South Korean asset managers step up push into private debt market

South Korean asset managers are rapidly scaling private credit operations in response to surging global demand for nonbank lending driven by regulatory tightening on traditional banking. Hanwha Asset Management, the investment arm of the Hanwha Group conglomerate, appointed Kim Bo-ram as head of private credit strategies, positioning the Seoul-based firm at the forefront of this market shift. Kim brings substantial credentials: he was a partner at Pacific Gate Capital and previously held senior roles at Deutsche Bank, where he oversaw private equity fund and private credit operations. His appointment reflects a deliberate strategy by Hanwha Asset to capture market share in alternative assets.

The build-out extends beyond Kim's hire. Hanwha Asset has assembled an experienced alternative-investment team including Executive Director Kim Kyu-hyun (private equity), Song Yong-wan from Samsung SRA Asset Management (real estate), and Park Dong-hyuk, formerly of Keppel Investment & Management (infrastructure). These executives operate within a newly created platform investment group, enabling coordinated deal origination and management across multiple alternative-asset classes. A Hanwha Asset official stated the Korean alternative asset market "is still in its infancy compared with the global market" and committed to recruiting more international professionals to lead transactions and develop structured products.

The strategic shift aligns with broader institutional appetite in Korea. Korean pension and state funds' private credit investments grew 55% to $16.86 billion by end-February, with the majority of capital deployed in US markets. This expansion reflects both limited domestic opportunities and institutional recognition that private credit diversification reduces concentration risk in a tightening credit environment.

CEO Kim Jong-ho, who assumed leadership in September 2024, is explicitly transforming Hanwha Asset into a globally competitive alternative-asset manager. Beyond private credit, the company is expanding into diverse product lines across the alternative spectrum. Samsung Securities' appointment as exclusive distributor for Blackstone products demonstrates that Korean asset managers are simultaneously establishing distribution partnerships with leading global alternative platforms, accelerating access to institutional-grade deal flow and enabling Korean investors to deploy capital internationally.