IBK Industrial Bank, Raises 190 Billion KRW for 'Materials, Parts, and Equipment Private Equity Fund'

Support for Strengthening Competitiveness of Material, Component, and Equipment Companies with Innovative Technology Capabilities

[Asia Economy Reporter Park Sun-mi] IBK Industrial Bank of Korea has announced on the 14th that it has established the ‘IBK-BNW Industrial Competitiveness Growth Support Private Equity Fund (PEF)’ to support small and medium-sized enterprises (SMEs) and mid-sized companies in the materials, parts, and equipment industry.

The private equity fund totals 190 billion KRW. IBK and BNW Investment will jointly manage the fund. The investment targets are innovative SMEs and mid-sized companies possessing advanced technology that promote the localization of materials, parts, and equipment in new growth industries such as semiconductors, secondary batteries, 5G communications, displays, and electric vehicles.

The fund plans to support growth-stage financing for promising companies, including working capital, research and development funds, facility expansion funds, and merger and acquisition (M&A) funds for acquiring overseas companies with excellent technology.

An IBK official stated, “This fund was established to expand venture capital investment in companies in the materials, parts, and equipment sector amid Japan’s export restrictions continuing for over a year,” adding, “Through active investment, it will contribute not only to strengthening the competitiveness of domestic companies but also to job creation.”