How Global Asset Management Firms are Capitalizing on the Korean Market Post-Pandemic
Key Highlights :
The global pandemic has had a profound effect on the world economy, and South Korea is no exception. However, the country is now seeing a robust recovery, and global asset management firms have taken notice. This is evidenced by the recent announcement from Blackstone, the world's largest alternative investment manager, that it is planning to open a liaison office in Jeonju, North Jeolla Province, in early 2021.
This move is significant for a number of reasons. Firstly, the office will be closer to the headquarters of the National Pension Service (NPS), which is based in Jeonju. Additionally, the office will support various initiatives within the Korean market. Blackstone already has a Korean entity established in Seoul, and its diverse portfolio includes private equity, real estate, publicly traded bonds and stocks.
Franklin Templeton Asset Management, a private equity fund (PEF) operator managing assets totaling $1.4 trillion, opened an office in Jeonju in June. This was preceded by custodian banks, the Bank of New York Mellon and State Street, who established offices in Jeonju to provide around-the-clock fund settlement services while holding the NPS' foreign assets.
The Korean capital market is growing, and this is expected to attract more global finance giants in the near future. The assets managed by the NPS have grown from 737 trillion won ($562 billion) in 2019 to 983 trillion won as of the end of June this year. It is anticipated that these assets will surpass 1,000 trillion won by the end of this year or early next year.
These developments are indicative of the potential for growth in the Korean market. The easing of the strong dollar trend and the country's robust recovery post-pandemic are driving global asset management firms to turn their attention to the Korean market. The entry of these firms is likely to bring new opportunities for investors and businesses in the country, as well as increased competition in the asset management sector.
