Hong Kong-headquartered alternative asset manager SC Lowy and Shinhan Capital, a specialized credit finance company and subsidiary of the Shinhan Financial Group based in Seoul, have launched a local-currency fund targeting mid-yield opportunities across South Korea’s evolving credit landscape.

Launched in March, the Shinhan SC Lowy No.1 Private Debt Fund, denominated in Korean won, is designed to capitalize on increasing dislocation in the local lending markets, where tighter bank financing and interest rate volatility have created a growing pool of companies facing short-term liquidity constraints despite strong underlying fundamentals.

The strategy combines Shinhan Capital’s extensive on-the-ground origination network with SC Lowy’s global credit investing capabilities, enabling the partnership to source and execute attractive private credit opportunities with speed and precision.

Focusing on underserved and asset-rich segments of the market, the fund will provide flexible, bespoke financing solutions to borrowers. Its investment approach is centred on asset-backed lending, with rigorous collateral assessment to mitigate downside risk and prioritize capital preservation alongside returns.

Established in 1991, Shinhan Capital offers a diversified range of financial services, including corporate lending, leasing, installment and investment financing, and project finance. Its local expertise provides deep access to proprietary deal flow in a market increasingly characterized by structural funding gaps, the company says.

Against this backdrop, the fund is positioned as a strategic capital partner, supporting businesses through periods of market dislocation while delivering stable, risk-adjusted returns to investors, it adds.