(DAEJEON=NEWSIS) The Small & Medium Business Administration (SMBA) announced September 17 that it has signed a memorandum of understanding with DFJ Venture and Walden International in San Francisco, in the United States, to establish a “Korea fund” worth USD 150 million.

DFJ Venture and Walden International fall in the top 0.2 percentage and 3.5 percentage group, respectively, of 1,300 venture investors in the Silicon Valley. This is the first time venture investors in the top 5 percentage group of Silicon Valley will manage Korean venture funds directly from abroad.

The “Korea fund” will be created with an investment of USD 150 million from DFJ Venture and Walden International (USD 75 million each). Forty percent of the sources of the fund will consist of fund of funds and 40 percent will consist of foreign investment.

DFJ Venture and Walden International will manage the fund and more than 51 percent of the sources will be invested in Korean startups, venture capitals and small- and medium-sized companies.

The “Korea fund” was promoted as a part of the Korean Yozma fund, which is included in the three-year economic innovation plan to raise a total of KRW 200 billion by 2017.

DFJ Venture, established in 1986, is one of the top five venture capitals in the United States with assets under management of USD 7 billion. Timothy Draper, founder and Managing Director of DFJ Venture, will manage the Korean Yozma fund.

Walden International, established in 1987, has assets under management of USD 2.2 billion and experience investing in Korean companies including Com2uS, SundayToz and MNtech.

"Korean startups are considered to have substantial potential in the global market with appropriate support from investors. I have high hopes for the ‘Korea fund’ and working with Korean companies," said Draper.

"We plan to swiftly finalize the follow-up procedure for creating funds. We hope to achieve our goal of raising KRW 200 billion in funds by next year through proactive marketing activities, including visiting foreign venture capitals,” said an SMBA official.

kys0505@newsis.com