Key Takeaways
- Geography: South Korea.
Analysis
Apollo Global Management has signed a memorandum of understanding with KB Securities Co to accelerate private credit activity in South Korea, marking the US manager’s latest push into Asia’s alternative lending market. The deal, agreed in Seoul last week, gives KB preferential access to Apollo’s global credit transactions sourced in the country.
The MoU is designed to combine Apollo Global Management’s structuring and capital capabilities with KB Securities Co’s local origination network and client base. Under the arrangement, KB will support deal identification, distribution and financing solutions for domestic borrowers while Apollo will bring global credit platforms and capital to transactions originated in Korea.
The move follows Apollo’s expansion in the market after opening a Seoul office in late 2024 and appointing Jay Hyun Lee to head local operations. It reflects a broader trend of global credit managers deepening on‑the‑ground presence across Asia as institutional demand for private credit solutions rises.
Private credit in Asia has scaled rapidly in recent years, with industry estimates placing Asia‑Pacific assets under management in the low hundreds of billions of dollars. Korea is emerging as a key local market: corporates — including conglomerates grappling with constrained bank lending and a sluggish property cycle — are increasingly turning to non‑bank lenders for tailored financing. That shift is prompting both international firms and local intermediaries to build origination engines.
Market participants say the partnership could accelerate a range of deal types in Korea, from direct lending to structured credit and sponsor‑backed financing. For KB, the alliance provides access to larger pools of international capital and credit structuring expertise. For Apollo, the tie‑up fast‑tracks sourcing and execution in a market where regulatory, relationship and cultural knowledge are essential for underwriting mid‑market corporate credits.
The KB–Apollo tie‑up is likely to intensify pressure on local banks and smaller non‑bank lenders, while also raising questions for regulators about oversight of an expanding private credit sector.