Domestic companies are making large-scale investments by the end of the year · A surge in capital increase... Global expansion officially kicks off

Major publicly listed companies in China are actively engaging in capital contributions and paid-in capital increases as the year-end approaches, accelerating their business expansion and improving their financial structure. This is interpreted as a strategy to strengthen competitiveness amidst economic uncertainty.

NCsoft announced that it will acquire shares of its local entity in Singapore for 153.4 billion won. As NCsoft accelerates its entry into the global gaming market, it seems to hope that this investment will strengthen its foothold in Southeast Asia. Due to the relatively low corporate tax rate in Singapore and its role as a gateway to Asia, many domestic companies are treating this as part of their global strategy and are investing in entities in the region.

The health functional food specialized company Kolmar BNH has decided to invest 26.6 billion Korean Won in its subsidiary “Jiangsu Kolmar Meibao Technology” located in Jiangsu Province, China. This move aims to strengthen the local production base and seek market expansion. On the other hand, Hanwha Engine has also invested 290.8 billion Korean Won in its Norwegian subsidiary, striving to expand its foothold in the shipbuilding and marine sectors in the European market.

In addition, there has been a continuous stream of news regarding paid capital increases. Megatouch and Dajin Advanced Materials have each conducted third-party placements for paid capital increases of 16.4 billion KRW and 13 billion KRW, respectively. The investment funds are expected to be used for business expansion or operating capital. In particular, Dajin Advanced Materials is expected to expand cooperation in the future with the mineral specialty company Guangwu participating as a shareholder.

On the other hand, fashion company F&F has withdrawn the 370 billion won damage compensation lawsuit against its UK partner and reached an agreement. This can be considered a successful escape from judicial risk, reducing the uncertainty of overseas business operations. On the same day, STX applied to the Seoul Rehabilitation Court for rehabilitation and voluntary restructuring support procedures. Long troubled by operational difficulties, STX plans to promote debt adjustment and corporate normalization through this move.

The reason why companies choose to ensure growth momentum and improve financial soundness through means such as paid-in capital increases and overseas investments is due to the effort to maintain a competitive advantage in survival even in the context of high interest rates and economic slowdown. In particular, the purpose of securing funds to strengthen global market position or enhance core technological capabilities is very clear.

This trend is likely to continue into next year. As companies gradually finalize their preparations to respond to the global supply chain restructuring and economic rebound, domestic and foreign investments are expected to become more active.