Significant Decline in M&A Activity Among South Korea's Top Corporations

This year has witnessed a substantial drop in merger and acquisition (M&A) investments by large South Korean corporations. Despite Korean Air's successful acquisition of Asiana Airlines, global market instability and a sluggish domestic economy have contributed to a general decline in M&A investments.

According to CEO Score, a corporate data research firm, the total M&A investment this year amounted to 8.58 trillion won (approximately $5.98 billion), marking a 39.3 percent decrease from last year's 14.13 trillion won. The number of completed M&A deals this year totaled 50, a 42.5 percent drop from last year's 87 deals.

Major corporations have taken a conservative approach toward M&A investments, with only Korean Air's acquisition of Asiana Airlines exceeding 1 trillion won this year. Other notable players, such as Kakao, SK, and Naver, have significantly reduced their M&A activities.

The most significant M&A deal of the year was Korean Air's acquisition of Asiana Airlines, which concluded a four-year-long process with an investment of 1.5 trillion won. Hanwha Group's strategy to strengthen its marine division through the acquisition of Dyna-Mac also drew attention.

Looking ahead, next year's M&A market could be more dynamic, with major deals in the pipeline involving companies such as Hankook Tire & Technology, Woori Financial Group, and Hanwha Systems-Hanwha Ocean.