Bridging Continents: Inbound Investment from Korea to Australia

Relectrify, completed an oversubscribed A$17 million funding round led by Silicon Valley-based At One Ventures and its existing investors Toyota Ventures, Australia’s Clean Energy Finance Corp., Energy Innovation Capital, GS Futures, Creative Ventures, NOAB. The investment would help Relectrify rollout battery storage systems featuring the CellSwitch technology in the US, Canada, Europe, Korea, China, and Japan.

Hysata, closed an A$168.8 million series B funding round led by Templewater and BP Ventures and its existing investors. The company also welcomed new investors POSCO Holdings, POSCO E&C, IMM Investment, Shinhan Financial Group Co., Twin Towers Ventures and TelstraSuper. The funding would be used to expand production capacity at its beachside manufacturing facility in Wollongong, NSW.

Australian Strategic Materials (ASM) signed a conditional exclusive framework agreement with a consortium of Korean Investors for a 20% equity interest in Australian Strategic Materials (Holdings) for A$340 million. The Agreement created a pathway for ASM to develop the Dubbo Project as it included provision for a 10-year offtake agreement for up to 2,800tpa of neodymium-iron-boron alloy from ASM’s Korean Metals Plant (KMP).

Relectrify, completed a growth investment round led by Energy Innovation Capital, and joined by new investors Energy & Environment Investment, EDP Ventures and GS Futures. The investment capital would be used to expand the commercialisation team, particularly in key markets in the US, EU and Asia, as Relectrify forms partnerships with battery energy storage system (BESS) manufacturers and system integrators.

First Quantum Minerals divested a 30% equity interest in the Ravensthorpe Nickel Operation to POSCO for A$310 million. The proceeds of the transaction would be used to reduce the Company’s debt. In addition to the Transaction, POSCO and First Quantum also agreed to evaluate a strategic partnership which will provide POSCO with a long-term offtake agreement for 7,500 tonnes of nickel in mixed nickel-cobalt hydroxide precipitate per year produced at Ravensthorpe, beginning in 2024.

POSCO acquired a 15% stake in Black Rock Mining Limited, an Australia-based listed company engaged in graphite mining and exploration activities. Black Rock would utilize the proceeds from the transaction to develop the Mahenge Graphite Project as well as to conduct an ore processing commercial scale test while for POSCO it secured a Graphite Anode produced at low cost for the long-term.

Innocean Worldwide, the South-Korea based marketing and communications company, acquired 85% stake in Wellcom Group Limited for A$229 million. The acquisition would enable both Wellcom and Innocean to enhance its geographical footprints in Singapore, Malaysia and Hong Kong.

Hanwha Corporation, Korea's leading commercial explosives company, acquired 100% stake in Low Density Explosives (LDE) Corporation for A$45 million. Hanwha expected this deal to create synergy with the overseas mining service projects. The acquisition brought together Hanwha’s expertise in explosives and LDE Corporation's quality and cost competitiveness to spur Hanwha's penetration in the Australian market.

DRAX INC completed the acquisition of Synergy Physical Conditioning Systems Pty Ltd. The two companies have joined forces under the new name DRAX Fitness Australia, marking a major step in expanding their presence and enhancing their product offerings across the global fitness industry.

Nature Holdings Co Ltd, a Korea based manufacturer and seller of apparels, through DEM Holdings, a South Korea based apparel maker, acquired 51% of Deus Ex Machina Motorcycles Pty. Ltd, an Australia-based retailer of motorcycles and other fashion brands for A$27.4 million.

AMOREPACIFIC Group acquired a 49% stake in Rationale Skincare Pty Ltd, gaining an advisory role and voting rights on Rationale's Board of Directors. This investment would enhance AMOREPACIFIC's presence in the high-end personalized cosmetics market and support Rationale's expansion across Asia, starting with Korea, Hong Kong, and Singapore over the next five years.

Lotte DF Global Co., Ltd. signed a contract to acquire Australian and New Zealand duty free businesses of James Richardson Pty Ltd. The transaction included four stores in Australia and one in New Zealand and did not include James Richardson Pty Ltd.’s interests in its duty free businesses in Israel and Tahiti.

Hankook Tire Co., Ltd. acquired JAX Quickfit Tyres Pty Ltd. from Ian Fred Hurrell and others for A$101.9 million to strengthen its distribution network, expand its market presence in Australia, and enhance its retail capabilities. This strategic move would leverage JAX's established customer base and service network to boost Hankook's sales and brand visibility in the region.

LG Energy Solution Ltd, a unit of LG Chem Ltd, acquired a 9.3% stake in Liontown Resources Ltd for A$375.4 million through a privately negotiated transaction. This deal includes a 10-year offtake extension, enabling long-term growth from Liontown's Kathleen Valley project and exploring the feasibility of a lithium refinery.

LG Energy Solution Ltd, a Korean manufacturer of batteries for electric vehicles (EV) and industrial storage, acquired 21,739,130 new shares, representing 7.9% shareholding, and access to 25% of its annual output of lithium ore concentrate for the next five years of Green Technology Metals Ltd, an Australian mineral exploration company. The consideration was A$20 million based on issue price of A$0.92 per share.

An investor group, comprised of KDB Capital Corp, a unit of the Korean state-owned Korea Development Bank, acquired a 20% stake in Hanwha Energy Retail Australia Pty Ltd, a North Sydney-based electric power generation facility operator for a total A$150 million. This capital injection would significantly expand the company’s presence in utility-scale projects.

Ark Energy, the Australia based subsidiary of Korea Zinc, acquired 100% stake in Epuron Pty Ltd, the local owner and operator of wind and solar farms through its subsidiary Korea Zinc Co Ltd, the Korea based non-ferrous metal smelting company with main products including zinc and lead ingots. The terms of the deal were undisclosed.

POSCO International Corporation offered a non-binding proposal to acquire Senex Energy Limited for A$890 million on November 8, 2021, later entering a binding agreement for A$850 million on December 13, 2021. The deal, priced at A$4.6 per share, involved acquiring 100% of Senex, with Hancock Energy Corporation subscribing to 49.9% of a Special Purpose Vehicle set up for the acquisition.

CJ Bioscience Inc, a Korea based microbiological research and biotechnology company, acquired an undisclosed stake in Provectus Algae Pty Ltd, an Australia-based biotech company that programs algae to produce the world’s most valuable specialty ingredients. This would leverage Provectus Algae's innovative technology to expand CJ Bioscience's product offerings and drive growth in sustainable and eco-friendly solutions.

Komipharm International Co Ltd of Korea increased its stake in Komipharm International Australia Pty Ltd from 67.8% to 72.5% by acquiring an additional 4.61% for A$23.5 million in a privately negotiated transaction. This strategic move would enhance operational integration, streamline decision-making, and capitalize on growth opportunities in the medicinal and botanical manufacturing sector.

Australian NFT startup, Immutable, secured A$200 million in funding from investors led by Singapore's Temasek for 8% stake, valuing the company at $2.5 billion. This marked a significant increase from its $410 million valuation in 2021. The capital would fuel global expansion, boost the Immutable X platform, and scale the Immutable Gaming Studio, including flagship games Gods Unchained and Guild of Guardians.

SIS India, a security firm, expanded its reach by acquiring 85.0% of Safety Direct Solutions Pty Ltd, an Australian company offering security, risk management, medical, and training services, through its subsidiary SIS Australia Holdings Pty Ltd, for A$5.0 million. Additionally, on September 12, 2022, SIS India announced its plan to acquire the remaining 15.0% stake in the company. This strategic move solidified SIS Group as Australia's top emergency services provider.

Mirae Asset Financial Group, through its subsidiary Mirae Asset Global Investments Co Ltd, acquired 53% of Stockspot, an Australian online investment advisor, for A$28.0 million. This strategic investment would expand Mirae's presence in the Australian market, following the acquisition of ETF Securities in June 2022.

Mirae Asset Global Investments Co., Ltd and Global X Management Company LLC acquired ETFS Management (AUS) Limited. The acquisition would allow Mirae Asset and Global X to quickly scale in Australia, complementing ETF offerings with ETF Securities' thematic, commodities, and digital asset strategies.

CEFC led a A$16.0 million Series A funding for Bolt Bikes, including investments from Hana Ventures, Maniv Mobility, and Contrarian Ventures, with venture debt from OneVentures and Viola Credit. CEFC contributed A$7.0 million through its Clean Energy Innovation Fund. The funds would support recruitment and expansion into parcel, mail, and grocery deliveries. Bolt Bikes would rebrand as Zoomo. 

JB Financial Group Co., Ltd. acquired 100% of the share capital in Schuh Group Finance Pty Ltd. The deal included a strategic alignment to enhance financial service offerings and expand market presence.

Australian NFT startup, Immutable, secured A$200.0 million in funding from investors led by Singapore's Temasek for 8% stake, valuing the company at $2.5 billion. This marked a significant increase from its $410.0 million valuation in 2021. The capital would fuel global expansion, boost the Immutable X platform, and scale the Immutable Gaming Studio, including flagship games Gods Unchained and Guild of Guardians.

Car Next Door raised A$6.2 million from South-Korean car maker Hyundai. Car Next Door entered into a partnership with Hyundai in July 2018 “to bring sharing ready cars to Australia and increase the number of hybrid and electric vehicles in the Car Next Door community.” The continued partnership was aimed at introducing more eco-friendly cars to the Car Next Door fleet, as well as making it easier for Hyundai owners to list their cars.   

National Pension Fund, the South Korea based south Korea based state owned pension fund has acquired an undisclosed stake in Scape Australia Management Pty Ltd, the Australia based operator of student accommodation. The terms of the deal were undisclosed.

The National Pension Service (NPS) of Korea acquired a 100% interest in the 34-storey Melbourne Quarter Tower from Australian developer Lendlease for a reported A$1.2 billion. The acquisition was the culmination of NPS’s strategy to acquire premium quality commercial assets with high sustainability features.

Fund manager CIMB-TrustCapital Advisors divested its office complex in Canberra to Mirae Assets for A$312.0 million. The sale from CIMB was meant to further streamline and focus on its core banking business. Sydney and Melbourne had witnessed a growth in Asian investment for office retail spaces in the recent years with Korean investment funds having quickly emerged as one of the main forces in the market.

South Korea’s Teachers Pension fund purchased the Industry Superannuation Property Trust’s Green Square office building in Brisbane for more than A$205.0 million. The fund had been looking to increase its foreign investment exposure to more than 10%of its fund, from about 5%. The building had been in due diligence with a number of parties including financial services giant Challenger through a separate Korean fund.

RF Capital and CorVal Partners owned Australian Red Cross Blood Service complex in Alexandria, Sydney was acquired by South Korean financial services group NH Investment & Securities for more than A$113.0 million. The building was fully leased until January 2031, with the agreement supported by a deed of indemnity with the federal government, in keeping with the desire of Asian groups for secure income streams.  

Louisa Lawson, the 26,000 square metre building in Canberra was sold to South Korean property investors AIP Asset Management formerly known as FG Asset Management for A$225.0 million. Given the suburban location of the building, it set a benchmarks for the Canberra market, which stood out as a recipient of global funds due to stability offered by buildings backed by long leases to the Commonwealth government.

Korean property investment firm AIP Asset Management acquired the Australian Taxation Office in Albury for A$65.0 million from an investment vehicle RF Capital, owned by Andrew Roberts. The long lease on the property coupled with lower Australian dollar and the debt rates made Australian properties more attractive to the foreign investors.