Industrial Bank of Korea to Establish 3 Trillion Won Innovation Growth Fund... Inviting Bids for Fund Managers

Proposal Submission Deadline Until the 21st

Korea Development Bank announced on the 7th that it has posted a public notice for the selection of a master fund management company for the Innovation Growth Fund in accordance with the Innovation Growth Fund establishment plan.

This project is a fund establishment initiative to raise future growth engines and foster innovative venture companies, aiming to create a total fund of 15 trillion KRW (3 trillion KRW annually) over five years starting from 2023. In 2023 (the first year), a fund of 3.9 trillion KRW was raised, with investments of 700 billion KRW currently underway, and in 2024 (the second year), a fund of 3.1 trillion KRW was raised as of the end of last year.

Korea Development Bank is preparing 300 billion KRW of government funds this year to additionally raise 3 trillion KRW for the Innovation Growth Fund and will proceed with the third-year capital contribution project starting with this selection announcement. The deadline for proposal submissions is the 21st, and through a review process, two companies will be selected in February: one master fund management company for the innovation industry fund (200 billion KRW) and one for the growth support fund (100 billion KRW).

Korea Development Bank explained, "After selecting the master fund management companies, we will select sub-fund management companies in the first half of the year and supply seed money to the shrinking venture capital market by establishing a large-scale policy fund of 3 trillion KRW within the year. As a leading policy financial institution, we plan to continue unwavering venture capital investments."