This article was published on ChosunBiz MoneyMove at 5:27 p.m. on Sept. 2, 2025.
Venture capital (VC) UTC Investment is transitioning to a sole representative system. Following the acquisition of equity from the owner family of the Daesang Group, a private equity fund management firm that took over UTC Investment appointed a new CEO, dismissing the existing CEO Kim Dong-hwan about a month after establishing a co-representative system.
Observations indicate that UTC Investment may once again face a phase of internal turmoil with a significant exodus of key personnel stemming from previous conflicts between its major shareholders and former management. At that time, UTC Investment lost the confidence of its venture fund investors due to the resignation of key operational staff, experiencing fluctuations such as management fee cuts.
According to the VC industry on the 2nd, UTC Investment held a board meeting at its headquarters in Gangnam, Seoul, that morning and approved the dismissal of CEO Kim Dong-hwan. Kim was appointed as the new CEO with a three-year term on Jan. 3 of last year, but he is now in a situation where he must step down with 1 year and 4 months left in his term.
UTC Investment is now operating under a sole representative system led by Han Seung. Han is the founder and CEO of Forest Partners, which acquired all the equity previously held by Im Sang-min from Daesang. He was appointed as an inside director and representative of UTC Investment on the 6th of last month.
Analysis points out that Forest Partners is accelerating changes in the management structure. The change of major shareholders has acted as a disadvantage, leading to the return of all the policy funds secured under Kim Dong-hwan's leadership and to fluctuations in funding. On the 19th of last month, Director Park Jae-hyu, who led the Management Headquarters, also resigned.
UTC Investment is reportedly planning to stabilize management under Han Seung's sole representation and to raise new funds. Kim's absence from the key operational personnel list in the startup Korea Fund investment project, where it was selected as a general partner (GP), also affected the expiration of the co-representative system.
However, some argue that Kim's dismissal may rather be a disadvantage for stabilizing management at UTC Investment. This is because major operational personnel, including Kim Se-yeon, left due to conflicts with the previous major shareholders, resulting in a loss of investor confidence in UTC Investment.
Kim Dong-hwan, formerly the CEO of Hana Ventures, led internal restructuring during the exodus of key operational personnel last year, including former CEO Kim Se-yeon. He particularly negotiated with major investors in UTC Investment such as Woori Bank and IBK Industrial Bank, becoming the representative manager for all major funds at UTC Investment.
Amid this, industry attention is focused on the potential agenda for the upcoming shareholders' meeting and possible legal responses. While the board has the authority to appoint and dismiss the CEO under corporate law, he still maintains his position as an inside director. Additionally, there is the possibility of lawsuits for damage claims due to an unjust dismissal.
A source in the VC industry said, "Following the departure of some personnel last year, changes were made to the main fund managers, and the penalties arising from that situation are still ongoing. I do not understand the push to dismiss the CEO again in this context," adding, "If this continues, securing funding this year will not be easy."
Meanwhile, UTC Investment confirmed, "The CEO's dismissal is a fact."