Global asset management firms open offices in Korea

The National Pension Service (NPS) Chairman Kim Tae-hyun, left, shakes hands with Blackstone President Jonathan Gray at the NPS headquarters in Jeonju, North Jeolla Province, Nov. 8. Courtesy of the NPS

Global asset management firms are increasingly turning their attention to the Korean market, driven by the market's robust recovery following the pandemic's conclusion and the easing of the strong dollar trend.

Blackstone, the world's largest alternative investment manager, is one of them.

During a recent meeting with Kim Tae-hyun, chairman of the National Pension Service (NPS), Blackstone President Jonathan Gray revealed plans to open a liaison office in Jeonju, North Jeolla Province, early next year. This strategic move positions Blackstone closer to the NPS, whose headquarters are in Jeonju. The office would also support various initiatives within the Korean market.

The establishment would mark the second office in Korea, following the Korean headquarters in Seoul. Established last April, Blackstone's Korean entity invests in a diverse portfolio that includes private equity, real estate, publicly traded bonds and stocks.

Gray commented that the opening of the Jeonju office is part of Blackstone's ongoing efforts to expand its presence and capabilities in Korea.

In June, Franklin Templeton Asset Management, a private equity fund (PEF) operator managing assets totaling $1.4 trillion, opened its office in Jeonju.

Prior to Franklin Templeton's expansion, two custodian banks, the Bank of New York Mellon and State Street, had established their offices in Jeonju. Both entities provide around-the-clock fund settlement services while holding the NPS' foreign assets.

The entry of global finance giants into Korea is anticipated to rise, as the scale of Korea's capital market is expanding. From 737 trillion won ($562 billion) in 2019, the assets managed by the NPS have significantly increased to 983 trillion won as of the end of June this year. It is anticipated that these assets will surpass 1,000 trillion won by the end of this year or early next year.