The Hana Financial Group has established Hana Ventures, a corporate venture capital (CVC) affiliate, for investment in venture companies, especially in the ICT and biotech fields.
A CVC company is different from a venture capital firm in that it can not only invest in venture companies but extend loans and provide management and marketing expertise to them. Another advantage of CVC is that there are relatively few limits on investments. The Hana Financial Group is the first financial company in Korea to set up a CVC unit.
The financial group launched Hana Ventures on Dec. 19. About 50 executives and employees from related companies, including Hana Financial Group chairman Kim Jung-tae and KEB Hana Bank president Ham Young-joo, attended the inaugural ceremony at the company’s main office in Teheran-ro, Seoul.
Hana Ventures will create a Fourth Industrial Revolution fund worth $88.2 million (100 billion won) within the first quarter of next year and is planning to invest 1 trillion won (US$882 million) into ICT, biotech and healthcare sectors by 2021.
"Korea’s future depends on venture companies with new technologies," Kim said. "The Hana Financial Group will provide investment and support to venture firms through Hana Ventures in order to create an innovative start-up ecosystem." In addition, Kim called for Hana Ventures to take the lead in fostering venture firms into unicorn companies, which have more than 1 trillion won in corporate value.
"Hana Ventures will be faithful to its role as a corporate venture capital," said Kim Dong-hwan, president of Hana Ventures. “By investing in promising technology ventures, we will help the Korean economy achieve innovation-based growth.”