Cho Kap-joo, CEO of IGIS Asset Management who has returned to management for the first time in five years, explained that his comeback stems from an "industrial shift" now underway. Cho assessed that demand for new spaces is growing as a major transition into the artificial intelligence (AI) era takes place. He laid out his ambition to serve as a "bridge," providing the spaces companies need, generating returns from them, and returning those returns to institutional investors, or limited partners (LPs).
Meeting with Seoul Economic Daily at IGIS Asset Management's headquarters in Yeouido, Seoul, on Monday, Cho cited his reason for returning as CEO, saying, "When major industrial shifts occur, major shifts in space also take place." It was the first media interview for Cho, who returned to the CEO post this past April. He stepped down as CEO in 2021 to serve as head of the new business promotion division, then relinquished that post in 2024 to work solely as a Senior Managing Partner (SMP). Cho explained that even logistics warehouses, which used to serve only as storage, are changing rapidly. "Through the integration of AI, they are being transformed into a second factory, going beyond storage functions to include assembly and delivery," he said.
Cho's philosophy is that he wants to contribute to the prosperity of companies, and by extension the nation, by providing appropriate spaces amid this current of change. "Commercial offices used to be simply spaces for work, but now the kind of office one works in boosts employee morale, attracts good talent, and raises productivity," he said. "When such changes occur, the role of an asset manager is to provide spaces suited to the change." He stressed, "New industries need new spaces, but it can be a burden for companies to pour enormous levels of fixed costs into large spaces. If an asset manager takes on that role, companies will be able to invest their fixed costs in various areas such as research and development (R&D)."
A representative example of investment made in this context is the Hanam data center. The project is regarded as the first case in which an asset management firm took the lead in acquiring a site for data center development and successfully completed everything from execution to operational stabilization and sale. "Because it was unfamiliar in Korea, it was difficult to invest with domestic capital alone," Cho said. "We raised 100% of the funds from global investors to make the investment." He added, "Attracting global investors means, from a company's perspective, that it is a verified asset."
He also mentioned investment in the bio and healthcare industries. "Just as an industrial complex was created in Songdo, I want to help bio companies grow by matching institutional investors with companies that want to use the space when bio firms need it," Cho said. "For bio companies to grow in their early stages, they need to gather good talent, and to conduct R&D they need research centers and various laboratories," he added. "If an asset manager invests in factories or research centers, both sides can achieve a 'win-win.'" His view is that since bio is a future growth engine surpassing AI, such investment can also become another form of productive finance.
He also expressed his intention to serve as an intermediary, providing suitable spaces needed by new industries and returning the proceeds to LPs. Since LPs' funds come from the public, he means that managing those funds successfully is also a way to contribute to the nation. "LPs such as pension funds and mutual aid associations invest with a long-term cycle in mind, so they can generate stable returns while investing in places companies need," Cho said. "With the emergence of AI, companies need a lot of space, and this is an important moment when asset managers must serve as a bridge tailored to that space."
To that end, Cho focused during his two months back on securing an internal rallying point and communicating with external LPs. The day after his return, he stressed in an internal company post, "Even if there are changes in the company's shareholders, IGIS's identity will not change as long as the essence of IGIS's management philosophy and trust with clients remains unshaken." He also moved busily for about two months to meet key stakeholders including major LPs and lenders.
"The most important thing for an asset manager is to return profits to LPs," Cho said. "Because that is precisely returning profits to the public." He added, "There have been various talks about partial equity sales or assets, but internally we are communicating fully, and much of the misunderstanding on those points has been resolved."
Regarding the sale of IGIS Asset Management's management control, he drew a line, saying it was a matter for shareholder representatives to discuss. Still, Cho stressed that his role, separate from the sale, is to ensure the company runs well. "Even if the company is sold, it is the shareholders that change, not the company," Cho said. "Basically, my role is to keep the company solid and doing its core business unchanged, no matter which shareholder comes in." He added, "The most important thing is to ensure that the company's employees, the institutional investors who are our LPs, and the assets under management are well managed."
The Financial Supervisory Service's (FSS) suspicion of major shareholder credit extension involving Cho, which had dragged on for about three years, was recently concluded as "no findings." "During the examination period, we explained ourselves faithfully and transparently at the company level, and I understand that process has now wrapped up," Cho said. "Looking back, I think this process was actually a meaningful opportunity for the company." He added, "Through the supervisory authority's examination, we were able to re-examine our internal processes and control systems from scratch."
