M&As of Financial Firms
The Fosun Group of China has shown much interest in the acquisition of Korean financial firms like Hyundai Securities and KDB Life Insurance.
An increasing number of foreign enterprises are getting interested in the M&As of Korean financial companies.
For example, the Fosun Group of China recently announced that it will go for the acquisition of Hyundai Securities. It has shown its interest in LIG Insurance and KDB Life Insurance, too. Also, Orix of Japan has been bidding for Hyundai Securities. Orix acquired OSB Savings Bank and Smile Savings Bank in Korea in the past.
In addition, J Trust has participated in the acquisition of Aju Capital. The Japanese financial group is increasing its stance in the non-banking sector these days by taking over SC Savings Bank and SC Capital Savings Bank. BNP Paribas acquired Ergo Daum Direct to launch BNP Paribas Cardif.
The purchase of Korean companies by foreign capital firms is becoming more and more frequent in many other industries not limited to the financial sector. According to the Woori Financial Research Institute, the amount skyrocketed from 1.8 trillion won (US$1.7 billion) to 12.8 trillion won (US$12.2 billion) between 2013 and the first eight months of 2014. The value had been approximately 3.7 trillion won (US$3.5 billion) in both 2011 and 2012.
“Foreign capitals’ participation are found in a variety of sectors, ranging from clothing and cosmetics to games, and the financial industry is no exception,” said an industry expert, adding, “That in the financial sector is likely to speed up as Korean banking institutions are having a hard time nowadays.”