M&A market in N11 review, incentives and obstacles in South Korea
Term paper
1 Introduction
1.1 Research problem
The amount of growing economic markets and the need for new investment possibilities constantly increased over the past years. Financial investors all over the world are seeking for new markets that provide good investment opportunities. Hence former third world countries as for example the BRICs or the Next Eleven are on the rise to become or already represent influencing world economies. In order to accomplish that the economic markets and especially the merger and acquisitions markets work efficiently, the structure of them is supposed to be well organised and safeguarded in order to attract more investors and allow a further growth. Very interesting regarding this theme is the economic development of South
Korea which was able to establish an exemplary business environment within just a few decades in comparison to other countries which had the same starting position years ago.
This term paper will depict how the Republic of South Korea managed and is managing its strong economic performance. The focus will be on the economic development of Korea until now and it will be examined how they achieved their current economic status. In order to estimate the Korean merger and acquisition possibilities the market will be investigated from different perspectives.
1.2 Way of investigation
In order to understand the current situation and the changes in the economic world performance of emerging markets, chapter 2 will provide a description of the “Next Eleven” concept. It will also focus on the case of South Korea and give an insight of the Korean economic development and its current performance.
Secondly, a definition of merger and acquisition and different transaction types are introduced in Chapter 3. In the subchapters special attention will be drawn to the Korean merger and acquisition market. A review will be provided and major incentives and obstacles in the market will be shown.
1 Introduction
1.1 Research problem
The amount of growing economic markets and the need for new investment possibilities constantly increased over the past years. Financial investors all over the world are seeking for new markets that provide good investment opportunities. Hence former third world countries as for example the BRICs or the Next Eleven are on the rise to become or already represent influencing world economies. In order to accomplish that the economic markets and especially the merger and acquisitions markets work efficiently, the structure of them is supposed to be well organised and safeguarded in order to attract more investors and allow a further growth. Very interesting regarding this theme is the economic development of South
Korea which was able to establish an exemplary business environment within just a few decades in comparison to other countries which had the same starting position years ago.
This term paper will depict how the Republic of South Korea managed and is managing its strong economic performance. The focus will be on the economic development of Korea until now and it will be examined how they achieved their current economic status. In order to estimate the Korean merger and acquisition possibilities the market will be investigated from different perspectives.
1.2 Way of investigation
In order to understand the current situation and the changes in the economic world performance of emerging markets, chapter 2 will provide a description of the “Next Eleven” concept. It will also focus on the case of South Korea and give an insight of the Korean economic development and its current performance.
Secondly, a definition of merger and acquisition and different transaction types are introduced in Chapter 3. In the subchapters special attention will be drawn to the Korean merger and acquisition market. A review will be provided and major incentives and obstacles in the market will be shown.
Bibliography: AUSWÄRTIGES AMT (2012, September): Länderinfos: Bangladesch http://www.auswaertiges-amt.de/DE/Aussenpolitik/Laender/Laenderinfos/01Nodes_Uebersichtsseiten/Bangladesch_node.html AUSWÄRTIGES AMT (2012, October): Korea (Republik Korea, Südkorea): Aktuelle Wirtschaftslage. Retrieved October 19, 2012, from http://www.auswaertiges-amt.de/DE/Aussenpolitik/Laender/Laenderinfos/ KoreaRepublik/Wirtschaft_node.html BRANDING KOREA (2010, June): „Made in Korea“ and Korea‘s Nation Brand (Part 1). Retrieved November 03, 2012, from http://brandingkorea.org/made-in-korea-and-koreas-nation-brand-part-1/ CENTRAL INTELLIGENCE AGENCY USA (2011, December): Country Comparison: Exports https://www.cia.gov/library/publications/the-world-factbook/rankorder/2078rank.html COLE, BRETT (2008, February): http://www.kpmg.de/Themen/10673.htm DAUM, PATRICK (2012, June): “Next Eleven” im Fokus, published on Wallstreet Online. Retrieved October 13, 2012, from http://www.wallstreet-online.de/nachricht/4939810-next-eleven-fokus ECONOMYWATCH CONTENT (2010, March): South Korea Economy http://www.economywatch.com/world_economy/south-korea/ ENGLISH XIN HUAN, BUSINESS (2012, May): S. Korea’s dependence on external trade deepens in 2010. Retrieved November 02, 2012, from http://news.xinhuanet.com/english/business/2012-05/30/c_131620211.htm ERNST & YOUNG (2012, July): M&A Maturity Index 2012: M&A in a two-speed world: Assessing risks and opportunities in rapid- growth markets. Retrieved October 24, 2012, from http://emergingmarkets.ey.com/wp-content/uploads/downloads/2012/07/MABrochure-2012_final_new6-LR2.pdf FAIR TRADE COMMISSION REPUBLIC OF KOREA (2010a): History: Since 1981 http://eng.ftc.go.kr/about/history.jsp?pageId=0104 FAIR TRADE COMMISSION REPUBLIC OF KOREA (2010b): Overview: What we do. Retrieved November 08, 2012, from http://eng.ftc.go.kr/about/overview2.jsp?pageId=0102 FEINGOLD, BENJAMIN (2011, December): Die nächste Wachstumslokomotive kommt, published on Financial Times Deutschland. Retrieved Oktober 15, 2012, from http://www.ftd.de/finanzen/derivate/:portfolio-die-naechste-wachstumslokomotivekommt/60142378.html FINANCIAL SERVICES COMMISSION (2012, November): FSC Introduction: Ensuring the stability of financial markets & promoting the advancement of the financial industry in Korea. Retrieved November 08, 2012, from http://www.fsc.go.kr/eng/ (presentation). HALIBOZEK, EDWARD P.; KOVACICH, DR. GERALD L. (2005): Mergers and Acquisitions Security: Corporate Restructuring and Security HEESE, VIKTOR (2009): Anlagechancen in den Neuen Emerging Markets: Eine Erweiterung des Konzepts HÜNERBERG, REINHARD (2011): Süd- Korea als Auslandsmarkt: Marktbedingungen und internationales Marketing, IHLWAN, MOON (2009, September): Korea Wins FTSE Developed World Status, published on Bloomberg Businessweek. Retrieved October 25, 2012, from http://www.businessweek.com/globalbiz/blog/ eyeonasia/archives/2009/09/korea_wins_ftse.html INSTITUTE OF MERGERS, ACQUISITIONS AND ALLIANCES (2012, January): Announced Mergers & Acquisitions: South Korea, 1994 – 2011 Analysis. Retrieved November 06, 2012, from http://www.imaa-institute.org/statisticsmergers-acquisitions.html IRWIN, JUDITH (2012, August): http://www.guardian.co.uk/sustainable-business/operating-responsibly-emergingmarkets-south-korea KIM, JAE-KYOUNG (2009, July): Retrieved November 09, 2012, from http://www.koreatimes.co.kr/www/news/biz/2011/04/258_48112.html KOREA EXCHANGE (2012, March): History: KRX History 1956 – 2010 http://eng.krx.co.kr/m9/m9_1/m9_1_3/UHPENG09001_03.html KOREA EXCHANGE (2009): Divisions - Management Strategy Division. Retrieved November 07, 2012, from http://eng.krx.co.kr/m9/m9_1/m9_1_5/m9_1_5_1/UHPENG09001_05_01.html KOREA ECONOMIC INSTITUTE (2012): S