The expansion of investment in deep tech like AI and the overseas advancement of domestic startups and venture capitalists are the two key tasks for Korea Venture Investment Corporation.
Lee Dae-hee, CEO of Korea Venture Investment Corporation (KVIC), emphasized this during an interview with ChosunBiz at the company's headquarters in Seocho District, Seoul, on the 25th, diagnosing a turning point in the venture ecosystem. He noted, "Now is the turning point between stagnation and leap," and asserted that "the new growth key for the economy is ultimately startups and ventures."
On that day, Lee presented a notebook filled with notes detailing the mid- to long-term strategy of Korea Venture Investment Corporation and earnestly explained the direction of the organization. His occasional smile softened the atmosphere, which could be somewhat stiff.
Lee has previously served as the Director General of the Economic Structure Reform Bureau of the Ministry of Economy and Finance after passing the 37th National Administrative Examination and has held positions including Director of the Small Business Policy Bureau and Director of the Planning and Coordination Bureau at the Ministry of Small and Medium Enterprises and Startups.
Korea Venture Investment Corporation is a public institution under the Ministry of Small and Medium Enterprises and Startups that creates and operates a fund of funds. To date, it has established a private fund totaling 44 trillion won in collaboration with the private sector.
Having taken office in May, he is now approaching the 100-day mark, meeting with Minister Han Seong-suk of the Ministry of Small and Medium Enterprises and Startups, holding talks, and visiting New York to explore global cooperation plans, among a busy schedule.
◇The supplementary budget serves as a catalyst for venture investment... investment focused on deep tech will be strengthened.
Lee expressed concern about the stagnation of venture investment due to high interest rates, which has blocked the flow of funds to early-stage companies.
He emphasized the importance of diversifying funding across various companies, noting, "It is difficult to predict which startup will succeed, so it is essential to spread funds. Since private capital finds it hard to engage in such high-risk investments, the fund of funds must take the lead."
He stated, "It is essential to extend the fund of funds program scheduled to end in 2035," proposing that expansion of policy funds and incentives for private capital influx should proceed alongside.
Lee expressed that to increase investment funds, it is ultimately necessary to scale up policy funding, and he revealed his expectation that the supplementary budget of the Lee Jae-myung government will serve as a catalyst for the venture industry.
The recent discussion on allowing public funds like retirement pensions to invest in venture capital since the new government took office is also a positive signal.
He mentioned, "To enable pension funds like retirement pensions to participate in venture investment, loss compensation and regulatory easing are necessary, and KVIC should take on a 'platform' role."
He pointed out that revitalizing the recovery market is also key to establishing a virtuous cycle. Various recovery channels such as KOSDAQ listing, mergers and acquisitions, and secondary markets need to be provided for venture capitalists to reinvest.
In line with government policy, Korea Venture Investment Corporation plans to maintain its investment strategy centered on AI and deep tech.
Lee stated, "The investment direction of the fund of funds is bound to focus on deep tech," adding that it will concentrate on supporting AI and deep tech startups like the next unicorn project.
On July 10th, the Ministry of Small and Medium Enterprises and Startups created a new project called the 'Next Unicorn Project' by contributing 310 billion won from the supplementary budget. Half of this will be invested in deep tech.
◇Domestic VCs and startups must go overseas together for mutual growth.
Lee emphasized, "To grow larger, startups must go overseas."
Currently, Korea Venture Investment Corporation operates a total of five offices in New York, Silicon Valley, Singapore, and Shanghai, China. Recently, the offices in Silicon Valley and Singapore were incorporated.
He expressed that, in the long term, it is necessary for Korean startups to move beyond just receiving investments from overseas VCs, and for domestic VCs to go abroad and grow together with startups, revealing his thoughts on restructuring global strategy.
Lee stated, "We are currently at a stage of establishing bases and will consider how to draw (global business) in a direction different from existing businesses going forward."
Activating the local venture ecosystem is also one of his strategies. He said, "Regions are in a crisis due to population decline and stagnant growth," adding, "Innovation must thrive for regions to survive."
To this end, KVIC plans to expand the contribution ratio of the fund of funds to regional venture funds to 60% and establish a main fund of more than 100 billion won in four different regions across the country.
Regarding the possibility of relocating headquarters raised by some quarters, he drew the line, stating, "Most of the infrastructure necessary for global business is concentrated in Seoul," and added that if Korea Venture Investment Corporation moves to another area, especially to a place with inconvenient transportation, it will face substantial difficulties in business.
At the end of the interview, he said, "Good startups innovate, contribute to the lives of citizens, and are businesses that revive the economy." Ultimately, good investment is about investing in companies that change people's lives.
He stated, "Korea Venture Investment Corporation will play a supportive role to ensure that such companies can continue to grow."