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KOREA REPORT - NOVEMBER, 2019.
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. SKorea¡¯s exports to the
ASEAN region amounted to $100 bil last year, while its imports reached $60.5
bil. ASEAN is now SKorea¡¯s second-largest trading partner, while it is
fifth-largest trading partner for the bloc. The ASEAN region boasts world¡¯s
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).
TOPICS.
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]
SKorea¡¯s consolidated fiscal balance as of end Sept stood
at deficit of $22.9 bil [p.11]
SKorea¡¯s 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]
INTRODUCTION
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