Concerns Over Power Struggle Due to First Ever Multiple Candidates Running
Jiseongbae Association President Urges Two Candidates to Withdraw... Only One Withdraws, Leading to Disruption
[Asia Economy Reporter Kwangho Lee] The Korean Venture Capital Association (VC Association) has postponed the selection process for its president to next month. Although it attracted attention as multiple candidates ran for the first time in history, it only left behind controversy.
According to the venture capital industry, the VC Association board decided to finalize the selection of the 15th president at the second board meeting. Initially, the board planned to decide on the 7th whether to select a single candidate or hold a regular general meeting election. Accordingly, the inauguration ceremony for the president will be held at an extraordinary general meeting instead of the regular general meeting. With the VC Association president selection process delayed, the possibility of reappointment for current president Seongbae Ji (CEO of IMM Investment), whose term is about to expire, is also being raised.
The candidates who applied for this VC Association presidency are CEO Geonsu Yoon of DSC Investment and CEO Daeyoung Kim of Knet Investment Partners. This is the first time since the association’s establishment in 1989 that multiple candidates have run for president.
CEO Yoon founded DSC Investment, an independent VC, in 2012. DSC Investment surpassed 1 trillion KRW in assets under management (AUM) within 10 years of its establishment solely through venture funds excluding private equity funds. It gained recognition for its venture investment capabilities by discovering domestic and international unicorn companies (unlisted companies valued at over 1 trillion KRW) early on, including Zigbang, Musinsa, Kurly, Dunamu, Ridi, Moloco, and Kong Studio.
The other candidate, CEO Kim, established Knet Investment Partners, an LLC-type VC, in 2008. Knet Investment Partners discovered Krafton early on and supported it until it grew into a unicorn company with the success of ‘Battlegrounds.’ This resulted in significant achievements.
About 35 venture capital (member company) representatives attended the board meeting. Although candidates Yoon and Kim were scheduled to present their pledges, CEO Kim did not appear. Kim submitted a letter of withdrawal the day before the board meeting on the 6th.
Initially, President Ji urged both CEO Yoon and CEO Kim to withdraw. A verbal agreement was also reached. This was due to concerns that the unprecedented competition between multiple candidates might appear as a power struggle. However, as a result, only CEO Kim withdrew, making it difficult to proceed with the presidential election with only CEO Yoon, leading to the postponement of the selection itself.
Previously, the industry atmosphere favored CEO Yoon. He gained votes in terms of leadership and reputation. CEO Yoon was highly likely to become the next president. Then CEO Kim appeared, creating the first-ever competitive scenario, which put the association in a difficult position. The method for selecting the next president has not yet been decided.
A source familiar with the VC Association president selection said, “CEO Yoon and CEO Kim are very different types of individuals,” and “the majority of VCs hope that CEO Yoon will take on the next presidency.” The source added, “In the case of CEO Kim, he was backed by former president Seongin Jung of Premier Partners and has been aiming for the presidency for several years.”
The new 15th VC Association president will have three major issues to address: ▶ Expansion of the Mother Fund budget ▶ Activation of private Mother Funds ▶ Tax benefits for corporations investing in venture funds.
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