NH Nonghyup quadruples growth fund to ₩400B, eyes ₩1T total by year-end

What's the deal? NH Nonghyup Financial GroupDealroom has a profile for this one. Try Dealroom → is expanding its ‘NH Korea Mutual Growth and Development Fund No. 2' from 100 billion Korean won to 400 billion Korean won. The fund will be structured as a mother-child type vehicle to widen corporate finance investments.

Where does the money go? Some 60% will flow into venture capital, while 40% will be invested directly and indirectly in connection with the National Growth FundDealroom has a profile for this one. Try Dealroom →.

What's the endgame? Nonghyup plans to set up sub-funds — including Credit Funds and Mezzanine Funds — to provide direct loans to high-growth small and medium-sized enterprises, ventures, startups, and regional businesses. It will also pursue mezzanine deals such as convertible bonds and bonds with warrants.

Why now? The move follows a 500 billion Korean won infrastructure investment fund launched in the first half of the year. By year-end, Nonghyup aims to add private venture master funds and finalise a fund totalling 1 trillion Korean won.

Chairman Lee Chanwoo said the fund will act as "a catalyst for fostering Korea's advanced strategic industries by actively supplying venture capital to small and medium-sized enterprises that struggle with market-based borrowing and low-interest loans."

The signal: A major financial group channelling capital toward SMEs and startups signals growing institutional backing for Korea's venture ecosystem, tied to the state-led National Growth Fund push.

Read more: chosun.com

Image credit: nh nonghyup financial