Articles by Son Ji-hyoung
Son Ji-hyoung
consnow@heraldcorp.com-
Coronavirus fears dent corporate bond deals
Coronavirus fears in the financial market are quashing bond investors’ appetite for investment-grade bonds issued by South Korean companies, dragging on their plans to raise capital. From Friday to Wednesday, all corporate bonds of three companies were undersubscribed in the respective institutional tranches in Korea. This stems from the bond price hike along with monetary easing stance at home and abroad. Bond yields, which move inversely with bond prices, were on a downtrend in Kore
Market March 18, 2020
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[Economy in Pandemic] Coronavirus puts Korean economy into uncharted territory
The Korea Herald is publishing a series of interviews and analysis over looming threats of COVID-19 on the Korean economy and beyond. This is the first installment. -- Ed. Despite a series of emergency actions being taken by governments around the world, the novel coronavirus -- and its resulting disease COVID-19 -- is wielding sweeping power over the global financial market and the real economy, indicating rising global recession risks. The Bank of Korea cut its policy rate Monday to a recor
Economy March 17, 2020
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Foreign investors beef up shareholder activism with legal clarity
South Korea introduced a law in February to support a new form of activism by “general” equity investors, enabling minority shareholders to have a say in corporate decisions. The revision of the Capital Markets Act has offered investors legal clarity in their move to boost shareholder value and adhere to stewardship codes. So far, four foreign investors have declared they are “general” investors in eight listed companies,” so that they can be more actively engage
Market March 16, 2020
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Bandi & Luni’s bookstore chain up for sale
The owners of the Seoul Book Center -- operator of South Korea’s third-largest bookstore chain, Bandi & Luni’s -- are looking to put their stake in the company up for sale through deal manager eBest Investment & Securities, the brokerage house said Monday. Founded in 1988, the Seoul Book Center operates 10 bookstores and stationery stores across the country, as well as an online bookstore. The deal is meant to give its owners, including CEO Kim Dong-kook and his father, Ki
Market March 16, 2020
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[Herald Interview] ‘Korea’s impact investors should seek cross-border deals’
South Korea was the first country in East Asia to introduce a legal definition for impact investment under the Promotion of Social Enterprises Act in 2007, which paved the way for a mature ecosystem. Impact investments aim to generate specific beneficial social or environmental effects in addition to financial gains -- actively seeking to make a positive impact, for example, by investing in nonprofits that benefit the community or in clean-technology enterprises that benefit the environment.
Market March 15, 2020
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Busan-based VC to control mask inventory app operator Carelabs
Busan-based venture capital Maple Investment Partners has been selected as the preferred bidder to become the largest stakeholder of Carelabs, a South Korean company listed on the development stock bourse Kosdaq, a regulatory filing showed Friday. Carelabs operates a mobile app Gooddoc, which allows users to track the nearest hospitals and drugstores. The app began to feature real-time face mask inventory tracking function earlier in March. Facing a mounting fallout of COVID-19 here and the c
Market March 13, 2020
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Assetplus ex-CEO returns to top post
Assetplus Investment Management said Wednesday it has named Edward Yang as its new CEO following a shareholders meeting. This marks Yang’s return to the top post in four years -- he served in the top post from June 2012 to May 2016. After his term, he has since led Assetplus’s strategic business division. Yang said he would focus on the firm’s digital marketing scheme that would allow the asset manager to draw retail investments into its funds through mobile trading platfor
Market March 11, 2020
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Heung-A Shipping to undergo KDB-led debt restructuring
South Korea’s No. 5 shipping firm Heung-A Shipping is planning a corporate workout program as its maritime cargo operations have faltered, with snowballing debt, a regulatory filing showed Wednesday. The company’s board has approved a debt restructuring scheme by the policy lender Korea Development Bank, one of its key creditors, to “improve its finances and normalize business operations.” Under the KDB-led financial rescue package, creditors will take control of the t
Market March 11, 2020
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NPS to be no barrier for Hyosung chairman to extend term
Despite the National Pension Service’s efforts to actively interfere in the management decisions of scores of domestic companies as a major shareholder, it is likely to leave Hyosung Group untouched. The NPS has yet to change the shareholding purpose of Hyosung Corp., holding firm of the family-controlled conglomerate, to “general investing” from “nonengagement investing,” which would otherwise have allowed it to have a say in issues related to executive salaries
Market March 10, 2020
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Shinhan Card to buy Hyundai Capital’s W500b assets for rental car biz
Shinhan Card said Tuesday it is poised to buy parts of Hyundai Capital’s assets related to its long-term car rental services for around 500 billion won ($417.3 million). The assets will be composed of vehicles under the South Korean carmaker -- Hyundai, Kia and Genesis -- which Hyundai Capital rents to consumers, as well as rental consumers. The final acquisition price will differ depending on shareholder approval. The two companies signed the deal Monday for the transaction scheduled
Market March 10, 2020
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Coronavirus puts Korean venture firms on edge
The coronavirus fear is increasing financial burdens on listed South Korean venture firms as they are facing more calls for cash redemption from investors. Investors in firms listed on Korea’s development bourse Kosdaq have cashed out their combined 361.3 billion won ($303.4 million) investment in mezzanine bonds -- convertible bonds and bond warrants -- from January until Friday, prior to their due maturity date, according to regulatory filings. This marked a 48.4 percent increase on-y
Market March 8, 2020
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[Exclusive] Lutronic faces lawsuit in US for alleged trade secrets theft
The US subsidiary of South Korea’s Lutronic is facing a lawsuit for allegedly misappropriating trade secrets through former employees of Cutera it hired recently, according to documents reviewed by The Korea Herald. Aesthetic laser equipment maker Cutera -- listed on Nasdaq -- claimed that forensic research results showed that Lutronic Aesthetic had poached 13 employees, encouraging them to steal trade secrets and destroy evidence until February. In return, they were rewarded with stock o
Market March 5, 2020
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SK Networks shares spike on W1.3tr fuel retailer sell-off
SK Networks shares rose sharply Thursday on anticipations that its decision to divest its energy retailer unit for 1.3 trillion won ($1.1 billion) would improve the balance sheet. Its shares closed 14.5 percent higher on Kospi bourse compared to the previous session. Analysts said the price was buoyed by expectations that SK Networks would mitigate its debt burden from its acquisition of AJ Rent A Car in December 2019, carry out a 100 billion won share buyback and overhaul the trading firm&rsq
Market March 5, 2020
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Woori, Hana face W36.5b fine, 6-month suspension for DLF fiasco
South Korea’s top financial regulator on Wednesday slapped a combined 36.5 billion won in ($30.8 million) fines on Woori Bank and Hana Bank, along with a six-month ban on attracting investors‘ money into privately pooled funds. The Financial Services Commission’s final decision indicates that the authorities held the banks responsible for their lack of internal control, as they failed to protect retail investors from potential risks implied in the structured products known as
Market March 4, 2020
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Cape Industries faces proxy war over directors, dividends
South Korea’s ship engine parts maker Cape Industries is facing a proxy fight as its activist shareholders are opposing the firm’s excessive compensation to executives despite piling losses. The investor group, led by KH Investment, has proposed a cut on Cape’s four executives pay to half -- 1.5 billion won ($1.3 million) maximum if combined -- and recommended candidates for outside directors and auditors. The alliance is also demanding the first dividend payout of the group
Market March 3, 2020
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