The investment sector for indirect investment by the Public Growth Fund has begun. In the first round, 1.385 trillion won will be committed.
According to the investment banking (IB) industry on the 16th, Korea Development Bank (KDB) and Shinhan Asset Management on the 15th announced plans to select the first-round general partners (GP) for the 2026 Public Growth Fund's indirect investment sector.
Korea Development Bank (KDB) integrated the existing Innovation Growth Fund and the Semiconductor Ecosystem Fund into the Public Growth Fund. At 5.85 trillion won, it is the largest policy fund on record.
The plan is to commit 1.385 trillion won in the first round to create a 3.9 trillion won fund.
By sector, attention is focusing on the M&A league and the small-cap league. The policy investment share for the M&A league rose from 31% last year to 40% this year, up nearly 10 percentage points. The target fund size is 300 billion won, and one GP will be selected.
The small-cap league has a target fund size of 100 billion won, and two GPs will be selected. The policy investment share jumped from 35% last year to 43%.
In addition, the newly established AI-semiconductor mid-cap league this year is expected to see fierce competition among tech-focused houses. This sector has a target fund size of 200 billion won, and two GPs will be selected. The policy investment ratio is set at 54%.
The deadline to submit proposals for the first-round program is through the 29th, and the final GPs are expected to be selected at the end of next month.