Hana Securities Establishes Industry's First 'Private Venture Fund of Funds'

Launched with 200 Billion Won in the First Quarter
Full-Scale Supply of Venture Capital via Issuance-Based Notes Begins

Hana Securities is set to become the first in the industry to establish a Private Venture Fund of Funds (Private Indirect Venture Investment Association).

According to Hana Securities on February 27, the new Private Venture Fund of Funds is scheduled to launch within the first quarter with a total size of 200 billion won. This initiative is a core strategic project aimed at channeling capital raised through the issuance-based note business into the realm of productive finance.

In its inaugural year of the issuance-based note business, Hana Securities has set a target of raising approximately 2 trillion won, of which 500 billion won-equivalent to 25%-will be allocated to venture capital. The mandatory venture capital supply ratio for comprehensive financial investment business entities is being gradually increased: from 10% in 2024 to 20% in 2027 and 25% in 2028. Hana Securities, however, plans to supply 25% from the very first year, with the Private Venture Fund of Funds serving as the core pillar of this execution strategy.

According to the company, the purpose of this fund of funds is to complement the existing policy fund-centered investment structure and to invigorate a venture investment ecosystem driven by pure private capital. Although government-funded investment initiatives have been expanding, delays in fund formation due to a lack of matching funds have become more frequent. As a result, active participation by private financial institutions has been identified as a key task for the sustained growth of the venture investment market.

Hana Securities plans to operate the fund of funds as an indirect investment structure, making investments in sub-funds managed by domestic venture capital firms. Following its establishment in the first quarter, the company will gradually execute investments in these sub-funds to broaden the foundation for private capital investment and ensure funding is supplied across the investment ecosystem at various growth stages. To this end, the company will strengthen its dedicated fund management organization and expand its team of professional evaluators, further enhancing its operational capabilities.

The primary investment targets will be the "12 National Strategic Technologies" designated by the government. These include semiconductors and displays, secondary batteries, next-generation nuclear power, hydrogen, aerospace and marine, advanced biotechnology, artificial intelligence (AI) and next-generation communications, cybersecurity, robotics, future mobility, quantum technology, and advanced materials-all sectors directly linked to securing future growth engines. Hana Securities plans to select specialized managers in these strategic technology sectors for investment in sub-funds, and will establish a structure that supports follow-on investment in companies progressing toward technology commercialization and scaling up.

In addition, the company aims to move beyond the Seoul metropolitan area-centric investment structure by expanding investments in regional innovation companies. By collaborating with local universities, technoparks, and centers for creative economy and innovation, Hana Securities will identify promising startups outside the metropolitan region and make sub-fund investments linked to regionally specialized industries, thereby contributing to balanced regional growth and job creation.

Choi Youngsoo, Head of Global PE Business Division at Hana Securities, stated, "Investing capital secured through the issuance-based note business into future growth industries and innovative companies is a key role of a financial institution. By expanding the supply of privately-driven venture capital, we aim to enhance the self-sustainability of the venture ecosystem while strengthening national strategic industry competitiveness and contributing to balanced regional development."

Meanwhile, the formation of this fund is part of Hana Financial Group's "Hana Together Growth Project" announced in October last year. In line with the group's One IB strategy, Hana Bank is also expected to participate in the fund formation with a partial investment. Hana Financial Group has previously announced its plan to provide 84 trillion won to productive finance by 2030 through the "Hana Together Growth Project."

This content was produced with the assistance of AI translation services.