South Korean cross-border M&As plunge by over 40% in H1 2023

Cross-border mergers and acquisitions (M&A) involving South Korean companies have dropped over 40% in H1 2023 compared to the previous year, according to a report from the Korea Chamber of Commerce and Industry. The global M&A market also saw a decrease of 39.5%, with transactions in high-tech sectors like semiconductors, energy, and biotechnology being particularly affected. The report highlights concerns of diminishing enhancement of corporate technology via M&As. SGI Research Fellow Kim Kyung-hoon sees the downturn as a potential opportunity for investors, and urges for policy support to revive the M&A market and improve the domestic economy. The report suggests special assistance for venture start-ups unfamiliar with overseas M&A, and considers the acquisition of US tech start-ups facing funding challenges as a potential opportunity.