[Edaily Marketin Reporter Soyoung Park ] Venture capital (VC) firms in the financial sector are successively launching investment initiatives in private venture capital fund-of-funds. As the operational capabilities of limited partners (LPs) strengthen, demand is also growing for personnel with experience in investment and management. This involves recruiting professionals from the Ministry of SMEs and Startups or Korea Venture Investment Corporation (KVIC). As the scale of private venture capital fund-of-funds is expected to grow in the future, competition among VCs to select general partners (GPs) is intensifying. With industry interest in private venture capital fund-of-funds investment initiatives on the rise, the competition to secure LP specialists is expected to heat up even further.

According to the domestic investment banking (IB) industry on the 30th, as the role of financial sector venture capital (VC) firms expands from direct investment to investment initiatives, an increasing number of firms have begun participating in private venture capital fund investment initiatives this year.

Hana Ventures previously established its first private venture capital fund in 2024 with a scale of 100 billion won. Starting this year, the firm plans to raise its second private venture capital fund, totaling 400 billion won, by contributing 100 billion won annually over four years. Last month, Hana Ventures selected seven final fund managers for the first round of its “Hana All-Growth K-Future Strategic Industries Venture Fund of Funds 2026,” which has a budget of 20 billion won. The primary investment focus is on future strategic industries, specifically companies in the ABCDEF sectors (Artificial Intelligence, Biotechnology, Content, Defense, Energy, and Manufacturing).

Kiwoom Investment also completed the first-round evaluation for the “Kiwoom Venture Hero Fund of Funds 2026” investment program last month and notified the selected firms individually. Kiwoom Investment has decided to invest 60 billion won this year—the first year of the private venture fund of funds’ launch—and plans to select managers for blind and project funds. The blind fund will invest in 12 funds. The categories are divided into △General (Small, Medium, Large) △Secondary △Other. For project funds, investment decisions will be made on a rolling basis.

In addition, Shinhan Financial Group previously established the “Shinhan Venture Nexus Fund No. 1,” a 100 billion won private venture fund of funds. Shinhan Venture Investment will manage the fund. KB Financial Group signed a memorandum of understanding (MOU) with the Financial Services Commission and the Ministry of SMEs and Startups for the “Venture Investment Revitalization and Entrepreneurship for All Project.” It plans to launch a 100 billion won private venture fund of funds. NH Nonghyup Financial Holdings is also establishing a 100 billion won “NH Private Venture Fund of Funds.” NH Venture Investment will be responsible for selecting sub-fund managers and executing investments. The goal is to stimulate venture investment in key national industries—such as artificial intelligence (AI), semiconductors, and mobility—and to support the growth of innovative companies.

The private venture master fund must select sub-fund managers and manage performance and risk. This requires LP (limited partner) capabilities distinct from those needed for identifying and evaluating existing companies. Specifically, key tasks include: △ soliciting and selecting sub-fund managers; △ evaluating proposals and conducting due diligence; △ designing investment terms and fund bylaws; △ managing sub-fund performance and risk; and △ liaising with policy agencies such as the Ministry of SMEs and Startups and financial regulators.

Consequently, some firms have begun recruiting personnel with backgrounds in the government-backed venture capital fund and the Ministry of SMEs and Startups to leverage the investment and management expertise previously held by policy-based financial institutions. For example, Kiwoom Investment has begun strengthening its Investment Strategy Division—which will oversee the private venture capital fund—with relevant personnel. Last year, the firm recruited professionals with extensive experience in venture investment, policy fund planning, and startup and venture policies from both the private and public sectors, including LG Electronics and the Ministry of SMEs and Startups. Additionally, personnel who had handled tasks such as master fund investment and management, post-investment oversight, and risk management at KVIC have also joined the firm. Hana Ventures is also reported to have recently secured additional personnel from KVIC.

The industry anticipates that demand for specialized talent will continue to grow. This is because the government and the five major financial groups plan to establish a private venture capital fund totaling 800 billion won by 2029. Starting with 400 billion won this year, the scale of investments will be expanded in stages through 2029. An official in the investment banking industry stated, “I’ve heard that several firms have recently hired managers with experience at the KVIC,” adding, “As concerns over the relocation of policy LPs to regional areas coincide with the expansion of private venture capital funds in the financial sector, it seems highly likely that the trend of investment professionals from the public sector moving to the private financial sector will intensify.”