Blackstone, the world’s largest private equity firm, is preparing to launch asset management operations in South Korea.
On the 28th, financial industry sources revealed, “Blackstone has been in discussions with law firms, including Kim & Chang, since last year to advance its entry into Korea’s asset management market.”
Earlier this year, South Korea’s Financial Services Commission announced in its policy report that it would allow global asset managers to operate fund intermediation businesses through local subsidiaries, aiming to facilitate their market entry.
Until now, foreign asset managers have relied on domestic firms to distribute their funds in Korea, requiring them to pay commission fees. By selling funds directly, they could bypass these fees.
Additionally, they would gain direct access to Korean investors seeking overseas fund investments. With domestic stocks struggling post-pandemic, Korean investments in foreign securities have reached $1 trillion.
Founded in 1985 by Stephen Schwarzman and Pete Peterson, Blackstone specializes in private equity investments across real estate, infrastructure, life sciences, growth equities, and hedge funds. As of late last year, its assets under management (AUM) reached $1.1 trillion, making it the largest firm of its kind globally.
Blackstone initially entered South Korea in 2010 before exiting the market in 2014. The firm reestablished its presence in 2019 by acquiring a controlling stake in GEO-YOUNG, South Korea’s largest pharmaceutical distributor. In 2022, Blackstone further strengthened its Korean operations by appointing Ha Young-Koo, former chairman of Citigroup Financial Holdings, as chairman of its Korea unit and reopening its Seoul office. The investment giant has consistently generated returns through strategic acquisitions and dispositions of Korean real estate assets and corporate equity stakes.
Given Blackstone’s massive scale, its entry into Korea’s asset management market is expected to have significant ripple effects. Analysts expect Blackstone to make waves among local players like Samsung Asset Management, Hanwha Asset Management and Mirae Asset Financial Group
A financial industry insider noted, “While Blackstone’s overwhelming resources and expertise will bring competition, there are concerns about potential downsides, such as reduced investment in domestic asset managers.”
Meanwhile, Blackstone denied the reports through a PR agency, stating, “We are not considering launching an asset management company and have not engaged in any legal preparations or discussions.”
