South Korea’s DGB Asset Management under DGB Financial Group took over the domestic fund operation business of Blackrock Asset Management, the Korean subsidiary of American investment manager Blackrock Inc.

DGB Asset Management said Wednesday that its board of directors approved a plan to acquire Blackrock’s retail business division unanimously. The business unit operates 26 public funds with around 700 billion won ($621.1 million) in net asset. They are funds of funds tracking Blackrock’s global funds.

DGB will be responsible for fund management and customer service of those 26 funds. It plans to complete the transaction after receiving approval from the financial authority. Detailed sale terms have not been disclosed.

DGB aims to strengthen its global retail business after the deal, while Blackrock is expected to focus on offshore active and index funds and alternative investments after divesting the business.

“We decided to acquire the business to strengthen overseas fund business and expand global operation, and we will launch diverse products via widened network,” said Park Jung-hong, CEO of DGB Asset Management. “The partnership with Blackrock will help us create a synergy in many areas such as new product launches.”

“Blackrock will continue to invest in human resources in the country (Korea) and make the most of our global investment expertise and risk management capabilities,” said Choi Man-yeon, CEO of Blackrock Asset Management. “We will support as many domestic investors as possible to help them contribute to building better future for finance.”

By Kim Jung-beom and Choi Mira

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