S.Korean CEOs chase M&A targets in same industry

Some 72% of South Korea's chief executives surveyed by consulting firm EY intend to carry out M&As within the next 12 months to increase their market share, according to its South Korean unit EY Hanyoung on Monday.

That percentage marked the highest-ever figure in 10 years for Korean CEOs, who expressed their willingness to chase M&As and was up 23 percentage points from the previous year's 49%.

The figure is also higher than the average 59% for CEOs of 2,200 global companies, who are inclined to conduct M&As, according to the EY's survey.

When asked for the motivation in pursuing an M&A, 43% of the Korean respondents chose a bigger market share through a bolt-on acquisition of a company in the same industry.

Strengthening capabilities came second with 36%. Securing technology, talent and new capacity or buying startups ranked third with 9%. Bolstering environmental, social and governance (ESG) capabilities scored 5%.

Regarding the country of a target company, Korean CEOs preferred domestic rivals the most with 32%, followed by those in China with 25%.

In 2021, M&A transactions in South Korea soared to a record $47.7 billion in value, up 21% on-year.

Write to Ji-hye Min at spop@hankyung.com
Yeonhee Kim edited this article.