The Minute to Read (Weekdays) series provides a quick overview of significant events in Korea everyday, conveniently condensed into a one-minute read. Here’s a recap of what happened yesterday: Sept 2.
Exclusive: Moon Jae-in’s daughter targeted in growing bribery investigation
South Korean prosecutors have expanded their investigation into allegations of preferential hiring involving former President Moon Jae-in’s son-in-law at Thai Eastar Jet to include Moon’s daughter, Moon Da-hye. Searches were conducted at her home, office, and vacation property as part of the inquiry, which has also implicated former President Moon in a bribery investigation. Prosecutors suspect that Moon’s son-in-law’s employment was secured in exchange for political favors, and they view his salary as a potential bribe. Additionally, large and suspicious financial transactions involving Moon Da-hye’s accounts have raised concerns about the origin of these funds, prompting further scrutiny into possible money laundering, tax evasion, and unreported gifts.
Court to decide fate of debt-ridden TMON and WeMakePrice
South Korean e-commerce giants TMON and WeMakePrice are nearing bankruptcy, burdened by a combined debt of 1.3 trillion won (approximately $971.67 million). After a court-approved debt restructuring period failed to produce a viable recovery plan, the Seoul Bankruptcy Court announced it would not extend the deadline, prompting an imminent decision on whether to initiate formal rehabilitation proceedings. If the court opts for rehabilitation, a significant portion of the debt may be forgiven, but if rejected, the companies could face liquidation, leaving around 48,000 sellers at risk of substantial financial losses.
Nasdaq tightens belt, delists 330 firms as KOSDAQ adds 130 in growth surge
The number of companies listed on the U.S. Nasdaq has decreased by around 330 over the past year, while Korea’s KOSDAQ market saw an increase of about 130 companies in the same period. This divergence is attributed to Nasdaq’s strict delisting criteria for underperforming companies and a robust mergers and acquisitions (M&A) culture that often leads to companies being acquired and delisted. In contrast, KOSDAQ lacks similar delisting mechanisms and has a weaker M&A culture, allowing more companies to remain listed. As a result, Nasdaq’s listings have dropped, while KOSDAQ’s have continued to grow.
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