Shinbo Forms Venture Fund Worth 560 Billion Won Over One Year with 'VC Fund Capital Guarantee'

The Korea Credit Guarantee Fund announced on the 6th that it contributed to the formation of venture funds worth 560 billion KRW over the past year through the VC Fund Capital Guarantee (VC Guarantee) introduced last year. The VC Guarantee was introduced to support venture capitalists (VCs) struggling to raise venture funds due to a contraction in the investment market.

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KODIT provides guarantees of up to 5 billion KRW to venture capitalists selected as sub-fund managers by Korea Growth Investment Corporation and Korea Venture Investment Corp, enabling them to secure the capital needed to form sub-funds. Last year, KODIT offered a total guarantee limit of 15 billion KRW for venture capitalists to use as fund capital and allowed them to timely execute the required capital within the guarantee limit according to the investment schedule.

Through this VC Guarantee, KODIT supports the swift and smooth formation of various funds ranging from small funds of 10 to 20 billion KRW to large funds up to 300 billion KRW. In particular, in November last year, the scope of the VC Guarantee was expanded from companies selected as fund managers within one year to those within three years, enabling more VCs to initiate fund formation by improving the system.

KODIT stated, "We will further activate the VC Guarantee to faithfully serve as a catalyst for promoting private venture investment," adding, "We plan to actively work to revitalize the contracted venture investment market so that innovative companies can gain opportunities for growth."

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