NH Nonghyup Financial is expanding the size of its 'NH Coexistence and Growth Fund 2' to 400 billion won to enhance venture capital supply.
The company announced on August 30 that it will increase the fund from the initial 100 billion won to 400 billion won.
NH Nonghyup Financial plans to secure investment resources from the main fund and create sub-funds that align with its investment strategy. This approach will allow for quicker capital deployment when promising investment opportunities arise.
Of the total 400 billion won, 60% will be allocated for venture capital supply, while the remaining 40% will be used for direct and indirect investments linked to the National Growth Fund.
In the venture capital sector, the fund will provide direct loans to small and medium-sized enterprises, venture startups, and local businesses with high growth potential, while also investing in convertible bonds (CB) and bonds with warrants (BW).
Direct investments linked to the National Growth Fund will involve co-investing in equity with the National Growth Fund in companies related to advanced strategic industries, as approved by the fund management review committee.
Following the establishment of its first infrastructure investment fund worth 500 billion won in the first half of this year, NH Nonghyup Financial has now completed the formation of a total of 900 billion won in funds with this second fund. The company aims to further increase its annual fund formation size to 1 trillion won by establishing additional private venture main funds by the end of the year.
Lee Chan-woo, Chairman of NH Nonghyup Financial, stated, "Through the Coexistence and Growth Fund 2, we will supply venture capital to small and medium-sized enterprises that find it difficult to secure market-based loans or low-interest loans, and we will also expand investments in advanced strategic industries linked to the National Growth Fund."
* This article has been translated by AI.
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