March 17, 2021

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EDITOR'S PICKS

• Markets 
  

  Local private equity firm to inject W80b in T‘way Air

  　　South Korea’s private equity firm JKL Partners is poised to inject 80 billion won ($70.7 million) in Korean low-cost air carrier T‘way Air in April, a filing showed on March 17. 　JKL Partners was offered the opportunity to buy some 31.8 million convertible preferred shares in T’way’s capital increase, so that T’way Air can use its proceeds to pay the cost of airplane lease and maintenance. The securities offering plan to the third-party investor gained board app

• Markets 
  

  S. Korean banks’ average capital adequacy ratio slightly up in 2020

  　South Korean banks’ average capital adequacy ratio inched up last year from the previous year, indicating improved financial health amid the COVID-19 pandemic, data from the financial watchdog showed on March 17. 　The average ratio of 19 commercial and state-run lenders gained 1.08 percentage points to 15 percent on-year as of end-2020, according to the Financial Supervisory Service. 　The capital adequacy ratio, based on the Switzerland-based Bank of International Settlements’ g

• Markets 
  

  Korea toughens rules on cryptocurrency amid market frenzy

  　The government is scurrying to implement new rules on users and operators of digital coins to effectively oversee the industry, which has been growing at a fast pace on the back of increasing appetite for risky assets. 　Starting from March 25, new penalty standards for cryptocurrency exchanges that infringe anti-money laundering rules will be implemented, according to the Financial Services Commission on March 16. 　Fines will be imposed on virtual asset service providers that fail to report

• Markets 
  

  Tax agency cracks down on use of cryptocurrencies to hide assets

  　South Korea’s tax agency said on March 15 that it had caught more than 2,400 individuals who hid assets in virtual currencies to avoid taxation. 　The National Tax Service collected data from digital currency exchanges and caught 2,416 tax delinquents who had concealed assets through cryptocurrencies such as Bitcoin, Ethereum and Ripple. The concealed assets totaled 36.6 billion won ($32.24 million), the officials said. 　The probe targeted people with over 10 million won in delinquent

• Markets 
  

  Sanction likely to be delayed as NH CEO gets COVID-19

  　A sanction committee under the Financial Supervisory Service over the Optimus scandal will likely have to delay its upcoming meeting as one executive facing punitive measures has tested positive for the coronavirus, according to officials March 16. 　NH Investment & Securities’ chief executive Jeong Young-chae tested positive for the virus and is being placed under quarantine, according to the company. 　Jeong was to attend the third round of the sanction committee’s meeting on

• Markets 
  

  Coupang founder divests $42m stake after NYSE debut

  　Coupang founder Kim Bom-suk has divested his stake in the South Korean e-commerce giant worth $42 million, a filing showed March 16. 　According to the disclosure, Kim converted his Class B stocks into 1.2 million Class A common shares and then on Monday sold all the shares of the same class for the offering price of $35 apiece, which was fixed last week. Coupang‘s Class B shares give Kim 29 times more voting rights than Class A shares. A prospectus filed to the US Securities and Exchang

• Markets 
  

  Kosdaq lobby group chief calls for incentives to lure blue-chip firms

  　The new chief of an association representing listed firms on South Korea’s tech-heavy market said on March 16 that the second-tier Kosdaq needs various incentives to attract more blue-chip companies and investors and prevent the exit of unicorn companies to bigger markets. 　“The Kosdaq market has been regulated stricter than the Kospi market. Regulations such as issuing an ‘investment alert’ to protect investors unintentionally cause the market to be undervalued,”

• Markets 
  

  Investors flock to unicorns after Coupang‘s IPO jackpot

  　The race to bid for unlisted companies‘ next initial public offering bonanza among South Korean investors is intensifying, data showed March 14, as the recent high-profile deals including Coupang’s $4.6 billion US IPO whet investor appetite. 　Krafton, which develops and publishes battle royale game PlayerUnknown’s Battlegrounds, saw its trading price spike on over-the-counter platforms here. 　The game developer is the country’s largest unicorn -- a term used to descr