For domestic small and mid-size enterprises dreaming of globalization, funds and lack of a network are two of the largest difficulties they face. For these enterprises, lack of information on local enterprises and market, as well as market value evaluations, can be burdensome.
The Korea Finance Corporation (KoFC) understands these issues and is focusing on forming Global Cooperation Funds (GCF). KoFC believes requests from around the world to invest in a promising Korean enterprise or even attract the domestic companies are increasing.
GCF is called a “safety measure” for domestic small to mid-size enterprises to successfully expand their businesses overseas. 50% of the investments are from Korean institutions, and the other 50% comes from cooperating nations’ governmental or financial institutions.
And the first milestone has been reached. On November 19, KoFC announced that it formed a 200 billion won (US$189 million) GCF with Australia’s QIC on November 18 (local time). This is the first result from one of the three nations (Australia, China, Kuwait) of which KoFC is working to form GCFs.
Domestic operators KTB, PE, and QIC will join to operate this GCF, which will be invested in various projects related to Korean companies’ business expansion overseas.
In fact, domestic small to mid-size enterprises can take advantage of the information owned by QIC, such as networking in Australia and investment experiences necessary for expanding overseas. Through this, companies can find business opportunities and receive business stabilization support once gone overseas.