Buoyed by the domestic stock market boom, new investments by new technology finance companies in January–June this year have already surpassed the total for last year. The new technology finance industry expects more investments if the Public Growth Fund, totaling 150 trillion won, is created.
On the 24th, ChosunBiz compiled regulatory disclosures from 120 new technology finance companies and found that new investment amounts (excluding loan) in January–June this year totaled 5.4020 trillion won. That is more than the full-year new investments last year (5.3142 trillion won). New technology finance companies form consortiums similar to funds together with credit finance companies and institutional investors to invest in small and mid-sized corporations.
The largest investor this year was Samsung Venture Investment, which invested 1.5474 trillion won. POSCO Technology Investment invested 425.6 billion won, Withwin Investment invested 280.8 billion won, and ST Capital invested 240.3 billion won, respectively.
New investment volume peaked at 8.2569 trillion won in 2021 and then declined to 5.7066 trillion won the following year, 5.5156 trillion won in 2023, and 5.3142 trillion won last year. But with the domestic stock market trending higher this year, investment volumes have rebounded. New technology finance companies have a larger proportion of investments in mid-sized Start - Up than in early-stage ventures. Because they generate revenue by pursuing initial public offerings (IPO), investments tend to increase when the stock market is booming.
A credit finance industry official said, "For a new technology finance company to exit, the IPO has to go well, and a strong stock market increases the chance of IPO success," and added, "Since 2023, conditions have gradually eased and investment amounts have been increasing."
The new technology finance industry is showing optimism about the 150 trillion won Public Growth Fund. As productive finance—channeling capital to innovative corporations—becomes a key topic, the presence of new technology finance companies that invest in venture corporations is also growing. New technology finance companies expect that, if selected as managers of the Public Growth Fund, their investment volumes will increase and their performance will improve.
A credit finance industry official said, "If we receive contributions from policy funds, we will invest in more corporations," and added, "Our understanding is that the aim of productive finance is to explore ways to expand investment volumes and invest in strong corporations."
Lee Eog-weon, chair of the Financial Services Commission (FSC), met with credit-specialized finance company chief executive officers (CEO) on the 20th and said, "We will craft institutional reform measures to strengthen the advantages of new technology finance companies so they can play a bigger role in the productive finance institutional sector."