South Korea Smart Grid Investment


A nationwide smart grid is to be built by 2030, receiving a staggering $7.18 billion investment from South Korea’s state-run Korea Electric Power Corp (KEPCO), in an attempt to “curb the country's carbon emissions and improve efficiency in its electricity market.”  There have been various greening efforts in South Korea such as 131-acre rooftop gardens; electric scooters for local police etc.
Ultimately the smart grid will provide for more efficient power distribution and maintenance.  Consumers are able to participate in a more active role to determine power usage via home appliance monitoring and direct grid feedback.
 

Japan Aeroforge Ltd. Investments

 

 

 

The new Tokyo-based company Japan Aeroforge Ltd. That will be creating nickel and titanium products for airplanes is going to be investing approximately 20 billion yen in order to build a plan in Kurashiki, Okayama.  What this will mean is that any procedure needed to complete the building of titanium aircraft parts will be able to be undertaken in Japan.  The company will be receiving capital from Marubeni-Itochu Steel and Sojitz Aerospace Corp. for this venture.  It is expected the plant will be completed in March 2012.

 

Korea Investment & Securities Versus Lehman Brothers International

 

 

Just today, the attempts by Korea Investment & Securities (KIS) to accrue payment from Lehman Brothers International vis-à-vis the company's purchase of credit-linked notes (CLN’s) which are securities that have embedded credit default swaps enabling the issuer to transfer a credit risk to credit investors, four and a half years ago, were dismissed.  A few weeks ago the court dismissed TrueFriend’s claim (a KIS assignee) against Lehman Brothers International Europe (LBIE) which tried to recover $1314 million in loss on these CLN’s from November 2006.

 

This particular case is KIS’s purchase of CLNs from Lehman Brothers Treasure Co. a few years ago.  Some months later TrueFriend was set up by KIS, which it used to transfer/sell the CLN to.  A year and a half later following Lehman Brothers’ bankruptcy, TrueFriend no longer received any more payments, claiming LBIE to be the “de facto issuer,” not the LBTC.

 

Today, Mike Jervis (PriceWaterhouseCoopers partner in London) said, “The administrators welcome the court’s judgment, which will now enable them to continue with the orderly wind-down of LBIE and return of assets to creditors in a timely fashion.”

 

There is some talk that KIS will appeal the decision but Jarvis remains hopeful for KIS as the CLN “remains a valid claim in bankruptcy against LBTC and LBHI.

 

South Korea Investment News

KEPCO (Korea Electric Power Corp) just announced that South Korea will be investing $7.18 billion into a nationwide smart grid that is due for completion by 2030.  This investment is an attempt to “curb the country’s carbon emissions and improve efficiency in its electricity market.”  It seems that South Korea is the perfect location for smaller-scale greening efforts such as the transformation of landfills into hydrogen generators; the construction of huge 131-acre rooftop gardens; the introduction and use of electric scooters for local police.  This is great, but it comes alongside the fact that the country is quite a high carbon polluter within the OECD (Organization for Economic Cooperation and Development) countries. For South Korea, this will ultimately mean that 11 percent of energy will be taken from renewable sources like wind and solar.  The country will draw 11% of its energy from renewable sources, such as wind and solar.
 

Tokyo’s Investments Today


Good news has just been reported for Tokyo this year is the doubling of investment in large Japanese blue-chip companies.  Indeed combined stakes are now worth more than 1.6 trillion yen (which translates to $US19.4 billion).  The stakes do seem somewhat passive (investors remaining tight-lipped on corporate strategy and management).  But the stakes also show the escalating monetary ties between China and Japan as well as China’s increasing financial status.  This is simultaneous to the eclipsing of the Chinese economy and the Japanese economy’s rise in status to second in the world. 
During the second and third quarter of 2010, SSBT OD05 Omnibus Account Treaty Clients (a shareholder) made it to the top 10 shareholder registry of major Japanese companies (Toshiba is also on the list).  Six months prior to this, this was not the case; the shareholder made a significant jump during 2010.
 

Substantial Drop in Asian Shares

 

Recent world events – New Zealand earthquake, Japan’s credit rating downgrade and continued Middle East and Libyan unrest – led to a significant drop in stock markets across Asia.  For example, South Korea’s Kospi, the Nikkei 225 stock and Hong Kong’s Hang Seng index all plummeted around 2 percent.  As well, Japan had trouble dealing with its huge debt following Moody’s Investors Service downgrading its outlook for the country’s credit rating, citing “increasing uncertainty” over Japan’s capacity to effectively deal with rising debt.  This doesn’t spell good news for the country which only last month had its sovereign debt rating cut by Standard & Poor.  Australia, China, Singapore and Taiwan are currently in the same boat vis-à-vis stock markets. The only good news for the region of late has been the increase in oil prices.