Apollo, KB Securities team up to expand private credit in South Korea

[SEOUL] Apollo Global Management has teamed up with KB Securities to explore private credit opportunities in South Korea, marking the global firm’s first partnership with a local investment bank, according to an announcement.

Under the agreement, KB Securities will receive preferential rights to participate in Apollo’s global credit transactions in Korea, according to a press release and LinkedIn post. The South Korean firm said that it plans to expand its global private credit footprint and enhance its capabilities in deal sourcing, financing, and arranging. The memorandum of understanding was signed last week in Seoul.

South Korea has emerged as a bright spot for private credit in recent years. Earlier this year, SC Lowy Financial HK noted that beyond the property sector, corporate lending opportunities are gradually increasing as large family-run conglomerates, known as chaebols, face mounting financial challenges.

The partnership will “bring more opportunities to address rising institutional and retirement-sector demand for private market solutions in Korea”, said Matthew Michelini, head of Apollo’s Asia-Pacific business.

Apollo opened its Seoul office in November last year and appointed Jay Hyun Lee as partner and head of South Korea to lead its expansion and execution strategy in the market. BLOOMBERG