This article was published on the capital markets compass "Signal" at 4:36 p.m. on July 2, 2026.
In the first half of this year, Korea's mergers and acquisitions (M&A) market saw global private equity funds (PEFs) drive trillion-won mega deals, while major domestic PEFs took a pause. Deal sizes grew significantly as major Korean companies pursued business restructuring by expanding new businesses and selling non-core assets. With negotiations for trillion-won assets such as Lotte Rental, MNC Solution, and Lotte Insurance now in full swing, whether these deals actually close is expected to determine the market's growth momentum in the second half.
According to Seoul Economic Daily's league table on Wednesday, the size of M&A and equity investment deals that completed final payments in the second quarter of this year was approximately 23.3 trillion won, a slight decrease from 23.6724 trillion won in the first quarter. For the first half as a whole, the total reached 46.9796 trillion won, far exceeding the 28.3945 trillion won recorded in the same period last year. The deal size based on announcements in the first half of this year, which reflects the market's future temperature, stood at 20.0624 trillion won, more than double the 9.3312 trillion won in the same period last year.
The lead players in the first half's mega deals were large global fund managers. A high-won environment created favorable conditions for foreign investors, while their overwhelming capital strength provided a foothold to dominate the market. They filled the void left by large domestic managers such as MBK Partners and Hahn & Company. Indeed, the largest deal of the first half, French firm Air Liquide's acquisition of DIG Airgas (4.85 trillion won), as well as the Swedish Wallenberg family's EQT Partners acquiring Douzone Bizon (3.2 trillion won) and Kohlberg Kravis Roberts' (KKR) convertible bond (CB) investment in Samsung SDS (1.22 trillion won), were all completed by large foreign funds. Hong Kong-based Gaw Capital completed a deal investing 735 billion won to acquire Korean waste treatment company Koentec. Among domestic PEFs, meanwhile, STIC Investments and Korea Investment Private Equity's investment in Ulsan GPS (1.2242 trillion won) ranked as a trillion-won deal.
M&A and equity investments by major Korean companies for new businesses also continued. DB Insurance's acquisition of Fortegra in the United States (2.3106 trillion won), POSCO's investment in its India subsidiary (1.6096 trillion won), and Hana Bank's equity investment in Dunamu (1.0033 trillion won) were among the largest. Kyobo Life completed its acquisition of SBI Savings Bank (450 billion won) about a year after signing the share purchase agreement, and fashion company F&F acquired diffuser and beauty company Ssukssuk Company together with a financial investor (FI) for about 154 billion won, moving to pioneer new businesses. KG Group signed a contract to acquire K Car from Hahn & Company for 750 billion won, seeking to expand its mobility business.
Amid this market environment, the rankings of advisory firms fluctuated. In financial advisory, Samil PwC defended its top position with 5.1265 trillion won in performance, while foreign investment banks (IBs) such as Goldman Sachs (2.3107 trillion won), BofA Merrill Lynch (1.0033 trillion won), and Morgan Stanley (610 billion won) took second through fourth places. In accounting advisory, Samil PwC regained the lead with 9.5289 trillion won. Samjong KPMG (3.3049 trillion won) and Deloitte Anjin (893.8 billion won) ranked second and third. In legal advisory, traditional powerhouse Kim & Chang continued its solo dominance with 10.7665 trillion won, followed by Yulchon (6.2399 trillion won) and Shin & Kim (3.3928 trillion won).
With large-scale investments driven by major companies' business portfolio restructuring and the inflow of global capital warming up the market, attention is focused on whether deals will close, as several assets are in negotiations. Currently on the market are major companies across defense, shipbuilding, and food and beverage sectors, including Lotte Rental, MNC Solution, Lotte Insurance, Golfzon County, Yulgok, Nexflex, Bahim, Burger King Korea, and Mom's Touch. However, in the era of rising interest rates, narrowing the valuation gap between buyers and sellers is cited as a challenge.
Lotte Rental is reportedly the subject of detailed acquisition due diligence begun by U.S. firm Texas Pacific Group (TPG). For Lotte Insurance, Shinhan Financial Group and Korea Investment Holdings are reviewing an acquisition. For MNC Solution, Korea Investment Partners has been named the preferred bidder. Analysts say the growth momentum of the M&A market in the second half of this year depends on whether these major deals close.
Bain & Company, in its "2026 Private Equity Midyear Report" released last month, analyzed that "negotiation momentum slowed as the gap in price offers between sellers and buyers widened," while noting that "quality assets with clear strategic value closed deals even at high prices." The Financial Times (FT), citing London Stock Exchange Group (LSEG) data on Tuesday, reported that "M&A deals worth 2.8 trillion dollars (about 4,400 trillion won) closed globally in the first half of this year." This is a record high, up about 49% from the same period last year.
