KDB, Eximbank, and IBK Establish 700 Billion Won Joint Fund to Support SME and Venture Scaling Up

Three Policy Banks to Invest 150 Billion Won Each

Growth Capital and Overseas Expansion Support

Final Fund Managers to Be Selected in November

Three state-run banks have established a joint fund worth 700 billion won to support the growth of small, medium-sized, and venture companies. The plan is to fuel promising companies' scaling up by providing growth capital and supporting their overseas expansion.

Korea Development Bank, Export-Import Bank of Korea, and Industrial Bank of Korea—collectively the three major policy banks—announced on September 7 the 'Policy Finance Institutions Global Scale-Up Collaboration Fund' investment project.

Each of the three banks will contribute 150 billion won, for a total of 450 billion won, and, together with private capital, will form a joint fund amounting to 700 billion won. Through this initiative, they aim to support government policies such as innovative growth and productive finance, while leveraging each bank's unique strengths to supply policy funding more efficiently where it is needed.

This investment project is one of the seven core joint and cooperative initiatives selected by the 'Policy Finance Institutions Council,' which was launched in March to boost productive finance and to discover new collaborative projects among policy finance institutions. The Korea Development Bank, Export-Import Bank of Korea, and Industrial Bank of Korea have held regular in-person meetings to discuss fund formation, target support recipients, and implementation schedules.

The three banks will accept proposals through September 30, conduct a joint review, and select the final fund managers by November.

The three state-run banks stated, "We will continue to play a leading role in the venture capital market in line with government policy, as well as further strengthen collaboration among policy finance institutions to drive innovative growth and expand productive finance."

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