(Opalesque) South Korea-based investors are looking beyond the domestic market to invest in alternative assets funds around the globe, according to intelligence provider Preqin. Preqin tracks 154 institutional investors in South Korea, more than either Singapore or Hong Kong, of which almost two-thirds now invest in at least one alternative asset class. This is partly due to their growing assets under management: Korean pension funds now hold $639bn, up from $405bn just five years ago. It is also partly because in a low interest rate environment, alternative assets provide long-term outperformance of traditional asset classes. The domestic alternative investment market is also diversifying. Private equity firms based in South Korea now hold almost $50bn in assets; this is due to the government’s drive to foster the domestic private equity industry since the Asian Crisis, and its support for venture capital as a future growth engine.

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