Motae Fund Investment Project Navigates Smoothly Beyond COVID-19

Competition Rate of 3.1 to 1 in the 1st Capital Contribution Project Including Smart Daehanminguk Fund and Beotimmok Fund

[Asia Economy Reporter Kim Cheol-hyun] Korea Venture Investment Corp. (CEO Lee Young-min) announced on the 19th that in the first round of this year's Mother Fund investment project, 132 funds applied for approximately 2.15 trillion KRW in investments from the Mother Fund. This corresponds to a competition rate of 3.1 to 1 based on the 690 billion KRW prioritized for investment out of the initially planned 750 billion KRW.

This project aimed to act as a catalyst for the venture investment market, which has been stagnant due to the prolonged COVID-19 pandemic, by promoting early budget execution and prioritizing the sectors under the Ministry of SMEs and Startups. Among the application demand, the Mother Fund plans to invest around 690 billion KRW and, combined with private funds, create funds totaling approximately 1.5 trillion KRW.

As part of the Korean New Deal policy to foster future industries, the Smart Korea Fund, which invests in non-face-to-face, bio, and green new deal sectors, received requests for about 700 billion KRW in investments compared to the initially planned 350 billion KRW, recording a competition rate of 2 to 1. The mentor company matching investment sector is accepting applications on a rolling monthly basis.

The Scale-up Fund, which sets an average investment amount of over 5 billion KRW per company to nurture unicorn companies, received 290 billion KRW in applications, recording a competition rate of 3 to 1. Additionally, the Materials, Parts, and Equipment Fund received requests totaling 244.5 billion KRW against a 60 billion KRW investment from the Mother Fund, reaching a competition rate of 4.1 to 1. The Support Fund for companies affected by COVID-19 received 302 billion KRW in applications, recording a competition rate of 3 to 1. The Early Startup Fund requested 571.7 billion KRW in investments compared to the initially planned 40 billion KRW, showing the highest competition rate of 14.3 to 1 among the first round investment projects.

Lee Young-min, CEO of Korea Venture Investment Corp., said, "Venture capitalists are actively showing their willingness to invest to overcome the crisis and leap into the future beyond the KOSPI 3000 era," adding, "We will manage the early formation of funds so that capital can flow quickly to companies struggling due to COVID-19."

This content was produced with the assistance of AI translation services.