IBK Invests 200 Billion KRW in IBK Innovation Growth Fund
Seven Management Firms Selected in Future Leadership, Specialized VC, and Mid-sized Leap Sectors
IBK Industrial Bank announced the launch of the ‘IBK Innovation Fund’ investment project on the 11th. This is the first time the bank has announced a public competitive (Contest) style blind fund investment project.
The ‘IBK Innovation Fund’ plans to invest 200 billion KRW across the ‘Future Leadership’, ‘Specialized VC’, and ‘Mid-sized Leap’ sectors to create a fund exceeding 500 billion KRW. In the ‘Future Leadership’ sector, 100 billion KRW will be invested in two management firms, selecting firms with excellent profitability and performance without specific investment conditions to maximize each firm’s strengths.
In the ‘Specialized VC’ sector, 45 billion KRW will be allocated to three management firms divided among artificial intelligence, energy and environment, and mobility. IBK plans to increase its investment ratio up to 75% to create an environment where small and medium-sized VCs can focus on investments.
The ‘Mid-sized Leap’ sector will invest 55 billion KRW in two management firms to support small businesses transitioning to mid-sized enterprises, selecting firms capable of rapid fund formation and investment execution.
IBK plans to receive proposals until November 25 and select entrusted management firms by December. The selected firms must complete fund formation by the end of June 2025.
An IBK official stated, “Through this IBK Innovation Fund, we aim to realize value-based finance that revitalizes the sluggish investment market,” adding, “The investment objectives are securing future growth engines, expanding sector-specific expertise of VC management firms, and supporting small businesses to leap into mid-sized enterprises.”
Meanwhile, since the inauguration of President Kim Sung-tae, IBK has been continuously supporting venture fund formation despite challenging market conditions, targeting the supply of 2.5 trillion KRW in venture capital over three years starting in 2023.
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