Global alternative investment manager Brookfield Asset Management signaled its intent to expand investment in the Korean market. In addition to its existing core areas such as artificial intelligence (AI) infrastructure, power, and data centers, it has begun reviewing the rental housing market as a new investment arena. Seeing Korea as a core global investment country, it plans to expand strategic cooperation with large corporations going forward.
Park Jun-woo, head of infrastructure investments for Korea and Japan and representative director (managing partner) of Brookfield Korea, said at a press briefing at IFC in Yeouido, Seoul, on the 1st, "When you go to our global strategy meetings, Korea is always in the top three countries to invest in going forward," adding, "As Korean corporations expand their competitiveness in global markets, we are actively identifying investment opportunities where they can leverage Brookfield's capital, global network, and operating capabilities."
Brookfield is a global alternative investment manager that currently manages about $1 trillion in assets. It invests primarily in infrastructure, renewable energy, and commercial real estate. Brookfield points to its more than 120-year history of directly owning and operating real assets as a differentiator. It also pursues a strategy of committing substantial amounts of its own capital alongside fund investments.
Park said Brookfield has a strength in long-term investing, unlike typical buyout funds. "Brookfield has, by design, directly owned and operated real assets for more than 100 years," Park said, explaining, "Even now, we invest a significant portion of fund capital with Brookfield's own capital."
He added, "Rather than selling a company within three to five years like a typical buyout fund, it is closer to investing that grows the business for more than 10 years and increases its value," and "In Korea, we prefer to be a partner that grows together with corporations, rather than a simple financial investor."
Brookfield entered the domestic market in 2016 with the acquisition of IFC. Since then, it has expanded its investments to logistics centers, data centers, renewable energy, and industrial gases. In 2022, it acquired the industrial gas facilities for SK Airplus's Icheon M16 semiconductor plant, and last year it acquired SK Group's industrial gas and specialty gas business for about 1.4 trillion won. The asset supplies semiconductor gases to Samsung Electronics and SK hynix.
Park presented the "3D strategy," meaning digitalization, decarbonization, and deglobalization, as the direction for future investments. "AI infrastructure, the energy transition, and supply chain reconfiguration will be megathemes that continue for decades," he said, adding, "Investments in related areas such as data centers and communications infrastructure, power, renewable energy, and industrial gases will continue to increase."
He particularly emphasized the increased demand for power infrastructure stemming from the spread of AI. "AI infrastructure and power are not a matter of choice but areas that must go together," Park said, noting, "To build a data center, you also need to invest in generation facilities and the power grid at the same time." He continued, "Brookfield is pursuing a $100 billion AI infrastructure program with Nvidia," adding, "Investments in Korea through this program are also possible."
Brookfield's assets under management in Korea currently stand at about $11 billion to $12 billion (about 16 trillion won to 17 trillion won). "That is more than double compared with just five years ago," Park said, adding, "We are also in discussions with major domestic groups on various cooperation plans, centered on AI infrastructure and energy."
He went on to emphasize, "Korea has global competitiveness not only in semiconductors but across advanced manufacturing," adding, "What Brookfield is most interested in are the infrastructure and industrial assets that can support the growth of these global corporations."
Andrew Burich, managing partner and head of real estate for East Asia, expressed optimism about the Korean real estate market. "Brookfield's real estate AUM in the Asia-Pacific and Middle East regions is about $40 billion, and we plan to expand this to over $100 billion in the long term," he said, assessing, "Korea is one of the core markets in that growth strategy."
Burich cited offices and logistics centers as promising investment areas. He said new supply is constrained by rising construction costs, while demand for high-quality assets remains steady. "Recently, the logistics center market has seen price adjustments due to increased supply, which in turn is creating attractive buying opportunities," he said.
Regarding the recent restructuring of IFC into a continuation fund, he said, "Brookfield will remain a continuing shareholder and will manage the asset," assessing, "In the Yeouido office market, supply is limited and vacancy is low, so there is ample room for IFC's value to rise."
Burich also said Korea's housing market is drawing attention as a new investment opportunity. "We are closely watching changes in Korea's housing-related regulations," he said, adding, "We are carefully reviewing whether an environment is being formed in which institutional investors can secure appropriate returns in the rental housing market."
He continued, "Among younger generations, there is a growing tendency not to prefer jeonse as in the past," diagnosing, "Korea's lease market is undergoing structural change." He added, "We see the rental housing institutional sector as very interesting," and "If the market environment matures, there is a possibility that we will move forward with investments in cooperation with domestic partners."