Chairman Kang Bang-cheon: "COVID-19 is a Catalyst for Corporate Restructuring... Do Not Lose the Thread of Patience"

Investor Letter After Over 10 Years Since 2008 and 2011
Top Company Investment Value Expected to Rise After Restructuring

[Asia Economy Reporter Minji Lee] Asset Plus Asset Management announced on the 9th that Chairman Kang Bang-cheon sent a letter to fund investors in response to the novel coronavirus infection (COVID-19) crisis. This is the first letter sent in over 10 years since the global financial crisis in 2008 and the financial crisis that recurred in 2011.

Kang Bang-cheon, Chairman of Asset Plus Asset Management

Chairman Kang stated, “Not only has travel demand shrunk, but employee absenteeism, production disruptions, and supply chain collapses have successively brought a period of great crisis to companies,” adding, “However, from an investor’s perspective, there is rather a paradoxical opportunity.”

He continued, “COVID-19 is expected to act as a catalyst that naturally restructures numerous insolvent companies that caused global oversupply, especially marginal companies in China,” emphasizing, “Strong leading companies will strengthen their market dominance and position, and Asset Plus will not miss this opportunity.”

Chairman Kang urged attention to stocks related to retaliatory consumption that will normalize after the COVID-19 crisis. He said, “As long as life exists, consumption is instinctive and essential,” and added, “Some consumption, the more it is suppressed, the greater the thirst will become, and over time, such consumption will demonstrate its power like lava erupting.”

Finally, Chairman Kang earnestly appealed not to lose patience in fund investment. He stated, “In terms of price, it may be fear, but in terms of value, it becomes hope,” and added, “The biggest beneficiaries in the restructuring process are the leading companies, and Asset Plus will prepare a celebration together with these leading companies.”

This content was produced with the assistance of AI translation services.