How to do Korea M&A

When Kim Soomin first approached the management of Nexcom in February 2012 he knew that he had to tread carefully. He represented Unison Capital, a Japanese private-equity firm that had identified the Korean technology company as an investment opportunity and as a target.

Public opinion in Korea has been hostile to private equity firms for more than a decade, blaming them for preying on local companies weakened and vulnerable in the wake of the Asian financial crisis.

In popular perception, Texas-based Lone Star’s acquisition of Korea Exchange Bank in 2003 epitomised the cowboy behaviour of predators long of cash but short of responsibility.

But...