Investments from Korea

Investments from Korea

Investments from Korea

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Through our continuous discussions with Korean corporate insiders, conglomerates and investment professionals we have identified a constant and growing demand for new investment opportunities not only towards technology, engineering and manufacturing but also towards entertainment content, consumer and food products. Finding investments from Korea is not only limited to financial investments but more importantly to strategic investments to gain market access to Europe and expand acquired assets access to Asian markets. Usually the companies looking to invest are well connected in broader Asian business.

Accessing investments from can originate from any industry – most industries it is easy to find number of companies that have more than enough resources for overseas investments. Financial sector is well developed, private capital and venture capital firms are numerous and active.

Game industry

Korea is home of major global players such as Netmarble, Nexon, NC soft and NHN Entertainment who have deep pockets and desire to acquire new content. Besides of these giants there are number of medium size game companies who also have resources to invest and are usually faster in their moves. Often investment amounts start from minor investment of $1 million up to $5 million for minority share and can reach 100% ownership with major acquisition as well. Investments from Korea towards Europe is growing.

Consumer goods

From Korean perspective many western brands (especially originating from Europe) have unexplored potential not only in Korea but broadly in Asia. Instead of waiting for the brands to grow slowly to cover local markets, many companies in Korea are exploring possibilities to acquire whole brand, manufacturing and business which they can independently expand to Korean and Asian markets. For many sizeable companies this is the preferred way as working with western (European especially) principals can limit their market coverage and sometimes the principals do not have the know-how of adjusting their products to Asian markets fast enough. Slow decision making in Europe is often a barrier for capturing the full market potential.

Fashion and beauty

Active and extremely competitive fashion and beauty markets is continuously looking for new competitive brands to offer local consumers. Similar to consumer goods, instead of waiting for the brands to grow slowly to cover local markets, many companies in Korea are exploring possibilities to acquire whole brand, manufacturing and business which they can independently expand to Korean and Asian markets. Luxury brands appeal especially to wealthy consumers, while growing middle-class is in demand for more reasonably priced goods, still consumers often select brand over price. This creates market opportunities in broad areas and thus local investors are wishing to capitalize this. Often new growing brands are cash-strapped and would welcome especially strategic investors.

Engineering

Major engineering, heavy industry, machinery, shipbuilding and construction companies are in general always eyeing investment opportunities. Typically, these investments are core investments and majority ownership changes hands.  Resources for this type of deals in Korea are almost endless, the key here is timing as deal starts and moves forward quickly – for this reason it is crucial to have discussion channels open before deals start moving. Creating, developing and managing your network should be primary target at early stage to cultivate potential investors.

ICT sector

This sector is huge not only in potential markets but also for potentially accessing investments from Korea. The field is active, and all major conglomerates are continuously looking for investments and buy-out candidates in the field. This is not limited to group level investments teams but also most subsidiaries have investment teams that are very active in the field. Companies like Samsung, LG, SK (just to name a few), are of course the ones everyone knows. Did you know each one of them have some 100 subsidiaries? Besides major conglomerates, smaller conglomerates as well as medium sized companies have major resources to investments and should not be disregarded. Sometimes working with a smaller company is easier that slow-stiff giants.

Key Take-Aways From Our Experience

  • Korean companies are always ready to invest – Money never runs out in Korea
  • You can create strategic partnerships for wider Asian markets with Korean investments
  • Consider carefully if you want to get investment from major Korean conglomerate
  • Do not limit your investment options to major corporations alone.
  • Finding investments from Korea can uncover new business opportunities

Contact us now to start exploring your opportunities.