Notic Investment to Launch 'KRW 100 Billion K-Culture Fund' with KRW 50 Billion in Policy Funding [FN Market Watch]

[Financial News] Notic Investment is raising a fund of at least KRW 100 billion to invest in artificial intelligence (AI)-based technologies and intellectual property (IP). Kiwoom Investment will oversee the content innovation segment. The structure uses policy capital as anchor funding to attract private capital and provide growth financing to K-Culture companies.
According to the investment banking (IB) industry on the 20th, Korea Growth Investment (K-Growth) selected Notic Investment as the general partner (GP) for the AI and IP segment of the KRW 150 billion K-Culture Value-Up Fund, and Kiwoom Investment as the GP for the content innovation segment.
Notic Investment must raise at least KRW 100 billion, while Kiwoom Investment must raise at least KRW 50 billion. A total of KRW 80 billion in policy capital will be invested through a joint contribution program with Korea Development Bank (KDB).
Notic Investment will receive KRW 50 billion, including KRW 34 billion from the Growth Fund and KRW 16 billion from KDB. It must raise at least the remaining half from private LPs. Kiwoom Investment will receive KRW 30 billion, including KRW 16 billion from the Growth Fund and KRW 14 billion from KDB. Both funds must be closed within six months of receiving notification of their selection.
The investment targets are domestic companies engaged in the K-Culture industry, with a focus on content companies that incorporate AI technologies and companies that utilize IP. At least 50% of each fund's target size must be invested in newly issued shares, and the funds will have an eight-year lifespan.
Notic Investment won the GP mandate largely because of its existing track record. It secured capital commitments of KRW 40 billion from the Korea Growth Finance–IBK Growth M&A Fund in 2023 and KRW 20 billion from the M&A and secondary sectors of the Mother Fund Cultural Account in 2024. Based on this experience, it also raised its second blind fund, worth KRW 100 billion, with more than 10 LPs participating. All 10 funds that have completed liquidation exited without losses.
Its experience combining AI and content is also considered a strength. After acquiring a controlling stake in T-IME Education in a deal valued at KRW 90 billion, Notic Investment has been pursuing value enhancement by incorporating AI technologies. It invested a total of KRW 32 billion in BNW Investment and NHN EDU, and has also invested in content companies such as Munpia and Kumsung Publishing. The firm also has experience investing in K-Culture-related consumer goods companies, including NARA CELLAR and HANKOOK COSMETICS MANUFACTURING.
Meanwhile, Kiwoom Investment is expected to raise at least KRW 50 billion, based on KRW 30 billion in policy capital, and identify companies involved in content production and distribution as well as online entertainment. Another feature of the contribution program is a structure designed to reduce the risk borne by private LPs. The fund of funds makes subordinated commitments of up to 10% of the total committed amount and uses them to cover losses first. This mechanism is intended to encourage private capital inflows by having policy capital absorb a portion of any losses first.
An IB industry source noted, "Content investments have wide variations in performance and long exit periods, making the attraction of private LPs crucial to closing the funds. The key will be how much private capital, beyond the policy funding, can be attracted by using the subordinated structure." 
[email protected] Kang Gu-gwi Reporter