South Korea’s M&A Deals Decrease by Half in 2022 Due to Rising Interest Rates
South Korea saw a significant decrease in mergers and acquisitions this year, with the total value of deals dropping by 45% compared to the previous year. The data, compiled by Maeil Business Newspaper, revealed that the total value of M&A transactions in Korea in 2022 was 39.4 trillion won. This decline was mainly driven by a sharp decrease in deals worth more than 1 trillion won.
There were only eight large M&A deals worth 1 trillion won or more this year, representing a 47% drop from the previous year. The challenging market conditions, including rising interest rates, played a significant role in this decline.
However, there is optimism for the M&A market to bounce back in the coming year. Experts like Park Dae-joon from Samil PricewaterhouseCoopers anticipate a recovery in the M&A sector as corporate restructuring efforts gain momentum.
In terms of advisory services, Credit Suisse ranked at the top for advising on the acquisition of corporate management rights, while Samil PricewaterhouseCoopers excelled in financial consulting. Legal consulting was dominated by Kim & Chang, and KB Securities stood out in equity and bond market consulting.
Despite the challenges faced in 2022, the M&A market in South Korea is poised for a resurgence as we head into the new year.
