Merger and acquisitions (M&A) are the hot topic of the moment in Korean financial sector.

According to a recent study by JP Morgan, merger and acquisitions in Asia rose 6 per cent to $106 billion in the first half of the year from the same period in 2002, making up a record 20 per cent of global transactions during that period of time.

The strength of the M&A market in Asia contrasts with the 10 per cent decline in transactions in the rest of the world during the first half of 2003, marking three years in which the number of deals has been declining.

Korea accounted for 8 per cent of the M&A transactions in the region the first six months of 2003, making it the third most important player in Asia in this field.