Global companies have seen a more than fivefold surge in investments, including mergers and acquisitions (M&A), in the first half of this year (January to June) compared to the previous year. This increase is attributed to the active investment in artificial intelligence (AI) and related infrastructure, as well as the accelerated restructuring of supply chains following the inauguration of the Donald Trump administration in the United States.

● US and Japan, Active in AI Infrastructure and Semiconductor Investments

According to an analysis by Dong-A Ilbo of statistics from the Korea Economic Association and global financial analysis firm S&P Global, the total investment in companies worldwide in the first half of this year amounted to USD 1.2128 trillion (approximately KRW 1,698 trillion), a 440% increase from the same period last year (USD 224.6 billion). This figure is the sum of announced investments by companies, including M&A and funding.

By nationality, investments related to US companies increased from USD 42.6 billion to USD 653.7 billion, a 15-fold increase (1,435%) in one year. This includes investments made by US companies or investments in US companies by foreign entities. Consequently, the share of US companies in global investments surged from 19% last year to 54% this year.

The most notable investment in US companies is the OpenAI investment led by Japan's SoftBank. The investment amounting to USD 40 billion and its terms were finalized in April. This investment is expected to be allocated to major US AI infrastructure projects such as 'Stargate.'

In March, Google announced its acquisition of cloud security company Wiz for USD 32 billion, marking the largest M&A in Google's history. Google stated that the acquisition of Wiz aims to enhance its core AI cloud capabilities. Constellation Energy, the largest nuclear power company in the US, attracted attention with its acquisition of natural gas company Calpine for USD 26.6 billion in January, noted as a significant 'energy big deal' in the US. The synergy from the combination of these two companies is expected to be substantial due to the surge in data center and power demand in the AI era.

Japanese companies also actively engaged in investments in the first half of this year, with investment amounts reaching USD 137.3 billion, a 377% increase from the same period last year. The Nihon Keizai Shimbun recently reported that the M&A investment scale by Japanese companies in the first half of this year is the largest since statistics began in 1980.

SoftBank, a major player in the M&A industry, acquired US semiconductor design company Ampere Computing for USD 6.5 billion in March, in addition to its investment in OpenAI. The Nihon Keizai Shimbun predicted that strategic M&As by Japanese companies could increase further due to the Trump administration's pressure on domestic production in the US.

● South Korea, Increased but Still 'Passive'

South Korea's corporate financial investments, including M&A, increased by 84% from USD 8.7 billion in the first half of last year to USD 15.9 billion in the first half of this year. Although the investment amount increased, it is still considered passive compared to overseas competitors.

The largest investment by a South Korean company in the first half of this year was Samsung Electronics' acquisition of German HVAC company FlaktGroup for EUR 1.5 billion (approximately KRW 2.4 trillion) in May. Samsung Electronics acquired FlaktGroup, anticipating the growing importance of technology to control heat generation in AI data centers.

As M&A activity becomes more vigorous in the AI era, there are calls for South Korea to revamp its M&A-related policies to keep pace with international competition. A prominent issue is the relaxation of regulations on the linkage between industrial and financial capital. SK Group Chairman Chey Tae-won, who is also the chairman of the Korea Chamber of Commerce and Industry, argued at an economic organization event earlier this month that "due to the separation of industrial and financial capital ownership and management, South Korea cannot produce mega-investment companies like SoftBank."

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