KB Financial Group launches impact investing fund for SMEs

KB Financial Group has established a ‘win-win cooperation mother fund’ to invest in impact companies that simultaneously pursue social problem-solving and financial performance. This initiative marks the first instance of utilizing win-win cooperation funds for venture investment following recent amendments to the enforcement decree of the Win-Win Cooperation Act.

Of the 10 billion won in cooperation funds contributed by KB Financial Group, 3 billion won will be invested in the mother fund by the Korea Foundation for Cooperation between Large Enterprises and Small and Medium-sized Enterprises, with Korea Venture Investment Corp managing the fund. The group plans to match this with private capital to create a sub-fund totaling 5 billion won. The investment will target innovative and high-growth impact companies.

The remaining 7 billion won from the original 10 billion won contribution will be directed toward strengthening the competitiveness of small and medium-sized enterprises (SMEs) and small business owners. These funds are earmarked for supporting AI transformation (AX), green transformation (GX), and safety transformation (SX).