This article was displayed on the ChosunBiz MoneyMove (MM) site at 1:35 p.m. on Mar. 27, 2026.
LF Corp., a latecomer to venture investment among the broader LG-affiliated groups, has moved to accelerate the expansion of its corporate venture capital (CVC). The push comes as it secured full support from the parent company on the back of solid exits. Some expect it could overtake GS Ventures, the first CVC in the broader LG-affiliated groups.
According to the venture capital (VC) industry on the 27th, LF Investment, the CVC of LF Corp., conducted a paid-in capital increase this month, raising its capital from 11 billion won to 15 billion won. It was the second large-scale capital infusion since its establishment in 2022, and all 800,000 newly issued common shares were acquired by the parent, LF Corp.
LF Investment was strategically set up by LF Corp., which changed its name from LG Fashion, to unearth new growth engines. Right after CVCs were allowed in 2022, GS Group launched GS Ventures, and GS Engineering & Construction also rolled out a CVC in succession; LF followed by throwing its hat in the ring as a wholly owned subsidiary.
The latest capital increase was underpinned by recent solid investment results. Despite being a new VC that received a new technology business finance license in 2023, it booked a net profit of 500 million won last year, helped by the listings of portfolio companies including Motive Link, Aromatica and TeraView Holdings. Last year's return on investment (ROI) is said to have topped 80%.
The newly secured 4 billion won in capital is expected to be used as a GP commit (the manager's required commitment) for new fund formation. LF Investment has decided to set up a secondary (existing shares purchase) fund and a content-focused fund this year. The plan is to expand its investment turf into content and the beauty and healthcare sectors.
There is also speculation that LF Investment will surpass GS Ventures in assets under management (AUM). With the recent formation of an agri-food fund, its AUM is nearing 100 billion won, and it is targeting 150 billion won within the year as it also bids for commitments from the Korea Fund of Funds. GS Ventures' AUM is around 130 billion won.
A business community source said, "Although a variety of CVCs sit under the broader LG-affiliated groups, excluding LB Investment, the mainstay of the LB group, LF Investment has shown the most aggressive moves recently," adding, "It appears to have established itself as a strategic base for discovering LF Corp.'s future growth drivers."