HL Mando Establishes HL Venture, US Venture Capital Subsidiary
$50 Million Investment... Accelerating Discovery of New Technologies and Businesses
Executive Director Jeong Jisoo, Daughter of Chairman Jeong Mongwon, Serving
Responsible for Investment Strategy Development and Portfolio Company Evaluation
HL Group's large-scale investment in a U.S. venture capital affiliate is interpreted as the beginning of hands-on management training for the third generation of the owners. This venture capital firm is where Jeong Ji-su, the second daughter of HL Group Chairman Jeong Mong-won, is affiliated. By entrusting his second daughter with the important role of 'discovering future strategic businesses' and empowering her, Chairman Jeong appears to be aiming to accelerate the group's new business expansion.
According to the business report disclosed by HL Mando on the 20th, last year HL Mando signed a capital contribution commitment contract of $50 million (approximately 67 billion KRW) to a fund managed by HL Ventures Management (hereafter HL Ventures), a venture capital affiliate, and completed a capital contribution of $8.56 million (approximately 1.14 billion KRW) last year.
HL Group established HL Ventures in March last year in Mountain View, California, the heart of Silicon Valley. It is a 100% subsidiary of HL Mando's U.S. corporation. HL Ventures' HL Venture Fund has had HL Mando as an anchor investor since May last year and is actively seeking investment targets this year. Specific investment details have not been disclosed.
However, since HL Ventures has announced plans to invest broadly in technology expansion and convergence across the mobility ecosystem, there is a strong possibility that various startups in electric vehicles, autonomous driving, software-defined vehicles (SDV), artificial intelligence (AI), and urban air mobility (UAM) will be investment targets. Recently, HL Ventures has posted job openings and is recruiting personnel, preparing to actively discover promising Silicon Valley startups.
Jeong Ji-su, the executive principal of HL Ventures, is responsible for establishing investment strategies, managing the portfolio, and discovering and evaluating investee companies. Born in 1995, she graduated from Phillips Academy and Trinity College in the U.S. and joined HL Holdings' strategic planning team in 2017. After working in HL Mando's Shanghai sales team in China, she returned to the domestic holding company. In the second half of 2022, she moved to the U.S. and led the groundwork for establishing HL Ventures.
Recently, along with Jeong Ji-su, Jeong Ji-yeon, the eldest daughter of Chairman Jeong, increased her stake in HL Holdings to the 1% range this year, which is seen as laying the foundation for third-generation management of the group. It is the first time in 10 years since the two daughters participated in a paid-in capital increase in 2014 and acquired new shares. Both daughters hold an equal stake of 1.14%.
Born in 1982, eldest daughter Ji-yeon joined HL Mando's planning team in 2010. She worked in the domestic sales team and as a resident employee in the U.S. for HL Mando but resigned after marrying in 2012. Instead, her husband, Lee Yun-haeng, HL Mando's Chief Operating Officer (COO, Vice President), is actively involved in overall management. On the other hand, the second daughter, Executive Principal Jeong, has been gaining practical experience leading the group's new business strategies in the U.S. after marriage.
Regarding this personnel policy, industry insiders see the succession structure emerging with the eldest son-in-law, Vice President Lee, handling corporate operations and strategy, while the second daughter, Executive Principal Jeong, takes charge of new business opportunities and strategic investments. However, since Chairman Jeong was born in 1955 and is still in his 60s, some believe it is too early to discuss succession.
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