South Korea’s Woori Financial Group Inc. will establish a venture capital firm within the year and place it under the holding entity to boost its support for promising startups, as part of its plan to invest 33 trillion won ($28.2 billion) over the next five years to incubate startups.
Woori Financial Group decided to set up a venture capital subsidiary to integrate startup supporting businesses and enhance expertise and efficiency. It has been strengthening its group-wide support for innovative startups by assigning Woori Bank to deal with loan and investment business for new technology financing, and Woori Investment Bank and Woori Private Equity Asset Management to ramp up related investment.
The group earlier pledged 2.1 trillion won for the next five years through various programs including direct and indirect investment and funds. It will also create a 100 billion won worth fund raised by Woori Investment Bank and run by Woori PE to support startups and small firms with great growth potential.
It plans to operate a fund first to strengthen expertise and capability of its workers, and utilize the talents in the venture capital subsidiary that will be established by the end of the year. The new firm will take up technology financing business from Woori Bank. The lender last year financed total 15 billion won to 20 to 30 startups engaging in new technology businesses.
Woori Financial will become the country’s second financial holding company that owns a venture capital subsidiary following KB Financial Group. Hana Financial Group has Hana Ventures that is specialized in supporting tech startups.
By Lee Seung-hoon and Choi Mira
[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]