The five major financial holding groups — KB, Shinhan, Hana, Woori, and NH NongHyup — will support more than 1 trillion won in venture investment.
The Financial Services Commission said on the 29th that it signed a business agreement to this effect with the Ministry of SMEs and Startups and the five major financial holding groups.
The Financial Services Commission said the agreement was prepared to accelerate the shift to productive finance by linking the capital and capabilities of the five major financial holding groups with the venture and startup ecosystem, and to speed up the leap to a national startup era in which anyone with an idea can take on entrepreneurship.
Starting with 400 billion won this year, the five major financial holding groups will create a 800 billion won "private venture fund of funds" by 2029. In particular, Hana Financial Group plans to commit 100 billion won each year starting this year, totaling 400 billion won. The government will support active private-sector participation through incentives such as expanding the tax credit.
The five major financial holding groups will also strengthen commitments to and collaboration with policy funds such as the mother fund. Hana, KB, Shinhan, and Woori Financial will jointly create a 100 billion won limited partner (LP) growth fund with the mother fund. In addition, Hana and NongHyup Financial will participate in commitments to a regional growth fund totaling 20 billion won to broaden the base of regional venture ecosystems.
To help promising innovative corporations that receive investment through the mother fund grow into unicorns, the five major financial holding groups will leverage their overseas subsidiaries and global networks. Through this, they agreed to provide linked support for investor relations (IR), follow-on investment, initial public offerings (IPO), and overseas expansion.
The five major financial holding groups will also jointly participate in the Ministry of SMEs and Startups (MSS)'s "Startup for All Project." The five major financial holding groups will make a special grant of 20 billion won, and based on this, the Korea Technology Finance Corporation (KOTEC) will establish a 150 billion won agreement guarantee that entrants to the regional auditions for the Startup for All Project's technology track can use.
To ease the funding burden faced by prospective entrepreneurs, part of the grant resources will be used to reduce guarantee fees, fully waiving the fees and raising the guarantee ratio from the current 85% to 100%.
The Ministry of SMEs and Startups (MSS) and the Financial Services Commission (FSC) plan to work closely together to revitalize the venture ecosystem and drive a major shift toward productive finance. To that end, they agreed to establish an organic cooperation system for policy fund management, including the mother fund and the Public Growth Fund, support for the growth of advanced industries and innovative corporations, and the discovery of promising corporations.
Lee Eog-weon, chair of the Financial Services Commission, said, "Starting with today's signing ceremony, where the five major financial holding groups leading the shift to productive finance and related institutions pledged to collaborate, we expect Korea's startup, venture, and growth ecosystem to become even more vibrant."
Minister Han Seong-sook said, "Today's business agreement is not a simple declaration of cooperation but a starting point for connecting the expertise and resources of the startup and venture ecosystem with the five major financial groups to succeed in the challenges of our time."