[VC House Exploration] ① Woori Venture Partners, Hot on the Heels of KB Investment

Woori Financial's 15th Subsidiary, Leading Venture Investment
KTB Network DNA... Active in Overseas and Web 3.0 Investments

Editor's NoteAs the venture investment market loses momentum, the government is introducing various incentives to stimulate investment. However, the venture investment industry believes that no matter how good the policies are, they are useless if venture capitalists (VCs) do not take action. In the market, the 'role theory' of major venture capitalists with financial capacity is gaining attention. We examine their profiles to understand the venture investment ecosystem.

Woori Venture Partners is a venture capital (VC) affiliated with Woori Financial Group. It is a case of acquisition and merger (M&A), not an independent establishment. On March 31, Woori Financial Group completed the acquisition of Daol Investment. With this, all four major financial holding companies?Woori Financial Group (Woori Venture Partners), Shinhan Financial Group (Shinhan Venture Investment), KB Financial Group (KB Investment), and Hana Financial Group (Hana Ventures)?now own venture capital firms.

Woori Financial appointed CEO Kim Chang-gyu (pictured) as the inaugural head of Woori Venture Partners, transitioning to a sole leadership system. Kim’s term is two years. Although various speculations circulated in the industry initially, the decision was ultimately made to maintain the venture investment expert Kim’s leadership. His presence is considered a significant factor.

CEO Kim joined Korea Technology Finance Corporation, the predecessor of KTB Network, in 1994 and has been a living witness to its 30-year history. Kim graduated from Yonsei University with a degree in economics, earned a master's in economics, and after joining Dongnam Lease, shifted his career path to become a venture capitalist. Even after the privatization and transformation into KTB Network, he consistently remained, writing history.

The ‘KTB Network Faction’?A Cohesive Team of Experts

Kim served as the lead fund manager for major venture funds operated by KTB Network, including the ‘KTBN 7th Venture Investment Association (committed capital of 68.2 billion KRW)’, ‘KTBN 14th Venture Investment Association (5.3 billion KRW)’, and ‘KTBN 16th Venture Investment Association (195 billion KRW)’. This is also why Woori Financial cannot simply replace the CEO. The manpower is notably strong.

In the venture capital industry, Woori Venture Partners is still synonymous with KTB. Most prominent venture capitalists who made a name for themselves in the industry are KTB Network alumni. Commonly called the ‘KTB faction’, they lead major deals. Even during the Daol Investment era before Woori Venture Partners, the KTB name was inseparable. Current members and alumni take great pride in the KTB identity.

Alongside CEO Kim, there are many veteran investment officers with decades of industry experience, such as Executive Director Lee Seung-ho and Managing Director Shin Tae-kwang. The investment division, including Kim, consists of 19 members. Including 18 staff in the management division, the total is 37. Considering that small to mid-sized venture capital firms typically have around 20 employees including management, this is a considerable scale.

‘30 Years of Venture Investment’?Trusted Leadership of CEO Kim Chang-gyu

They have nurtured unicorn companies (unlisted companies valued at over 1 trillion KRW) such as Woowa Brothers (Baedal Minjok), Viva Republica (Toss), and Moloco. Notably, after investing 2.3 billion KRW in Baedal Minjok in 2014, they recovered 62.5 billion KRW in 2021, realizing a 26-fold profit. Thanks to such consistent achievements, the trust of limited partners (LPs) is strong.

Currently, Woori Venture Partners manages assets under management (AUM) totaling 1.4593 trillion KRW. It ranks second among the four major financial holding company-affiliated VCs, following KB Investment (1.9025 trillion KRW). Shinhan Venture Investment (1.3952 trillion KRW) and Hana Ventures (826 billion KRW) follow. Because of this, the industry is paying attention to the competitive dynamic between Woori Venture Partners and KB Investment.

As of the end of last year, the private equity funds (PEFs) managed by Woori Venture Partners include only the ‘KTB GI PEF (10 billion KRW)’ formed in 2019 and the ‘KTB NHN China PEF (30 billion KRW)’ established in 2012. The proportion of PEFs is relatively small compared to other managers. With active financial support from Woori Financial, if Woori Venture Partners simultaneously increases new venture funds and PEFs, it is expected to surpass KB Investment.

Woori Venture Partners plans to accelerate overseas investments. It has established bases in the United States, Thailand, China, and Singapore. Especially centered on Singapore, it plans to focus on major emerging Asian markets with large consumer markets such as India and Indonesia. Additionally, it is paying attention to the blockchain sector, specifically ‘Web 3.0’. This is also why it participated as an LP in Blockchain Founders Fund, a Singapore-based Web 3.0 specialized VC.