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from Financial Regulatory Forum:

S.Korea scrutinises bank M&A financing practices

Daewoo Centre Building, former Daewoo Group headquarters, which is being remodeled by Daewoo Engineering & Construction, is seen in Seoul June 29, 2009. South Korea's Kumho Asiana Group said it had decided to put Daewoo Engineering & Construction up for a sale to ease investors worries about its liquidity.   REUTERS/Lee Jae-Won (SOUTH KOREA BUSINESS)    SEOUL, July 2 (Reuters) - South Korea has started looking into banks' practice of participating in mergers and acquisitions deals as financial investors, an official said on Thursday, signalling a possible measure to limit M&A financing.
   The move comes as South Korea's Kumho Asiana Group faces liquidity problems after buying Daewoo Engineering & Construction <047040.KS> together with financial sponsors for 6.4 trillion won ($5 billion) in 2006.
   With the December deadline to buy back Daewoo shares from financial investors in a "put-back option" looming, Kumho on Sunday announced a plan to sell the country's No.3 builder. [ID:nSEO340774]
   "Put-back options could hurt the buyers' balance sheets, and in turn hurt their creditor banks, too," said an official of the Financial Services Commission (FSC), the financial watchdog. The official asked not to be named before thw watchdog completes its scrutiny.
   "We are looking into the matter from a broader perspective: how to monitor companies' asset quality before they worsen and how to get creditor banks to notice risk factors in M&A deals."
   Kumho had provided the right to financial investors, including Mirae Asset and domestic banks, to sell back Daewoo shares at 31,500 won per share around the end of this year. The price is more than double Thursday's closing price of 12,850 won.
   FSC Chairman Chin Dong-soo said in parliament on Wednesday that "put-back options" could cause problems, and the watchdog would review the issue.
   The FSC official said measures the government agency was considering included raising banks' voice in the activities of large business groups as creditors, which has weakened since conglomerates increased bond sales for fund-raising about a decade ago. ($1=1267.4 Won)

from Tales from the Trail:

The First Draft: Obama recipe – take crisis-filled agenda, add one Iran

There is a new crisis on the agenda for President Barack Obama.

While trying to revitalize a nosediving economy, rebuild the collapsing auto industry, rein in North Korea's unpredictable Kim Jong-il and overhaul the costly healthcare system, Obama now can ponder his response to an Iran reeling from a disputed election and the biggest street protests since the 1979 Islamic revolution.

Several leading Republicans have hammered Obama for what they say is a too cautious approach to the disputed vote that gave hardliner President Mahmoud Ahmadinejad a big win over former Prime Minister Mirhossein Mousavi. Obama said on Monday he was "deeply troubled" by the post-election violence but it was up to the Iranians to work out who their leaders will be.

from Global News Journal:

An Interview With South Korea’s Box Office Champ Director Bong Joon-ho

The South Korean director whose movie about a mutant river monster became the country's biggest box office hit has a new film on what might be an even more terrifying subject -- an maniacally obsessive mother.

Bong Joon-ho sat down last week for an interview with Reuters about his new movie called "Mother"that debuted last month at the Cannes International Film Festival and has quickly become one of South Korea's biggest hits of the year.

from Raw Japan:

North Korea’s test of wills

Japan, perhaps the most nervous neighbor of unpredictable North Korea, is also the least able to overtly make its fears felt, after this week's nuclear test.

Analysts point out the combination of Tokyo's history of antagonism with the North and the fact that Pyongyang boasts missiles that could hit almost anywhere in Japan pose particular risks for the world's second largest economy.

from DealZone:

Coke, eBay activity in Asia

CHINA-ECONOMY/PROPERTYIs it a sign of recovery that cross-Pacific deals are making a comeback? Certainly the mighty dollar makes overseas assets cheap, and foreign governments are probably more willing to create less friction on inflows with investment markets quiet.

In a deal that only a month ago was dead in the water, with a big protectionist steak through the heart, Coca-Cola’s bid to get into the Chinese market appears to be coming back to life. The company is now reported to be holding informal talks with China Huiyuan Juice to weigh partnership options after the $2.4 billion deal -- the largest-ever buyout of a Chinese company by a foreign rival – was scuppered.

from Global News Journal:

North Korean Revolutionary Tunes Sink to Bottom of the Sea

                                              By Jon Herskovitz

North Korea says somewhere up in the sky, a satellite it launched at the weekend is beaming to earth two revolutionary paeans: "Song of General Kim Il-sung" for the founder of the reclusive state and "Song of General Kim Jong-il," for the son who succeeded him when he died.

from Reuters Soccer Blog:

South Korea rejects North Korea poisoning claim

South Korea has rejected claims by North Korea that it poisoned its players before last week's 2010 World Cup qualifier in Seoul, as tensions mounted over the North's long-range rocket launch on Sunday.

Kim Joo-sung, (South) Korean Football Association (KFA) international affairs chief, said the accusations were politically motivated and baseless.

from The Great Debate:

What Asia needs from the G20 meeting

stanchartJaspal Bindra is Chief Executive, Asia, for Standard Chartered Bank. The views expressed are his own.

Asia has come of age. When leaders from the Group of 20 nations converge in London, Asia's rising powers - China, India,  Korea and Indonesia - will be sitting at the global high table to decide on ways to reshape the world's financial and economic order.

from Raw Japan:

Asia’s baseball classic

BASEBALL-WORLD/Say, Amen, somebody!

The creators of the World Baseball Classic envisioned a global tournament spread over at least two continents and multiple time zones, featuring the greatest players and national teams possible.

That baseball aim, largely achieved in the inaugural 2006 event and even more so this year, may not completely jibe with the all-Asian WBC final between Japan and South Korea in LA on Monday, but no fan of the sport's finest would complain after an thrilling extra-inning game that ended in a 5-3 win to Japan.

from Global News Journal:

North Korea’s Kim Jong-il: Proof of life

                                                          By Jon Herskovitz

It is not often that I am reminded of Russell Crowe and Meg Ryan in our coverage of North Korean leader Kim Jong-il.  But I thought of the 2000 movie starring Ryan and Crowe called “Proof of Life”   North Korea this week when  served up pictures of its Dear leader Kim and a communist party newspaper with a clearly marked Tuesday date.

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