Three state-run banks accelerate productive financing for SMEs and mid-sized companies with a “700 billion won fund”

[Financial News] Efforts to establish the “Global Scale-up Cooperation Fund,” a 700 billion won initiative by three state-run banks to support SMEs and mid-sized companies, appear to be gathering pace.
According to Industrial Bank of Korea and others on the 5th, the selection of an outsourced fund manager for the Global Scale-up Cooperation Fund, being pursued by the three policy finance institutions—Industrial Bank of Korea, Korea Development Bank, and the Export-Import Bank of Korea—was completed the previous day.
Last September, the three state-run banks, including Industrial Bank of Korea, each contributed 150 billion won, for a total of 450 billion won, to provide growth capital for SMEs, mid-sized companies, and venture firms and support their overseas expansion. The fund aims to launch at a total size of 700 billion won with additional private capital. It is the first joint project of the Council of Policy Financial Institutions, which was launched in late March. The 700 billion won will be deployed through three funds: one large fund worth 300 billion won and two mid-sized funds worth 200 billion won each.
For the large fund manager tender, KB Investment and IMM Credit & Solutions applied jointly as the sole bidder and were selected as co-managers. Six firms applied to manage the mid-sized funds—Medici Investment, Centroid Investment Partners, Smilegate Investment, Enius Private Equity, Quad Asset Management, and Partners Investment Co., Ltd.—with Smilegate Investment and Partners Investment Co., Ltd. ultimately selected.
The managers will quickly establish funds totaling 700 billion won, using the 450 billion won contributed by the state-run banks as seed capital. Officials from the banks said, “We will continue to play a leading role in the venture capital market while strengthening cooperation among policy finance institutions to support innovative growth and expand productive finance.”
[email protected] Jo Eun-hyo Reporter