Woori Financial Group Affiliate Daol Investment, from Pangyo to Teheran-ro

‘Korea's Silicon Valley’ Teheran-ro Headquarters Relocation Planned
Woori, Shinhan, KB, Hana 4 Major Holding Company VCs All Moving to Gangnam
"Advantageous Location for Networking and Deal Sourcing"

Daol Investment, a venture capital (VC) firm affiliated with Woori Financial Group (formerly KTB Network), is relocating its headquarters. Moving from Gyeonggi Province to Seoul, it is expected to engage in more active investment activities.

According to the investment banking (IB) industry on the 23rd, Daol Investment will soon leave Pangyo and establish a new base on Teheran-ro. An IB industry insider said, “Daol Investment is moving from Pangyo to the area near Seolleung Station,” adding, “Since many venture capitals and startups are concentrated on Teheran-ro, it is more suitable for investment analysts to operate there.” The insider also mentioned, “The new location is expected to be the Woori Bank Seolleung Financial Center, where Woori Asset Trust, Woori Financial Capital, and Woori Financial Savings Bank, all Woori Financial affiliates, are located.”

Earlier, Woori Financial Group gathered several affiliates in the Samjeong Building in Gangnam-gu, Seoul, to enhance synergy and competitiveness between its banking and non-banking sectors. The strategy was to maximize group value through close collaboration among group companies. The non-banking affiliate Daol Investment is also expected to operate in this space.

Smilegate Investment also moved from Pangyo to Teheran-ro. There is a growing trend of large houses gathering on Teheran-ro. Investment analysts generally prefer Teheran-ro due to its excellent location for house networking and startup discovery for deals.

Once Daol Investment completes its office relocation, the four major financial group VCs?Shinhan Venture Investment (Shinhan Financial Group), KB Investment (KB Financial Group), Hana Ventures (Hana Financial Group), and Daol Investment?will be gathered in Gangnam. Currently, Shinhan Venture Investment and Hana Ventures are located near Samseong Station, while KB Investment is near Cheongdam Station.

The headquarters of the four major financial groups are mainly located in downtown Gangbuk: Woori Financial Group (Myeongdong), Shinhan Financial Group (Sejong-daero), KB Financial Group (Yeouido), and Hana Financial Group (Euljiro). In contrast, their subsidiary VCs are concentrated in Gangnam.

Many domestic venture capitals are located on Teheran-ro in Gangnam-gu, Seoul, which is considered the equivalent of Silicon Valley in the United States. Since startups are concentrated in Seoul and the metropolitan area, VCs establish their bases nearby to conduct investment activities. Last year, the Ministry of SMEs and Startups designated Gangnam-gu, Seoul, as a ‘Venture Business Promotion District.’ When designated as a venture promotion district, venture companies within the district receive a 37.5% reduction in acquisition tax and property tax, as well as exemptions from development charges and other benefits. As a result, many venture companies operate their businesses in Gangnam.

Meanwhile, Daol Investment, incorporated as the 15th subsidiary of Woori Financial Group, will change its name to ‘Woori Venture Partners.’ The composition of the board of directors will also change. Seongmin Kwak, head of Woori Financial Group’s headquarters, has been nominated as a director candidate. Kwak has worked in Woori Financial Group’s Financial Management Department since 2019. If appointed at the general meeting of shareholders, he will serve on the board for the next three years.