The race to acquire IGIS Asset Management Co., South Korea’s largest real estate asset manager, has narrowed to Hanwha Life Insurance Co. and Heungkuk Life Insurance Co., marking a two-way showdown between domestic insurers that could reshape the country’s property investment industry.
The two companies reportedly submitted final bids Monday for nearly a 98% stake in IGIS, according to investment banking sources on Tuesday.
Last week, four contenders, including the two Korean life insurers, Asia-based Hillhouse Investment Co. and Singapore-headquartered CapitaLand Investment, were shortlisted to submit binding offers.
The stake includes shares held by the late founder’s family, including 12.4% owned by Son Hwa-ja, IGIS’s top shareholder and the wife of the late founder Kim Dai-young. Additional shares held by former Senior Managing Partner Cho Kab-joo and Daishin Financial Group are also folded into the sale.
The deal is being managed by Goldman Sachs and Morgan Stanley, with a preferred bidder expected to be named later this month and a share purchase agreement (SPA) signed before year-end.
TWO KOREAN INSURERS IN FINAL SHOWDOWN
Industry officials said Hanwha Life and Heungkuk Life each presented competitive proposals valuing IGIS at around 800 billion to 1 trillion won ($700 million), underscoring their determination to secure a foothold in Korea’s fast-consolidating asset management sector.
For Hanwha Life, which is said to have offered close to 1 trillion won, the acquisition would align with parent Hanwha Group’s broader strategy to integrate its investment arms, such as Hanwha Asset Management Co. and Hanwha Investment & Securities Co., into a unified investment platform spanning traditional, alternative and real estate investment, analysts said.
Backed by strong capital reserves and owner-led decision-making, Hanwha has emphasized a self-funded structure, with Hanwha Life President Kim Dong-won, the second son of Group Chairman Kim Seung-youn, personally reviewing the bid.
Heungkuk Life, part of Taekwang Group, has also demonstrated a strong intent as the group pivots toward finance and property-centered businesses.
The insurer recently raised about 720 billion won in liquidity by selling its headquarters in central Seoul, ensuring ample funding for the acquisition.
REALIGNMENT OF KOREA’S PROPERTY INVESTMENT MARKET
Whichever bidder prevails, the acquisition is expected to prompt a structural shift in Korea’s real estate asset management landscape, industry observers said.
A sale to a life insurer would mark the first time the nation’s No. 1 independent property manager comes under the control of a financial conglomerate, signaling the rise of capital-rich, platform-based operators in a market once led by agile, deal-driven independents.
If folded into a large insurance group, IGIS is expected to move away from its traditional project-focused, value-add strategy toward more stable, long-term core and core-plus asset management centered on offices, logistics hubs and data centers, analysts said.
Such a shift would align with insurers’ liability-driven investment mandates that prioritize steady cash flow over development risk.
“As the nation’s top independent asset manager is absorbed into a major financial group, competition among newcomers aiming to fill that space will only intensify,” said an executive at a Seoul-based alternative investment firm.
Market analysts also note potential organizational changes in IGIS.
The real estate investment company, known for its performance-based pay and entrepreneurial culture, could face tighter group-level risk controls and cost management once integrated into a major insurer.
While sellers have reportedly offered to guarantee key staff employment for at least three years, downsizing in development and project divisions may be difficult to avoid.
VALUATION AND MARKET CONTEXT
Founded in 2010 by Korea’s former Vice Land Minister Kim Dai-young, IGIS manages 66.8 trillion won in assets, commanding a 14.5% market share in the country’s real estate investment sector.
The firm operates across REITs, development and overseas property investment.
One of the largest real estate firms in Asia, IGIS has rapidly expanded its presence through acquisitions of prime offices, retail, logistics centers and residential housing. It manages more than a hundred properties in Asia and dozens in Europe and North America.
The company is valued at 800 billion to 1 trillion won, implying roughly nine times projected 2024 EBITDA of 89 billion won, according to earlier deal documents.
Analysts remain divided over the valuation. Some say the multiple is high for a fee-based business, while others argue that IGIS’s scale and diversified platform justify a premium.
