This article was posted on July 24, 2025, at 3:10 p.m. on the ChosunBiz MoneyMove site.
The Korea Telecommunications Operators Association (KTOA), considered the 'hidden big player' in the venture capital market, is set to invest in venture funds again. It has decided to contribute up to 150 billion won using the Korea IT Fund (KIF). This comes two years after its last investment of 50 billion won in 2023, tripling its investment scale.
According to the venture capital (VC) industry on the 24th, KTOA has decided to resume its venture fund contributions this year and has confirmed plans to announce the selection of general partners (GP) for the KIF next month. The process will commence with document submissions, followed by competitive presentations (PT) in September, with the final GP selected later this year.
It is reported that the scale of the investment will be around 150 billion won. 75 billion won will be allocated to the areas of information and communication technology (ICT) commercialization, artificial intelligence (AI) semiconductors, and AX (AI transformation) to select six GPs, with an additional ten GPs expected to be selected from autonomous proposals. Another 75 billion won will also be allocated to the autonomous proposal sector.
KTOA has been referred to as the hidden big player in the venture investment market. Utilizing the KIF, created in 2003 through contributions totaling 300 billion won from the three telecom companies (SK Telecom, KT, LG Uplus) to contribute to the development of the information technology (IT) industry, it has continued to invest in IT venture companies.
However, KTOA did not carry out venture fund investments last year. While considering a maturity extension of the KIF, which has six years remaining until maturity, it aimed to extend the typical eight-year duration of the venture fund, but the procedure was not smooth. Most notably, KT's failure to hold a board meeting was significant.
The extension of the KIF's existence period is decided through the investment operation committee, and prior resolutions from the boards of directors of the three telecom companies are required. Last year, SK Telecom and LG Uplus approved the extension of the KIF's maturity, but KT only decided to extend it this year.
The interest among VCs has been significant. Amid a scenario where private corporations have drastically reduced venture fund investments due to the economic downturn, even bank-affiliated financial firms have restricted venture fund investments due to risk-weighted asset (RWA) management; KTOA is planning a large-scale venture fund investment of 150 billion won.
In the market, it is reported that most major domestic VCs currently fundraising will target the KIF. SV Investment and Premier Partners are pushing to form new venture funds of 200 billion won and 100 billion won, respectively, and have decided to challenge securing matching funds.
A source from the VC industry noted, "KTOA is effectively proceeding with two years' worth of contributions all at once, which not only increases the amount but also significantly enlarges the recruitment of operators." He further stated, "Not only large VCs, but also VCs forming medium-sized venture funds in the range of 50 billion to 100 billion won are expected to take on the challenge."