South Koreans reconfigure dealmaking appetites

South Korean investors are reshaping their dealmaking approach in Vietnam after decades in the market.

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Zunu Lee, head of cross-border practice of Yoon & Yang, discussed with VIR's Thanh Van the shift in South Korean investors’ acquisitions of local firms.What dealmaking activities involving South Korean investors have taken place in Vietnam this year? Compared with previous years, there are not so many mega deals involving South Korean companies in Vietnam this year. Instead, we have seen more merger and acquisition (M&A) transactions between South Korean companies in South Korea.

This trend does affect Vietnam's M&A market because there are some 10,000 South Korean companies that have subsidiaries, joint ventures, or business presences in the country. It means that even M&A that takes place in South Korea would have nexus in Vietnam, and requires business and legal due diligence of Vietnam business.

SK Group has divested its stake across major companies in Vietnam. How do South Korean dealmakers adjust their strategies after a long period of presence in the country?