Park Jae-hyuk is a seasoned journalist who has provided comprehensive coverage of South Korea's corporate dynamics, economic policies, industry challenges and the global positioning of Korean companies. Based on the articles he has written since joining The Korea Times in 2016, his investigative approach has helped readers understand corporate governance, economic trends and business strategies shaping South Korea’s economy.
JC Partners CEO spotlighted for aggressive investments
JC Partners CEO Lee Jong-chul
By Park Jae-hyuk
By Park Jae-hyuk
JC Partners CEO Lee Jong-chul has drawn keen attention from participants in the local M&A market lately for his aggressive investment strategies.
Lee has recently engaged in various deals ― especially regarding the insurance business ― as the head of the independent private equity firm (PEF) he founded in 2018.
He previously led the Korean operation of the Japan-based Orix Private Equity for eight years, where he directed several successful investments in Korean insurers, including Mirae Asset Life Insurance and Korea Life Insurance, which was later sold to Hanwha.
Based on his experience, JC Partners closed a takeover deal with MG Non-Life Insurance on April 16.
According to MG Non-Life, the PEF fulfilled the agreement made in October 2019 that it would inject 200 billion won ($163 million) into the insurance firm.
Because the capital injection was the principal condition for the acquisition, JC Partners has been eligible to become the insurer's largest shareholder.
Lee had pursued the MG Non-Life takeover since 2018 when he was at Orix, because the Korean Federation of Community Credit Cooperatives that has virtually taken control of the insurer was looking for a new general partner for a capital boost.
Although it took about three years to achieve his goal, Lee finally made it with his own company.
According to industry sources, the recent deal has allowed JC Partners to increase the amount of its assets under management to 800 billion won from 180 billion won.
Against this backdrop, JC Partners is also considering acquiring KDB Life Insurance, which the state-run Korea Development Bank (KDB) has failed to unload over the past 10 years.
KDB said the PEF conducted due diligence after joining a preliminary bidding for KDB Life.
Industry sources speculate that the local PEF may join hands with the global private equity Carlyle Group to transform the life insurer into a co-insurance company.
JC Partners, however, is feared to face protest from KDB Life employees, who sources say have wanted a financial holding firm to acquire their company.
KDB said nothing has been decided yet regarding the KDB Life takeover, although JC Partners has continued to be mentioned as the strongest candidate to acquire the life insurer.
“Due to the spread of COVID-19, it has not been determined when we are going to choose the preferred bidder,” a KDB spokesman said.
JC Partners is also among preliminary bidders for Logen, a mid-tier logistics company in Korea.
Lee previously directed Orix's successful exit from investments in Hyundai Logistics, when the second-tier logistics firm was sold to Lotte in 2016.
The CEO, however, fell into a dilemma over the competition for Logen, because it has lot the steam since the main bidding was delayed over the coronavirus and the retail giant Shinsegae decided not to take part in the bid.