Asia’s hedge fund industry is about to have a new player as South Korea this week prepares to launch its first 13 local hedge fund vehicl
Asia’s hedge fund industry is about to have a new player as South Korea this week prepares to launch its first 13 local hedge fund vehicles reported FINalternatives this week. This follows the country’s regulator – Financial Services Commission – having completed its review of applications of all 13 asset managers in recent weeks. Given that over 120 Asian hedge funds have already shut this year in what has been an incredibly tough capital raising environment, and with many global commentators concerned over how global markets will perform in 2012, it could be somewhat of a baptism of fire for the South Koreans. Most of the 13 asset managers who have applied for licenses – among them the likes of BNP Paribas, Woori, Mirae Asset Management, Samsung and Korea Investment Corporation – are expected to launch their first hedge funds over the course of December and early January. The first is expected on Friday 23 December. The FSC first announced in June 2011 it would relax restrictions and clarify standards for the formation of domestic hedge funds even though they’ve technically been legal since 2009. It should be interesting to see how quickly hedgie numbers grow in South Korea next year.
