Tentatively named 'Korea PE Association,' to be established under Park Byung-gun's leadership
Aims to launch in January, with industry veteran tapped as next chair
The PEF Managers Council, a consultative body representing domestic private equity fund managers, will dissolve its existing organization and relaunch as a formal association. Tentatively named the Korea Private Equity (PE) Association, the new body aims to begin operations in January.
The move comes amid growing momentum in political and financial regulatory circles to tighten oversight of private equity funds. The industry is seeking to consolidate its voice and strengthen its capacity to respond to regulatory developments by establishing a formal association structure.
According to investment banking industry sources, the PEF Managers Council held a general meeting Wednesday and put seven agenda items to member firms for deliberation, all related to the establishment of the Korea PE Association.
The agenda included approval of the transition to the Korea PE Association, amendments to the existing council's articles of association, extensions of the terms of the chairman and vice chairman, dissolution of the council and appointment of a liquidator, and the transfer of remaining assets. The council distributed resolution forms to member firms at the meeting and is currently collecting signed submissions. Given the mood within the industry, the measures are expected to pass without significant opposition by the end of this week.
The PEF Managers Council currently allocates member firms' voting rights in proportion to their assets under management, centered on 11 firms that make up its executive committee. More than 10 new managers joined this year, bringing total membership to around 100 firms.
The reorganization goes beyond a simple name change — it involves formally winding down the existing council and reconstituting it as a new association. Once the member resolution process is complete, the council plans to proceed with a series of follow-up meetings and procedures required for the official launch of the Korea PE Association.
The goal is to complete all preparatory work by year-end and begin operations under the new association in January, though the actual launch date could shift to within the first quarter of next year depending on financial regulators' approval and licensing schedule.
To prevent a leadership vacuum before the new organization officially launches, the terms of current council Chairman Park Byung-gun and Vice Chairman Hyun Seung-yun — both set to expire at the end of this month — will be extended so they can lead the establishment process. Once the formal association is up and running, the industry plans to nominate a senior, widely respected figure from the sector as its inaugural chair.
The transition to a formal association coincides with intensifying legislative debate over private equity regulation, partly driven by the Homeplus crisis. Multiple bills to amend the Capital Markets Act are currently pending in the National Assembly, including proposals to cap leveraged buyout limits, strengthen internal control obligations, and introduce new eligibility requirements for major shareholders of PE fund managers.
Following the official launch, the association intends to broaden its communication channels with regulators and the National Assembly and more systematically represent the industry's positions.
an@heraldcorp.com
