Discover Yonsei University’s Surprising Role as a Savvy Deal Maker in South Korea’s M&A Scene – KED Global

For a long time, Yonsei University was seen mainly as a traditional academic hub in South Korea. Now, it’s stepping boldly into the business world, especially in mergers and acquisitions (M&A). This shift is no small change for one of the country’s top private universities.

In response to falling student numbers and fixed tuition fees, Yonsei is exploring new ways to earn money. Analysts suggest this could reshape the future of higher education. The university is diving into consumer health products, recently acquiring Erom’s soy milk business for about 35 billion won (around $26 million). This deal will allow Yonsei to enhance its offerings while Erom focuses on its health supplements.

The M&A trend started back in 2021 when Yonsei partnered with Reverent Partners to buy Natural Way, the creator of Korea’s popular hangover cure, Sangkwaehwan. That move paid off well, with Natural Way seeing sales soar to over 115 billion won in revenue last year, with plans for a public listing by 2026.

This new approach highlights the Yonsei Foundation’s role in the university’s business strategy. Unlike many other universities in Korea, which mainly license research or invest safely, Yonsei is actively scouting new business opportunities. Currently, they’re reviewing various potential deals worth around 100 billion won, covering diverse sectors from funeral services to food products.

One reason for Yonsei’s agility is its governance structure. As opposed to other private universities often run by family interests, Yonsei operates more like a corporate entity. This allows them to make quicker decisions, a crucial advantage in today’s fast-paced market.

However, universities in South Korea still face some hurdles. Any significant financial moves require approval from the Ministry of Education, which has been cautious about profit-driven activities in the past. Yet, as more universities struggle with declining enrollments, the ministry is starting to see the potential benefits of well-managed business ventures. A policy adviser noted the growing understanding that smart M&A strategy might be vital for universities facing tough demographic shifts.

While Yonsei is forging ahead, its approach isn’t without critics. For example, when Korea University considered entering private equity, its board turned it down, citing potential risks. Yonsei’s journey shows a willingness to rethink old models in a time of change.

In the bigger picture, Yonsei’s shift reflects broader trends in education and business. With the landscape changing, universities worldwide might need to reconsider how they generate funds to support their core missions. As they navigate new challenges, Yonsei’s strategies could very well become a blueprint for others.

This insight into Yonsei University’s business pursuits highlights the innovative paths institutions might take amidst changing times. Exploring health products and engaging in M&A could offer valuable lessons for other universities looking to revitalize their financial strategies.



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