Shinhan said it signed a memorandum of understanding on Thursday with the Financial Services Commission and the Ministry of SMEs and Startups to boost venture investment and will launch a 100 billion won fund-of-funds.
The fund is the first project to be carried out under a public-private cooperation framework built with the FSC and the SMEs ministry to expand venture investment. Shinhan said the aim is to help close early-stage funding gaps for youth and regional startups and increase the supply of private risk capital.
The Shinhan Venture Innovation Fund of Funds, which is targeting formation in June, will be managed by Shinhan Venture Investment. Key affiliates including Shinhan Bank, Shinhan Card, Shinhan Investment Corp. and Shinhan Capital will participate as investors.
Shinhan said it will use 100 billion won of its own money as seed capital to draw private participation and expects leverage from forming sub-funds to expand total assets under management to about 1 trillion won.
Investment targets include promising startups and growth-stage companies in advanced industries such as artificial intelligence and semiconductors. Shinhan said it will also invest in early-stage youth startups by participating in Korea Venture Investment Corp.'s LP Growth Fund program.
Jin Ok-dong, chairman of Shinhan Financial Group, said the fund is "a starting point for the entire group to help remove the early funding hurdle, the biggest barrier for young founders." He said Shinhan will be "a reliable partner at every stage, from the start to global growth."
* This article has been translated by AI.
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