Key Takeaways
- • South Korea-based private equity and venture capital assets under management reached a record $113 billion at the end of 2025, nearly doubling over two years, according to Preqin data, signaling accelerated institutional capital deployment in the region.
- • Buyout strategies represent 41% of total APAC private equity assets under management in South Korea, a comparatively high concentration, with buyout funds raising a record $17 billion in 2020 and establishing the market as increasingly mature relative to broader public equity markets.
- • MBK Partners, a leading South Korean private equity firm, manages $25.6 billion in assets under management with an annual growth rate of 29%, exemplifying the sector's rapid expansion and the rising prominence of proven management teams in attracting institutional capital.
- • Private equity exits in South Korea generated $6.7 billion in proceeds during 2023, down 42% from the five-year historical average, reflecting near-term liquidity constraints and limited buyer appetite for large-scale transactions despite strong fund formation activity.
- • South Korea's regulatory environment and potential government corporate governance reform of chaebols (family-owned conglomerates) are positioning the market as an untapped opportunity for buyout investors seeking mature, stable returns relative to more volatile emerging Asian markets.
Summary
South Korea has established itself as a significant private equity and venture capital powerhouse in Asia-Pacific, with assets under management reaching $113 billion at year-end 2025, nearly doubling over a two-year period. This expansion reflects broader institutional appetite for alternative investments offering superior yields relative to public equities and government bonds, with wealth managers and institutional investors increasingly deploying patient capital into illiquid asset classes.
The Korean private equity market exhibits structural maturity compared to other regional peers, with buyout strategies representing 41% of total assets under management—a notably high concentration for APAC. South Korean buyout funds achieved a record $17 billion in capital raised in 2020, establishing the country as a stable, yield-generative complement to faster-growing but more volatile emerging and developing Asian markets. Domestic private equity fund assets exceeded KRW 700 trillion (approximately $540 billion) as of end-2024, up from KRW 623.1 trillion, underscoring consistent capital accumulation across the sector.
Prominent firms like MBK Partners exemplify the sector's growth trajectory, managing $25.6 billion in assets under management with annualized growth of 29%, demonstrating institutional confidence in established Korean alternative investment managers. According to Preqin research, South Korea's private equity industry is now reasonably sized relative to the broader public equity market, with robust fundraising and returns attracting sustained capital inflows from both domestic and international limited partners.
However, exit activity presents a near-term headwind. Private equity exits generated $6.7 billion in proceeds during 2023, representing a 42% decline from the five-year historical average, suggesting limited buyer appetite for large transactions and potential valuation pressures in the secondary market. Looking forward, potential government-led corporate governance reform of Korea's family-owned conglomerates (chaebols) could unlock additional investment opportunities, as these entities may establish corporate venture capital funds and pursue strategic divestitures, further expanding the addressable market for buyout investors.
The Korean private equity market exhibits structural maturity compared to other regional peers, with buyout strategies representing 41% of total assets under management—a notably high concentration for APAC. South Korean buyout funds achieved a record $17 billion in capital raised in 2020, establishing the country as a stable, yield-generative complement to faster-growing but more volatile emerging and developing Asian markets. Domestic private equity fund assets exceeded KRW 700 trillion (approximately $540 billion) as of end-2024, up from KRW 623.1 trillion, underscoring consistent capital accumulation across the sector.
Prominent firms like MBK Partners exemplify the sector's growth trajectory, managing $25.6 billion in assets under management with annualized growth of 29%, demonstrating institutional confidence in established Korean alternative investment managers. According to Preqin research, South Korea's private equity industry is now reasonably sized relative to the broader public equity market, with robust fundraising and returns attracting sustained capital inflows from both domestic and international limited partners.
However, exit activity presents a near-term headwind. Private equity exits generated $6.7 billion in proceeds during 2023, representing a 42% decline from the five-year historical average, suggesting limited buyer appetite for large transactions and potential valuation pressures in the secondary market. Looking forward, potential government-led corporate governance reform of Korea's family-owned conglomerates (chaebols) could unlock additional investment opportunities, as these entities may establish corporate venture capital funds and pursue strategic divestitures, further expanding the addressable market for buyout investors.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.