Korea Securities Finance said on the 12th that it signed a memorandum of understanding (MOU) with Korea Growth Investment Corporation (K-Growth) to create the "Securities Finance K-Growth fund."
Under the agreement, Securities Finance will commit a total of 62 billion won to the "Securities Finance K-growth fund." Through this, K-Growth will form lower-tier funds totaling 310 billion won to support the supply of venture capital to Korea's capital market and revitalize the venture market.
Securities Finance said, "This fund plans to provide matching capital to funds that invest in small and midsize companies in the value chains of advanced strategic industries such as artificial intelligence (AI), biotech, and energy, encouraging co-investment by other private capital and supporting the swift formation and investment of venture funds."
Kim Jeong-gak, president of Korea Securities Finance, said that through the creation of this fund, "we will actively support the government's productive finance and pursue a leap for future growth together with capital market participants."
He also emphasized that by encouraging the fostering of advanced strategic industries and the scale-up of innovative companies, they will work to create synergy for the development of the capital market.
Huh Sung-moo, head of K-Growth, said, "In a situation where matching private capital is difficult, the supply of matching funds will greatly help the swift formation and investment of lower-tier funds," adding that with cooperation between the two institutions, they will work to broaden financing opportunities for future advanced corporations and help ensure the sustainable growth of Korea's capital market and economy.
Securities Finance said it will not stop at this investment program but will continue venture-investment commitments, focusing its capabilities on establishing a virtuous cycle in the venture ecosystem.