The race for management control of Korea’s largest real estate asset manager is heating up, with multiple shareholders banding together to sell a controlling stake in IGIS Asset Management (IGIS AM).

Morgan Stanley, advising Ms. Son Hwa-ja—the widow of IGIS founder Kim Dae-young and the largest shareholder—has been working the phones since February. Now, securities firms that initially partnered with IGIS for strategic ties are lining up to exit too, pushing the total stake on offer to a level that clears the bar for management rights. 

Hyundai Motor Securities, KB Securities, and Mastern Investment Management have all confirmed they’re selling. Together with Ms. Son’s shares, the combined block stands at about 27.1%—just shy of the 32.3% held by founder and Senior Managing Partner (SMP) Jo Gab-ju’s close allies, which include GF Investment, Daishin Securities, Woomi Global, and internal management.

The missing piece: Keumkang Baekjo Housing and Korea Land Trust are also ready to come to the table if the offer makes sense. With those stakes, Morgan Stanley now tells potential bidders that over 50% is realistically up for grabs—enough to hand a new owner full management control and unlock a premium.

IMM PE, one of Korea’s top three private equity firms, had explored the deal but pulled out. An M&A industry insider pointed to IGIS AM’s volatile earnings as a sticking point. Unlike global managers who rely on steady base fees, IGIS AM leans heavily on performance incentives—leading to sharp swings in profit.

The firm posted KRW 172.7 billion in operating profit in 2022, fell to KRW 56.8 billion in 2023, then rebounded to KRW 113.2 billion this year—mainly due to an incentive fee from the sale of the Hanam Data Center.

Despite this volatility, foreign investors—especially Singaporean firms—are showing serious interest. With ambitions to scale up AUM quickly, they see IGIS AM as a ready-made gateway to Korea’s commercial real estate market.

Still, price will be a hurdle. Morgan Stanley’s pitch values IGIS AM at well over KRW 800 billion, setting up tough negotiations as buyers weigh paying a premium for control against the risk of bumpy earnings ahead.

This article was published in Corebeat June 23, 2025.