외국인 투자자의 KT&G 적대적 기업인수 사례연구

Abstract

KT&G was the focus of a case study demonstrating the effects of a hostile M&A of hedge funds. Through this case study, we will find out that even if a certain company has an excellent governance structure which is strongly encouraged by business specialists and government, the structure of excellence itself sometimes results in the high possibility of hostile M&A attempts. Under the IMF system, there was a wide range of regulation abolitions over foreign capitals so as to attract them to domestic market. Previous researches discovered the existence of reverse discrimination between foreign and domestic investors in South Korea during this period. One year of investment in KT&G by Carl Ichan Union and Steel Partners gained more than 40% of the whole investment as a trading profit. This is a typical example of market distortion from hostile M&A of hedge funds which pursues short term trading profit only. However, KT&G successfully defended management, though defense activities were not aggressive. KT&G accepted nearly all of the requirements from the bidders under mutual agreements. Many studies have demonstrated the positive effects of M&A specifically; it follows the logics of the market economy. However, we also can observe the necessity of an institutionally complementary system on domestic markets where reverse discrimination between foreign and domestic investors exists. An institutionally complementary system is essential to solving this problem, in addition to researchers and professional specialists continually striving to produce appropriate systems.