Korea Eximbank Makes First Venture Capital Investment, Contributes 20 Billion Won to Defense and Supply Chain Fund

The Export-Import Bank of Korea (Korea Eximbank) is making its first-ever investment in a venture capital fund since its establishment. The bank will invest 20 billion won in a 112.5 billion won fund supporting defense and supply chain startups, and will also invest 7.5 billion won in AIRS Medical, a medical artificial intelligence (AI) company whose overseas sales account for more than 90% of its total revenue.

Korea Eximbank announced on the 13th that it will jointly invest in a venture capital fund in partnership with the Supply Chain Stabilization Fund. This new investment follows amendments earlier this year to the Export-Import Bank of Korea Act and the Supply Chain Stabilization Act, which expanded the scope of eligible investments for Korea Eximbank and the fund to include venture capital funds.

First, Korea Eximbank will begin selecting general partners for its "LP Growth Fund," a blind fund investing in defense and supply chain startups. Both Korea Eximbank and the Supply Chain Stabilization Fund will contribute 20 billion won each, with the fund targeting a total capital commitment of 112.5 billion won.

The LP Growth Fund is a policy fund in which the government’s Fund-of-Funds establishes sub-funds together with private sector investors such as pension funds, corporations, and financial institutions, to support small and venture businesses. The Ministry of SMEs and Startups and Korea Venture Investment are responsible for managing and supervising the fund.

The fund plans to invest not only in companies involved in completed defense products and components/materials, but also in advanced technology firms in drone, robotics, and AI sectors as well as key supply chain item companies within the defense industry. Korea Eximbank will promote investment in collaboration with BNK Financial Group, which has strong expertise in regional investment, and with the Fund-of-Funds, which has relevant experience managing venture funds.

Previously, in April, Korea Eximbank signed a business agreement with the Ministry of SMEs and Startups to strengthen overseas expansion and export competitiveness of SMEs and venture companies. The bank also entered into agreements with Busan Bank and Kyongnam Bank to vitalize regionally tailored, productive finance. The current investment is a follow-up to these agreements.

The investment call notice will be posted on the Korea Eximbank website on the 14th. Korea Eximbank plans to complete the selection of final general partners within the second half of the year, pending approval from the Minister of Economy and Finance.

Separately, Korea Eximbank has also decided to invest 7.5 billion won in a 30 billion won project fund supporting AIRS Medical, a medical AI startup. The fund is being established by Samho Green Investment.

AIRS Medical develops software that utilizes AI to reduce magnetic resonance imaging (MRI) scan times by up to half. In just eight years since its founding, it has become a "born global" venture company, with more than 90% of its total sales generated overseas.

Korea Eximbank expects that its investment will help AIRS Medical expand its global distribution network and obtain regulatory approvals in overseas markets. The bank also plans to create additional funds in the second half of the year to support core export industries and promising growth sectors such as AI. A Korea Eximbank official stated, "We will actively leverage investments to effectively support national strategic industries in the supply chain stabilization and defense sectors," adding, "Through project fund investments, we aim to foster born global companies into top-tier exporters worldwide."

This content was produced with the assistance of AI translation services.