NH NongHyup Financial Group expands 'NH Korea Win-Win Growth Fund No. 2' to 400 billion won

[Financial News] NH Financial Group Inc. will quadruple the size of its 'NH Korea Win-Win Growth Fund No. 2' from the original plan. The group aims to expand venture capital investment in small and mid-sized companies, mid-tier firms and regional businesses, while actively joining the shift toward productive finance.  
On the 30th, NH Financial Group said it will significantly increase the 'NH Korea Win-Win Growth Fund No. 2' from 100 billion won to 400 billion won and set it up as a master-feeder fund to expand corporate finance investment.
A master-feeder fund pools large amounts of capital into a master fund, then forms feeder funds according to the investment strategy to invest in companies. NH Financial Group plans to build up large-scale investment capacity at the master fund stage and then efficiently deploy capital to suitable targets through feeder funds.  
Sixty percent of the second Win-Win Growth Fund will be supplied as venture capital. The remaining 40% will be used for direct and indirect investments linked to the National Growth Fund. The group will create feeder funds such as credit funds and mezzanine funds to provide direct loans and mezzanine investments, including convertible bonds (CB) and bonds with warrants (BW), to small and mid-sized companies, venture firms, startups and regional businesses with strong growth potential. Through this, it aims to contribute to real-economy growth and stronger industrial competitiveness.
Direct investment will be made jointly with the National Growth Fund as an equity investor in promising companies related to advanced strategic industries that have been approved by the National Growth Fund's fund management committee. Indirect investment will be carried out by contributing to feeder funds selected as policy funds under the National Growth Fund. Through this, the group expects to broaden support across Korea's advanced strategic industries and expand the investment base by linking policy funds with internal group capital.
Following the 500 billion won first infrastructure investment fund launched in the first half, NH Financial Group plans to complete a total of 900 billion won in fund formation through this second fund. By the end of the year, it also aims to finish its plan to build a 1 trillion won fund by adding private venture master funds and other vehicles, depending on business conditions.
Lee Chan-woo, chairman of NH Financial Group, said, "NH Korea Win-Win Growth Fund No. 2 is expected to become a catalyst for fostering Korea's advanced strategic industries by accelerating the National Growth Fund initiative, while also supplying aggressive venture capital to small and mid-sized companies that have difficulty securing market-based borrowing or low-interest loans." 
NH Financial Group said it will continue to lead investment in advanced industries, venture firms and regional businesses, while actively participating in the shift toward productive finance and driving sustainable growth in Korea's industrial ecosystem. 
[email protected] Lee Hyun-jung Reporter