South Korea is solidifying its position as a key hub for global private equity, attracting major firms such as Apollo Global Management and Intermediate Capital Group (ICG), which have recently established offices in Seoul. 

The country’s growing pool of pension funds and increasing corporate restructuring activities are drawing the attention of alternative investment firms worldwide.

According to the 2025 Asia Pacific Private Equity Almanac, South Korea is one of three Asia-Pacific countries, alongside Australia and Japan, where the Qatar Investment Authority (QIA) is expanding its presence. The nation’s mergers and acquisitions market remained robust in 2024, recording $18.6bn in deal value, ranking third in the region. While the number of transactions dropped from 122 in 2023 to 103 in 2024, dealmaking gained momentum in the latter half of the year, surging 68% year-on-year to $12.9bn, according to Deloitte.

Private equity firms are also playing an increasing role in reshaping governance and management at undervalued Korean companies, unlocking new value creation opportunities. The broader Asia-Pacific private equity market saw investment activity rise to $138bn in 2024, marking an 8.1% increase from the previous year. Lower interest rates are expected to further fuel leveraged buyouts, setting the stage for an active 2025, Deloitte reported.

Restructuring will be a key driver of South Korea’s M&A landscape as companies divest non-core assets and cash-generating units to strengthen financial stability. Meanwhile, private equity dealmaking across the Asia-Pacific is undergoing polarization, with a decline in mid-sized transactions and 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 become a key strategy, representing 27-31.5% of disclosed deals between 2021 and 2024—double the level seen in the mid-2010s. The shift in deal sizes, evolving exit strategies, and growing interest in South Korea highlight the country’s emergence as a focal point for global private equity investment.