Korea Post, Korea VC Team Up to Accelerate Venture Funds, Nurture Unicorns
The Korea Post is joining hands with Korea Venture Investment Corp. to strengthen venture investment support aimed at nurturing domestic unicorn companies. The plan is to swiftly supply funds to ventures and startups that possess technological capabilities but have failed to secure growth momentum due to investment gaps, thereby supporting the revitalization of private investment.
The two institutions announced on the 30th that they had signed a memorandum of understanding (MOU) for the early formation of venture funds to support unicorn company development and to create financial synergies.
The core of the agreement lies in linking the Korea Post’s investment program with Korea Venture Investment Corp.’s fund-of-funds operating system to accelerate venture fund formation and strengthen the capital supply function of the venture investment ecosystem.
Under the agreement, the Korea Post will provide preferential conditions during the investment screening process when venture fund managers selected by Korea Venture Investment Corp. apply to its investment programs. In addition, Korea Venture Investment Corp. decided to lower the investment burden by applying private investor incentives, such as priority loss protection and excess return transfers, to venture funds in which the Korea Post invests.
Through this, liquidity in the venture investment market is expected to increase, while companies with high growth potential will be able to secure the funds they need at the right time during their growth stages.
Park In-hwan, head of the Korea Post, said, “Using this agreement as a turning point, we will further strengthen the Korea Post’s venture fund investment base and actively support the growth of innovative companies.”
Lee Dae-hee, CEO of Korea Venture Investment Corp., said, “Cooperation with the Korea Post, which has nationwide financial infrastructure, will serve as an opportunity to inject new vitality into the venture investment ecosystem.” He added, “We will promote the early formation of venture funds and lay a solid foundation for our ventures and startups to leap into global unicorn companies.”
