Hanwha Investment & Securities Forms 'Hanwha-Wonik K-Defense Technology Innovation Investment Partnership Fund'

Hanwha Investment & Securities announced on the 1st that it held the inaugural meeting for the formation of the 'Hanwha-Wonik K-Defense Technology Innovation Investment Association Fund,' which invests in promising domestic defense industry companies, on March 29.

Hanwha Investment & Securities and Wonik Investment Partners overcame a 6:1 competition ratio last September to be selected as the second fund general partner (GP) for the defense technology innovation fund managed by Korea Growth Investment Corporation, raising a fund worth 42.5 billion KRW.

The 'Hanwha-Wonik K-Defense Technology Innovation Investment Association' plans to focus investments on defense industry companies promoting open technology innovation or companies aspiring to enter the defense industry (investing at least 60% of the committed capital), and excellent technology companies (investing at least 80% of the executed investment amount). Additionally, this fund is characterized by differentiated fund management, including pre-investment technology verification through close collaboration with Hanwha Group, the largest operator in the domestic defense industry.

The defense technology innovation fund participating in the Hanwha-Wonik K-Defense Technology Innovation Investment Association is the first policy-type fund in the defense sector led by the Defense Acquisition Program Administration (DAPA). It was established with capital from Hana Bank, the dedicated bank for R&D funds of research institutes under DAPA. Other major financial institutions and local governments, including Woori Bank, Gyeongsangnam-do Province, BNK Gyeongnam Bank, NH Nonghyup Bank, and Shinhan Capital, also participated in the fund's capital contribution.

Meanwhile, Hanwha Investment & Securities' New Technology Finance Division was newly established in 2017 through the acquisition of Hanwha Investment's venture capital (VC) business. It currently manages eight blind funds with a total assets under management (AUM) of 415 billion KRW. Key achievements include the high-return liquidation of the 'Chungnam-Hanwha SME Development Fund' and the 'Seoul Global Biomedical New Growth Fund' at the end of last year, as well as the formation and operation of the 100 billion KRW 'Smart Hanwha KDB Gyeonggi Carbon Neutral ESG Fund.'

Kim Guk-sung, Managing Director of Hanwha Investment & Securities' New Technology Finance Division, stated, "Due to recent conflicts such as the Russia-Ukraine and Israel-Hamas wars, large-scale capital inflows into the defense sector are expected. Hanwha Investment & Securities, with its expertise in the defense industry, and Wonik Investment Partners, with extensive deep tech investment experience, will create synergy in discovering and investing in promising military tech companies."

Hanwha Investment & Securities plans to conduct additional fundraising for institutions that express their intention to participate by the end of June, considering the high interest from institutional investors in the defense sector.

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