NH NongHyup Financial Group said it will expand the size of the "NH Korea win-win growth fund No. 2" from the existing 100 billion won to 400 billion won. The fund is set to be created as a parent-subsidiary fund to expand investment in corporate finance.
According to the financial sector on the 30th, NongHyup Financial Group's win-win growth fund No. 2 will allocate 60% to venture capital, with the remaining 40% going to direct and indirect investments linked to the Public Growth Fund.
By creating subsidiary funds such as credit funds and mezzanine funds, it plans to provide direct loans and conduct mezzanine investments such as convertible bonds (CB) and bonds with warrants (BW) for small and mid-sized corporations and venture startups and for regional corporations with high growth potential.
NongHyup Financial Group will form a total of 900 billion won in funds through this No. 2 fund, following the 500 billion won infrastructure investment fund No. 1 in the first half. By the end of the year, it plans to complete the formation of 1 trillion won in funds by additionally creating private venture parent funds and others, taking business conditions into account.
Lee Chan-woo, chairman of NongHyup Financial Group, said, "Win-win growth fund No. 2 will serve as a catalyst for fostering Korea's advanced strategic industries by simultaneously supplying active venture capital to small and mid-sized corporations that struggle with market-based borrowing and low-interest loans and accelerating the push for the Public Growth Fund."