한ㆍ일 합작기업 도레이새한의 M&A 성공사례 분석

Since the 1997 Asian financial crisis, Korean firms have tried to engage in M&A (Mergers and Acquisitions) to restructure and grow their businesses and enhance competitiveness, but have achieved limited success in these ventures. This is because Korean firms haven't improved fits and haven't been well integrated. The success of M&A depends not on physical integration but on financial fit, strategic fit, and human and organizational integration. Toray Saehan, which is the research subject of this paper, has been very successful since its M&A. For example, in 2006 its ordinary profit ratio was 7.7%, percentage operating profit was 6.7%, and value added per person was 196 million won. These results are more successful than foreign invested firms or domestic firms. Compared with the financial results of 1999, when the M&A was completed, sales and profit have doubled and debt to equity ratio has decreased by 79%. Moreover, since the M&A, its business structure has developed from low value added items to high value added items, and the company has grown from being a top domestic company to a top global company. These results confirm Toray Saehan’s status as a successful example of M&A. This paper analyzes the approaches used by Toray Saehans to acquire financial and strategic fit after its M&A. It also analyzes its cultural integration approaches to overcome heterogeneous factors in the organization after the post-merger integration phase. Using the analytical results, the paper attempts to suggest the managerial implications for firms attempting to embark on M&A.