Korea Capital Market Institute manager Park Yong-lin, in the meantime, attributed the increasing interest in cross-border M&A to the growth limit those companies have reached in the domestic market. “Nowadays, the Korean economy is considered to have entered a low growth phase whereas the United States, China and Europe are giving an indication of recovery, meaning that local corporations have no other option but to turn their eyes abroad to survive and achieve sustainable growth,” he remarked.
As an example, GS Engineering & Construction announced on February 20, while making public its latest business plans, that cross-border M&A will be one of its top priorities for its business this year. The idea is to tide over the current recession in the construction sector by acquiring small yet competitive firms abroad that have original technologies. “We’re expecting much from Inima, the Spanish water treatment company we took over back in June last year,” said GS E&C, adding, “We’re planning on more such M&As down the road as opportunity offers.”