This article was displayed on the ChosunBiz MoneyMove (MM) site at 8:30 a.m. on Aug. 20, 2026.
Foreign private equity fund (PEF) managers are reclaiming their place as key players in Korea's mergers and acquisitions (M&A) market. As PEF regulatory legislation and the suspension of buyout commitments by large domestic limited partners such as the National Pension Service overlap, homegrown PEF managers have slowed, while dollar dry powder has put foreign players at the forefront of major transactions.
An analysis by ChosunBiz on the 20th of domestic M&A transactions from the start of the year through August found that foreign PEF managers swept 5 out of 6 (83.33%) large acquisition transactions worth 1 trillion won or more. The only acquisition transaction by domestic capital was the SK Siltron M&A by Doosan(000150), and the number of trillion-won acquisition transactions by homegrown PEF managers was zero.
Specifically, KKR, a global private equity fund (PEF), won SK Group's renewable energy business package sale and joint venture formation deal, valued at 1.8 trillion won. Chungho Nais, which drew attention as an asset for sale due to inheritance tax burdens, will also be acquired by global PEF manager Carlyle Group.
Also, in the first half, Sweden-based PEF manager EQT Partners acquired a controlling equity stake in DOUZONE BIZON CO. for 1.32 trillion won. Recently, Lotte Rental, the No. 1 domestic rental car operator, is being acquired by U.S.-based PEF manager Texas Pacific Group (TPG) for 1.3 trillion won. A stock purchase agreement was signed on the 11th.
Homegrown PEF managers have completely vanished from large M&A transactions. This contrasts with the past, when domestic PEF managers consistently appeared in major transactions despite the growing influence of foreign players. UCK and MBK Partners' acquisitions of Medit and Osstem Implant, and IMM PE's acquisition of Ecorbit are representative cases.
The assessment is that foreign PEF managers armed with dollar dry powder have secured a clear competitive edge in large M&A transactions. The won has remained weak, with the won-dollar exchange rate surging to as high as 1,561.5 won in June. It is a structure that inevitably favors foreign PEFs that convert dollars into won to pay acquisition prices. Although the exchange rate has been trending down recently, it will still take time for this to affect the M&A market.
According to the industry, the weak won was also seen as a factor behind U.S.-based PEF manager TA Associates being named the preferred bidder to acquire CGBio, a regenerative medicine affiliate of Daewoong Group. TA Associates reportedly agreed to accept all the conditions, including price, that IMM PE, the previous negotiator, was reluctant to accept.
The pause in new acquisitions by major domestic PEF managers such as MBK Partners and Hahn & Company also fueled the strong showing by foreign PEFs. MBK Partners has no capacity to pursue acquisition transactions in the domestic market due to addressing the Homeplus situation, and Hahn & Company decided to focus on portfolio exits and internal housekeeping.
Another headwind is that large institutional limited partners, considered heavyweights in Korea's capital market, such as pension funds and mutual aid associations, have turned cautious on commitments to buyout PEF transactions. Even the National Pension Service has halted new commitments to buyout PEFs. A buoyant stock market combined with moves to regulate PEFs has increased the burden of committing capital.
Some warn that the position of homegrown PEF managers, which have served as a pump-priming force for restructuring, could be completely pushed out by foreign players. While homegrown PEF managers are losing ground due to regulatory legislation and other factors, foreign PEF managers are quickly entering mid-sized transactions around 500 billion won.
An investment banking industry source said, "Recently, Macquarie Asset Management was selected as the acquirer of Hwasung Cosmetics in a 300 billion won deal, and before that, Bain Capital acquired ECHOMARKETING," adding, "In the past, this would have been the size of a transaction that foreign PEFs would not have bothered to join, but the mood is different now."