Market Insights Financial Corporate Finance

Mergers and Acquisitions - South Korea

South Korea

The transaction value in the Mergers and Acquisitions market is projected to reach US$24.17bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of 6.70% resulting in a projected total amount of US$25.79bn by 2025.
The average transaction value in the Mergers and Acquisitions market amounts to US$73.16m in 2024.
From a global comparison perspective, it is shown that the highest transaction value is reached in the United States (US$1,359.00bn in 2024).

Market

Region

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Currency

Analyst Opinion

The Mergers and Acquisitions market in South Korea is experiencing a significant surge in activity.

Customer preferences: South Korean investors are increasingly looking for opportunities to expand their businesses globally through strategic acquisitions. They are seeking targets that can provide access to new technologies, markets, and talent to stay competitive in the global market.

Trends in the market: One notable trend in the South Korean M&A market is the rise of cross-border transactions. South Korean companies are actively seeking acquisitions abroad to diversify their portfolios and reduce dependence on the domestic market. Additionally, there is a growing interest from foreign investors in acquiring South Korean companies, particularly in sectors like technology, healthcare, and renewable energy.

Local special circumstances: The chaebols, large family-owned conglomerates, play a significant role in driving M&A activity in South Korea. These conglomerates are constantly looking for opportunities to expand their business empires through acquisitions. The government's push for corporate restructuring and innovation is also fueling M&A deals in the country.

Underlying macroeconomic factors: South Korea's strong economic growth, technological advancements, and skilled workforce make it an attractive destination for M&A activity. The government's efforts to deregulate certain industries and promote foreign investment have further boosted M&A transactions in the country. Additionally, the low interest rates and ample liquidity in the financial markets are encouraging companies to pursue M&A deals as a strategic growth option.

Methodology

Data coverage:

Figures are based on the revenue generated by the Investment Banking market, as well as the transaction value, the number of transactions, and the average transactions size of the Mergers and Acquisitions (M&As) and Initial Public Offerings (IPOs) markets.

Modeling approach / Market size:

Market sizes are determined by a bottom-up approach and are based on a specific rationale for each market. As a basis for evaluating markets, we use market research and analysis, as well as data from annual financial reports. Furthermore, we use relevant key market indicators and data from country-specific associations and national data bureaus, such as GDP, wealth per capita, and total investment (% of GDP). This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are GDP per capita and total investment (% of GDP).

Additional Notes:

The market is updated twice per year in the event that market dynamics change.