se of rationalization of Industrial structure avoiding overlapping investments and liquidating faltering enterprises, a large enterprise was forced to take over faltering enterprises.
In order to improve synergy effects, M&A were made more between interrelated enterprises which belong to conglomerates.
However, after the economic crisis in 1997 in Asia, Korea has been changed to induce foreign capitals actively. That is the starting point where Korean companies are exposed to the threat of hostile M&A.
2. Hostile M&A and the function
Hostile M&A is to merge a company against existing shareholders by purchasing stocks.