Global merger and acquisition activity reached $4.5 trillion this year, surging 50% from the previous year to hit the highest level since 2021, according to industry data.
The market saw 68 mega-deals valued at $10 billion or more, including Union Pacific's $85 billion bid for Norfolk Southern and Paramount Skydance's hostile takeover proposal for Warner Bros. valued at over $100 billion. The deals signal fundamental shifts in industry structures, driven by buoyant financial markets and expectations of regulatory easing under the incoming Trump administration.
K-Semiconductor Mega Investments Begin
SK hynix (000660.KS) plans to invest more than 600 trillion won ($440 billion) in the Yongin semiconductor cluster through 2047 to build four fabrication plants. The first fab, scheduled for completion in May 2027, will receive 120 trillion won in investment alone.
The company's monthly DRAM production capacity, currently at 450,000 wafers, is expected to expand to 700,000 wafers by 2030 after the first fab begins operations. Ninety-two materials, parts and equipment companies, including global equipment makers ASML and Lam Research, are pursuing relocation to Yongin.
LG Electronics (066570.KS) is building a semiconductor ecosystem spanning AI home appliances, robots and humanoids ahead of mass production of its third-generation proprietary chip, the DQ-C2. The company is participating in the government's K On-Device Semiconductor Project and collaborating with domestic fabless companies.
Korean Listed Companies' 2025 Earnings Outlook Revised Up 23%
Operating profit forecasts for 254 Korean listed companies were revised up 23% from three months ago to 406.2 trillion won, representing a 44.7% increase from the previous year.
Samsung Electronics' operating profit forecast was raised 86.8% to 85.4 trillion won, while SK hynix's forecast rose 60% to 76.1 trillion won. The number of stocks with raised target prices reached 170, more than double the 85 stocks with lowered targets.
Earnings improvements are expected to be led by semiconductors and power equipment sectors benefiting from expanded AI data center investment, as well as the automotive sector freed from tariff concerns.
Korean Biotech Firms Invest $1.5 Billion in U.S. to Counter Tariff Risks
Samsung Biologics (207940.KS) and Celltrion (068270.KS) are investing approximately 2 trillion won to acquire U.S. manufacturing facilities, directly addressing tariff risks of up to 300%.
Samsung Biologics acquired a GSK facility for 413.6 billion won, while Celltrion invested a total of 1.4 trillion won including an Eli Lilly facility acquisition. With the passage of the U.S. Biosecure Act likely to exclude Chinese CDMO companies from global supply chains, approximately 2 trillion won in U.S.-bound revenue from China's WuXi Biologics could become order opportunities for Korean companies.
Korea Dominates CES Innovation Awards Despite Chinese Booth Expansion
At CES 2026, opening in January, Chinese company TCL will occupy 3,368 square meters of prime space in LVCC Central Hall vacated by Samsung Electronics, highlighting Chinese companies' expanding presence.
While booth participation is led by the U.S. (1,638), China (942) and Korea (845), Korean companies won 168 of 284 CES Innovation Awards, approximately 60% of the total. The U.S. won 54 awards and China 34. Korea is expected to maintain its title as the country with the most innovation awards for the third consecutive year since CES 2024.
