Kiwoom Inve Forms 140 Billion Won 'Kiwoom New Hero 5 Digital Innovation Fund'

First Blind Fund of the Year Approaches 900 Billion KRW AUM
Key LPs Growth Finance and Kiwoom Securities 'Target' Digital Sector

[Asia Economy Reporter Kwangho Lee] Kiwoom Investment has succeeded in raising its first blind fund of the year. Despite the challenging market conditions and difficulties in fundraising, the company demonstrated its capabilities by establishing a large-scale fund worth over 100 billion KRW. Attention is now focused on its future investment activities.

According to the investment banking (IB) industry on the 26th, Kiwoom Investment held the closing meeting for the "Kiwoom New Hero 5 Digital Innovation Fund." The total amount raised was 140 billion KRW. The anchor limited partner (LP) for this fund is Korea Growth Investment Corporation (Growth Finance). In addition, affiliated companies such as Kiwoom Securities and capital firms also contributed funds.

Previously, Kiwoom Investment submitted a proposal to invest in the mother fund "Hana New Deal National Representative Growth Fund," jointly established by Growth Finance and Hana Financial Group. After competing with venture capital firms Nvestor and SJ Investment Partners, Kiwoom Investment secured the position of general partner (GP) for fund management.

The fund plans to focus investments primarily on non-face-to-face services, manufacturing-IT convergence, and digital healthcare companies. However, if it receives investment from the Hana New Deal National Representative Growth Fund, one additional primary investment target will be added.

At least 80% of the investment amount must be allocated to excellent technology companies. Excellent technology companies refer to those with a TCB (Technology Credit Rating) technology grade of TI5 or higher, which is among the top five grades. Regardless of the grade, companies that have received technology value evaluations under laws such as the "Act on the Promotion of Technology Transfer and Commercialization" are also considered excellent technology companies.

The lead fund manager for this fund is Go Gangnyeong, Executive Director and Head of Investment Division 2. Executive Director Go is a veteran investment analyst with 15 years of experience. His main investment areas are logistics, bio, and healthcare. Key operating personnel include Senior Analyst Jo Myeongsu and Principal Analyst Hwang Youngjun.

Following the Kiwoom New Hero 5 Digital Innovation Fund, Kiwoom Investment is also in the process of establishing an early-stage startup fund. Earlier, it was selected as the general partner (GP) for the early-stage startup general category under the Ministry of SMEs and Startups in the 2022 second regular investment project of the Korea Fund of Funds, and has begun fund formation. It has secured a commitment of 20 billion KRW from the Korea Fund of Funds.

With the addition of the early-stage startup fund, the total assets under management (AUM) will approach 900 billion KRW. This marks Kiwoom Investment’s transition from a mid-sized venture capital firm to a large-scale venture capital firm.