SeAH Group Establishes CVC 'SeAH Technology Investment'... Accelerates Formation of Investment Team

SeAH Holdings Invests 11 Billion KRW in SeAH Technology Investment
Registered as a New 'Shingisa' with Broad Investment Scope, Focus on Core Business Synergy

[Asia Economy Reporter Kwangho Lee] SeAH Group has established a corporate venture capital (CVC). As SeAH Group, which operates in the steel industry, has created an investment firm, it is expected to pursue investment activities that generate synergy effects with its core business.

SeAH Holdings recently held a board meeting and resolved to establish SeAH Technology Investment as a subsidiary CVC and participate in a paid-in capital increase. The investment scale is 11 billion KRW. On the 21st, 1 billion KRW will be invested in the first phase, and an additional 10 billion KRW will be paid on January 11, 2023.

CVC is a venture capital funded by large corporations. Until now, large corporate holding companies could not establish CVCs due to the principle of separation of financial and industrial capital, but since the partial amendment of the Fair Trade Act was implemented at the end of last year, they have been allowed to establish them. Since then, large corporate groups such as GS, Hyosung, and CJ have successively established CVCs.

SeAH Technology Investment plans to proceed with the registration process for new technology business finance with the Financial Supervisory Service. Depending on the purpose, CVCs are classified as either venture capital companies (VCC) or new technology business finance companies (NTBFC). In many cases, CVCs prefer NTBFCs, which have a broader scope of investment than VCCs.

A SeAH Group official said, “We established the CVC with the purpose of securing future technologies and manufacturing competitiveness that can maximize synergy with our core steel business and to sustain continuous growth.”

He added, “We will invest in industries with growth potential such as robot automation, visioning, and eco-friendly technologies.” It is expected to invest in startups in the fields of digital transformation (DT) and future manufacturing.

SeAH Group has transformed into a steel material specialized group based on its steel roots. Centered on SeAH Holdings, it has various affiliates including ▲SeAH Steel ▲SeAH Besteel ▲SeAH Changwon Special Steel ▲SeAH Special Steel ▲SeAH CM ▲SeAH Metal ▲SeAH M&S ▲SeAH Aerospace & Defense Materials.

Meanwhile, according to industry sources, SeAH Technology Investment has already secured personnel with VC backgrounds. It is expected to focus on building an investment team by continuously recruiting personnel from VC or industrial sectors.

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