Goldman Sachs is expanding its presence in the South Korean retail fund business with the recent agreement to acquire a South Korean asset management firm from majority owned Australia-based Macquarie Bank, according to Reuters.

The deal is expected to close later this year, subject to regulatory approval, Goldman officials said in a statement.

“This acquisition is a significant milestone for Goldman Sachs Asset Management in Korea, a growing financial hub with significant market potential,” said Stephen Fitzgerald, head of GSAM International, in a statement. “Through this acquisition, GSAM will establish a meaningful presence in Korea.”

In South Korea, Goldman has been focused on businesses with corporate customers and private equity investments, including its 9% stake in Hana Financial, the country’s number 4 financial services group.

Terms of the deal include Goldman buying 100 % of Macquarie-IMM Investment Management’s 65% stake in the South Korea firm and the remaining 35% stake from South Korea’s investment firm IMM & Co. The fund manager has around $10.78 billion in assets under management.

The deal’s value was not disclosed. Based on the managed assets, the value of the acquisition is estimated at 120 billion to 180 billion won, which is between $130 million to $195 million.

Macquarie was enticed by Goldman’s offer. “We were approached by Goldman,” John Larkin, Macquarie spokesman said. “The offer was quite attractive…so we decided to accept the offer.”

The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.

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