Amid a decline in overseas real estate prices, funds that invested in offices in the United States and Europe are facing potential losses. It has been estimated that over 1 trillion won was invested in mutual funds that were sold since 2018. The number of investors who have invested in these funds e
Eight domestic insurance companies invested more than 400 billion won (US$312.74 million) in the construction of the world’s largest biomass power plant in the U.K. However, due to delays in construction and operation, they had to write off over half of the invested funds, resulting in significant l
IGIS Asset Management is reportedly considering selling real estate in Germany to prevent additional deterioration of the profitability of a fund under its management.According to financial sources on July 18, IGIS announced on their website on July 17 regarding the primary risk conditions and measu
The author is an analyst for NH Investment & Securities. She can be reached at yd.yoon@nhqv.com -- Ed.Thanks to a stock market rebound, Kiwoom posted a 1Q23 earnings surprise, with OP exceeding pre-Covid-19 levels. Noting that financial product issues are less serious than real estate PF risk, we ma
The author is an analyst of NH Investment & Securities. She can be reached at yd.yoon@nhqv.com. -- Ed. Although the industry has yet to fully recover, further downside looks limited, as share prices and earnings have likely bottomed out. In light of: 1) its number-one position in retail business; an
The author is an analyst of KB Securities. He can be reached at cygun101@kbfg.com. -- Ed. Maintain BUY, target price of KRW153,000 We maintain BUY on Kiwoom Securities and our TP of KRW153,000 given the following: (1) 4Q21 results confirmed that the company is positioned to maintain stable earnings
The author is an analyst of KB Securities. He can be reached at cygun101@kbfg.com. -- Ed. Earnings beat market consensus, our estimate— Kiwoom Securities reported 3Q21 consolidated NP (attributable to controlling interests) of KRW232.7bn, beating the market consensus by 22.6%.— We attribute this to:
The global investment banking unit of Shinhan Financial Group signed a US$280 million fulfillment center purchase deal with Amazon on Dec. 22.The unit and IGIS Asset Management formed a consortium and purchased the center Amazon is building in New Mexico. The construction will be completed in Septem
The authors are analysts of NH Investment & Securities. They can be reached at william.ku@nhqv.com and weihan@nhqv.com, respectively. – Ed. 1. Domestic market conditions remain soundMajor pharmas sustain growthUp until 2012, Korea’s pharma industry players mainly focused on generic drug sales, targe
Hedge funds are emerging as new players in the M&A market. Their scope is expanding to financing for PEFs and buyout deals.According to investment banking sources, AJ Group acquired 100 percent of Daelim Industrial’s and Affirma Capital’s shares in Daelim Motorcycle, the largest motorcycle supplier
Principal and interest payment has been suspended since May 8 in the The Drew Las Vegas resort development project. In other words, the three trillion won project is currently in default.South Korean investors have invested a total of 600 billion won in the project. The investors include Mirae Asset
Korean Air is promoting a capital increase of up to one trillion won to ride out its liquidity crisis ignited by the new coronavirus outbreak.Korean Air is in talks with large securities companies such as NH Investment & Securities and Korea Investment & Securities to increase capital.Currently, the
The Financial Supervisory Service (FSS) has completed a total inspection of private equity funds (PEFs) after risks related to Lime Asset Management came to the surface two months ago.According to the FSS, some PEF firms are running their funds in a similar way to Lime. They include two firms in clo
More than 110 billion won out of LIME Asset Management’s 1.6 trillion won PEF investment that has yet to be redeemed has been found to be tied up in real estate project financing in Cambodia. RAUM Investment, a company closely related to LIME Asset Management, made an investment in a Cambodian resor
Continued momentum in execution of LaSalle’s logistics strategy in the Asia-Pacific region under the “Logiport” brand, and .LaSalle Investment Management has announced its completion of the acquisition and leasing of Logiport West Anseong located in Anseong City, South Korea. The project’s gross flo
As the South Korean private equity fund (PEF) industry has grown in size at a rapid pace over the past decade, it is suffering “growing pains.” One symptom is the appearance of PEF products that allured investors with high returns but are about to make a huge loss. Another is the emergence of PEFs t
Mirae Asset Daewoo is diversifying its global investments based on its 8 trillion won equity capital.In 2018, 14 South Korean securities companies recorded a combined net income of US$123 million with a year-on-year growth of 156 percent and Mirae Asset Daewoo accounted for half of the total. During
With the stock market failing to show a clear direction, private equity funds are becoming more and more popular this year. This is because financial products which provide a stable return regardless of market conditions are in high demand among big investors. Securities companies are also joining h
CJ CheilJedang Corp. is seeking to join hands with private fund management firm JKL Partners Inc. to acquire U.S. frozen food firm Schwan's Co. The two companies discussed 600 billion won (US$531.21 million) worth of joint investment last year, but the talks came to a rupture. However, they have
Polus Inc., a South Korean biopharmaceutical company, will issue 90 billion won (US$78.22 million) worth of corporate bonds.The company announced on July 7 that it plans to issue private placement corporate bonds worth 50 billion won (US$43.44 million), including convertible bond (CB) and bond with