BlackRock will sell its onshore retail fund business in South Korea to Seoul-based DGB Asset Management as part of a restructuring that will leave the firm focusing on its institutional clients there.
A BlackRock spokeswoman declined to provide terms of the deal, announced Wednesday.
The sale of the local funds business, which BlackRock launched in 2008, is part of a push by the New York-based giant to allocate its resources efficiently in the region, she said. BlackRock will continue to serve institutional investors in the country, she added.
Investors' search for yield and increased portfolio diversification for overseas exposures "have helped advance our Korea business remarkably in recent years, especially for alternatives and index strategies," Susan Chan, head of Asia, said in a news release.