The more complex, the more value is created… The era of Korean-style venture capital has arrived
Changhoon Shin, Managing Partner of VIG Partners, is a central figure in Korea’s private equity industry and is regarded as one of the youngest, most execution-driven investors among the first generation of PEs. Since joining the firm in 2005 and standing by it like a single body for 20 years, he has earned the reputation of being the “bulldozer of the PE world” and “the investor with the highest BQ (Business IQ).” BCC Global Media sat down with Managing Partner Changhoon Shin, who has risen to stardom leading the next generation of private equity by overcoming countless failures and challenges. He spoke candidly about the potential of Korean-style venture capital, VIG’s philosophy, and his industrial vision going forward.
VIG Partners has drawn attention by investing in mid-sized companies across diverse industries—such as Bonchon Chicken, Preed Life, Samyang Optics, KBT, and Kyowon Wells—through differentiated restructuring and growth strategies. In particular, it has been recognized as a PE that “turned opportunities within complexity into reality” by discovering structural value in non-mainstream areas such as consumer goods, healthcare, and funeral/service industries.
BCC Global Media Managing Director Winston Kim(right)
BCC Global Media: It’s good to see you. It has already been 10 years since I first met you—during the Wonderbra project in 2015, so more than a decade. You were a managing director then, and now you’re the Managing Partner.
Changhoon Shin: That’s right. I joined as the most junior member in 2005, and it has been 20 years this year. I am the first to become Managing Partner after starting as an associate at VIG. As a first-generation PE professional, I have watched the industry’s ups and downs and shifts from the very beginning. That’s why I believe Korea’s private equity industry has now entered the stage of industrialization. I have held every position from junior to senior, and I am the only person who has understood the firm’s documents from the start. I take pride in that.
BCC Global Media: Your résumé is impressive. You also worked at BCG and have startup experience. People in the industry often say, “Managing Partner Shin has the highest BQ—Business IQ—among PE leaders.” Where do you think that business acumen comes from?
Changhoon Shin: Being a first-generation PE investor, it took about 15 years before I developed my own investing color. Market changes, personal capability development, and investment experience all have to mesh. I invest by two principles. First, I start with macro trends. It’s hard to make two-to-three-times returns with only micro analysis. You shouldn’t go against the big currents. Second, within complexity lies opportunity. When you solve complex problems, value is created. But if you don’t understand why something is complex, don’t invest. If it’s complex yet the way to solve it is clear, that very complexity is the opportunity.
BCC Global Media: Was the investment in a non-mainstream industry like Preed Life approached from that perspective as well? I’m curious about VIG’s investment decision process.
Changhoon Shin: As a first-generation PE, we have reviewed over 1,000 companies to date. We have invested in more than 50 and dispatched over 100 executives. The experience accumulated this way is our base. On top of that, we study macro factors extensively. Japan and the U.S. are 10–20 years ahead of Korea. If you study investment patterns in those markets, you can spot opportunities in Korea earlier. That’s how we can unearth opportunities in industries no one is paying attention to.
BCC Global Media: Cases like Bonchon and Preed Life are good examples. What were the difficulties for Korean companies as they grew onto the global stage?
Changhoon Shin: Korea’s industrialization began in the 1970s. Until the early 2000s, global competitiveness was weak. But as we passed into the 2020s, industries have built up over 70–80 years. Now is the time when Korean companies can also succeed in global markets. At this timing, PEs must tackle areas that are difficult for strategic investors (SIs). We achieved results by scaling Korean brands—like KBT, consumer brands, and Bonchon—globally.
BCC Global Media: Recently, global capital is focusing again on the Korean market. Why do you think that is?
Changhoon Shin: We don’t fixate on deal size. Whether it’s in the trillions of won or in the hundreds of billions, if value creation is possible, we invest. It’s only natural that foreign capital is interested in Korea. China has a lot of regulations, and apart from Japan and Australia, Korea is the market that remains. Korea offers high stability and predictability. Pension funds like the National Pension Service are large in scale. From an investor’s perspective, it’s an attractive market. We are “the house that understands Korean industry the deepest.” There are very few places that can unravel complex structures and undervalued companies through an investor’s eyes.
BCC Global Media: Ten or twenty years from now, what kind of house do you want VIG to be remembered as?
Changhoon Shin: It’s clear. Any global investor who invests in or is interested in Korea must meet us. We are the team with the broadest understanding of Korean industries and companies. VIG wants to be the standard-bearer of “Korean-style venture capital.” We will discover undervalued companies, unravel complex structures, and craft stories that raise value in a distinctly Korean way. That is our mission.
BCC Global Media: Is there anything organizationally you’re especially proud of?
Changhoon Shin: Performance is largely similar. Any capable house delivers similar results. What we’re proud of is our team. It’s a team that has been built continuously for 15 years from juniors to seniors, without gaps. It takes 20 years to build a team like this. Now we are a completed team. A team that can invest and deliver returns.
BCC Global Media: I heard the investment performance with Preed Life was outstanding.
Changhoon Shin: We invested in parallel through two funds. Each delivered roughly 35–40% returns. We initially invested about USD 48.7 million, deployed a total of about USD 208.8 million, and recovered roughly USD 835.1 million.
BCC Global Media: Last question. Where do your energy and passion come from?
Changhoon Shin: Half is innate temperament, and half is experience. I have watched industrial shifts for 20 years. Now I also know clearly what role we must play. What remains is to make VIG’s presence known in both the Korean and global markets.
BCC Global Media: We look forward to VIG’s continued growth and the development of Korean-style private equity.
Changhoon Shin: Thank you. I will keep pushing to the end.
BCC Global Media
Interview conducted by: Winston Saehoon Kim, Managing Director, BCC Global Media
Interviewee: Changhoon Shin, Managing Partner of VIG Partners