Amid COVID-19, Large Conglomerates Restructuring Businesses

Large conglomerates are rapidly restructuring their businesses in an effort to help cushion the negative impact caused by the prolonged COVID-19 pandemic, The Korea Times reported. As corporations are struggling with looming challenges from the global recession induced by the virus pandemic, they are selling not only cash-strapped units but also cash-generative businesses to secure liquidity. The Fair Trade Commission (FTC) said mergers and acquisitions (M&As) rose sharply in the first half of this year compared with the same period in 2019. The FTC said the combined value of M&As, which involved local companies and that were approved by the antitrust regulator from January to June, was 18.8 trillion won ($16.2 billion), a 48.1-percent increase from the 12.7 trillion won recorded in the same period in 2019. Also, the number of M&A cases increased to 356 from 270 from a year earlier. Read more