Synergy IB Investment Forms 57 Billion KRW Blind New Technology Fund with IBK Financial Group

[Asia Economy Reporter Hyunseok Yoo] Synergy Partners Group's new technology finance company, Synergy IB Investment, announced on the 28th that it has established a blind fund called 'IBK Financial Group Synergy IB Business Restructuring New Technology Investment Association' with a scale of 57 billion KRW.

The primary investment targets of the new technology investment association are domestic small and medium-sized enterprises (SMEs) and mid-sized companies engaged in new industry sectors, or those approved for business restructuring plans under the Corporate Vitality Act, as well as companies transacting with Industrial Bank of Korea.

The business restructuring system is a system under the Corporate Vitality Act that enables healthy companies to proactively and autonomously undergo structural changes and business innovation or enter new industry sectors. Companies approved for business restructuring plans by the Ministry of Trade, Industry and Energy can receive simplified procedures under the Commercial Act and Fair Trade Act, regulatory exemptions, and various incentives in areas such as finance, taxation, employment, and R&D.

Currently, the number of companies approved for business restructuring has reached 217 cumulatively, surpassing 200 within five years of the Corporate Vitality Act's enforcement. The government is also promoting the expansion of business restructuring support targets through legal amendments to include structural reorganization due to external factors such as digital transformation and carbon neutrality. Industrial Bank of Korea is also understood to have promoted the formation of this association to support the government's business restructuring activation policy.

Previously, in 2018, IBK Financial Group formed a new technology investment association with Synergy IB Investment worth 50 billion KRW (IBK Financial Group Synergy IB Mezzanine New Technology Association) to provide growth capital to SMEs and mid-sized companies such as ISC, Ace Tech, KH Vatec, and Cosmo Chemical.

This association completed investments in a total of 30 companies in about 2 years and 6 months, faster than the original 4-year investment period, and has recovered more than 70% (as of July, the average IRR of recovered assets is 34.9%).

Geonyoung Lee, CEO of Synergy IB Investment, said, “This new technology investment association includes not only IBK Financial Group, which has supported the nurturing and development of domestic SMEs and mid-sized companies, but also companies and institutions from the private sector that match the stature of IBK Financial Group. We will actively utilize the capabilities of Synergy Partners Group companies.”

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