Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Thematic (Sector/Industry)

<ul><li>We highlight 27 Korean companies that are seeking to find new owners through M&amp;A in 2016. Key sectors of M&amp;A in Korea in 2016 include financials, shipbuilding, and logistics.&nbsp;Our analysis is based on publicly available information.&nbsp;</li><li>To recap the M&amp;A market in Korea last year, 427 M&amp;A deals were struck in 2015 worth nearly US$65 billion. 2016 is likely to fare even better.&nbsp;</li><li>Korea Inc. is becoming less of an octopus and more of a shark. Korea is still dominated by the chaebols but several chaebols such as the Samsung Group are clearly trying to become more of a shark (greater focus on key industries such as tech) and less of an octopus, being diversified in so many different industries.</li><li>Korean companies' top&nbsp;300 largest companies by market capitalization had cash of about 128 trillion won at end of 2015, up&nbsp;33% YoY.&nbsp;</li><li>Among the various M&amp;A sectors in Korea in 2016, we find logistics and securities sectors to be quite interesting. In the logistics sector, Coupang (private company) is really revolutionizing the entire competitive structure of the industry. The companies that have been competing in this&nbsp;old, dull industry of packing products in boxes and delivering them must compete effectively against Coupang and catch up to them in terms of customer service, speed, and execution or else exit the industry.</li><li>In the securities sector, the recent acquisition of KDB Securities by Mirae Asset Securities, should lead to greater consolidation of this industry. In addition, despite the weak brokerage market, the IPO and M&amp;A markets in Korea should flourish this year, barring severe economic distress. The Korean government is also trying to accelerate the M&amp;A market in Korea this year.&nbsp;The Korean National Assembly passed the revisions to the Commercial Code in November 2015 (effective March 2016) which should help to facilitate companies&rsquo; restructuring and investment through M&amp;A.</li></ul>

We highlight 27 Korean companies that are seeking to find new owners through M&amp;A in 2016. Key sectors of M&amp;A in Korea in 2016 include financials, shipbuilding, and logistics.&nbsp;Our analysis is based on publicly available information.&nbsp;To recap the M&amp;A market in Korea last year, 427 M&amp;A deals were struck in 2015 worth nearly US$65 billion. 2016 is likely to fare even better.&nbsp;Korea Inc. is becoming less of an octopus and more of a shark. Korea is still dominated by the chaebols but several chaebols such as the Samsung Group are clearly trying to become more of a shark (greater focus on key industries such as tech) and less of an octopus, being diversified in so many different industries.Korean companies' top&nbsp;300 largest companies by market capitalization had cash of about 128 trillion won at end of 2015, up&nbsp;33% YoY.&nbsp;Among the various M&amp;A sectors in Korea in 2016, we find logistics and securities sectors to be quite interesting. In the logistics sector, Coupang (private company) is really revolutionizing the entire competitive structure of the industry. The companies that have been competing in this&nbsp;old, dull industry of packing products in boxes and delivering them must compete effectively against Coupang and catch up to them in terms of customer service, speed, and execution or else exit the industry.In the securities sector, the recent acquisition of KDB Securities by Mirae Asset Securities, should lead to greater consolidation of this industry. In addition, despite the weak brokerage market, the IPO and M&amp;A markets in Korea should flourish this year, barring severe economic distress. The Korean government is also trying to accelerate the M&amp;A market in Korea this year.&nbsp;The Korean National Assembly passed the revisions to the Commercial Code in November 2015 (effective March 2016) which should help to facilitate companies&rsquo; restructuring and investment through M&amp;A.

2016 Korea M&A Market Outlook - What's For Sale?

Cross Asset Strategy

<ul>
<li>Henry Kissinger's statement that Ukraine must give Russia some territory could be a crucial inflection point in the global markets.</li>
<li>Most of the market rebound in KOSPI in the past 100 days have occurred in the past one week.</li>
<li>The rally in global equity markets in the past week seems to suggest some higher probability that the war in Ukraine could be ended in the next several months. </li>
</ul>


Henry Kissinger's statement that Ukraine must give Russia some territory could be a crucial inflection point in the global markets.
Most of the market rebound in KOSPI in the past 100 days have occurred in the past one week.
The rally in global equity markets in the past week seems to suggest some higher probability that the war in Ukraine could be ended in the next several months. 


Kissinger's Warning that Ukraine Must Give Russia Territory - A Key Inflection Point for KOSPI?

South Korea

Korea Aerospace Industries Ltd. designs and produces aircraft parts including fixed wings for aircrafts and rotary wings for helicopters. The Company also engages in aircraft upgrade and modification business and satellite development business.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Korea Aerospace Industries (047810 KS)

2016 Korea M&A Market Outlook - What's For Sale?

We highlight 27 Korean companies that are seeking to find new owners through M&A in 2016. Key sectors of M&A in Korea in 2016 include...

Douglas Kim

Kissinger's Warning that Ukraine Must Give Russia Territory - A Key Inflection Point for KOSPI?

Henry Kissinger's statement that Ukraine must give Russia some territory could be a crucial inflection point in the global markets. Global equity...

Douglas Kim

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)