Characteristics and Implications of Cross-Border M&As Among Korea, China, and Japan

The occurrence of cross-border M&As among Korea, China, and Japan has increased recently. The size of cross-border M&As among Korea, China, and Japan has increased by around 16% yearly for the 10-year period between 2005 and 2014, and the weightage of the three nations among the world’s cross-border M&As has also increased from 2.4% to 9.3%, that is, 4 times in the past 10 years. Cross-border M&As, based on 6 outbound business types such as manufacturing and services, for the 10-year period from 2005 to 2014, have been analyzed and the results are as follows. First, there has been an increase in the number of large scale M&A cases. Second, M&As of advanced countries such as the United States and countries in Europe have increased. Third, there is advancement of the objectives of the M&A industry. Fourth, the M&As between different business types per business type have increased. Fifth, M&As are being accelerated based on high technology. As the types of M&As of Chinese and Japanese corporations have rapidly changed since the global financial crisis, the search for that chance factor is needed.