MBK’s Michael ByungJu Kim: Most influential in Korea’s capital market

Michael ByungJu Kim, co-founder and partner of Northeast Asia-focused private equity firm MBK Partners Ltd., has been chosen as the most influential man in South Korea’s capital market.

NH Investment & Securities Co. Chief Executive Jeong Young-chae ranked second in a survey of 60 capital market specialists at Korean and overseas investment banks, private equity funds (PEFs) and pension funds.

The survey, conducted recently by Market Insight, The Korea Economic Daily’s capital market news outlet, showed on Monday that 12 out of 41 experts who responded to the poll, or about a third of the respondents, picked MBK’s Kim as the most powerful man in Korea’s investment banking industry.

NH Investment’s Jeong came in second with 10 votes or 24.3%.

Third place went to three people who garnered three votes, or 7.31%, each. They are Lee Bok-hyun, chief of the Financial Supervisory Service (FSS), Korea’s financial regulator; Park Hyeon Joo, founder of Mirae Asset Financial Group and its global investment and strategy officer (GSO); and Kyungin David Lee, UBS Group AG’s vice chair for Asia and head of global banking for South Korea.

It is rare for a top government official such as FSS chief Lee to assume one of the top three spots on Korea’s most powerful people list, industry officials said.

With his hard push for restructuring, Lee, formerly a senior prosecutor, has been handling tricky issues such as financial companies' recent real estate project financing (PF) trouble and the financial debacle surrounding the Hang Seng China Enterprises Index (HSCEI)-tied high-risk stock investment.

‘GODFATHER-LIKE FIGURE IN ASIA’S PE INDUSTRY'

MBK’s Kim saw his clout over the capital market throughout Asia, including Korea, significantly grow in recent years.

He co-founded MBK in Seoul in 2005 after leaving Carlyle Asia Partners. The North Asia-focused PE firm manages $30 billion in assets with commitments from about 150 global institutional investors, including Korea’s National Pension Service (NPS), Singapore’s sovereign wealth fund GIC and the Canada Pension Plan Investment Board (CPPIB).

With its deep pockets, MBK in December acquired Korea’s Medit Corp., the world’s third-largest 3D dental scanner maker, for 2.45 trillion won ($2 billion).

It has also acquired Osstem Implant Co., a Korean dental implant maker, for 2.2 trillion won.

More recently, MBK was engaged in an aborted December bid to take over Hankook & Company Co., the holding company of Korea’s largest tire maker Hankook Tire & Technology Co.

MBK is currently in the middle of launching the Buyout Fund VI estimated to be at least $7 billion.

“Kim has become a godfather-like figure in the Asian PE industry, having a huge influence over the survival and growth of companies as well as the expansion of the Asian M&A market,” said one Korean brokerage executive.

MIRAE ASSET, NH INVESTMENT, UBS

Mirae Asset founder and Chairman Park Hyeon Joo assumed the GSO role in 2018 to take the lead in Mirae Asset’s global expansion.

Mirae has been aggressive in overseas asset acquisitions, including the takeover of Sharekhan Ltd., India’s 10th-largest brokerage firm, in December.

NH Investment’s Jeong, with his two-decade industry experience, is a pioneer in Korea’s investment banking sector.

He is slated to leave NH after the brokerage’s annual shareholders meeting later this month.

Kyungin David Lee joined UBS following its acquisition of Credit Suisse.

Before UBS, he served as Credit Suisse Group AG’s Seoul branch chief.

Kang Seok-hoon, chairman of the state-run Korea Development Bank (KDB), received two votes in the survey.

Under his leadership, the state-run bank has been playing a key role in the ongoing merger of Korean Air Lines Co. and crosstown rival Asiana Airlines Inc.

Other capital market leaders who won one vote each include Scott Sang Won Hahn, CEO of Korean PE firm Hahn & Co.; Song In June, CEO of IMM Private Equity; Lee Chun Kee, chief of Jefferies Korea; Chanhee Cho, chief of Bank of America (BoA) Merrill Lynch IB Division.

NH INVESTMENT, KOREA’S TOP IB HOUSE

The survey deemed NH Investment & Securities to be the top investment banking house in Korea, garnering 15 of 51 votes, or 29.4%.

“NH is the only securities company in Korea that can provide a total package solution, including delisting tender offers and acquisition financing for M&As,” said a local PEF executive.

UBS came in second with eight votes or 17% on the list of most powerful IB houses in Korea.

With its acquisition of Credit Suisse last year, UBS has emerged as one of the leading global investment bankers with at least 30 specialists in Korea.

“Kyungin David Lee has shown his capabilities since he joined UBS. The combined firm’s workforce composition has also become diverse following the merger,” said a Korean IB analyst.

Write to Ik-Hwan Kim, Jun-Ho Cha and Ji-Eun Ha at lovepen@hankyung.com


In-Soo Nam edited this article.