This website uses cookies to ensure you have the best experience. Learn more

Lg Group's Success: Making Compromise Work

1326 words - 6 pages

LG Group's Success: Making Compromise Work
DOW JONES NEWSWIRES
While markets seem to be enthusiastic about the increased autonomy of the operating units, they are lukewarm about the holding company itself. LG Corp. currently trades at a deep discount of about 70% to the net asset value of its holdings, says J.D. Song, Seoul-based research analyst at Samsung Securities. Investors appear to be taking a wait-and-see approach to LG Corp.
"It takes time, but the holding company may become a good proxy for the companies they own," says Henry M. Seggerman, president of International Investment Advisers, a Korea-focused investment-management company in New York.
Still, some investors and ...view middle of the document...

What remains to be seen is whether in fact both models can work in Korea.
"The chaebol structure itself is not the critical problem," says Lee of Merrill Lynch, provided that the conglomerate produces reliable financial reports and makes proper disclosure of transactions conducted between affiliates. The combined forces of increased foreign shareholdings in Korean companies, more vigilant shareholder activism and government monitoring could help to keep the former abuses of big business in South Korea in check.
Nevertheless, some investors are asking if Samsung Group will follow LG's lead. A simple and transparent ownership structure could enhance Samsung's market valuation, not to mention investor confidence in the conglomerate.
"We have considered the holding-company model," says S.J. Choi, senior manager at Samsung group information headquarters. "But it is not possible for us under the current laws, where we should have more than 30% of shares in listed companies."
Indeed, for Samsung Electronics alone, the Lee family, which directly and indirectly controls about 22% of the company's shares, would have to purchase 8% more from the market. This could cost as much as 5.38 trillion won.
"All chaebols are not the same," says Lee of LG Corp. "Each has its own history and character."
LG Group is showing its talent for making compromise work. Some shareholder activists want to see the chaebol system dismantled and affiliates established as independent companies. The Korea Fair Trade Commission calls the holding company structure a "middle stage" of corporate reform in Korea. For LG, making it successfully to this "middle stage" may be just enough to secure it a place on the global stage.
 
Lex: Korean insurance
FT
When Goldman Sachs acquired a stake in Kookmin bank in 1999, some observers scoffed. Few foreigners had invested in South Korea's opaque banking world, and the country was still reeling from the Asian financial crisis. But these days Goldman Sachs is looking smug. It recently sold a third of its original $500m stake for $600m. With the rest valued at about $900m, this implies a threefold return - a profit that has since left competitors scrambling to invest in Korean banks too. Can Goldman Sachs repeat this trick? It wants to try; Daewoo International is trying to sell it its stake in Kyobo, potentially making Goldman Sachs the first large-scale foreign investor in insurance.
From some perspectives this second play looks a tougher gamble. Korea is in recession, exacerbated by labour unrest. Moreover, any exit strategy for Kyobo will be vulnerable to the regulators' whims. Korean insurance companies are not currently allowed to list on the stock market. Although the government is promising to change this, no date has been set.
But the price looks sweet; Goldman Sachs is likely to pay Won200bn for a 24 per cent stake in Kyobo, which has Won900bn of equity...

Other Papers Like Lg Group's Success: Making Compromise Work

Experimental Designs Essay

1286 words - 6 pages case studies Control Group Average of .89 times per student in 3 case studies Regular course work only Average of 1.13 times per student in 3 case studies The control group used emotional words an average of .89 times per student (in three case studies) on the pre-test and an average of 1.13 times per student (in three case studies) on the post-test. The difference in the control group's score from the pre-test to the post-test is +.24

Cell Phone Industry Analysis

5800 words - 24 pages 22 AT&T 23 Sprint Nextel 25 Industry Trends 26 Technology 26 Phone Design 27 Mergers 27 Market Growth 28 Security Issues 28 Mobile Commerce (mCommerce) 28 New Service Provider 28 Key Success Factors 29 Basic 29 Technical 29 Support 30 Industry Prospects and Overall Attractiveness 31 Factors Making the Industry Attractive 31 Factors Making the Industry Unattractive 32 Special Industry

Industry Analysis

5888 words - 24 pages Providers 22 Verizon 22 AT&T 23 Sprint Nextel 25 Industry Trends 26 Technology 26 Phone Design 27 Mergers 27 Market Growth 28 Security Issues 28 Mobile Commerce (mCommerce) 28 New Service Provider 28 Key Success Factors 29 Basic 29 Technical 29 Support 30 Industry Prospects and Overall Attractiveness 31 Factors Making the Industry Attractive 31 Factors Making the Industry Unattractive 32 Special Industry Problems

Hcs Reflection Paper

911 words - 4 pages Learning Team C Reflection Paper Mitzi Bullis Patricia Howe Kimberly Miller Ana Parrilla Kathleen Sullivan University of Phoenix HCS 350 Monday, December 8, 2014 Michael Veal Discuss the group's success in conducting a meeting or completing a task. Discuss potential reasons for a group's failure to meet their goals and objectives. What strategies do you use to improve success in conducting meetings or performing group tasks in

Case Analysis - Haier

1355 words - 6 pages of the products, resulting in higher prices and hampering industry growth. Thirdly, the escalating price wars kept the profit margins to a minimum. Big players, such as LG and Samsung, were keeping prices low to retain their market share while hardly making a profit. Lastly, sub-standard infrastructure contributed to making much of the rural market inaccessible. Poor condition of the roads and the delayed execution of rural electrification

Example of a Challenge in Health and Social Care

2378 words - 10 pages distressed may not be fully transmitted and can be misinterpreted. The Egan, (1986), five key component of active listening, known by ( sit straight, open posture, lean forward, eye contact and relax) in LG 16, K319 was not followed because of time factor stipulated in the safeguarding adult policy within 24 hours and the nervousness of my first time experience. We had the conversation in the kitchen where he was making a drink. The complexities of

Walton Bangladesh

3345 words - 14 pages process and coming up with a production schedule ● Sketch out timescale for the work ● Recognizing training need ●Making sure the production is cost effective. ● Responsible the production processes and regulate schedules as per requirement. ● Evaluating the performance of people working under them. ● Figuring out the estimate material and human resources that will be needed. ● Implementing the organizations goals and policies along with

Marketing Strategy of Walton

1602 words - 7 pages allows them to set a lower price than their competitors, as they don’t have to pay heavy import duty. Below is a comparison of the prices of different products of different brands- Table 01: Price comparison of Refrigerators |Model |Walton |LG |Transtee |Sharp | |10 CFT |26,200 |35,000

State Ant Government

4027 words - 17 pages provided with opportunities to take a continuing interest in its activities and problems. In a democracy, people have to work with great patience and perseverance. The importance of local government may be discussed under the following heads: * School of Democracy The Success of national democracy largely depends upon the success of democracy at the grass-root level.“Local governments are to total government what basic tissues are to

Management

729 words - 3 pages writing the contracts group's new procedures manual that will outline the steps followed in negotiating contracts since he has been working in the contracts group for about three years. Ricky Lee must ensure he clearly understand the assigned task before he delegates the work to Bill Harmon. Ricky Lee will ensure he explains exactly what needs to get done and the expected date of completion. Ricky Lee will provide all of the information needed to

Collaborative Marketing Plan

4045 words - 17 pages that they like anything that will make life easier. Typically this group will purchase the newest phones, tablets, televisions, gaming systems and music systems. They probably find that making their technology work and do as much for them as possible make them feel complete, happy and current, so why not add the Tracker Stickers to their life. They are mostly middle class, so they like a bargain so anything with a realistic promise that costs

Related Essays

Lg Financial Analysis

4790 words - 20 pages LG BUS650 LG Financial Analysis: The LG group The LG group is the largest global manufacturer of electronics. It is the third largest producer of mobile phones. It was begun in 1947 under the Lak Hui trading name. It was a cosmetics and trading concern (Lee, 2010). In the 1960s, the electronics division of the company, then named Goldstar, expanded into the current LG electronics. LG stood for Luk Hai Goldstar; it was changed to stand

Lloyd George's Policies Essay

2332 words - 10 pages 1918 LG had long been the most dynamic Liberal minister, he injected energy into the Liberal party to show that the party wasn’t doomed to decline. During the war he was made Minister of Munitions, where he was the one undoubted success of the coalition. He was dynamic and thus in due course very effective. His success as Minister of Munitions led to him becoming Prime Minister in December 1916, where he replaced Herbert

Lge Strategic Alliances And H Essay

1473 words - 6 pages LGE Strategic Alliances and Human Resource Management Chaebols is defined by business structures that consist of firms operating a diverse number of industries, but the group is controlled by a dominant family. The business group accounts for a large percentage of the economy – LG Electronics (LGE) is an example of one of this corporate structure. We will discuss how LG has impacted the South Korean economy as well as outline the positive and

History Exam Summary Essay

1903 words - 8 pages achievement, but essentially a compromise. * Mutual bitterness remained between LG and IRA. * Civil war in the New Ireland. * End of the 1918-22 coalition * It fell because 1) Policy failures – economic (Geddes axe) ,social, foreign affairs, 2) LG corruption ( using power of patronage to sell honours on a commission basis) 3) Conservative had labour doubts. 4) The coalitions decline in reputation. 5) Foreign affairs (chanak