KCGI Dreaming of Becoming a Comprehensive Financial Group, No Restructuring Planned

20% Workforce Increase Without Restructuring After Asset Management Firm Acquisition
From Leading Shareholder Activism to Comprehensive Financial Group Leader

"Since acquiring the asset management company, there has not been a single layoff."

Kang Sung-bu, CEO of KCGI, recently selected as the preferred negotiator in the Hanyang Securities acquisition battle, gave a positive meaning to the high profitability achieved without artificial restructuring after acquiring Meritz Asset Management last year.

CEO Kang said, "Since KCGI's acquisition, the workforce has been expanded by more than 20%, and the Target Date Fund (TDF) returns rank among the top, showing remarkable results."

Known for aggressive investments under the banner of improving corporate governance and prioritizing shareholder rights, CEO Kang leads the institutional private equity fund KCGI, its affiliate hedge fund KCGI Alternative Investment Management, and the comprehensive asset management company KCGI Asset Management.

If the final negotiations in the Hanyang Securities acquisition go well and they acquire the securities firm, they will leap into a comprehensive financial group owning private equity funds, asset management companies, alternative investment management firms, and securities firms. This means that six years after KCGI's establishment, CEO Kang's main business will encompass the securities industry as well.

Kang Sung-boo, CEO of KCGI, is posing while holding 'Kobuli,' a bull character symbolizing the Korea Bull Market. Photo by So-yeon Park muse@

CEO Kang began his career as an analyst at Daewoo Securities in 2001 and went through Dongyang Comprehensive Financial Securities, Shinhan Financial Investment, and LK Investment Partners before founding KCGI in 2018.

He became known for activist activities targeting Hanjin KAL, Osstem Implant, Hyundai Elevator, and DB HiTek. However, activist funds constitute only a very small portion of the total managed assets.

CEO Kang himself plans to expand into various business areas such as overseas business expansion and domestic housing projects, alongside strengthening shareholder rights in the Korean capital market.

A representative example is that KCGI Alternative Investment Management recently decided to develop senior welfare housing. The first project site is 'Center Point Seocho (International Electronics Center),' purchased as a real estate fund in 2022.

CEO Kang said, "Most senior housing is located outside Seoul, resulting in poor hospital accessibility, but we expect clear demand for luxury senior housing right in the heart of Gangnam."

Industry insiders expect that if CEO Kang succeeds in acquiring the securities firm, synergy effects with the asset management business will be generated, and his influence in the financial industry will expand.

To acquire Hanyang Securities in the future, KCGI must pass the financial authorities' major shareholder suitability review. Since KCGI already received approval from the authorities when acquiring Meritz Asset Management, it is expected that there will be no major difficulties.