BNK Financial Group Forms Future Innovation Growth Fund to Foster Busan, Ulsan, and Gyeongnam Companies

Group Subsidiaries Invest, Targeting Regional Mid-Sized Companies

BNK Financial Group (Chairman Bin Dae-in) announced on the 13th that it has established the "BNK Future Innovation Growth Fund" through its affiliate BNK Venture Investment, aiming to revitalize the venture and startup ecosystem in the Busan, Ulsan, and Gyeongnam regions.

The main investors in the fund include subsidiaries within BNK Financial Group such as Busan Bank, Gyeongnam Bank, Capital, and Venture Investment. Busan Bank invested 10 billion KRW, while the other three companies each invested 5 billion KRW, totaling 25 billion KRW. Additionally, the fund plans to provide investment opportunities to mid-sized local companies to stimulate the economy in the southeastern region. Through this investment opportunity, companies located in the Busan-Ulsan-Gyeongnam area can simultaneously promote local capital circulation and strengthen corporate competitiveness, which is expected to greatly contribute to establishing a virtuous economic cycle in the southeastern region.

Since becoming a subsidiary of the group, BNK Venture Investment has executed a total of 77.5 billion KRW in new investments in the Busan-Ulsan-Gyeongnam region over five years (2020?2024). Notably, as of the end of 2024, it invested 14.2 billion KRW in 12 companies, including Mapsi Co., Ltd., a startup specializing in ship navigation and fleet management solutions based in Haeundae, which received the Innovation Award at CES 2025 in the United States this January. To date, BNK Venture Investment has invested a cumulative total of 57.3 billion KRW in 24 companies headquartered in Busan. This has significantly expanded the previously insufficient investment proportion in venture companies in the Busan-Ulsan-Gyeongnam region, contributing to the activation of the local startup ecosystem.

Jung Sung-jae, CEO of BNK Venture Investment, stated, "We expect various innovative companies in the region to achieve a win-win effect through the Future Innovation Growth Fund, and we will serve as a catalyst to discover and nurture innovative business models in the Busan-Ulsan-Gyeongnam area." He added, "We hope this will be an opportunity to promote the globalization of local companies and their transition to high value-added businesses."

Since incorporating BNK Venture Investment as a subsidiary in 2020, BNK Financial Group has continuously participated in funds formed thereafter, actively supporting the company's growth and aggressively expanding its venture capital (VC) business.

As a result, BNK Venture Investment is rapidly growing with the largest AUM (Assets Under Management) of 400 billion KRW among regional financial group-affiliated VCs. Based on the group's full support for revitalizing the regional economy, it aims to surpass 500 billion KRW in AUM and enter the top tier of domestic VCs in the near future.

BNK Venture Investment has formed a total of 19 funds to date, with three having completed liquidation. The Future Creation Investment Association recorded an IRR (Internal Rate of Return) of 17% and a multiple of 2x the principal (the average IRR for venture funds is 8%), demonstrating excellent returns. The Agricultural and Food Fund No. 2 also showed outstanding recovery performance by distributing more than the principal.

Among the 14 funds formed after joining the group, four focus on investing in the Busan-Ulsan-Gyeongnam region. Last year, BNK Venture Investment was selected as the GP (General Partner) for the Busan Regional Innovation Venture Fund investment project by Korea Venture Investment Corporation and completed the fund formation. Based on these achievements, it is expected to continue playing a pivotal role in innovative investment and regional economic development.

Investments in this fund can be made immediately after consultation with the management company, with a minimum investment amount of 100 million KRW. Detailed application methods and procedures will be provided by BNK Venture Investment.

BNK Financial Group is establishing the Future Innovation Growth Fund to foster innovative companies in the Busan, Ulsan, and Gyeongnam regions.

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