South Korea selects 7 managers for 880bn won tech fund

The Financial Services Commission and Korea Development Bank have selected seven management companies to operate the 880 billion won ultra-long-term technology investment fund. The fund aims to provide long-term capital to companies specializing in advanced and original technologies, such as next-generation semiconductors and advanced biotechnology, which require extended periods for commercialization.

The fund's capital structure consists of 680 billion won in policy funds—comprising 600 billion won from the Advanced Strategic Industry Fund and 80 billion won from government finances—and 200 billion won from private sources. To ensure diverse investment, at least 40% of the primary investment must be allocated to industries other than AI and semiconductors.

Seven managers were chosen across two categories: three small-scale managers (G&Tech Venture Investment, Hanwha Investment & Securities, and a Timefolio Asset Management/Timefolio Capital consortium) and four medium-scale managers (Smilegate Investment, We Ventures, Kolon Investment, and Quantum Ventures Korea).

Unlike typical policy funds with 8 to 10-year lifespans, this fund will operate for up to 16 years, with an investment period of up to 7 years. The selected managers are expected to complete fund formation by December and begin investments as early as the end of this year.