[2026 Alternative Investment Forum] "Japan Is Becoming an M&A Market for Korean Investors"

Hideyuki Ishii, Partner at KPMG FAS

"Japan Entering a New M&A Cycle"

Synergy From Combining Japanese Technological Strength and Korean Scaling-Up Capabilities

"Relationship-Centered Nature of Japan Must Be Considered"

It has been suggested that Japan is transforming into a market where Korean investors can secure strategic growth assets. In this context, if Korean private equity fund (PEF) managers adopt a differentiated strategy by identifying under-managed assets and creating value—unlike global managers—there will be even more opportunities available to them.

Hideyuki Ishii, Partner at KPMG FAS, stated at the "2026 Alternative Investment Forum" hosted by The Asia Business Daily and held at the Conrad Hotel in Yeouido, Seoul, on September 29, that "the Japanese M&A market is shifting from merely being a market with abundant assets for sale to one that offers strategic growth assets for Korean companies and PEF managers." According to him, a variety of deal structures have emerged, providing companies and PEF managers with greater access to opportunities. The number of tender offers for acquiring listed companies has reached its highest since 2012, while owner- or management-led buyout transactions have also become more frequent. There has also been increased activity in transactions such as post-acquisition delisting by PEF managers building for mid- to long-term value away from short-term market pressure, and ‘carve-outs’—the sale of non-core assets and business unit spin-offs. Among the various deal types, Ishii noted that mid- to large-scale corporate carve-outs are particularly well-suited for Korean investors.

Hideyuki Ishii, partner at KPMG FAS, attended the "4th Asia Business Daily Alternative Investment Forum" held at Conrad Hotel in Yeouido, Seoul, on the 29th, and gave a lecture on the theme of "Japan M&A, cross-border deals, carve-outs, and industrial restructuring investment opportunities." 2026.9.29. Photo by Kang Jinhyung

He also suggested that combining the strengths of Japan and Korea could create globally competitive assets. "Japanese companies possess technological expertise, manufacturing know-how, and intellectual property (IP) in fields such as semiconductors, electronic components, and materials," he explained. He emphasized that if these strengths are combined with the commercial capabilities that Korea brings—such as capital and speed—Japanese assets could be transformed into assets with global competitiveness. He also noted that Korean investors should particularly target the fields of electronic components, industrial machinery, chemicals, and advanced materials.

Ishii recommended that Korean PEF managers should enter the Japanese market with a differentiated approach, rather than trying to compete in the same way as global managers. "You need to source assets that have not yet undergone industrial transformation and create value through operations and platform building," he advised. He particularly emphasized that "relationships" are crucial in the Japanese M&A market. "Sellers need a convincing story for stakeholders beyond shareholders," he added, highlighting that factors such as post-acquisition management retention, employment succession, and presenting a long-term growth plan—collectively, these ‘relational elements’—are critical to getting deals done in practice.

He also noted that Korean companies could strengthen their global competitiveness through Japanese M&A. To achieve this, he recommended that companies build a pipeline in Japan well before assets are publicly listed for sale. This includes exploring relevant sectors and identifying potential sellers at an early stage. He stressed the importance of clearly outlining strategies for value creation after the acquisition and recommended investing time to build long-term trust with local advisers and financial institutions.

This content was produced with the assistance of AI translation services.