Perspectives on South Korean Overseas Investments
Avenues for Raising Capital in South Korea
X
Direct Offering - Registration
Required
All offshore funds marketed to
Korean residents must be registered
with the Financial Services
Commission
Strict eligibility requirements with
filing taking 4 weeks for approval
Marketing must be done through a
locally licensed distributor (Korean
Broker Dealer)
Marketing activities limited, can only
meet potential LPs on a low-profile
basis and only engage in high level
discussion
•
Korean Feeder Fund Structure -
Registration Not Required
No registration is required for a
Korean Feeder Fund Structure or
requirement for local distributor, but
other challenges arise for foreign
managers including:
•
•
•
Language barriers & time zone
differences
Reporting obligations
•
FX reporting
No direct nexus between
offshore fund and end
investors
•
•
до
Reverse Solicitation -
Registration Not Required
If reverse solicitation provision is
used, there is no need for
registration of an offshore fund in
Korea or hiring a local distributor
LPs use FinTech platforms to find
suitable offshore investment
opportunities
Using platforms, LPs can make direct
connections to GPS without the need
for the GP to market in the region
Investments are typically made into a
Cayman feeder
☑
DARC
MATTER
Sources: Kim & Chang Law Firm
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