Foreigners Eager to Take Over Troubled Firms

Since the economic crisis descended on Korea in November 1997, foreign capital has been seeking out troubled and insolvent companies.
Foreign investors are eager to take over insolvent companies at bargain prices before the current economic surge gets too high. A booming market would raise prices for any mergers or acquisitions. Foreign capital has invested heavily in the stock market, but it has also bought a lot of risky bonds that banks held but were trying to unload. Foreign firms acquired bonds and mortgages at reduced rates hoping to make money when the market rebounded.
A fund from Hong Kong is now trying to invest in Korea First Bank.
It already brought 100 million dollars into Korea for investment and is aiming for a 30 percent annual return.
A source from the Korea Exchange Bank said on May 13, 'Recently Morgan Stanley staff members showed their intention to buy a large quantity of the bonds we hold, and we are examining the offer positively as a way of restructuring.'
Morgan Stanley took over various bonds in Japan and recorded high earnings in the short term.
Hwashik Bong : trojans@joongang.co.kr