The South Korea Financial Services Commission and Korea Development Bank selected seven managers for KRW 880 billion of ultra long term technology funds under the National Growth Fund’s indirect investment program. The funds will provide patient capital for up to 16 years to advanced and foundational technology companies, including in next generation semiconductors and advanced biotechnology, from early research and development through scaling and commercialization. Three managers will each operate a KRW 80 billion fund and four will each operate a KRW 160 billion fund. The selection assessed technology investment execution capabilities, including commercialization experience, specialist personnel and access to technical expertise. Of the target capital, KRW 600 billion will come from the Advanced Strategic Industries Fund and KRW 80 billion from the government budget. At least 40% of qualifying investments must be outside artificial intelligence and semiconductors to limit concentration. The managers are expected to raise capital and establish the funds by December, with investment potentially beginning by year end. The Financial Services Commission plans to select managers annually for the program, while Korea Development Bank and related institutions will establish a monitoring framework.
South Korea Financial Services Commission selects seven managers for KRW 880 billion ultra long term technology funds
The South Korea Financial Services Commission and Korea Development Bank selected seven managers for KRW 880 billion of ultra long term technology funds. The funds will invest in qualifying advanced technology companies for up to 16 years, with at least 40% of qualifying investments directed outside artificial intelligence and semiconductors. Fundraising and formation are expected by December, with investment potentially starting by year end.