Can private fund managers and discretionary investment managers take part in IPO book-building?

They can, but the requirements were tightened by a 2025 amendment to Korea Financial Investment Association regulations.

An asset manager registered for general private collective investment business may participate with its proprietary assets or collective investment assets if 2 years have passed since registration and the average daily value of its managed assets over the most recent 3 months is KRW 5 billion or more, or if that value is KRW 30 billion or more. Even if it does not meet these requirements, it may participate with collective investment assets in certain cases, such as when it commits to holding the allocated shares for at least 3 months, and similar requirements apply to discretionary investment managers.