🚨 M&A Market Revival: UBS, KB Securities, NH Investment Fight for Top Spots in First Half
Today Korean Economic News | 2025.07.01
📌 Trillion-Won Big Deals Revive M&A Market, Global and Local Banks Compete for Rankings
💬 Korea's M&A market gained strong momentum in the first half of 2025 as large deals increased, leading to fierce competition among investment banks. UBS took the top spot in M&A financial advisory by handling major deals including Samsung Electronics' acquisition of European cooling equipment company Qlect. KB Securities led in IPO (Initial Public Offering) and DCM (Debt Capital Markets) sectors, while NH Investment Securities ranked first in ECM (Equity Capital Markets). Industry experts expect competition among investment banks to intensify further in the second half as large corporations continue business restructuring and new listing plans.
1️⃣ Easy to Understand
Korea's M&A market became very active in the first half of this year, creating fierce competition among investment banks. Large deals increased, and each investment bank showed their strengths in different areas.
Let me explain what 'M&A' means in simple terms. M&A stands for 'Mergers and Acquisitions.' In simple words, it means one company buying another company (acquisition) or two companies joining together (merger). Think of it like a big convenience store chain buying smaller stores, or two companies combining to become one bigger company.
Investment banks play important roles in M&A deals. They work as middlemen between companies that want to buy and companies that want to sell. They help evaluate fair prices and guide the deal process, providing 'financial advisory' services. Investment banks earn fees from this work.
The first half of this year saw many large-scale deals. A good example is Samsung Electronics buying Qlect, a European cooling equipment company. These big deals are called 'big deals,' usually meaning transactions worth more than 1 trillion won.
UBS is a Swiss global investment bank that took first place in M&A financial advisory by handling these large deals. KB Securities is a Korean investment bank that led in IPO (when companies go public on the stock market) and corporate bond issuance. NH Investment Securities ranked first in helping companies issue new stocks to raise money.
This trend shows Korean companies are actively moving forward with business expansion and restructuring. It's also a positive sign that the economy is recovering, with companies investing more and increasing fundraising activities.
This active movement is expected to continue in the second half, making competition among investment banks even more intense.
2️⃣ Economic Terms
📕 M&A (Mergers and Acquisitions)
M&A means corporate mergers and acquisitions, which are major ways for companies to grow or restructure their business.
- Acquisition: One company buying stocks of another company to gain control
- Merger: Two or more companies joining together to become one
- Main purposes include business expansion, increasing market share, and creating synergy effects.
📕 Financial Advisory
Financial advisory is a service where investment banks provide expert advice for important financial transactions like M&A and IPO.
- Includes company valuation, deal structure design, and negotiation support
- Uses professional knowledge and experience to find the best conditions in complex financial deals
- Earns fees based on deal size, with larger deals bringing higher profits.
📕 IPO (Initial Public Offering)
IPO is when a company first lists on the stock market and offers shares to public investors.
- The process of a private company becoming a public company
- Companies can use raised funds for business expansion or debt repayment
- Investment banks serve as underwriters in the IPO process and earn significant fees.
📕 DCM (Debt Capital Markets)
DCM refers to markets where companies raise money by issuing bonds.
- Includes various bond products like corporate bonds, convertible bonds, and hybrid securities
- Has relatively less impact on corporate governance compared to stock issuance
- Investment banks earn fees by underwriting bond issuances.
3️⃣ Analysis and Economic Outlook
✅ Reasons for M&A Market Growth and Its Meaning
Let's analyze why Korea's M&A market became active in the first half of 2025 and what it means economically.
First, large corporations' active overseas expansion and business diversification led to increased M&A activity. Samsung Electronics' acquisition of Qlect is a prime example, representing a strategy to diversify its portfolio beyond semiconductor business. As AI and data center markets expand, the importance of high-performance cooling systems has grown, leading to acquisitions to secure related technologies. This represents strategic investment for future technology competitiveness, not just simple market expansion. Other large corporations are also acquiring related companies to respond to mega-trends like carbon neutrality and digital transformation, suggesting continued growth in the M&A market.
Second, expectations of interest rate cuts and improved liquidity promoted M&A deals. As high interest rates gradually stabilized, companies' fundraising burdens decreased. Large M&A deals require significant capital, and reduced interest burden enabled companies to pursue aggressive acquisitions. Stock market recovery also contributed to M&A activity. Rising corporate values made fundraising through stocks easier, while allowing reasonable valuation of target companies.
Third, needs for restructuring and business reorganization increased M&A demand. Many companies are reorganizing their business portfolios to adapt to the changed industrial environment after COVID-19. Particularly, traditional manufacturers are acquiring companies to secure digital technology capabilities, while startups are pursuing integration to achieve economies of scale. This is seen as essential for survival rather than simple expansion, becoming a structural growth driver for the M&A market.
The first half M&A market activation appears to be the beginning of structural change rather than a temporary phenomenon, expected to positively impact Korean companies' global competitiveness and industrial innovation.
✅ Competition Structure and Differentiation Strategies Among Investment Banks
Let's examine major investment banks' first-half performance and their differentiated competitive strategies.
First, UBS's top ranking in M&A financial advisory results from its global network and expertise. UBS topped the M&A financial advisory rankings by effectively utilizing its strengths as a global investment bank. Particularly in Korean companies' overseas acquisition deals, UBS's global network and local market understanding provided significant help. In Samsung Electronics' Qlect acquisition, deep understanding of European markets and local regulatory response capabilities were key selection factors. This shows that domestic investment banks need overseas expansion and local expertise to build global competitiveness.
Second, KB Securities' leadership in IPO and DCM sectors represents successful strategy focused on the domestic market. KB Securities achieved good results in IPO and bond issuance based on long relationships with domestic companies and market understanding. It particularly shows strength in IPOs of mid-sized and growth companies, with providing customized services based on understanding these companies' characteristics as a competitive advantage. Its ability to accurately assess domestic investors' investment preferences and market conditions to propose optimal listing timing and pricing is also highly valued.
Third, NH Investment Securities' first place in ECM represents synergy effects from comprehensive financial services. NH Investment Securities' top ranking in equity issuance markets results from utilizing NH Financial Group's comprehensive financial service capabilities. The strategy of expanding relationships with corporate clients built through various financial services like banking, insurance, and cards into investment banking business is showing effects. Particularly, its ability to comprehensively understand companies' fundraising needs and propose long-term financial strategies beyond simple stock issuance serves as a differentiation factor.
While each investment bank's success factors differ, the common key is accurately understanding customer needs and providing differentiated services based on expertise.
✅ Second Half Investment Banking Industry Outlook and Challenges
Let's analyze the second half outlook for the investment banking industry and challenges for sustained growth.
First, market activity is expected to continue in the second half with large M&A and IPO pipeline deals. Several large corporations are currently considering additional M&As, with acquisitions for technology securing expected to increase particularly in AI, bio, and eco-friendly energy sectors. The IPO market also has significant pipeline deals, with second-half activation expected. Particularly, listings of companies in Korea's competitive sectors like K-beauty, gaming, and IT services are scheduled, suggesting intense competition among investment banks for deals. However, global economic uncertainty and geopolitical risks may affect deal execution, requiring careful approaches.
Second, ESG and digital transformation will become new growth drivers for investment banking business. As companies strengthen ESG (Environmental, Social, Governance) management and accelerate digital transformation, M&A and fundraising demand in related fields is rapidly increasing. Acquisitions of eco-friendly technology companies for carbon neutrality, green bond issuances, and ESG-related IPOs are increasing, requiring investment banks to secure related expertise. M&A and listings of digital technology companies in AI, big data, and blockchain are also becoming important revenue sources, making deep understanding and valuation capabilities in these fields crucial for competitiveness.
Third, capability enhancement to respond to intensifying global competition is urgent. With limited growth potential from the domestic market alone, investment banks must pursue overseas expansion and global capability building. As Korean companies' overseas expansion increases, expertise and networks in local markets become more important. This requires recruiting excellent overseas talent, building local partnerships, and establishing work processes meeting global standards. Utilizing fintech and digital technologies to improve work efficiency and customer service is also an important challenge.
The second half investment banking industry faces both opportunities and challenges, requiring sustained growth through expertise enhancement and differentiated service development.
4️⃣ In Conclusion
The activation of Korea's M&A market in the first half of 2025 is a positive signal showing the dynamism of the Korean economy and companies' willingness to innovate. The fierce competition among investment banks like UBS, KB Securities, and NH Investment Securities based on their unique strengths also indicates market soundness.
Particularly, the increase in large deals like Samsung Electronics' Qlect acquisition means Korean companies are actively moving to strengthen global competitiveness. This is evaluated as strategic movement pursuing sustainable growth through future technology securing and business portfolio diversification, beyond simple scale expansion.
Performance differences among investment banks reflect their respective expertise and differentiation strategies. UBS stands out with global networks and overseas M&A expertise, KB Securities with domestic corporate relationships and IPO capabilities, and NH Investment Securities with comprehensive financial service synergies. These various competitive approaches ultimately lead to better services for corporate clients.
While active movement is expected to continue in the second half, variables like global economic uncertainty and geopolitical risks must be carefully monitored. Particularly, as ESG and digital transformation-related deals increase, investment banks face challenges in securing new expertise.
Ultimately, the growth of the investment banking industry is expected to positively impact the entire economy by serving as important infrastructure supporting Korean companies' innovation and growth. We hope Korean investment banks will enhance their status as Asian financial hubs through continuous expertise improvement and global competitiveness building.