The Financial Services Commission and the Industrial Bank of Korea announced on October 14 that they have selected seven firms to manage the Long-Term Technology Investment Fund.
Three small fund managers selected are Gentech Venture Investment, Hanwha Investment & Securities, and Timefolio Asset Management & Timefolio Capital. Each fund will have a size of 80 billion won, totaling 240 billion won.
The four medium-sized fund managers are Smilegate Investment, We Ventures, Kolon Investment, and Quantum Ventures Korea. Each of these funds will be 160 billion won, amounting to a total of 640 billion won.
The selected managers were chosen based on their ability to execute technology investments, a departure from the previous selection of indirect investment managers, according to the Financial Services Commission.
Criteria for evaluation included the core management team's ability to commercialize the technologies of invested companies, possession of specialized personnel in key investment areas, and the establishment of a technical expert network for consultation. The evaluation also verified the execution capabilities of technology investments based on technological advancement outcomes and industrial impact.
The Financial Services Commission stated, "The Long-Term Technology Investment Fund aims to provide patient capital for advanced technology and foundational technology companies that require a long time to commercialize, with a maximum investment horizon of 16 years. The goal is to align the timing of capital deployment with technology development, supporting the transition from initial research and development to large-scale commercialization while enhancing technological maturity."
The fund is expected to raise a total of 880 billion won this year. Of this target amount, 75%, or 680 billion won, will be sourced from the Advanced Strategic Industry Fund (600 billion won) and government finances (80 billion won). Additionally, to prevent over-concentration in artificial intelligence (AI) and semiconductor investments, more than 40% will be allocated to non-AI and non-semiconductor sectors.
The seven selected fund managers will complete fundraising and fund formation procedures by December and begin investments by the end of the year. The Financial Services Commission emphasized, "The Long-Term Technology Investment Fund is a crucial policy initiative aimed at developing key technologies for the future of South Korea. As this is the first attempt at a policy fund, related institutions like the Industrial Bank of Korea will establish effective monitoring systems to achieve long-term policy goals."
Meanwhile, the second National Participation Growth Fund will sell the remaining 147.5 billion won on a first-come, first-served basis until 5 PM on the 15th.
* This article has been translated by AI.
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