The South Korea private equity fund market continues to grow.
Interest in private equity funds have seen a significant growth fueled by investment from Institutional investors. According to Korea Financial Investment Association, investment into PEF has doubled from US $12.6 bn to US $25.2 bn between 2014 to 2018 (US $4.6 bn was real estate related in 2018). In comparison, investment into public funds peaked in 2016 at US $17.1 bn then eased back to US $15.5 bn in 2018.
Contribution from the retail investors was steady, increasing two-fold from 2013 to 2018 to US $1.9 bn. Relaxing of PE regulations such as expanding LP limit from 49 to 100 and continued interest into real estate related strategies support the PEF expansion in Korea.
We have previously discussed another alternative investment trend, South Korean Investment in Overseas Real Estate, which can be found in our Resource Center.
US/Korean Won: 1210won/$ (19-09-04)