"Technology Innovation Strengthens US Economy…Patience Needed for Rebound"

Stephen Schwarzman, Chairman of Blackstone

Despite High Uncertainty and Slowed Growth

High Productivity Outpaces Other Major Countries

Investing in Gimpo Logistics and Gangnam Building

"Despite Political Turmoil, Korea Remains Attractive"

"The market has been so unsettled recently that it's hard to find direction, but it's important to stay patient and not leave the market."

Stephen Schwarzman, Chairman of Blackstone (pictured), emphasized in a written interview with the Korea Economic Daily on the 5th that "before entering the current phase of uncertainty, the US economy was fundamentally very solid." Schwarzman is a leading investor who heads the world's largest private equity firm, Blackstone. He is also known as an 'economic advisor' to US President Donald Trump.

Despite the growing uncertainty due to the US-initiated tariff war, he says the US economy has become robust through technological innovation. According to financial information company FactSet, the US economic growth rate is expected to record 1.9% this year. Although it will slow compared to 2023 (2.9%) and last year (2.8%), it is expected to perform better than other major countries. Schwarzman stated, "While a quick and effective solution to uncertainty is needed, we must not forget that the productivity of the US economy has greatly improved due to rapid technological innovation in recent years."

The investment area that Schwarzman is eyeing in Korea is the real estate alternative investment sector. Last year, Blackstone acquired the Seonggwang Logistics Center in Gimpo. This year, it plans to convert the Seoul Gangnam office building of SM Group, purchased for 120 billion won, into a hotel. He explained, "The investment stems from the conviction that Korea's e-commerce and travel and leisure industries have secured strong growth drivers."

Last year, Blackstone also signed a contract to acquire the domestic cutting tool company JJ Tools (formerly Jangjin Tools). Established in 1997, JJ Tools is a strong small and medium-sized enterprise with an operating profit margin of 50%. Schwarzman emphasized, "JJ Tools has grown into a leading company in the industrial cutting tool industry based on 30 years of experience, and we firmly believe it will become a leading company in Asia," adding, "We will discover excellent Korean companies in key themes such as economic digitalization, life sciences, and travel and leisure, and create long-term value by collaborating with them."

Schwarzman assessed that despite recent political turmoil in Korea, the Korean market remains a promising investment destination. He said, "Historically, Korea has shown a quick recovery from adversity," and "from an investment perspective, Korea is an attractive market."

Reporter Maeng Jin-kyu maeng@hankyung.com