[Climate Tech Battle⑫] Korea's First Impact Investment Firm Sopung Ventures "No Climate Crisis Resolution Without Climate Tech"

Interview with Hansangyeop, CEO of Soopung Ventures
Believes It Will Be a Highly Profitable Investment Opportunity
About Half of Total Investment Over 3 Years Directed to Climate Tech

Sopoong Ventures is South Korea's first impact accelerator and investment firm, founded in 2008 by former Socar CEO Lee Jae-woong with the mission to "solve social problems faster, more sustainably, and more fundamentally." The company focuses on building an impact ecosystem that pursues both social value and profit simultaneously. Han Sang-yeop, CEO of Sopoong Ventures, who has experience founding social ventures, has been leading the company since 2016 at the request of former CEO Lee. One area of particular focus is the climate industry, as they believe the climate crisis can become a high-return investment opportunity based on technological innovation.

Hansangyeop, CEO of Sopung Ventures, is being interviewed at the Sopung Ventures office in Seongdong-gu, Seoul. Photo by Jinhyung Kang aymsdream@

On the 3rd, CEO Han stated, "Climate tech is essential to solving climate issues," adding, "Resolving the climate crisis is impossible without climate tech." As of the end of last year, Sopoong Ventures had invested in 51 climate tech startups. The cumulative carbon reduction achieved by these invested companies amounts to 28,000 tons, and water savings reach 660 million liters. This scale is equivalent to 3.22 million 30-year-old pine trees and 266 Olympic-sized swimming pools. Alongside this, they operate climate tech-specialized accelerating and networking programs to support the growth of climate tech. Over the past three years, about half of Sopoong Ventures' total investment amount has been allocated to the climate tech sector.

Regarding another reason for investing in climate tech, CEO Han explained, "Reports from the Intergovernmental Panel on Climate Change (IPCC) and Korea's Nationally Determined Contributions (NDC) both state that achieving global net zero requires developing technologies that do not yet exist," adding, "We invest in the development of these new technologies."

He continued, "The climate tech sector has a high potential for new technology development and great innovativeness among founders," and added, "I believe that solving climate issues through innovative technology is the fastest and most efficient approach."

Sopoong Ventures' investment criteria include ESG (Environmental, Social, and Governance), scope, and universality. They consider whether the investment contributes to creating an environmentally and socially sustainable future, whether capital should be prioritized for the initiative, whether it affects a large number of people now and in the future, whether it is universally pursued regardless of era, culture, or region, and whether innovative technology can significantly accelerate the solution.

Hansangyeop, CEO of Sopung Ventures, is being interviewed at the Sopung Ventures office in Seongdong-gu, Seoul. Photo by Jinhyung Kang aymsdream@

CEO Han identified "inconsistent policies" as a factor hindering the development of climate tech. He said, "In democratic countries including ours, policy consistency can be disrupted by changes in administration, and there is a gap in perspective and pace between bureaucrats responsible for policy and the industry field," adding, "While policy organization and implementation need to be swift on the front lines of global climate tech competition, the government has many other considerations, which sometimes prevents proactive responses."

CEO Han also pointed out the need to enhance the global perspective of Korean climate tech companies. He noted, "While domestic climate tech capabilities are not inferior globally, there is a lack of training in analyzing and approaching problem-solving from a global perspective," but he predicted, "However, since the technology and infrastructure are sufficient, these issues will improve in the future."