Korea Venture Investment and Saudi SVC Join Hands... Startup Investment Cooperation Between the Two Countries

Korea-Saudi Sovereign Fund Management Institutions Sign MOU
Establish Investment Cooperation Model Including Joint Fund Formation
Expand Global Market Entry and VC Networks for Companies of Both Countries

[Asia Economy Reporter Kim Bo-kyung] The fund-of-funds management institutions of Korea and Saudi Arabia have signed a memorandum of understanding (MOU) to support ventures and startups in both countries. They plan to create investment cooperation models such as joint funds to help companies expand globally and strengthen networking.

According to the Ministry of SMEs and Startups on the 17th, Yoo Woong-hwan, CEO of Korea Venture Investment Corp., and Nabeel Koshak, CEO of Saudi Venture Capital (SVC), signed the MOU at the 'Korea-Saudi Investment Forum' held at the Korea Chamber of Commerce and Industry. (Related article▶[Oil Money is Coming] "Discussing Korea-Saudi Joint Fund"... SVC Meets Korea Venture Investment)

Established in 2018, SVC is a public venture investment institution under the Saudi Small and Medium Enterprises General Authority and a fund-of-funds management institution. Interested in Korea’s fund-of-funds management policies and experience, SVC signed an MOU with Korea Venture Investment in January last year to exchange opinions on investment policies and procedures.

An official from the Ministry of SMEs and Startups explained, "Saudi Arabia hopes to actively exchange and cooperate with Korean startups, venture capitalists, and large corporations in related fields to revitalize the game and entertainment industries."

He added, "Against this background, SVC has signed the MOU again with Korea Venture Investment to promote practical investment cooperation and corporate exchanges between Korea and Saudi Arabia."

This MOU includes specific cooperation between the two countries beyond exchanging opinions on investment strategies, policies, and procedures between the two institutions.

First, they agreed to promote the establishment of an investment cooperation model to support SMEs and venture companies in both countries. By creating collaborative models such as joint funds, they will support the global expansion of startups in both countries and expand cooperation and networks among venture capitalists (VCs).

Currently, the only global fund established by Korea’s fund-of-funds in the Middle East is managed by Shorooq Partners in the United Arab Emirates (UAE). However, this MOU is expected to position Saudi Arabia as a foothold for global funds in the Middle East.

Secondly, they agreed to discuss support measures for SMEs and venture companies in the esports and gaming industries, which are of high interest to Saudi Arabia.

Earlier, on the 10th at the 'ComeUp 2022' event, Minister Lee Young of the Ministry of SMEs and Startups held a bilateral meeting with Khalid Al-Falih, Saudi Minister of Investment, to discuss exchanges between startups of the two countries and ways to revitalize venture investment. This MOU was signed as a follow-up measure.

Minister Lee said, "Saudi Arabia is pursuing an economic structural transformation by boldly investing in new growth industries to achieve post-oil diversification. Our innovative SMEs and venture companies with creative ideas and technological capabilities can be good partners for Saudi Arabia’s economic growth."

He added, "Taking this MOU as an opportunity, we will actively discover and promote practical cooperation projects that can help the growth of ventures and startups in both countries."

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