Seoul, South Korea – Korea Venture Capital Company (KVIC) announced on Tuesday the launch of a new global fund worth over 700 billion Korean won (approximately US$550 million). This initiative is part of its efforts to boost overseas investment in Korean startups and expand its presence in global markets.
Selection of 6 global partners
KVIC has selected six global firms to manage this fund for the second half of the year. The selected firms include managers from four different countries, including: TEDCO from the United States, AVP from France, and CMBI from Hong Kong.
The fund’s total size is approximately 721.4 billion Korean won (about US$550 million). The parent company contributes 76.8 billion Korean won.
Mandatory investment in Korean companies
The Global Fund invests its parent fund in funds managed by leading foreign venture capital firms. These funds are required to commit to investing in Korean companies with an amount exceeding the parent fund’s investment. The mandatory investment in Korean startups from this new fund is expected to exceed 89 billion Korean won.
The selected operators are required to establish the fund within six months of the date of selection.
Unicorn support and global expansion
Korea Venture Capital has been managing global funds since 2013. These funds have contributed to the creation of global “unicorn” companies (valued at over one trillion won) such as Toss and Carrot Market.
Commenting on the new launch, Lee Dae-hee, CEO of Korea Venture Capital, said: “We will continue to provide full support to our startups and venture capitalists in attracting foreign investment. We will strive to expand into the global market by raising a global fund exceeding one trillion won each year.”
