KCGI is acquiring Meritz Asset Management

KCGI CEO Kang Sung-boo speaks at a press conference in Yeouido, western Seoul, in 2020. [YONHAP]

The Korea Corporate Governance Improvement (KCGI) fund is acquiring Meritz Asset Management.

Although KCGI didn't say Monday how much it was paying for all of Meritz Asset Management’s common stock, a figure of around 50 billion won ($40.3 million) was discussed, according to a report by local media outlet the bell.

KCGI formed a consortium with local real estate developer Hwasung Industrial to acquire Meritz Asset Management, the report said. Hwasung will become the asset management firm’s second largest shareholder after KCGI.

"We plan to pay the rest of the payment once the financial supervisory authorities complete approval," said KCGI in a statement. KCGI did not reveal how much it has already paid.

KCGI said it hopes to run an asset management company that is innovative. It will use technologies like blockchain to create a fund that can maximize profits.

"The reason for an asset management firm is to offer more profit at times of risks based on trust, understanding customer needs and timely discovery of the means and opportunities for investment opportunities," said KCGI. It said it will hire new talent following the acquisition's approval.

The Seoul-based KCGI holds a 6.57 percent stake in Osstem Implant, the country’s largest dental implant manufacturer.

BY JIN MIN-JI [jin.minji@joongang.co.kr]