This article was first published on Signal, the Seoul Economic Daily's capital markets newsletter, at 5:26 p.m. on April 16, 2026.
Korea's mergers and acquisitions market, which has been concentrated in energy and infrastructure, is expected to expand into new industries including artificial intelligence, according to industry experts. Strategic investors seeking to absorb rapidly advancing AI technology through active M&A could broaden the market's scope.
"Given the rapid pace of technological change, acquiring companies through M&A may be more effective than developing AI internally," Nam Sang-wook, head of Deloitte Anjin's ONE M&A division, said at the 15th Seoul Economic Daily Invest Forum on Wednesday. "Several companies are considering acquiring firms that possess AI development expertise and data."
Nam added that deals where strategic investors partner with financial investors to jointly invest are expected to increase as companies seek AI know-how and big data capabilities.
Recent examples of Korean companies partnering with financial investors to expand AI investments are emerging. Samsung SDS announced Tuesday it would issue 1.22 trillion won ($900 million) in convertible bonds to global private equity firm KKR to increase AI infrastructure investment.
M&A activity targeting energy and infrastructure companies, which remained robust through early this year, is expected to continue. Hong Kong-based private equity firm Gaw Capital acquired waste management company Koentec for $500 million (approximately 736.5 billion won) in January, while KKR was selected as the preferred bidder for SK Group's renewable energy business.
"With rising geopolitical risks, buyout deals are expected to continue concentrating on companies with solid cash flows and high stability," Nam explained.
Deal activity in industrial goods such as transformers and consumer goods centered on K-beauty is also expected to continue. Korea's transformer industry is experiencing a boom as global AI investment expansion coincides with demand for aging power grid replacements. Some companies that have successfully expanded overseas, including Dongmi Electric, are now available as M&A targets.
"Many investors will continue to focus on industrial goods where Korean industry has strengths, as well as consumer goods centered on K-beauty and K-beauty devices," Nam noted.
The biotech and healthcare sector is considered a promising M&A segment. Domestic and foreign private equity firms have traditionally built biotech portfolios centered on highly profitable aesthetic medical device companies. While new drug development companies have mainly attracted venture capital due to relatively high regulatory uncertainties, Korea's biotech ecosystem has matured significantly and companies are now successfully developing new drugs, suggesting they could emerge as future buyout targets.
"The biotech industry is expected to continue rapid growth due to demographic changes including aging populations," Nam said. "Many companies need funding to secure new pipelines, and valuations have adjusted, so management buyout deals for new drug development companies could increase."