Report: Three firms plan $1.6bn Korean fundraising

South Korea’s National Pension Service has sparked off a fundraising drive for buyouts in South Korea shortly after US buyout firm Lone Star was found guilty of stock price manipulation in the country.

Three South Korean-focussed firms are going on the fundraising trail to raise around W1.5 trillion ($1.6 billion) to invest in the region, according to news agency Reuters.

H&Q Asia Pacific, Shinhan Financial Group and Mirae Asset Maps Investments have already received W200 billion from South Korea’s National Pension Service. H&Q and Mirae will each attempt to raise around W500 billion to W800 billion in the first half of this year.

The firms are allowed to raise up to W1 trillion each by the National Pension Service. A third of the money may be invested beyond Korea.

The country has had an uneasy relationship with some private equity firms. US buyout firm Lone Star was found guilty of the stock price manipulation of the credit card division of the Korea Exchange Bank earlier this month. The court sentenced its Korea country head Paul Yoo to five years in prison and fined the firm W25 billion.