MBK in tight spot over Homeplus rehabilitation

MBK Partners, one of Asia’s largest private equity firms, is under intense scrutiny for its decision to place Homeplus, Korea’s second-largest hypermarket chain, under corporate rehabilitation with investors anticipating a bumpy road ahead for the company’s debt restructuring. Since the Seoul Bankruptcy Court approved Homeplus’ entry into a court-led rehabilitation program earlier this month, its largest shareholder, MBK, has faced mounting criticism for failing to take responsibility for the co

March 12, 2025

Korea-US trade talks on tariffs to begin soon: acting president

Acting President Choi Sang-mok said Tuesday that South Korea and the US will soon enter into detailed negotiations on new US tariffs, as the country's economy is likely to be directly impacted by President Donald Trump's tariffs. Choi noted that Trump threatened to exert all-out pressure on Korea in a recent speech to the US Congress, labeling the Korea-US trade relationship as "unfair" and calling for the revocation of federal subsidies promised to semiconductor companies. “The arrow of Trump's

March 11, 2025

Hana's shareholder-friendly push to gain momentum with chair's 2nd term

Hana Financial Group is poised for a potential boost in shareholder returns as its chair is on track to secure his second term this month. Glass, Lewis & Co., one of the world's two most influential proxy advisers, recommended that investors vote for the reappointment of Hana Financial Group Chairman and CEO Ham Young-joo, according to a local report on Monday. Ham is set to secure another three-year term after being recommended as the sole candidate for the top job. His new term would extend th

March 10, 2025

MBK in talks to acquire CJ CheilJedang's bio division

MBK Partners, South Korea’s largest private equity firm, is in discussions to acquire the bio division of food giant CJ CheilJedang, according to sources on Friday. Preliminary negotiations have valued the unit between 5 trillion won ($3.46 billion) and 6 trillion won, though the two sides have yet to reach a final agreement on pricing. CJ CheilJedang’s bio division specializes in producing food seasoning materials and feed-grade amino acids using microorganisms. It holds the largest global mark

March 7, 2025

Safe exit over rehabilitation? Homeplus puts MBK to tough test

Supermarket chain's credit woes raise doubts over MBK's hostile takeover of Korea Zinc MBK Partners, one of the largest private equity firms in Asia, is facing backlash over its incompetence to operate its major portfolio firm Homeplus, which entered court-led rehabilitation proceedings amid potential insolvency. On Tuesday, Homeplus filed for corporate rehabilitation with the Seoul Bankruptcy Court for possible insolvency following a series of credit rating downgrades. MBK acquired Homeplus in

March 6, 2025

US politicians voice worries over MBK's takeover of Korea Zinc

US House of Representatives members and other political figures have expressed concerns over private equity firm MBK Partners' attempt to acquire Korea Zinc, the world's largest zinc smelter, arguing that the deal could expand China's control over critical minerals and undermine US national security. Rep. Mariannette Miller-Meeks, a Republican member of the US House of Representatives and a member of the House Committee on Energy and Commerce, urged the US Congress and administration to collabor

March 6, 2025

US tariffs, growth woes push BOK cuts: JPMorgan research chief

Joyce Chang, chair of global research at JPMorgan, expects Korea’s central bank to cut its policy rate by 75 basis points this year amid concerns over the Korean economy’s slowing growth and repercussions from the US administration’s tariff policy. “We expect that the Bank of Korea’s terminal policy rate to fall to around two percent, given some of the growth concerns and the negative impacts from US tariff shocks,” she said during a webinar hosted by Seoul-based Institute for Global Economics o

March 5, 2025

Korea ups ante in chips, AI with W50tr policy financing

New visa initiative to boost Korea’s high-tech workforce with global talent The South Korean government has announced plans to establish a 50 trillion won ($34.4 billion) fund over the next five years to bolster strategic technology industries, including semiconductors, secondary batteries and artificial intelligence, amid intensifying global tech competition. “Competition is escalating as the entire industry undergoes rapid transformation centered around cutting-edge technologies. In this swift

March 5, 2025

Controversy persists over Young Poong's environmental pollution

Controversy over the environmental pollution by Young Poong, the world’s sixth-largest zinc producer, has persisted despite the suspension of operations at its Seokpo refinery for discharging polluted wastewater without authorization. On Feb. 26, the Seokpo refinery in North Gyeongsang Province ceased operations for 58 days, after being ordered to do so by the Supreme Court for violating water conservation laws. The ruling upheld a 2019 administrative disposition against the refinery for illegal

March 4, 2025

Korea’s credit profile remains stable despite Trump’s tariff policies: Fitch

Fitch expects Korea’s presidential election in Q2; prolonged political uncertainty could prompt negative rating action The US Trump administration’s tariff policies could dampen the South Korean economy, but they are not expected to harm the country’s credit status in the short term, according to Fitch Ratings' sovereign analyst. “One year or a couple of years of slow growth due to tariffs won’t impact Korea’s credit profile,” Fitch Ratings Asia Pacific Sovereign Rating Director Jeremy Zook said

March 4, 2025