This article was displayed on the ChosunBiz MoneyMove (MM) site at 4:28 p.m. on Jul. 24, 2026.
The conversion of the PEF Operators Council into an association, which private equity fund (PEF) managers have pursued with the goal of strengthening a "policy and regulatory response channel," has hit a snag. Coordination to raise membership dues needed to hire full-time staff and run an office is being delayed, making the originally discussed launch in October unlikely.
According to the investment bank (IB) industry on the 24th, the PEF Operators Council told members at a recent regular general meeting that the conversion to an association is being delayed more than planned. This contrasts with earlier expectations inside and outside the council that a special general meeting would be held next month to resolve the conversion and proceed with the formal launch and the appointment of a chair within the year.
An official at the PEF Operators Council said, "It is true that the PEF Operators Council is pushing to convert into an association, but no specific timing has been set," and added, "Holding a for-or-against vote of all roughly 90 member firms and converting into a formal association in October is getting too far ahead at this point."
Discussion on converting the PEF Operators Council, which began as a voluntary consultative body among PEF managers, into an association gained rapid momentum late last year. On top of growing negative views toward PEF managers due to the Homeplus Co. situation, moves in the National Assembly to tighten regulations targeting PEF managers emerged, increasing the need to respond.
If the council becomes an association, PEF managers will be able to consolidate opinions and autonomously refine systems. It would enable them to gather separate responses to regulatory discussions into a single channel to deliver to the National Assembly and financial authorities, and a standing secretariat would provide continuity in policy responses.
The PEF Operators Council is said to have decided to change the organization, which started as a social gathering and has operated as an unincorporated association, into a corporate association under the Civil Act. Under this plan to shift to a permanent corporate body, the Korea Venture Capital Association, which launched with goals of developing the venture capital industry and improving systems, is also a corporate association under the Civil Act.
Costs are said to have tripped up the conversion. Because the council lacks a dedicated organization, dues from roughly 90 members have been enough to cover operations, but that changes if it becomes an association. Office rent and secretariat staff wages alone are estimated to generate annual expenditure of about 1 billion won.
It is said that as the PEF Operators Council increased government relations activities to respond to regulations this year and expanded legal advisory work for the conversion, it already raised association dues, drawing opposition from some members. The annual dues for large PEF managers, which were 5 million won through 2024, jumped to around 50 million won this year.
Currently, the PEF Operators Council's annual dues are tiered so that firms with larger assets under management (AUM) pay more. AUM is based on the PEF registration status of the Financial Supervisory Service, and the annual dues for large PEF managers with AUM exceeding 1 trillion won were reportedly around 10 million won as recently as last year.
Delays in expense consultations are causing disruptions across the entire conversion process. The size of the secretariat must be set to derive personnel costs, and only after personnel costs are fixed can an income and expenditure budget be drafted. The budget is a required document for applying for approval to establish the association, and without calculating the dues first, filing the application is impossible.
A corporate association under the Civil Act must obtain establishment approval from the competent authority. The competent authority for PEFs is the Financial Services Commission. The FSC reviews the feasibility of the stated objectives and the financial basis based on the submitted budget to decide whether to grant approval. Because this is a discretionary act, even after member discussions and a vote conclude, the FSC's judgment remains.
An official at the PEF Operators Council said, "Before converting into an association, we have to coordinate dues, hire resident staff, and even recruit prominent external figures, so there is more work than expected," adding, "While there are some delays, there is consensus on the need to convert, so the shift to a standing organization itself will move forward."