Shinhan Asset Management Announces Plans for Science and Technology Innovation Fund Investment Project

Shinhan Asset Management announced on the 13th that it plans to select seven asset management firms through the '2025 Science and Technology Innovation Fund' management company selection notice and to establish a venture fund of at least 255.9 billion KRW.

The Science and Technology Innovation Fund is a public-private partnership fund created with capital from three commercial banks?Shinhan Bank, Industrial Bank of Korea, and Woori Bank?which deposit and manage research and development funds from national R&D projects. Shinhan Asset Management serves as the master fund manager, operating the fund by collecting input from 14 ministries, including the Ministry of Science and ICT, and the contributing banks.

Each year, a master fund of 123.5 billion KRW will be established, totaling 494 billion KRW, with the goal of creating venture funds exceeding 1 trillion KRW. The Science and Technology Innovation Fund will invest in a total of five sectors: semiconductors and displays, artificial intelligence, advanced mobility, advanced bio, and quantum. At least 30% to 40% of the target amount for each sector must be invested, and regardless of sector, there will be an obligation to invest at least 60% of the target amount in the 12 national strategic technology sectors.

To strengthen policy linkage, additional management fees and incentives in the form of reduced benchmark returns will be provided when investments are made in companies that have commercialized technologies selected as part of the 'Top 100 National R&D Achievements' or public technologies. The same incentives will be offered if investments exceed the target ratio at each reference point to ensure prompt investment execution.

Proposals for the Science and Technology Innovation Fund will be accepted on the 26th from 1:00 p.m. to 4:00 p.m. An explanatory session for the investment project will be held on the 15th at the TP Hall on the 3rd floor of the TP Tower in Yeouido. The selected asset management firms are expected to complete fund formation within this year, enabling the provision of funding to promising domestic companies for the enhancement of R&D technology value starting in the second half of the year.