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M&A activity in South Korea faltered last year as deal appetite slumped amid upheavals from the coronavirus pandemic.

Some 121 publicly traded companies closed an M&A deal or were in talks of processing one in 2020, down 5.5 percent from the previous year, the Korea Securities Depository (KSD) said Tuesday.

Kospi-listed companies numbered 40 versus 43 in 2019. Kosdaq companies totaled 81, down from 85.

Mergers accounted for 111 companies, share swap and exchanges for six, and transfer and acquisition of business for four.

Buyback requests that companies issued to shareholders through KSD totaled 97.6 billion won ($88.6 million) in 2020, down 62.7 percent from the previous year.

This fell 57.1 percent to 84.2 billion won in the Kospi and plunged 79.5 percent to 13.4 billion won in the Kosdaq.

Buyback requests in the Kospi were the largest for Shinsegae I&C (57.6 billion won), followed by Hanil Cement (21.5 billion won) and SK Chemical (4.4 billion won). In the Kosdaq, Copus Korea topped the list (3.6 billion won), trailed by Ivy Kim Young (3.2 billion won) and Dentis (3 billion won).

Buyback requests are rights held by shareholders that allow them to ask companies to buy back their shares if they disagree with a board decision that they believe has material impact on shareholder interests.

[ⓒ Maeil Business Newspaper & mk.co.kr, All rights reserved]