KDB and IBK launch 120 billion won Pre-IPO fund

Korea Development Bank (KDB) and Industrial Bank of Korea (IBK) have established the ‘KDB-IBKS Next Stage Fund,’ a 120 billion won Pre-IPO fund designed to provide growth capital to innovative companies preparing for public listings.

The fund is jointly managed by KDB and IBK Investment & Securities. Contributions are split equally between the two groups, with KDB and KDB Capital providing 60 billion won, and IBK and IBK Investment & Securities providing the remaining 60 billion won. The primary investment targets are innovative growth companies and Pre-IPO firms that have signed underwriting agreements or aim to go public within the next three years.

This initiative follows the ‘Policy Finance Institutions Council’ established in March and marks an expansion of cooperation between policy finance institutions from simple joint contributions to direct joint investment and management. IBK plans to expand this support by creating Post-IPO funds, aiming to build a total fund scale of 500 billion won over the next three years to support companies through various growth stages.