Achieved a total of 8 trillion won over the original target for 3 years Investment amount of 3.4 trillion won despite contraction in venture investment due to corona
The Korea Development Bank has created a growth support fund of 9.8 trillion won over the last three years to create an innovative startup ecosystem.ⓒ KDB Development BankThe Development Bank of Korea announced that it has created a growth support fund with 9.8 trillion won over the last three years to create an innovative startup ecosystem.
In accordance with the government’s’Innovation Adventure Fund Creation and Operation Plan’ in 2018, the Growth Support Fund, which started with a goal of KRW 8 trillion for three years, was organized by the Korea Development Bank and Korea Growth Finance Investment Management. It was created to support mid-sized companies and the field of the Fourth Industrial Revolution.
For three years, leading Korean PE and VC managers such as IMM, JKL, Skylake, ATINUM, LB Investment, and DSC were selected and managed 55 funds, investing 3.4 trillion won based on the cumulative amount.
Most of the 3rd year funds, which were formed in the fourth quarter of last year, invested 10% even though they were the initial investment, and 49% of the funds in the 1st and 2nd years, which were invested in earnest, were exhausted, showing good investment performance.
In particular, last year, through investment promotion incentives, even in the coronavirus situation, more than 2 trillion won was invested in more than 380 innovative companies, becoming a strong support for the innovative growth ecosystem of Korea. For managers that invest more than 30% of the fund size during last year, additional points are given for future evaluation.
Representatively, it must have supplied large-scale venture capital to companies that will lead the post-corona era such as SD Bio Sensor (Corona Diagnosis Kit), Jikbang (Online Real Estate), Kakao VX (Screen Golf), Bucket Place (Online Interior), and Watcher (OTT). As well as,
It played an important role in fostering domestic unicorn companies such as WeMef (e-commerce) and Soka (shared car).
The growth support fund induces active venture investment and follow-up investment for scale-up by making the fund larger and strengthening private autonomy.
To this end, a voluntary proposal for fund size and primary investment field was introduced, and a large VC league was attempted to lay the foundation for fostering unicorn companies with native capital.
In addition, in order to attract the participation of excellent managers and private investors, it was possible to attract high private participation even as a policy fund by providing various incentives such as transferring excess profits from the KDB to private investors or reinforcing subordinate rankings.
Through these efforts, the liquidity of private institutions that value profitability and stability was attracted to the growth fund of innovative companies and raised more than 1.8 trillion won, and it is evaluated that it became the foundation that opened the era of 500 billion won venture funds for the first time in Korea.
An official of the Korea Development Bank said, “The 10 trillion won growth support fund is an achievement achieved by all participants in the domestic PE and VC markets.” “55 funds will be a solid support force for fostering innovative companies and new businesses for the future of the Korean industry.” Revealed.
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