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  Korea Report - November 2019
  Author : Hwang & Co     Date : 19-12-05 16:09     Hit : 52694    
   Korea Report - November 2019.pdf (483.2K), Down : 7, 2019-12-05 16:09:31


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The third ASEAN-Korea Commemorative Summit was held through 25-26th in Busan. The summit of national leaders of 10 Association of Southeast Asian Nations and SKorea celebrates 30th anniversary of partnership between ASEAN bloc and Korea. 10 ASEAN members are Indonesia, Philippines, Vietnam, Singapore, Malaysia, Cambodia, Brunei, Thailand, Myanmar and Laos. Bilateral trade has soared 20 times since 1989 to $160.5 bil. SKoreas exports to the ASEAN region amounted to $100 bil last year, while its imports reached $60.5 bil. ASEAN is now SKoreas second-largest trading partner, while it is fifth-largest trading partner for the bloc. The ASEAN region boasts worlds third-largest population, 650 mil people, whose median age is just 29, as well as abundant natural resources and a high annual growth rate, hovering above 5% in recent years amid a global slowdown.

Seventy-one members of National Assembly on 5th rolled out a resolution calling for a formal end to the Korean War. Sponsored by Rep Kim Kyung-hyup of ruling Democratic Party of Korea, the motion calls on two Koreas, US and China to declare a formal end to Korean War and to start discussing signing a peace treaty. The resolution urges the US and NK to make progress in their denuclearization talks while encouraging both Koreas to do their part to improve inter-Korean relations. In July, US House Rep Ro Khanna spearheaded passage of an amendment to National Defense Authorization Act that is now pending Senate approval. Drafted by Khanna, the amendment, for the first time in US Congress history, supports an end to Korean War that began in 1950.

HHI Group submitted an application to the EU on Nov 12th for approval of its proposed takeover of its local rival DSME. The European Commission (EC) is in charge of the screening. Before presenting the application to the EU, HHI Group has submitted the request to six countries including Korea, China (both in July), Kazakhstan (in Aug) and Singapore (in Sept). Once the evaluation process is finished in each country, Korea Shipbuilding & Offshore Engineering (KSOE) and state-run Korea Development Bank (KDB) will complete acquisition of DSME by trading their stakes in KSOE and DSME. In June, HHI Group was split into two entities, KSOE and reorganized HHI, under an agreement with KDB regarding the acquisition of DSME. During the '16th Korean Shipbuilding & Offshore Day', which was held in Sept, HHI Co-CEO Ka Sam-hyun commented, "The screening of the merger of HHI and DSME is expected to finish by the end of this year."  

Sungdong Shipbuilding & Marine Engineering has signed MOU with the preferred bidder HSG Heavy Industries - Curious Partners consortium on 29th. HSG - Curious consortium paid contract execution guarantee money, 5% of total acquisition price, right before the MOU signing that took place at Changwon district court of Korea. The buyer will carry out due diligence investigation at the shipyard from first week of Dec and sign the final contract by Dec 31st paying additional 5%. Early next year, the potential owner of the shipyard will pay remaining 90% of the total amount signing a share sale and purchase agreement for the consummation of the M&A transaction. The sale price is likely to reach up to KW300 bil ($256 mil).


The third ASEAN-Korea Commemorative Summit was held through 25-26th in Busan [p.2]

US Defense Department estimated cost of $4.5 bil to station troops in SKorea in 2020 [p.3]

The conflict with Japan over history and trade continues to intensify [p.4]

SKorea ranks as one of leading members among OECD in treatment of cancer [p.6]

Incheon is set to transform into a comprehensive entertainment zone [p.7]

71 members of National Assembly rolled out resolution calling formal end to Korean War [p.8]

SKoreas consolidated fiscal balance as of end Sept stood at deficit of $22.9 bil [p.11]

SKoreas potential economic growth rate was estimated at 2.7% for this year [p.11]

SKorea's trade surplus came to $3.37 bil in Nov, marking 94 straight months of surplus [p.12]

Combined operating profit of 279 SKorean listed firms is projected to climb 26% next year [p.15]

GS Caltex became first SKorean oil refiner to take part in ICE Futures Abu Dhabi [p.16]

Samsung and LG accounted for a combined 46.2% of the global TV market [p.18]

Hyundai Motor Group clinched $1.5 bil investment deal with Indonesian government [p.19]

SKorea's forex reserves reached a fresh record high of $407.46 bil as of end Nov [p.20]

HHI Group submitted an application to the EU for approval on takeover of DSME [p.21]

HHI Holdings to receive $1.2 bil from sale of its refining unit, Hyundai Oilbank [p.23]

SHI bagged $6.9 bil worth of orders, achieving 88% of its yearly target [p.23]

DSME has been awarded orders worth $53.5 bil, achieving 64% of its yearly goal [p.24]

Hanjin HIC, once capital impaired, improved its structure at a rapid speed [p.24]

Sungdong shipyard signed MOU with the preferred bidder HSG Heavy Industries [p.25]



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