This article was published on Aug. 27, 2025, at 4:37 p.m. on the ChosunBiz MoneyMove site.
The venture capital (VC) firm UTC Investment is facing difficulties in funding. The recent change in major shareholders at Forest Partners has been a negative factor, leading to the return of all previously secured policy funds. The company had set a goal to expand its operating assets to about 100 billion won this year, but it is now deemed practically impossible.
According to the VC industry on the 27th, UTC Investment recently communicated its intention to voluntarily return its qualification as a general partner (GP) to the Korea Venture Investment Corporation, which operates the Fund of Funds. This decision comes about four months after being selected as an IP account GP for the first regular investment project of the Fund of Funds, jointly with Saltlux Ventures.
It is understood that UTC Investment had also returned its GP qualification for the investment project of the Agricultural Policy Insurance & Finance Service (APFS). Initially, there were plans to create new funds of 500 million won and 100 million won respectively, based on the 30 billion won secured through the Fund of Funds GP selection and the 4 billion won from APFS, but these plans have fallen through.
The change in major shareholders led to the return of its GP status. UTC Investment had been classified as a subsidiary of Daesang Group, with clinical head Min Sang-min holding 100% of the equity, but at the end of last month, Vice President Min unexpectedly sold the entirety of his equity. Forest Partners, a private equity fund (PEF) manager, has taken over as the new owner.
The Korea Venture Investment Corporation confirmed the change of the major shareholder and reportedly began reviewing the cancellation of GP status earlier this month. The corporation has regulations that allow for the cancellation of GP qualifications if the conditions and environment for managing the fund have significantly changed since the review.
UTC Investment chose to voluntarily return its GP status before the Korea Venture Investment Corporation made a decision to cancel it. The GP qualification for the APFS investment project was also returned for the same reason. APFS particularly cited changes in UTC Investment's operational and financial stability that were assumed during the review phase as a reason for first requiring the voluntary return of GP status.
UTC Investment's expansion of operating assets has also become difficult. The company had planned to establish a total of three funds amounting to approximately 100 billion won this year, but the formation of two funds has fallen through. This was because it classified the Fund of Funds and APFS as anchor investors to match private capital.
Industry insiders are predicting that UTC Investment may fail to establish any new funds this year. Although it passed the document review for the Startup Korea Fund (SCO Fund) investment project, where private investors directly participate in selecting the GP, the likelihood of being selected as the final GP is low.
Previously, UTC Investment was considered a strong candidate for the SCO Fund GP. In the case of the SCO Fund investment project, private investors participated directly in the GP selection, which was made possible due to the Daesang Group's name as an investor. While Daesang Group is maintaining its investment policy, the fact that the Korea Venture Investment Corporation also manages the SCO Fund is a burden.
A source in the VC industry noted, "The Korea Venture Investment Corporation is an institution under the Ministry of SMEs and Startups that manages national resources, and it places great importance on transparency in fund management and conflict of interest prevention," adding, "It will not be easy to select a GP based solely on the possibility that the investment strategy of the fund may change due to the change in major shareholders."
Meanwhile, Forest Partners has acquired UTC Investment with the goal of strengthening its institutional sector in venture investment. Han Seung, the representative of Forest Partners, has assumed the position of co-representative this month. Forest Partners has also decided to pursue a merger with UTC Investment and its venture investment subsidiary, Forest Ventures, in the future.