KB Financial "Next Year Optimal Time for Startup Investment... Expanding to 200 Companies"

[Asia Economy Reporter Park So-yeon] Amid concerns over an economic downturn causing a slowdown in startup investments, KB Financial Group views early next year as the optimal time for startup investments and is accelerating efforts to discover fintech (the convergence of digital and financial technology) companies.

According to the financial investment industry on the 19th, KB Financial Group has set a goal to increase its fintech company investments through KB Innovation Hub, an organization for supporting and discovering startups, from the current 177 companies to 200 companies.

A senior official at KB Financial stated, "We plan to speed up investments in startups" and "We will increase the number of supported companies to 200." The official added, "Considering the global economic situation and interest rates, we expect higher profitability if we start investing in startups from early next year and are preparing accordingly."

KB Innovation Hub is a startup support organization operated by KB Financial Group that connects KB Financial and the fintech startup ecosystem. Since its launch in March 2015, it has selected technology startups with high future growth potential as KB Starters and operates various support programs. To date, a total of 177 KB Starters have received support from KB Financial Group, with a total cumulative investment amount of 117.5 billion KRW.

Starting this month, KB Financial will expand Innovation Hub overseas. To assist domestic startups in entering overseas markets, it plans to open 'KB Global Fintech Lab,' the first global branch of KB Innovation Hub, in Singapore. KB Financial is the first private institution to establish a separate base in Singapore for startup support.

A KB official said, "For startups, it is easier to grow into unicorn companies if they enter overseas markets and attract foreign capital from the early stages beyond the domestic market," adding, "Especially, Singapore has the best startup support infrastructure in Southeast Asia, making it easier for domestic startups to enter Vietnam, Indonesia, and Cambodia."

Earlier, at the end of last year, KB Financial formed the 'KB Digital Platform Fund' worth 300 billion KRW at the group level to invest in innovative technology and digital platform companies. The main investment targets are digital and platform companies that can strategically collaborate with KB Financial and technology companies to strengthen financial platform competitiveness.

Investments will be primarily reviewed for KB Starters discovered by KB Innovation Hub and recommended companies related to digital platforms from each affiliate. Six affiliates?KB Kookmin Bank, KB Insurance, KB Kookmin Card, Prudential Life, KB Capital, and KB Life Insurance?participate as LPs, while KB Securities and KB Investment serve as joint GPs.

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