South Korea's Largest Developer DS Networks Group Establishes M&A Team in Holding Company

New Article: Independent Self-Investment Moves Separate from Asset Management Firms
Future Buyout Actions in Focus

[Asia Economy Reporter Kwangho Lee] DSN Holdings, the financial holding company acting as the financial arm of DS Networks, the largest real estate developer in Korea, has established a new M&A team. Attention is focused on its future buyout investment activities.

According to the investment banking (IB) industry on the 19th, DSN Holdings has created an M&A team. Following DSN Investment and DS Networks Asset Management, it is making a challenge in the investment market. Despite owning a New Technology Business Financial Company (Shingisa) and an asset management company, DSN Holdings, which functions as a financial holding company, has formed its own investment team, effectively enabling comprehensive investment capabilities.

DSN Holdings has also secured related professional personnel. Recently joined M&A Team Head Hyunkyung Ko previously worked at Lotte Cultureworks, a comprehensive entertainment company affiliated with the Lotte Group, and YG Entertainment, before serving as a senior analyst at Michigan Venture Capital.

With the establishment of the M&A team and the acquisition of expert personnel, it is expected that DSN Holdings will actively pursue buyout investments. Buyouts are an investment method where the investor acquires shares or key assets of a target company to gain management control, enhances the company's value, and then sells it for profit. DSN Holdings is likely to make investments that create synergy with DS Networks group affiliates, such as in real estate development.

Previously, DS Networks simplified its governance structure by separating its real estate development and financial investment sectors. DS Networks, which previously acted as the holding company, spun off its investment division in December last year, separating it from the development division. As a result, DS Networks remains as the surviving company, while DSN Holdings was newly established through the spin-off. DS Networks focuses on real estate development, and DSN Holdings is responsible for the financial investment sector.

Currently, under DS Networks, subsidiaries include ▲DS DNC ▲DS DND ▲DS Industrial Development. Under the newly established DSN Holdings are ▲DSN Partner and ▲DS Networks Asset Management. DSN Partner, a management consulting firm, is scheduled to merge with DSN Holdings, with DSN Holdings remaining and DSN Partner dissolving.

DSN Holdings is 100% owned by the family of Chairman Jaehwan Jung of DS Networks. Chairman Jung holds 51%, his son Inkwon Jung 25%, and his daughter Yunhee Jung 24%.

An IB industry insider said, “As the investment market is gradually shrinking and corporate valuations are undergoing adjustments, the establishment of an M&A team is noteworthy,” adding, “Given their abundant cash reserves, their investment capacity is expected to be substantial.”