NH Nonghyup Financial Expands "Win-Win·Growth Fund No.2" to 400 Billion Won

60% Allocated as Venture Capital
40% Directed to Investments Linked with the National Growth Fund

NH Nonghyup Financial Group announced on August 30 that it will establish the "NH Korea Win-Win·Growth Fund No.2" as a master-feeder fund with a total size of 400 billion won.

Chanwoo Lee, Chairman of NH Nonghyup Financial Group. NH Nonghyup Financial

The fund size was significantly increased from the original 100 billion won target. An official from NH Nonghyup Financial explained, "This is a measure to actively participate in a nationwide transformation toward productive finance by expanding participation in the National Growth Fund, which is dedicated to investments in high-tech strategic industries, as well as by increasing venture capital investments in small, mid-sized, and regional companies with strong technological capabilities and high growth potential."

The decision to adopt a master-feeder structure was made in order to scale up investment capacity at the master fund level and efficiently allocate resources when establishing feeder funds and identifying suitable investment opportunities aligned with its strategy.

Sixty percent of the NH Korea Win-Win·Growth Fund No.2 will be supplied as venture capital. The remaining 40% will be used for direct and indirect investments in conjunction with the National Growth Fund. The fund will establish credit and mezzanine feeder funds to provide direct loans and mezzanine investments such as convertible bonds (CB) and bonds with warrants (BW) to promising small and mid-sized enterprises, venture startups, and regional firms with significant growth potential.

Direct investments will be made jointly with the National Growth Fund as equity co-investors in promising companies in the advanced strategic industry sector, as approved by the National Growth Fund's investment management committee. Indirect investments will involve commitments to selected feeder funds, such as policy funds under the National Growth Fund.

Following the 500 billion won Fund No.1 for infrastructure investment completed in the first half of the year, NH Nonghyup Financial aims to reach a cumulative 900 billion won in total fund formation with the launch of Win-Win·Growth Fund No.2. By year-end, the company plans to consider business conditions, establish additional private venture master funds, and complete its goal to form a cumulative fund size of 1 trillion won within the year.

Chanwoo Lee, Chairman of NH Nonghyup Financial Group, commented, "NH Korea Win-Win·Growth Fund No.2 is expected to act as a catalyst for fostering Korea's advanced strategic industries by supplying proactive venture capital to small and mid-sized enterprises that have difficulty accessing market-rate or low-interest loans, and by accelerating the implementation of the National Growth Fund."

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