Lee Daehee, CEO of Korea Venture Investment, Emphasizes Urgent Need to Extend Fund of Funds Duration

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Lee Daehee, CEO of Korea Venture Investment, stated on the 26th, "In order for the Fund of Funds to play a core role in the venture investment ecosystem, it is urgent to extend the duration of the Fund of Funds."

At a policy meeting held at the Korea Federation of SMEs in Yeouido, Seoul, on the same day, Lee said, "There are two ways to reform the duration of the Fund of Funds: either making it permanent or extending the period itself," and added, "I understand that discussions are still ongoing within the Ministry of SMEs and Startups, but this is an issue that must be resolved."

This meeting was organized for Lee, who was inaugurated on the 7th of this month, to share the role and future direction of the Fund of Funds. Having previously served as Director General for Planning and Coordination at the Ministry of SMEs and Startups, he is the first CEO of Korea Venture Investment with a bureaucratic background.

Lee Daehee, CEO of Korea Venture Investment, is speaking at a policy meeting held on the 26th at the Korea Federation of SMEs in Yeouido, Seoul. Korea Venture Investment

Lee said, "Currently, our economy is facing a combination of complex factors, including the global trend of high interest rates, economic slowdown, and technological hegemony competition, so I feel a heavy responsibility in taking on this role." He identified the main challenges to be pursued during his term as: expanding investment in deep tech fields such as artificial intelligence (AI); seeking ways for the Fund of Funds to facilitate the inflow of private capital, such as pension funds, into the venture investment market; supporting venture investment outside the Seoul metropolitan area; supporting new and small VCs; and globalizing the venture ecosystem.

In particular, he cited strategic investment in deep tech fields as the top priority. "Deep tech companies require large-scale funding and patient capital over a long period, so there are limits to relying solely on private capital," he said. "There is growing recognition within the industry that the role of Korea Venture Investment in this field is becoming increasingly important."

He continued, "While Korea Venture Investment has so far focused on forming the venture investment market, it is now time to shift toward strategic investment," and emphasized, "We will continue to support neglected areas, such as early-stage startups and impact investment, through policy funds."

Lee Daehee, CEO of Korea Venture Investment, is speaking at a policy meeting held on the 26th at the Korea Federation of SMEs in Yeouido, Seoul. Korea Venture Investment

He also expressed his intention to actively support the global expansion of domestic venture capital (VC) firms. Lee said, "We are reviewing various options," and added, "For now, our top priority is to build a platform for domestic VCs to enter the Asian market through KVCC in Singapore."

He noted, "However, the fundamental goal of the Fund of Funds is to support the growth of domestic venture companies, so it is natural that investments should be made in domestic firms." He added, "Nevertheless, if domestic VCs grow in the global market, VC globalization is necessary in that it could create a channel to introduce domestic companies to overseas VCs."

Over the past 20 years, the Fund of Funds has played a priming role in the venture investment market by providing policy capital to early-stage startups, non-metropolitan startups, and companies expanding globally. It has established startup early-stage funds totaling 6.3 trillion won and has steadily expanded initiatives such as the Rookie League investment program to encourage the entry of new VCs. The global fund established in 2013 was expanded to 12.2 trillion won as of last year, and it invested 1.3 trillion won in domestic companies, achieving an investment attraction result 2.3 times the amount of its capital contribution.

Lee stated, "The Fund of Funds will continue to serve as stable patient capital supporting the growth of innovative venture companies," and added, "We will work closely with the Ministry of SMEs and Startups to thoroughly review the development direction of the Fund of Funds so that its role can be further upgraded."

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