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Four groups show interest in acquiring HMM

An HMM container ship / Courtesy of HMMBy Lee Yeon-wooCompetition is heating up to acquire HMM, the largest shipping company in Korea, with four mid-sized conglomerates already expressing interest.According to investment banking (IB) sources, Wednesday, SM Group, LX Group, Harim, and Dongwon Group have reportedly received information memoranda, which provide investors with essential information about HMM, and started to review their potential acquisition.Samsung Securities, which is supervising the sale, will conduct a preliminary bid until Aug. 21. The IB industry anticipates the possibility of various corporations participating in the bid, including even the top 10 major conglomerates.The sale target includes the entire stake in HMM held by Korea Development Bank (KDB), which stands at 20.69 percent, and the Korea Ocean Business Corporation (KOBC), which is 19.96 percent. The stakes up for sale are equivalent to 399 million shares, estimated to be worth up to 5 trillion won ($3.9 billion).As the acquisition entails trillions of won, observers are closely watching the firms' ability

Jul 26, 2023By Lee Yeon-woo
Four groups show interest in acquiring HMM

LG Display sees losses widen in Q2 on weak demand

LG Display factory in Gumi, North Gyeongsang Province / YonhapLG Display reported fifth consecutive quarterly losses Wednesday as sluggish demand for smartphones, TVs and computers took a toll on its bottom line.The major panel maker reported an operating loss of 880.2 billion won ($689 million) for the April-June period, compared with a loss of 488.3 billion won a year earlier, with high inflation and rate hikes significantly dampening consumers' appetite for tech gadgets.It logged a net loss of 698.8 billion won. Revenue fell 15.5 percent to 4.73 trillion won over the cited period.LG Display went into a deficit in the second quarter of last year, for the first time in two years, as a pandemic-driven boom in IT devices ended amid rising prices and interest rates.Demand has been falling rapidly over the past year for LCD and premium organic light-emitting diode panels (OLED). Poor macroeconomic conditions have also caused businesses to cut orders in order to deplete their excessive inventories.But the panel maker sees inventory levels of its customers improving and demand picking up.

Jul 26, 2023
LG Display sees losses widen in Q2 on weak demand

Amorepacific Group shifts to black in Q2

Amore Beauty Park in Osan, Gyeonggi Province / Courtesy of Amorepacific Korean cosmetics giant Amorepacific Group said Wednesday it swung to the black in the second quarter on improved overseas sales. Amorepacific logged a net profit of 29.4 billion won ($23.1 million) in the April-June period, shifting from a loss of 26 billion won a year earlier, the company said in a regulatory filing. Revenue rose 0.4 percent on-year to 1.03 trillion won, and operating income was 11.7 billion won, swinging from a loss a year ago.Amorepacific attributed the swing to the black to an increase in overseas sales, especially in North America and Europe, the Middle East and Africa (EMEA). The company's overseas sales reached 372.3 billion won in the second quarter, up 27.5 percent from a year ago. In North America, quarterly sales soared 105 percent on-year, thanks to the strong performance of Amorepacific's flagship brands, Sulwhasoo and Laneige.In the EMEA region, sales jumped 123 pe

Jul 26, 2023
Amorepacific Group shifts to black in Q2

KB Financial Group Q2 net profit up over 20% on-year

KB Financial Group headquarters in Seoul / Korea Times fileKB Financial Group on Tuesday reported its net profit jumped more than 20 percent in the second quarter from a year earlier on higher interest and non-interest income.Net profit for the three months ended in June rose to 1.5 trillion won ($1.18 billion) from 1.25 trillion won during the same period last year, the company said in a regulatory filing.The net profit for the first half rose 10.6 percent on-year to 3 trillion won.Operating profit for the April-June period was 2.05 trillion won, up 37.4 percent from a year ago, while revenue fell 35.1 percent to 15.9 trillion won.The earnings beat market expectations. The average estimate of net profit by analysts stood at 1.35 trillion won, according to a survey by Yonhap Infomax, the financial data firm of Yonhap News Agency.KB Financial Group attributed the increased net profit to a rise in interest income and a recovery in the profitability of its non-banking businesses.In the first half, KB Financial Group said it earned 5.76 billion won worth of interest income, up 5.2 percen

Jul 25, 2023
KB Financial Group Q2 net profit up over 20% on-year

Industrial Bank of Korea Q2 net income up 27.5% to $522.8 mil.

Industrial Bank of Korea building in Seoul / YonhapIndustrial Bank of Korea on Tuesday reported its second-quarter net income of 667.1 billion won ($522.8 million), up 27.5 percent from a year earlier.The company said in a regulatory filing that operating profit for the April-June period rose 23.4 percent on-year to 848.6 billion won. Sales decreased 15.7 percent to 6.84 trillion won.The earnings met market expectations. The average estimate of net profit by analysts stood at 671.6 billion won, according to a survey by Yonhap Infomax, the financial data firm of Yonhap News Agency. (Yonhap)

Jul 25, 2023
Industrial Bank of Korea Q2 net income up 27.5% to $522.8 mil.

Asset management firms launch Japanese investment products

High-rise office buildings of Tokyo are seen in this undated file photo. YonhapBy Lee Min-hyungKorean asset management companies are moving to launch investment products that focus on the Japanese market in line with the country's roaring stock sentiment.According to data from the Korea Securities Depository (KSD), local investors purchased 316.2 billion won ($247.7 million) worth of shares from Japan's stock market between the beginning of 2023 and July 21. The figure is forecast to break the record annual high for the 12 years since 2011 that the KSD has been compiling relevant data. In 2021, Korean investors' net-buying of Japanese shares came in at $333.85 million.This was driven by the robust rally of Japan's Nikkei 225 index. The index set a new high of 33,000 in June for the first time in 33 years. The pace of its rise was noteworthy at a time when global monetary authorities still maintain tightening approaches.Coupled with the weakening yen, Korea's asset management companies are also moving to launch investment products targeting the Japanese market. Hanwha Asset Management

Jul 25, 2023By Lee Min-hyung
Asset management firms launch Japanese investment products

POSCO steals limelight from EcoPro in stock rally

A bird's-eye view of POSCO Chemical's cathode plant in Gwangyang, South Jeolla Province / YonhapBy Lee Min-hyungPOSCO Holdings is stealing the limelight from EcoPro as the most-sought-after battery stock here, achieving a surprisingly sharp rally on hopes for deeper expansion into the promising battery materials industry.The holding company of the nation's leading steelmaker has displayed a monster rally in its share price this month, after POSCO revealed its group-wide vision to build a total battery materials value chain.According to data from the Korea Exchange, the combined market capitalization of POSCO Holdings and its affiliates came in at 115 trillion won ($89.95 billion) as of closing on July 24, up 44.27 trillion won from the end of June. The stock price of the holding firm drove the robust rally by soaring more than 65 percent this month alone.This was driven by unwavering investor frenzy into battery stocks. This year, EcoPro has stood at the center of the spotlight in the local stock market, with shares of the battery materials maker's key affiliates achieving unpreceden

Jul 25, 2023By Lee Min-hyung
POSCO steals limelight from EcoPro in stock rally

LS Electric Q2 net income up 166% to $57 mil.

This photo, provided by LS Electric, shows LS Electric engineers checking the solar panels at the Yeongam Solar Power Plant. Korea Times fileLS Electric on Tuesday reported its second-quarter net profit of 73 billion won ($57 million), up 166 percent from a year earlier.The company said in a regulatory filing that operating income for the April-June period rose 74.5 percent on-year to 104.9 billion won. Sales increased 36.7 percent to 1.2 trillion won.The operating profit was 14.9 percent higher than the average estimate, according to a survey by Yonhap Infomax, the financial data firm of Yonhap News Agency. The estimate of net profit was not available. (Yonhap)

Jul 25, 2023
LS Electric Q2 net income up 166% to $57 mil.

Top 5 banks offload bad debt amid rising concerns over soundness

Banks' ATMs are lined up in downtown Seoul in this March 2022 file photo. NewsisBy Lee Yeon-wooBanks are offloading bad debts due to soaring delinquency rates, signaling an urgent need for enhanced financial soundness management. In the first half of this year alone, the top five banks disposed of 2.2 trillion won ($1.7 billion) in bad loans, driven by high policy rates and economic uncertainties.According to financial sources, Tuesday, five major banks here ― KB Kookmin, Shinhan, Hana, Woori and NH Nonghyup ― disposed of non-performing loans (NPL) amounting to 2.2 trillion won through writeoffs or sales in the first half of this year.The amount is more than double that of the same period last year, matching the total volume for 2022.Typically, banks classify loans that have been in arrears for more than three months as NPLs. When the likelihood of repayment decreases significantly, these loans are regarded as lost assets. Banks either write off these loans entirely from their balance sheet or dispose of them by selling them at a discounted price. While this process reduces banks' as

Jul 24, 2023By Lee Yeon-woo
Top 5 banks offload bad debt amid rising concerns over soundness
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