed companies here involved in the production of Oscar-winning film “Parasite.” As the shares of producer Barunson E&A and its affiliate saw a strong upshot over the past week, investors in the firms’ mezzanine instruments are exercising options to convert them into shares to boost valuation in their asset holdings and seek an easier exit opportunity. Winasia Partners, a Seoul-based private equity firm,

Business Feb. 16, 2020

South Korean fund operator Lime Asset Management and its seller Shinhan Investment deliberately duped investors by concealing their losses and continuing the sale of the related products, the watchdog Financial Supervisory Service said Friday. Based on an intermediary inspection and accounting audit, the FSS estimated that two of the disputed parent funds may suffer losses of up to 730 billion won ($617.5 million). Considering other parent funds yet under inspection, the total amount of investo

Market Feb. 14, 2020

Hana Financial Group said Friday it had inked a sales and purchase agreement with the Korea Teachers’ Credit Union to buy a 70 percent stake in The-K Non-Life Insurance for 77 billion won ($65.1 million). This is the first acquisition deal for Korea’s third-largest banking group since the takeover of Korea Exchange Bank in 2013. The-K Non-Life will become the 14th affiliate and second insurer arm to be under Hana’s umbrella. KTCU will remain a minority shareholder of t

Market Feb. 14, 2020

A coalition of Korean Air heiress and a local activist fund Korea Corporate Governance Improvement on Thursday proposed former SK Group Vice Chairman Kim Shin-bae as an inside board director of Hanjin Group in a bid to oust the current chairman at the March shareholders meeting. Other candidates include former Samsung Electronics Vice President and head of China Bae Kyung-tae and ex-Korean Air executive Kim Chi-hoon. Hahm Chul-ho, a former Korean Air senior vice president and T’way Air CE

Market Feb. 13, 2020

The office building transaction volume in major districts of Seoul came to 11.5 trillion won ($9.7 billion) for 2019, showing favorable cash flow in the city’s commercial real estate market, data showed Thursday. The figure comes amid an improved vacancy rate in prime office properties in the central, Gangnam and Yeouido business districts here, coupled with a low interest rate environment. According to real estate service firm Savills Korea’s research on Seoul prime office propert

Market Feb. 13, 2020

Barings Asset Management Korea has named its Chief Investment Officer John Park as its joint head in a revamp to pursue efficiencies in management. Park will serve as one of BAMK’s two representative directors along with the incumbent CEO Ike Bae, as the firm adopts a multiple representative director system. The board approved the plan Wednesday. Park will lead investment management and support client relationships, while Bae will continue to lead the overall corporate management, inclu

Market Feb. 13, 2020