South Korea is cementing its status as a key destination for global private equity, drawing major firms such as Apollo Global Management and Intermediate Capital Group (ICG), with both having recently established offices in Seoul, according to a report by Private Equity Insights.
The country’s expanding pension fund capital base and increasing corporate restructuring activity are fuelling strong interest from alternative investment firms worldwide.
According to the 2025 Asia Pacific Private Equity Almanac, South Korea is one of three Asia-Pacific markets – alongside Australia and Japan – where the Qatar Investment Authority (QIA) is actively expanding its presence.
The country’s M&A market remained resilient in 2024, recording $18.6bn in deal value and ranking third in the region. While transaction volume declined from 122 deals in 2023 to 103 in 2024, dealmaking accelerated in the second half of the year, surging 68% year-on-year to $12.9bn, according to Deloitte.
Private equity firms are increasingly driving governance and management transformations at undervalued Korean companies, unlocking new avenues for value creation.
The broader Asia-Pacific private equity market saw investment activity rise to $138bn in 2024, an 8.1% increase from the prior year. With lower interest rates expected to further support leveraged buyouts, 2025 is shaping up to be an active year for dealmaking, Deloitte reported.
Restructuring is set to be a key driver of South Korea’s M&A landscape as companies divest non-core assets and cash-generating units to bolster financial stability.
Meanwhile, private equity deal activity across the Asia-Pacific is becoming increasingly polarised, with a decline in mid-sized transactions offset by a rise in both mega and small-scale deals. Large buyouts accounted for 42% of total transactions in 2024, while smaller deals comprised 30%.
Bolt-on acquisitions have emerged as a dominant strategy, representing 27% to 31.5% of disclosed deals between 2021 and 2024 – more than double the levels seen in the mid-2010s.
