Korea's Market Shift: A&M Launches Restructuring Unit

Alvarez & Marsal Inc. is establishing a new restructuring practice in South Korea, signaling a significant shift in the nation's approach to corporate finance. The firm anticipates a growing demand for corporate overhauls as South Korea transitions from state-led bailouts to market-driven solutions.

JJ Lim, a veteran from the state-run Korea Development Bank, will spearhead the newly formed team. Lim has previously managed high-profile restructuring cases, including those involving Daewoo Shipbuilding & Marine Engineering and HMM Co Ltd. He noted a fundamental change in Korea's restructuring landscape, moving towards a preemptive, market-driven model.

This expansion aligns with projections of increased restructuring activities across various sectors in South Korea. These include conglomerate portfolio adjustments, rehabilitation cases for companies like Homeplus Co., and revamps within the petrochemicals industry. A&M aims to assist companies in earlier restructuring stages to avert court-led liquidation.

Managed by Lim and Deputy Head Dee Chung, the A&M team is expected to grow to 10-15 professionals by the end of the year. The firm, which has seen its Seoul headcount more than triple to over 100 in three years, also sees opportunities in the middle market while remaining open to advising large conglomerates.