Friday, September 20, 2019
Net Assets of Private Equity Funds in S. Korea Set to Surpass 400 Tril. Won Soon
Rapid Growth of PEFs Continues
Net Assets of Private Equity Funds in S. Korea Set to Surpass 400 Tril. Won Soon
  • By Yoon Young-sil
  • September 9, 2019, 11:56
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The net assets of private equity funds in South Korea is about to surpass 400 trillion won (US$335 billion) for the first time in history.

The net assets of private equity funds in South Korea is about to surpass 400 trillion won (US$335 billion) for the first time in history. The figure came to 396.71 trillion won (US$332.31 billion) as of Sept. 4, according to data released by the Korea Financial Investment Association (KOFIA) on Sept. 8.

The net assets of private equity funds have increased 63.41 trillion won (US$53.10 billion) from the beginning of this year. If the current trend continues, it is certain that the figure will exceed 400 trillion won (US$335 billion) in the near future. It will be the first time in a year and four months after the net assets of private equity funds surpassed 300 trillion won (US$251.17 billion) on April 16 last year.

By type, special asset funds investing in various sectors, such as infrastructure, vessels and oil fields, showed the highest growth of 16.24 trillion won (US$13.60 billion) for the year to date, followed by real estate funds of 14.12 trillion won (US$11.82 billion), securities funds of 13.25 trillion won (US$11.09 billion) and hybrid asset funds of 10.05 trillion won (US$8.41 billion).

Out of the securities funds, the net assets of bond funds grew 9.60 trillion won (US$8.04 billion), while that of indirect funds and hybrid securities funds rose 5.16 trillion won (US$4.32 billion) and 250.20 billion won (US$209.55 million), respectively. On the other hand, the net assets of stock funds and hybrid bond funds decreased 960.40 billion won (US$804.09 million) and 808 billion won (US$676.49 million), respectively. The figure for management participation-type private equity funds dropped 53.90 billion won (US$45.13 million).

Market experts said the nation’s low interest rate trend and unstable stock market adversely affected the expansion of investment in private equity funds.

In contrast, the net assets of public offering funds stood at 251.29 trillion won (US$210.37 billion), up a mere 37 trillion won (US$30.98 billion) from 214.01 trillion won (US$179.18 billion) at the beginning of the year. The figure already surpassed the 200 trillion won (US$167.45 billion) mark in 2007 but has been failing to exceed 300 trillion won (US$251.17 billion) for a decade.