Synergy through Content and Platforms... Fashion Companies Truly Committed to Venture Investment

‘National Geographic’ The Nature Holdings Establishes VC
MUSINSA, F&F, LF, Youngone Corporation Actively Investing

Domestic fashion companies are increasingly entering the venture investment market. This is interpreted as a strategy to create business synergies with their parent companies in areas such as content, platforms, and brands by having venture capital (VC) as a subsidiary.

According to the investment banking (IB) industry on the 22nd, The Nature Holdings, a KOSDAQ-listed company famous for licensed apparel such as National Geographic and NFL, recently established The Nature Holdings Investment as a 100% subsidiary. The initial capital is about 500 million KRW, but there are plans to increase it to over 10 billion KRW. They plan to form a fund after applying for approval as a New Technology Business Financial Company (Shingisa) from the Financial Supervisory Service.

Before The Nature Holdings, several fashion companies had already established venture capital firms. Representative examples include Musinsa’s Musinsa Partners, F&F Holdings’ F&F Partners, LF Group’s LF Investment, and Youngone Trading’s Youngone Trading Holdings Venture Capital (YOH CVC).

F&F was actively involved in venture investment even before establishing F&F Partners. They partnered with Musinsa Partners and IMM Investment to contribute to funds. They also made direct investments in Musinsa (1 billion KRW), Kurly (3.5 billion KRW), StyleShare (1.8 billion KRW), and FabricTime (1.3 billion KRW).

After establishing F&F Partners in 2020, F&F Partners took the lead in investments. They executed investments mainly through the ‘F&F New Technology Investment Association No. 1 (40 billion KRW)’ raised via F&F Holdings. So far, they have secured portfolios including Channel Oct, Bamb Network, and Why Not Media. All of these are video-related startups. In particular, Why Not Media opened the era of 100 million views for web dramas by hitting titles such as ‘7 Days Romance’ and ‘Contract Love from Today.’

An F&F Partners representative said, “We plan to establish a second fund.” Although the specific investment strategy has not yet been decided, it will be operated in a different direction from the first fund. While the follow-up fund is expected to be funded by the parent company F&F Holdings, there is keen interest in whether external capital will also be secured.

Musinsa Partners is the only one among these registered as a startup investment company (Changtusa) with the Ministry of SMEs and Startups. It has played a catalytic role in the growth of dozens of startups through its investments. They have also discussed establishing a joint venture (JV) dedicated to investing in and incubating brands such as Castelbajac and golf brands.

Musinsa Partners’ portfolio is heavily concentrated in fashion companies. They are also looking into companies that possess technology related to fashion. Recently, they established a financial services subsidiary, Musinsa Payments, and are strengthening their simple payment services, which has increased interest in related investments. The parent company Musinsa also received investments from F&F, another fashion company. The Nature Holdings, which recently established an investment firm, has also previously bet on Musinsa.

LF is focusing on discovering digital and tech-based platform companies as well as lifestyle sectors related to its existing business areas such as fashion, beauty, e-commerce, and food through LF Investment. Led by CEO Jo Dong-geon, who previously served as vice president of DTN Investment, they are scouting investment companies. Recently, they strengthened their capabilities by recruiting Director Park Man-gyu, who has experience at private equity firm Partners Group Holdings and KB Securities, as an investment operations officer.

Youngone Trading, famous for The North Face, has placed emphasis on overseas investments. Last year, they established YOH CVC in Singapore to discover startups in the US, Europe, and Southeast Asia. It is reported that Youngraeun Sung, the second daughter of Youngone Trading Chairman Sung Ki-hak and president of Youngone Trading Holdings, led this initiative. They plan to make direct investments focusing on brands, eco-friendly and special materials, and automation, as well as participate as limited partners (LPs).

In terms of experience, LF and Youngone Trading are senior players, but F&F and Musinsa are actively moving in investment activities. The venture investment industry expects other fashion companies to also enter the investment business. A VC industry insider said, “It is common to invest in areas related to the parent company’s core business, but they do not seem to limit their investment areas. The atmosphere is focused on creating business synergies while also discovering future growth engines.”