Gukigong Launches 240 Billion KRW Investment Project for PEF and Venture Funds

Selected 10 GP Firms in 3 Categories
30% of Total Commitment Requires Capital Commitment Letter

[Asia Economy Reporter Kwangho Lee] The Korea Technology Finance Corporation (hereinafter referred to as KOTEC) is launching a blind fund investment project worth a total of 240 billion KRW. Various asset management companies are expected to submit their bids.

On the 27th, KOTEC announced that it will publicly recruit entrusted managers for domestic private equity funds (PEF) and venture capital (VC) blind funds for 2022. A total of 10 asset management companies will be selected across three categories. Notably, the venture fund category in this investment project has newly established a startup early-stage investment section, drawing attention.

In the PEF category, four asset management companies will be selected. Each will receive investments ranging from 30 billion to 50 billion KRW, totaling up to 150 billion KRW. After individual evaluations, rankings will be assigned to allocate investment amounts accordingly. The first place will receive 50 billion KRW, second place 40 billion KRW, and third and fourth places 30 billion KRW each. The minimum fund size that each management company must form is 100 billion KRW.

The venture fund category is divided into general and startup early-stage sectors. In the general venture fund sector, four asset management companies will each receive 20 billion KRW. For the startup early-stage sector, two companies will be selected and supported with 5 billion KRW each. These funds must invest at least 50% of the total committed amount in small and medium (venture) enterprises within three years of their establishment. The minimum fund size for individual funds is 50 billion KRW for general and 20 billion KRW for startup early-stage funds.

To submit an investment proposal, an investment commitment letter (LOC) must be obtained. At least 30% of the total committed amount must be secured. Additionally, if there are currently managed blind funds, at least 60% of the committed amount must have been utilized to qualify.

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