Dongguk Investment to Manage Government-Affiliated Institution Fund... Achieves Results in 4 Months

Participation in KIAT-funded 'CVC Scale-up Fund'
Unprecedented Achievement for a New CVC
First Fund of 60 Billion KRW Scale to be Established

Dongkuk Steel Group's corporate venture capital (CVC) Dongkuk Investment is set to actively invest in venture companies. It achieved its first success by being selected as an institutional entrusted operator (GP) just four months after its establishment.

On the 11th, Dongkuk Investment announced that it had been selected as the entrusted operator for the corporate venture capital project 'CVC Scale-up Fund,' funded by the Korea Institute for Advancement of Technology (KIAT) under the Ministry of Trade, Industry and Energy.

This fund was created by the Ministry of Trade, Industry and Energy to generate future growth engines and advance core industries. It aims to raise a total of over 30 billion KRW by investing 15 billion KRW in one entrusted operator.

KIAT set the main investment targets of the fund as innovative technology companies that fall under the national advanced strategic technologies and core areas of the super-gap program designated by the National Advanced Industry Act. It recommended that more than 60% of the fund’s total committed amount be invested in such companies.

This selection as an entrusted operator demonstrates that Dongkuk Investment is achieving business results at a rapid pace from its early stages. In particular, it is rare for a newly established CVC to be selected as a government-led fund entrusted operator within a short period.

Dongkuk Investment is a CVC established in March this year with 900 million KRW capital contributed by Dongkuk Holdings. In May, it made an additional capital contribution of 9.1 billion KRW to meet the capital requirements for a new technology finance company, and in August, it officially launched as a new technology finance company after receiving approval from the Financial Supervisory Service, five months after its establishment.

Leveraging this entrusted operator selection, Dongkuk Investment plans to raise the 'Dongkuk Future Growth Venture Fund No. 1' with a scale of 60 billion KRW, including Dongkuk Steel Group’s capital contribution and additional funds. Through this, it aims to invest in venture companies and discover new business models.