South Korean asset managers step up push into private debt market

South Korean asset managers are ramping up private credit operations as global demand for nonbank lending grows in the wake of tighter bank regulations.

According to the investment banking industry, Hanwha Asset Management Co., the investment arm of South Korea’s defense-to-energy conglomerate Hanwha Group, has named Kim Bo-ram, a former partner at Pacific Gate Capital, as head of its private credit strategies.

Kim, a seasoned alternative-investment professional with a strong track record in private debt, previously held posts at several investment banks, including Deutsche Bank, where he oversaw private equity fund and private credit operations.

He joins Hanwha Asset’s growing roster of alternative-investment specialists, which already includes Executive Director Kim Kyu-hyun, who leads the private-equity division; Song Yong-wan, former head of the global investment team at Samsung SRA Asset Management; and Park Dong-hyuk, formerly director of alternative investments at Keppel Investment & Management.

Song and Park, both serving as executive directors, oversee real-estate and infrastructure deals, respectively, within a newly created platform investment group.

“The Korean alternative asset investment market is still in its infancy compared with the global market,” a Hanwha Asset official said. “We plan to bring in more professionals with extensive international backgrounds to lead deals and roll out structured products.”

Since taking the helm last September, Hanwha Asset’s Chief Executive Kim Jong-ho (James) has sought to transform the company into a global asset manager with more diverse products like the alternative assets class.

GLOBAL PRIVATE DEBT MARKET IS BOOMING

Other Korean asset managers are also moving quickly into the booming private credit market.

Samsung Securities Co. has acted as the exclusive distributor of Blackstone Inc.’s private credit funds in Korea since June, while Mirae Asset Securities Co. teamed up with Hamilton Lane in February to roll out similar products.

Korea Investment & Securities Co. (KIS), the brokerage arm of Korea Investment Holdings Co., is exploring a strategic partnership with US private credit specialist Muzinich & Co.

Private credit refers to loans and other debt instruments provided directly by nonbank financial institutions, such as private funds, private equity firms or alternative asset managers, to companies or projects outside of public markets.

The asset class has rapidly grown since the 2008 financial crisis, as banks pulled back under stricter regulations and investors chased higher-yielding alternatives.

The global private credit market is forecast to grow to $2.64 trillion in 2029 from $1.50 trillion in 2023, according to Preqin, a global provider of financial data and information for the alternative assets industry under BlackRock.

Write to Su-Ji Na at suji@hankyung.com

Sookyung Seo edited this article.