South Korea's private equity industry has experienced accelerated growth, reaching a record total assets under management of $113bn as of December 2020, almost doubling in two years.
While buyout strategies remain prominent, fundraising has increased for both buyout and venture capital strategies. More carve-out opportunities may be expected with upcoming reforms around chaebol governance. Korea also boasts a vibrant venture capital ecosystem, which has produced several unicorns in the technology space.
Korea's PEVC industry sees participation from local, regional, and global managers, as well as large domestic institutional investors. Korea’s $1tn pension fund industry is expected to continue to allocate more to alternative assets alongside international private equity giants; currently, only 5% is allocated to private equity, which suggests ample room for growth.
Read Preqin's Alternative Assets in South Korea report for more data points and trends, and insights from industry experts.
A Korean-language version of the report is available here.