SOUTH KOREA Trends and Developments Contributed by: Ki Wook Kang, Kyung Chun Kim, Junghae Kang and Do Kyeom Kim, Lee & Ko
The Korean M&A Market The total value of M&A transactions completed in Korea in 2025 amounted to KRW90.72 trillion, representing an approximately 82.8% year-on-year increase. The number of completed transactions totalled 691, up by 121 deals from the prior year. After a prolonged down - turn in which aggregate deal value declined for three consecutive years from 2022 to 2024, the Korean M&A market rebounded in 2025, with the value of complet - ed transactions reaching the highest level since 2021 on the back of a near-doubling year-on-year increase. In particular, a number of transactions exceeding KRW1 trillion in value contributed to the rise in overall deal value. Notable M&A transactions completed in 2025 include: Hahn & Company’s acquisition of SK Specialty (approximately KRW2.7 trillion), Samsung Electronics’ acquisition of FlaktGroup (approximately KRW2.37 trillion), China’s TCL’s acquisition of LG Dis - play’s Guangzhou plant (approximately KRW2.02 tril - lion), and SK hynix’s acquisition of Intel’s NAND busi - ness (approximately KRW2.0 trillion). For industry-specific trends, 2025 saw multiple large- scale transactions in the energy and infrastructure sectors as part of broader portfolio restructuring efforts by conglomerates. The cosmetics and beauty device sector also recorded a number of transactions, supported by the global popularity of K-beauty and the growth of the aesthetic medical device market. In addition, demand for M&A increased in the technology sector as companies sought to secure new sources of growth, including by expanding into AI and semi - conductor industries. From the standpoint of market participants, large-scale transactions (KRW1 trillion or more) led by domestic private equity funds (PEFs) were relatively limited in 2025, whereas global PEFs were more active in driving large deals. Factors commonly cited for the reduced presence of domestic PEFs in large-cap transactions include heightened regulatory scrutiny of the private equity industry following the filing of rehabilitation by Homeplus, a PEF-backed retailer in Korea, and con - tinued macroeconomic uncertainty.
The 2026 M&A Outlook Three key factors are anticipated for M&A activities in 2026: • Cross-border transactions are expected to increase overall in 2026. The depreciation of the KRW has contributed to the attractiveness of Korean compa - nies as targets, increasing the likelihood of a rise in inbound M&A transactions. In addition, as strategic investors show signs of returning to the market and private equity funds proceed with portfolio exits, a resurgence of both carve-out and buyout deals is expected. In particular, heightened interests in potential deal opportunities in the energy and infra - structure, advanced manufacturing, and consumer goods sectors have been reported. • Meanwhile, the Korean government has announced the establishment of a KRW150 trillion “National Growth Fund” this year, which will invest in newly developing sectors over the next five years. As a result, M&A transactions are expected to increase in Korea’s advanced technology industries, includ - ing artificial intelligence (AI), semiconductor, biotechnology, rechargeable batteries, and future mobility. • Finally, as greater emphasis is placed on “respon - sible ownership” in the M&A process, social expectations regarding the protection of minority shareholders are growing. Following the corporate rehabilitation filing by Homeplus in March of last year, which had been acquired by MBK Partners in 2015, public discussions in Korea regarding the roles and responsibilities of private equity funds have intensified. In particular, regulatory measures such as the potential introduction of a mandatory tender offer regime for minority shareholder protec - tion are expected to have a significant impact on deal structure, transaction planning, and financing arrangements for prospective buyers. Recent Legal Developments – First Amendment to the Korean Commercial Code in 2025 A partial amendment to the Korean Commercial Code was passed at the plenary session of the National Assembly on 3 July 2025, and was promulgated on 22 July 2025. The key features of the amendment include: (i) the clarification of directors’ fiduciary duty to share - holders; (ii) the introduction of electronic shareholders’
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