S. Korea's corporate M&As plunge in 1st half amid global recession

SEOUL, July 20 (Yonhap) -- The number of corporate mergers and acquisitions (M&A)
in South Korea plunged during the first half of this year as the global economic
recession discouraged companies from expanding their business portfolios, data
showed Monday.
According to the data by the Fair Trade Commission (FTC), the number of M&As
deliberated by the watchdog came to 188 during the January-June period, down 35.4
percent from the same period the previous year. Compared with six months earlier,
the number fell 27.4 percent.
The plunge was attributed to the protracted global economic recession, which has
discouraged companies from seeking to expand business for fear that uncertainty
will grow down the road. Slowing corporate restructuring efforts also contributed
to the decline.
The M&As reported during the first half were worth a total of 85.3 trillion won
(US$68.2 billion), up 17 percent from the previous year's 72.9 trillion won, the
data showed. That is also up 22 percent from six months earlier.
M&As by domestic companies were estimated at 9.8 trillion won, down 18.3 percent
from a year earlier, but M&As by foreign companies surged 25.8 percent to 75.5
trillion won.
By sector, the service sector accounted for the largest amount of M&As, with 108
out of the total 188 during the first half, followed by the manufacturing sector
with 80, according to the data.
The watchdog, meanwhile, expects that corporate M&As will likely increase in the
second half if the economy perks up and companies ramp up self-restructuring
drives.
kokobj@yna.co.kr
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