Joint Fund
The Small & Medium Business Administration and the Korea Venture Investment Corp announced on January 24 that they raised a fund of US$100 million in order to assist in Korean small and venture firms’ business in China.
The Chinese government and Chinese private-sector entities invested more than 60 billion won for the fund while the Korean government invested 40 billion won via its fund of funds. The rest of the amount was invested by Korean and Chinese fund operators.
Fortune Link and SV Investment Partners are to run the fund together with each other. The wide business network of Fortune Link, one of the top-ranking Chinese venture capitals, is expected to be utilized for Korean firms’ successful business in China and follow-up investments from major Chinese enterprises.
The fund operators are planning to focus their investment on the B2C rather than B2B segments of the biotech, IT, mobile, media and consumer goods industries in view of the huge growth potential of the consumer market of China.
The foreign capital attracted up to now amounts to 914.6 billion won and the amount is expected to exceed one trillion won before the end of this year.