[CVC Golden Age]④ Owner Families' 2nd and 3rd Generation Active as Venture Capitalists

Group Finance and Planning Team No Longer Just Management Lessons
Working as CEO and Junior Analyst
Actively Searching for Investment Opportunities
Playing a Role in Discovering New Group Businesses
Testing Management and Investment Skills

Editor's NoteThe status of Corporate Venture Capital (CVC) led by companies is changing amid a market downturn. While it was often perceived as a 'second-tier' compared to general Venture Capital (VC), it has now established itself as a key player in the venture investment market. During times when raising funds is difficult, CVCs are thriving with support from parent companies and various affiliates. By securing diverse Limited Partners (LPs), they are reducing the burden of fundraising. While VCs maintain a conservative investment stance, CVCs are actively investing, injecting vitality into the investment ecosystem. Asia Economy examines the facets of CVCs to predict the future of the venture investment market.

[Asia Economy Reporter Kwangho Lee] As CVCs emerge one after another, children of various corporate owners are attracting attention by working as venture capitalists. In the past, it was common to receive management training in the finance and planning departments of the group. Many gained practical experience in specific business units before rising to executive positions. Recently, starting a career at investment firms has become a trend.

They do not adhere to the traditional formula of following the management succession process within the group. Instead, they expand their insights by engaging in venture investment activities at various investment firms, including group affiliates or external independent VCs. It is evaluated that they are actively utilizing personal networks secured through overseas studies and other means to build their capabilities.

Many owners, unable to find growth engines in existing industries, are calling for new businesses. There is also analysis that they have laid the groundwork to instill a new business DNA in their children early on before handing over management rights. It is expected that investment firms may be used as tools for succession in the future, and if the children achieve exit (investment recovery) results, some succession funds could be secured.

GS Group owns two CVCs. GS Ventures is overseen by Vice President Heo Jun-nyeong, who handled investment and mergers & acquisitions (M&A) at Mirae Asset and UBS. Although there was some misunderstanding due to his surname Heo, he is an external figure. On the other hand, GS Futures CEO Heo Tae-hong is the second son of Heo Myung-soo, former Vice Chairman of GS Construction and elder brother of Heo Tae-soo, Chairman of GS Group.

He graduated from Aiglon College in Switzerland and Georgetown University in the United States, then gained seven years of practical venture investment experience as a manager in the venture investment team at GS Home Shopping. Recently, considering GS Group's business direction, he bet on the U.S.-based materials company Boston Materials. He is steadily investing and developing his management skills.

Hong Jeong-hwan, eldest son of Hong Seok-jun, Chairman of Bokwang Venture Investment, is in charge of investment screening at Bokwang Venture Investment. He attracted attention by marrying Seo Min-jung, eldest daughter of Seo Kyung-bae, Chairman of AmorePacific. He is exploring investment opportunities across various industries, including making investments in SmartStudy, famous for the children's content Pinkfong Baby Shark.

Kim Dong-jun, eldest son of Kim Ik-rae, Chairman of Daou Kiwoom Group, has been CEO of Kiwoom Investment since 2018. He has been active in the venture investment market consistently. Since last year, he has concurrently served as CEO of Kiwoom Private Equity (PE), a private equity fund (PEF) management company handling larger funds than VCs. He oversees the entire investment process from start to finish.

There are also many junior-level investment analysts active. Park Jun-beom, eldest son of Park Hyun-joo, Chairman of Mirae Asset Financial Group, works as an investment analyst at Mirae Asset Venture Investment. He belongs to the Venture Investment Division 1 led by Vice President Chae Jeong-hoon of Mirae Asset Venture Investment. He took his first step in venture capital (VC), not in core affiliates like Mirae Asset Securities or Mirae Asset Global Investments.

Park Hyuk-jin, son of Park Sung-chan, Chairman of Danal, who created Korea's first-generation venture success story, works as an investment analyst at Laguna Investment. Analyst Park graduated from the music management department at Berklee College of Music and joined Laguna Investment after working in the alternative investment team at SKS PE. He invested in Meraki Place, operator of the telemedicine application 'My Doctor'.

Lee Min-ho, son of Lee Jung-hoon, founder and CEO of Seoul Semiconductor, joined Seoul Management Partners, a VC established with 55% and 45% capital contributions from Seoul Semiconductor and Seoul Viosys, respectively. After majoring in design at a U.S. university, he joined Seoul Semiconductor in 2009 as an assistant manager in the finance and accounting group. He later worked in the strategy office and recently transformed into a venture capitalist.

Gu Yeon-je, second daughter of Gu Bon-jun, Chairman of LX Holdings, is also working as an analyst. She earned a master's degree in performing arts management from Ewha Womans University. After completing an internship at LB Investment, a venture capital firm classified under the LG family, she joined Magellan Technology Investment as a team leader. She mainly focuses on content, retail, and lifestyle sectors. Currently, LX Holdings is preparing to establish a CVC.

Investment activities outside of investment firms are also gaining attention. Lee Seung-hoon, son of Lee Seok-jun, Vice Chairman of WooMi Construction, works as a manager in the investment business team, investing in startups in the proptech sector. Heo Hee-soo, second son of Heo Young-in, Chairman of SPC Group, joined Secta9, a group affiliate specializing in new businesses, and has started investing in quick commerce and metaverse sectors. In addition, many children of various owners are enthusiastic about investment.

An analyst working with a child of an owner said, "There are some cautious aspects as rumors spread in the industry, but the positive aspects outweigh them. Since they already have various networks, they seem to be good partners to create deals together."