In an exclusive ION Influencers Fireside Chat, Jason Shin, founder of VIG Partners, pulled back the curtain on the powerful macro trends and private equity strategies driving Korea’s iconic consumer brands onto the world stage. The conversation with host Giovanni Modello revealed how mid-market companies are becoming the new challengers to the mighty chaebols.

The “Korean Wave” or Hallyu is no longer just about music and TV dramas. It’s a sophisticated economic force, and private equity is the engine propelling mid-sized Korean companies—from aesthetic medical devices to skincare—into the global mainstream. Jason Shin, a pioneer who co-founded one of Korea’s first domestic private equity funds 20 years ago, provided a masterclass on capitalizing on this cultural moment.

Key Topics Discussed:

1. The Macro Thesis: Following the Money and the Demographics
Shin’s investment philosophy is deeply rooted in macro trends. He highlighted Korea’s incredible economic journey, where per capita GDP tripled from ~$12K to over $35K in two decades. This created a wealthier, more sophisticated consumer base.

• Early Bet Example: Two decades ago, VIG bet on credit card processing, predicting adoption would mirror that of Western nations. They were right; Korea now has one of the highest credit card usage rates globally.

• Aging Population Play: Recognizing Korea as the world’s second-fastest aging society, VIG invested in PreLife, the nation’s #1 funeral services company. They consolidated a fragmented market, rode the demographic tailwind, and achieved a 4x return upon exit. “You could have the best company,” Shin noted, “but if that industry is not growing, you’re not really going anywhere.”

2. The “K” Factor: From Cultural Soft Power to Commercial Power
The global appetite for K-culture is the ultimate validation of the sophisticated Korean consumer.

• The Sophistication Engine: Shin argued that global demand for K-beauty and K-food exists precisely because domestic consumers have become incredibly discerning. “The consumers in Korea… must have become quite sophisticated for them to be recognized elsewhere.”

• A Strategic Pivot: He revealed a critical turning point: when China banned Korean cosmetics several years ago, many thought the industry was doomed. Instead, the post-COVID era saw demand explode in Europe and the Americas, fueled by the global platform provided by Netflix and K-pop. This diversified the market and made “K-beauty” a genuinely global phenomenon.

3. The Private Equity Playbook: Building Global Champions from Mid-Market Gems
This is where VIG’s strategy gets tactical. The key is bridging the gap between a great product and global execution.

• The Talent Advantage: Unlike the past, where only conglomerates like Samsung had the resources to expand overseas, PE firms like VIG now poach top-tier executive talent from these very chaebols. “We hired someone who was a managing director of overseas sales at Samsung Electronics… They become the backbone of the management.”

• The Great Unbundling: A major trend is large chaebols divesting non-core units to focus on capital-intensive sectors (e.g., semiconductors, automobiles). VIG’s latest investment was acquiring the skincare division from LG Chemical. “They’re getting rid of their… ice cream business or consumer business… and concentrating on the big items.”

4. The Future Landscape: Challengers, Regulations, and Global GPs

• The New Ecosystem: Shin predicts a future where massive chaebols dominate heavy industry and tech, while agile, PE-backed mid-sized companies become global household names in consumer sectors like cosmetics, food, and lifestyle.

• The Take-Private Outlook: Addressing recent regulatory tightening, Shin explained that new rules make it harder to squeeze out minority shareholders after a tender offer. While it demands more attractive offers and careful strategy, he believes it’s a fair change that protects minority investors and is not an insurmountable hurdle for serious investors.

Key timestamps:

00:07 Introduction to the Fireside Chats
01:55 Investment Thesis in the Consumer Sector
06:20 The Rise of Korean Consumer Sophistication
10:43 K Beauty: Milestones and Global Expansion
13:02 Strategies for International Expansion
16:07 The Future of Mid-Sized Companies in Korea
19:30 The Evolving Landscape of Private Equity
22:16 The Role of Larger Private Equity Firms
24:13 Changes in Take-Private Regulations
25:51 Conclusion and Acknowledgments