Is there any need of foreign investment implementation through M&A in addition to the establishment of foreign-invested company through foreign capital inflow of foreigners?

  • Socioeconomic aspects

– It may minimize the social/ economic loss from the bankruptcy of companies with potential growth, withdraw and exit the declining companies (industries), and facilitate the advancement into growing companies.

– Management efficiency improvement and entry costs reduction in restructuring the industry

▶ Minimization of the lead time of establishing new management bases required in securing new technologies, know-how, human resources development, and new markets

– Reinforcement of market dominance and pursuit of economies of scale

▶ Expansion of company resource concentration and strengthening of market dominance by M&A

▶ Various expense reductions including raw material purchase expense, inventory management cost, fixed manufacturing cost, etc., and economies of scale attainable through M&A

O business aspect

Achievement of added value increase and increase of business synergy effects through expansion of company value chain

– Securement of technological superiority through R&D cost savings and improvement of market advancement time

 

o Financial aspects

– Risk diversification effects through risk decrease or profit increase of companies expected

– The increase of debt service ability and tax savings benefit expected