Invest KOREA

The Small & Medium Business Administration (SMBA) announced last week that it will set up a fund worth KRW 200 billion financed by U.S. venture capital and investment firms to invest in Korean venture companies. An office will also be opened in Silicon Valley to attract funding.

The SMBA will partner with U.S. investment firms with ample funding capabilities based on the judgment that domestic venture funds are limited and thus not sufficient to promote Korean start-ups and venture companies.

The Administration will invest KRW 20 billion in the fund and U.S. venture capital and investment firms will finance the rest.

The Korea Venture Investment Corp. and experienced U.S. venture capital firms will jointly set up and manage the fund.

As the SMBA already manages a Korea-related fund, it plans to target investment firms with a good understanding of Korean companies and the Korean economy to raise funds.

As part of its fund-raising efforts, the SMBA hired three U.S. venture capital experts and will open a venture and start-up investment center in Silicon Valley next month.

An SMBA official noted that this is the first time the Korean government is partnering with U.S. venture capital firms to establish a venture fund, and added that while details are to be finalized, the SMBA will begin raising funds by creating a fund of funds in August.


Source Text

Source: Yonhap News (July 25, 2013)

** This article was translated from the Korean.