[[ASIA BIZ]] Geely and BYD Target Global Aging Car Factories for Acquisition Chinese automaker Geely is reportedly in talks to acquire the third body assembly line at Ford's Valencia plant in Spain, according to local media. This line previously produced models such as the Ford Mondeo and S-Max but has been inactive since those models were discontinued. Geely plans to renovate the line for the production of small electric vehicles (EVs) and hybrids specifically for the European market. Recent reports from Chinese economic media outlet, The Economic Observer, indicate that Chinese automakers are expanding their global production bases by acquiring aging overseas factories at low prices. As traditional automakers streamline production in response to the shift toward electric vehicles, they are selling off internal combustion engine production facilities, creating opportunities for Chinese companies to accelerate their localization strategies. Chinese Capital Acquires Ford, Mercedes-Benz, and Nissan Factories Chinese investments are rapidly filling the void left by Western and Japanese automakers in regions such as South America, Africa, and Southeast Asia. A notable example is Chery Automobile's push to acquire Nissan's factory in South Africa. The company has reportedly agreed to purchase the Nissan plant located in the Rosslyn area, which has been a key production site in South Africa for over 60 years, producing 45,000 pickup trucks annually. In Brazil, the largest automotive market in South America, Chinese companies continue to make inroads. Great Wall Motors (GWM) acquired a former Mercedes-Benz factory and began production of 30,000 vehicles annually in August of last year. BYD also acquired a closed Ford factory in Bahia, Brazil, in March 2024 and started electric vehicle assembly in October. These moves come as intense price competition and oversupply in the Chinese automotive market have led to declining profitability, prompting companies to look abroad. BYD, a leader in the electric vehicle sector, reported a 50% drop in net profit for the first quarter compared to the same period last year, indicating a prolonged slowdown. In response, BYD is aggressively targeting international markets, with overseas sales accounting for 46% of its total sales. The company has set an ambitious overseas sales target of 1.5 million units this year, a 40% increase from the previous year. Chinese Automakers Shift Focus from Exports to Local Production Chinese automakers are increasingly recognizing the necessity of establishing local production systems abroad rather than relying solely on exports. With the European Union, the United States, Canada, and Brazil imposing higher tariffs to limit the influx of Chinese electric vehicles, companies are moving to circumvent these barriers through local production. According to the Rhodium Group, a U.S. market research firm, the scale of overseas investments by Chinese electric vehicle manufacturers surpassed domestic investments for the first time last year. Acquiring existing idle factories is viewed as a more efficient approach in terms of time and cost compared to building new plants. While new factory construction typically takes 3 to 5 years, existing factories can be renovated and operational within about a year after acquisition. Chui Dongxu, secretary-general of the China Passenger Car Association (CPCA), noted, "The global strategies of Chinese automakers show a similar trend to the globalization process of the Japanese automotive industry in the past." Initially focused on exporting vehicles for the domestic market, the strategy has evolved to include sending parts for local assembly (KD production) and ultimately establishing local production systems. Aiming for a 'Yaris Moment' in the European Hatchback Market To penetrate global markets, Chinese automakers are accelerating the development of models tailored to regional consumer preferences. This strategy recalls Toyota's successful approach in Europe with its small hatchback, the Yaris, which capitalized on local tastes. Pedro Pacheco, an analyst at Gartner, stated through Reuters, "Chinese automakers are striving to replicate the 'Yaris Moment.'" Hongqi, a brand under the state-owned automaker FAW Group and known for its ceremonial vehicles for President Xi Jinping, unveiled a small global SUV aimed at the European market at the recent Beijing Motor Show. Additionally, companies like BYD, Chery, Great Wall, SAIC, and Hongqi are developing models ranging from small hatchbacks for Europe to pickup trucks for markets in Australia and Mexico. While hatchbacks are in low demand in China, they are highly sought after in Europe, where practicality and narrow road conditions drive their popularity. In some regions of Southern Europe, hatchbacks account for over 40% of new car sales, showing robust growth. BYD plans to launch its specially designed 'Dolphin G' hatchback model for the European market in June. Chery's new global brand, Rephas, is also developing a hatchback model aimed at Europe, while SAIC's brand MG is expected to release the MG2 hatchback model in Europe. 2026-05-12 05:25:28

Korean Tire Companies Face EU Anti-Dumping Duties Amid Rising Costs Domestic tire manufacturers have reported solid first-quarter results despite rising global raw material costs. The increase in sales of high-inch tires has been driven by a surge in global demand for electric vehicles and sports utility vehicles (SUVs). However, the European Union's announcement of anti-dumping duties on Chinese tires could lead to increased volatility in second-quarter results. According to industry sources on May 11, the three major South Korean tire companies—Hankook Tire & Technology, Kumho Tire, and Nexen Tire—saw improvements in their financial performance for the first quarter. Hankook Tire's operating profit in its tire division reached 437.5 billion won, a 31.1% increase compared to the same period last year. Kumho Tire and Nexen Tire reported operating profits of 147 billion won and 54.2 billion won, respectively, marking increases of 0.3% and 33.1% year-on-year. The three tire manufacturers achieved relatively stable results, bolstered by increased sales of electric, high-inch, and replacement tires. Analysts attribute this improvement to a strategy focused on expanding premium product sales amid a market shift toward SUVs and electric vehicles. In fact, for the first quarter, the sales proportion of high-inch tires (18 inches and above) was 49.1% for Hankook Tire, 45.1% for Kumho Tire, and 40% for Nexen Tire. Despite the first-quarter gains, trade risks for the tire companies are escalating. The EU recently announced it would impose anti-dumping duties of up to 50% on passenger and light truck tires produced in China, effective June 16. Kumho Tire and Nexen Tire have been notified of anti-dumping duty rates of 29.9%. When combined with the existing EU import duty of 4.5%, the actual burden could reach as high as 34.4%. In contrast, Hankook Tire will face a relatively lower anti-dumping duty rate of 3.4%, resulting in a total tariff of 7.9%. Kumho Tire and Nexen Tire plan to seek a reduction in their duty rates through appeals before the tariffs take effect. An industry insider noted, "The remaining companies, excluding Hankook Tire, have been subjected to an average duty rate. We are exploring ways to mitigate tariff impacts, including increasing local production and filing appeals." Approximately 40% of the total sales for the three domestic tire companies come from the European market. Notably, about 50% of Kumho Tire's sales in Europe are produced locally in China, while Nexen Tire sources around 15% of its European tires from China. In addition to the anti-dumping duties, raw material prices for tires in China are also on the rise. According to data from the Chinese raw materials data firm Sunsear, the price of styrene-butadiene rubber reached 16,041 yuan per ton as of May 10, up 22.2% from 13,125 yuan on March 9. As a result, the three domestic tire manufacturers are considering strategies to gradually increase their domestic and European production volumes while boosting the export share of their domestic output. Industry analysts predict that the combination of tariff burdens and rising costs could lead to greater variability in corporate performance in the second quarter. According to financial information provider FnGuide, Kumho Tire's second-quarter operating profit consensus is projected at 145.6 billion won, a 16.9% decrease from 175.2 billion won in the same period last year. Conversely, Hankook Tire's operating profit is expected to rise to 549.3 billion won, a 58.5% increase year-on-year, while Nexen Tire's operating profit is projected to reach 48.3 billion won, an approximate 13% increase. 2026-05-12 05:23:19

Top Five Banks Increase Self-Rescue Efforts by 3.5 Times Amid Praise from President Lee President Lee praises financial commission's inclusive finance achievements President Lee Jae-myung publicly commended the financial commission's achievements in inclusive finance as "remarkable" during a cabinet meeting. This praise follows a shift in how banks manage delinquent loans, moving away from selling them to external collection agencies and instead focusing on internal debt restructuring and loan forgiveness to support borrowers' recovery. According to documents obtained by Aju Economy, self-managed debt restructuring by the five major banks (KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup) increased from 989 cases in the first quarter of 2025 to 3,456 cases in the fourth quarter of the same year, a rise of approximately 3.5 times. In contrast, the sale of delinquent loans plummeted from 35,000 cases in 2025 to just 11 cases in the first quarter of 2026. The financial commission views this as a transition from a focus on maximizing recoveries to one centered on recovery and coexistence. Historically, the financial sector has typically sold long-term delinquent loans to external collection agencies. While this allowed financial institutions to remove bad debts from their books, it often left borrowers facing prolonged collection pressures. Blue House condemns attack on Namwoo ship, identifies perpetrators "Our government firmly believes that attacks on private vessels like the Namwoo cannot be justified or tolerated," said a Blue House official. The government is taking a cautious approach regarding the identity of the attackers. National Security Office Director Wi Seong-rak made these remarks during a press briefing, stating, "We strongly condemn this attack." He added that while it is clear that attacks on commercial vessels warrant condemnation, the government is not currently identifying the perpetrators and is in the process of gathering information. On May 4, an explosion and fire occurred on the South Korean cargo ship HMM Namwoo, which was anchored in the Strait of Hormuz. Wi noted that two unidentified flying objects struck the ship's stern at one-minute intervals, causing flames and smoke. He explained that given the damage pattern and the height of the damage above sea level, the likelihood of a mine or torpedo attack appears low. Growing financial support for vulnerable borrowers raises concerns As inclusive finance expands within the banking sector, the scale of support for vulnerable borrowers is increasing. However, this growth also raises concerns about the financial burden on institutions. While there is consensus on the need to support vulnerable groups, there are fears that the performance metrics for inclusive finance may become a new standard for supervision and evaluation. On May 11, President Lee Jae-myung asked Financial Services Commission Chairman Lee Ok-keun during a cabinet meeting if there were ways to evaluate the implementation of inclusive finance and provide benefits or penalties, suggesting that the current system relies heavily on the goodwill of financial institutions. This comment hints at the possibility of incorporating the performance of inclusive finance for low-to-middle credit borrowers into the evaluation and management guidelines for financial institutions, which has been interpreted as a signal that it could go beyond mere recommendations and influence future supervisory and evaluation frameworks. Banks are already investing significant resources to expand support for vulnerable borrowers. The scale of long-term delinquent loan forgiveness and policy-driven financial support is also on the rise. This year, the total amount of long-term uncollected special bonds scheduled for forgiveness is estimated at 335.1 billion won, with Shinhan Bank accounting for the largest share at 269.4 billion won, followed by KB Kookmin Bank (33.5 billion won) and Woori Bank (32.2 billion won). Kakao shareholders frustrated over union bonus demands amid stock decline The Kakao union, which recently reported record earnings, is set to demand performance bonuses and may take collective action. This comes amid rising tensions following the Samsung Electronics union's call for a 10% performance bonus based on operating profit. However, unlike Samsung Electronics, which has seen its stock price reach all-time highs, Kakao's stock has been struggling, raising concerns that the company is prioritizing compensation demands over enhancing corporate value. On May 11, the KOSPI index surpassed 7,800, approaching the 8,000 mark, while Kakao's stock price has been moving between a high of 50,600 won and a low of 45,250 won. Despite reporting record earnings in the first quarter, Kakao's stock price fell on the same day. The ongoing decline in Kakao's stock price is attributed to uncertainties regarding its future growth potential. Although the company achieved record earnings in the first quarter, this improvement was largely due to restructuring effects rather than growth in its core business. The exclusion of Kakao Games and Kakao Healthcare from consolidated results has also contributed to the improved profit structure. Despite the performance improvement, concerns about slowing growth, uncertainties surrounding its artificial intelligence strategy, and underperformance in its content business continue to dampen market expectations.* This article has been translated by AI. 2026-05-12 05:20:45

Kakao Shareholders Upset Over Union Bonus Demands Amid Stock Struggles Kakao's union is set to demand bonuses as it prepares for collective action, following Samsung Electronics' union's call for a 10% bonus based on operating profit. This has intensified labor-management tensions in the industry. Unlike Samsung, which has seen its stock price reach record highs, Kakao's shares have plummeted to near yearly lows, raising concerns that the company is prioritizing bonus demands over enhancing corporate value. On May 11, the KOSPI index surpassed 7,800, approaching 8,000, while Kakao's stock price has been stagnant, causing distress among shareholders. Over the past month, the KOSPI surged nearly 30%, yet Kakao's shares fluctuated between a closing high of 50,600 won and a low of 45,250 won. Even on the day Kakao reported its highest-ever quarterly results, its stock price fell. The decline in Kakao's stock is attributed to uncertainties surrounding its future growth potential. Although the company achieved record quarterly results, the improvement in profitability was largely due to restructuring effects rather than organic growth. Excluding contributions from subsidiaries like Kakao Games and Kakao Healthcare has also altered its profit structure. Despite the record performance, concerns about slowing growth, uncertainties in its AI strategy, and underperformance in its content business have kept market expectations low. In this context, the Kakao union argues that the company’s record performance warrants corresponding compensation and is moving forward with collective action. The Crew Union of the National Chemical Fiber Food Industry Labor Union plans to hold a rally on May 20 at Pangyo Station in Seongnam, Gyeonggi Province. The union will begin accepting participant registrations on that day or the following day. This rally is intended to mobilize members and raise public awareness if negotiations with management do not proceed smoothly. Earlier, on May 7, the Kakao union declared a breakdown in wage and collective bargaining negotiations with management and submitted a mediation request to the Gyeonggi Regional Labor Relations Commission. This year's negotiations involve five subsidiaries, including Kakao, Kakao Pay, Kakao Entertainment, DK Tech, and XL Games. The union maintains that given Kakao's record performance, appropriate compensation is necessary. However, it is reported that they are not demanding a specific percentage of operating profit like Samsung's union. Internally, there is a recognition that many subsidiaries are still operating at a loss, making it challenging to demand uniform bonuses tied to operating profit. In shareholder communities and on Naver's stock discussion forums, reactions have emerged regarding the ongoing discussions about bonuses while the stock price remains low. Critics argue that internal compensation issues are being prioritized over restoring corporate value and returning profits to shareholders. Some investors have expressed frustration, stating, "Samsung Electronics, despite its bonus discussions, has seen its stock price rise, while Kakao's union is only focused on bonuses without any stock rebound," and others have commented that "restoring corporate value should take precedence over bonuses." Additionally, some investors have noted, "There seems to be no clear growth drivers since the appointment of CEO Jeong Shin-ah," and have suggested that unless a new major service akin to KakaoTalk emerges, the potential for stock price increases may be limited. Industry observers believe that the ongoing labor disputes at Kakao could influence wage negotiations across the broader IT sector, particularly in the platform and gaming industries, where demands for enhanced performance-based compensation may gain traction. However, with ongoing stock price declines and slowing growth, finding a balance between employee compensation and shareholder value remains a critical challenge for companies.* This article has been translated by AI. 2026-05-12 05:18:30

Russia and Ukraine Accuse Each Other of Ceasefire Violations, Peace Talks Stalled Russia and Ukraine are engaged in a heated exchange of accusations over ceasefire violations during a truce brokered by U.S. President Donald Trump. According to Yonhap News Agency, the Russian Defense Ministry reported on May 11 that since the ceasefire began at midnight on May 9, there have been a total of 23,802 recorded violations by Ukrainian forces within the designated "special military operation" zone. In just one day, the Ukrainian military allegedly fired 767 rounds using multiple rocket launch systems, artillery, and mortars in 12 separate incidents targeting Russian positions. Additionally, the Russian Defense Ministry claimed there were 6,905 drone strikes conducted by Ukrainian forces. The ministry also reported that 18 drones targeted civilian areas in the Belgorod region, which borders Ukraine, resulting in injuries to two residents. In response to these attacks, the Russian military stated it struck multiple rocket launch positions, artillery, and mortar sites, as well as command posts and drone launchers. Conversely, Ukraine accused Russia of continuing its assaults with kamikaze drones at the front lines. In a speech the previous evening, Ukrainian President Volodymyr Zelensky stated, "The Russian military has not adhered to any ceasefire at the front and has made no effort to do so." Zelensky noted that while there had been no large-scale drone or missile attacks targeting rear urban areas in the past day, Russian forces launched over 150 attacks at the front lines. He specifically mentioned that nearly 10,000 of these involved kamikaze drone strikes, along with more than 100 artillery shellings. "All Ukrainian units will respond in kind to Russia," Zelensky declared. Both sides had agreed to a three-day ceasefire from May 9 to May 11 to coincide with Russia's Victory Day celebrations marking the end of World War II. U.S.-mediated peace negotiations between the two nations have effectively stalled due to the ongoing situation in the Middle East. On May 8, U.S. Secretary of State Marco Rubio stated that while he is prepared to play a mediating role regarding the Russia-Ukraine war, he does not want to waste time if no progress is being made.* This article has been translated by AI. 2026-05-12 05:13:01

Coupang Files Lawsuit Against Fair Trade Commission Over Designation of Founder Kim Beom-seok Coupang has filed a lawsuit against the Fair Trade Commission (FTC) seeking to overturn its decision to designate founder Kim Beom-seok as the company's individual representative. According to Yonhap News on May 11, Coupang submitted the lawsuit to the Seoul High Court on May 8, contesting the FTC's designation. The company also filed for a suspension of the enforcement of this designation on May 9. On April 29, the FTC changed the designation of Coupang's representative from the corporation to the individual, Kim Beom-seok. This marks the first time since Coupang was classified as a corporate group with total assets exceeding 5 trillion won in 2021 that the FTC has altered its designation. The FTC determined that Kim's brother, Kim Yoo-seok, is effectively involved in Coupang's management, which led to the conclusion that the criteria for designating an individual representative instead of a corporation had been met. Under the Fair Trade Act, if an individual is designated as the representative, the corporate group must disclose additional information about stock ownership and transaction history of relatives, and the scope of regulations on profit-sharing is also expanded. Previously, Coupang responded to the FTC's announcement by stating, "Neither Kim nor his relatives hold shares in Korean affiliates, so there is no concern for profit-sharing issues," and indicated plans to pursue administrative litigation.* This article has been translated by AI. 2026-05-12 05:11:21

Prosecutor Park Sang-yong Appears Before Disciplinary Committee Over Salmon Party Allegations Prosecutor Park Sang-yong of the Incheon District Prosecutors' Office appeared before the Supreme Prosecutors' Office's disciplinary committee to address allegations of testimony coercion related to the 'salmon party' incident. He stated, "I provided a thorough explanation regarding the inaccuracies." The disciplinary committee convened on the afternoon of May 11 to deliberate on potential disciplinary actions against Park. The allegations under review include: the importation of alcohol into the investigation room, a recorded phone conversation disclosed by attorney Seo Min-seok, repeated summons, incomplete documentation, and consumption of outside food. According to Yonhap News, Park requested the opportunity to explain himself and waited for about three hours in the Supreme Prosecutors' Office's reception area before being allowed to present his case around 5 p.m. After concluding his explanation at approximately 6:17 p.m., he remarked, "I provided a thorough explanation regarding the inaccuracies. I feel grateful to the committee members for giving me this opportunity, and I believe I should repay this kindness by living faithfully, regardless of the conclusion they reach." Earlier, Park had expressed to reporters, "I have not been informed at all about the nature or number of the allegations against me. I wish to have the opportunity to explain myself to the external committee members as if I were knocking on the door of a public complaint office." He added, "Even regarding the salmon party, the correctional officers nearby were unaware of it, and if such an event did not occur, how could it be considered true? It is unprecedented in the history of the prosecution to impose disciplinary action based on the results of a lie detector test, which lacks evidentiary value, and it does not align with legal principles or reality." Park also stated, "If a disciplinary decision is ultimately made and I cannot accept it, I plan to file a lawsuit for cancellation." Park is under scrutiny for allegedly attempting to extract testimony from suspects, including former Gyeonggi Province Peace Vice Governor Lee Hwa-young and former Ssangbangwool Chairman Kim Seong-tae, by providing them with salmon and alcohol during the investigation into the Ssangbangwool North Korea remittance case on May 17, 2023. The Seoul High Prosecutors' Office's Human Rights Violation Task Force, which has been investigating the allegations, concluded that a drinking event did occur and reported this to the Supreme Prosecutors' Office. During a National Assembly investigation, Kim denied drinking alcohol, while a former Ssangbangwool director, identified as Park, claimed he purchased alcohol for personal consumption and drank it in his car. However, it has been reported that evidence, including corporate credit card records showing the purchase of soju at a nearby convenience store and the lie detector test results indicating truthful responses from Lee, were used as grounds for the allegations. The disciplinary committee's decision regarding Park's potential punishment will be advisory, and the Prosecutor General is not obligated to follow it. Nonetheless, the Prosecutor General has typically respected the committee's recommendations in determining disciplinary measures. Disciplinary actions against prosecutors can range from reprimands to suspension, dismissal, or removal from office, with the execution of penalties, excluding the mildest reprimand, requiring the Minister of Justice's recommendation and the President's approval. If a judge or prosecutor is dismissed as a disciplinary measure, they cannot practice law for three years.* This article has been translated by AI. 2026-05-12 05:08:56

Search Continues for Missing 11-Year-Old in Juwangsan National Park Search authorities are continuing their nighttime efforts to locate an 11-year-old boy, A, who went missing in Juwangsan National Park in Cheongsong County, North Gyeongsang Province. On May 11, officials from the North Gyeongsang Provincial Police Agency, the North Gyeongsang Fire Department, and the Korea National Park Service reported that they would deploy equipment and personnel for nighttime searches. Considering the weather conditions, the search will involve 80 personnel, including 40 police officers, 28 firefighters, and 12 national park staff, along with five drones equipped with thermal imaging cameras. The search teams plan to focus their efforts along the hiking trail from Giam Bridge, where A was last seen by his parents, to the summit, which stands at an elevation of 720.6 meters. The distance between Giam Bridge and the summit is approximately 2.3 kilometers. A police official stated, "The five drones will be operated until the rain begins, and the timing for concluding the search will be determined based on the situation on the ground." Earlier that day, authorities had already deployed a helicopter, two drones, and around 90 personnel in their search for A. Police reviewed closed-circuit television footage within the national park and found no indications that A's disappearance was related to any criminal activity. A, who lives in Daegu, had visited a temple in Juwangsan National Park with his parents the previous day. Around noon, he told them he would "just go up the mountain for a bit" and then disappeared. When A did not return, his parents reported him missing to emergency services at 5:53 PM that same day. A is described as approximately 145 centimeters tall and slender, wearing a Samsung Lions uniform and cap at the time of his disappearance. He did not have a mobile phone with him. In a phone call with Yonhap News Agency, A's father shared, "There is a short path from the temple to the mountain, and we were together until that point. That was the last time I saw him."* This article has been translated by AI. 2026-05-12 05:06:21

NHN to Buy Back 430,000 Shares and Burn Them to Enhance Shareholder Returns NHN announced it will buy back 430,000 shares and subsequently burn them, aiming to strengthen its commitment to shareholder returns. The company stated on May 11 that it will acquire 431,525 shares from May 12 to August 11. The total value of the buyback is approximately 16.7 billion won, and NHN plans to burn all acquired shares. KB Securities will manage the buyback. By burning the shares instead of holding them, NHN aims to reduce the number of shares in circulation and increase the value per share. According to Article 343, Paragraph 1 of the Commercial Act, the company explained that the board of directors has resolved to burn the treasury shares. This will decrease the total number of issued shares without reducing the capital. This initiative is part of NHN's three-year shareholder return policy announced last August. The company has committed to allocating 15% of its annual EBITDA to shareholder returns, which will be used for cash dividends and share buybacks. Notably, NHN plans to increase cash dividends each year, ensuring they exceed the previous year's per-share dividend. In line with amendments to the Commercial Act, starting in 2026, NHN intends to burn at least 50% of newly acquired shares within the same year to maximize benefits for shareholders.* This article has been translated by AI. 2026-05-12 05:04:33

Japan Approves MBK Partners' Acquisition of Altamira Holdings Korean private equity firm MBK Partners will acquire Japanese aluminum company Altamira Holdings for approximately 130 billion yen (about $1.2 billion). The Japanese government approved the transaction following a pre-review under the Foreign Exchange and Foreign Trade Act. This decision contrasts sharply with the recent recommendation to halt MBK's acquisition of Makino Precision, raising questions about the criteria used in Japan's economic security reviews. According to the Nihon Keizai Shimbun (Nikkei) on May 11, MBK plans to purchase shares of Altamira Holdings from U.S.-based Apollo Global Management. The total acquisition cost, including debt, is around 130 billion yen. Altamira specializes in aluminum cans and industrial aluminum materials, generating approximately 200 billion yen in revenue. It ranks third in Japan's aluminum can market, following Toyo Seikan. The company was formed in 2022 when Showa Denko's aluminum business merged with Mitsubishi Materials, both of which were acquired by Apollo prior to the merger. Apollo has been expanding its presence in the Asian market and recycling business under its management. Altamira was required to undergo pre-review because some of its lithium-ion battery-related materials fall under Japan's designated 'core industries.' The Japanese government mandates that foreign investments or acquisitions in sectors deemed critical to national security must be reported and reviewed beforehand. Lithium-ion battery materials were added to this list following the enactment of the Economic Security Promotion Act in 2022. This move aims to reduce reliance on Chinese technology in battery development, as these materials are also used in defense equipment. At the time of Apollo's acquisition, this sector had not yet been classified as a core industry. Just a month prior, MBK received a contrary decision from the Japanese government regarding its bid for Makino Precision. The government advised halting the acquisition based on the Foreign Exchange Act, marking one of the first such recommendations since 2008, when a British fund's stake in J-Power was blocked. Concerns were raised about the potential for information leaks due to the extensive use of Makino's machinery in defense manufacturing processes. In contrast, the approval for Altamira's acquisition came relatively quickly. While discussions regarding Makino lasted about ten months, the review for Altamira was completed in approximately two months. Authorities likely assessed that security concerns regarding Altamira were minimal. However, it remains unclear whether the criteria for investment approvals have become more transparent. Industry voices have expressed that within core industries, the boundaries of what is approved remain vague, complicating investment decisions. While the approval of Altamira sets a new precedent, uncertainty will persist until Japanese authorities disclose specific judgment criteria. This acquisition reflects changes in the M&A landscape surrounding Japanese companies. Pressures to enhance corporate value on the Tokyo Stock Exchange and rising costs due to inflation have prompted Japanese firms to pursue management buyouts (MBOs) and business separations. Consequently, private equity firms with financial resources and restructuring expertise are playing an increasingly significant role. According to Nikkei, the number of M&A transactions involving foreign investment funds in Japanese companies reached 226 in 2025, the highest since records began in 1998. Notably, large acquisitions are often led by foreign funds, with their total acquisition value in 2025 exceeding 5.4 trillion yen, four times that of Japanese funds. The approval of the Altamira acquisition suggests that Japan is not outright blocking foreign capital under the guise of economic security. However, the distinction between what is permitted and what is prohibited remains opaque. The contrasting decisions regarding Makino and Altamira provide some insight into Japan's economic security review process, but a clear set of criteria that the market can accept is still lacking.* This article has been translated by AI. 2026-05-12 05:01:23