[Edaily Marketin Reporter Soyoung Park ] The launch of KEPCO Technology Holdings, with a capital of 100 billion won, is drawing significant attention from the domestic investment industry. The company is actively laying the groundwork to jointly identify and nurture energy and climate tech companies based on the energy technology, patents, and demonstration infrastructure held by Korea Electric Power Corporation (KEPCO).

“Let’s Partner with KEPCO”: All Eyes on Naju

According to the domestic investment banking (IB) industry on the 7th, following the official launch of KEPCO Technology Holdings last month, domestic venture capital (VC) firms and accelerators (ACs) are taking steps to expand their collaboration with the company. They aim to go beyond mere financial investment by linking their portfolios to KEPCO’s technologies and demonstration infrastructure or by identifying joint business opportunities.

KEPCO established KEPCO Technology Holdings by contributing 20 billion won in capital. KEPCO Technology Holdings’ total capital is 100 billion won, to be contributed in installments of 20 billion won over five years. Lee Jong-min, former vice president of SK Telecom, was appointed as the first president.

Impact-focused investment firms are among the key players seeking to increase their engagement with KEPCO Technology Holdings. This is believed to stem from the need for large-scale demonstrations and securing early-stage customers for portfolio companies when investing in energy and climate tech.

Expectations that a collaboration with KEPCO Technology Holdings could help create energy unicorns in Korea also played a role. An official from a domestic impact investment firm stated, “There have been quite a few energy companies that, despite possessing excellent technology, have struggled in business due to high investment costs and long payback periods,” adding, “I believe that collaborating with KEPCO Technology Holdings will serve as a catalyst for fostering energy unicorns, as it will allow access to KEPCO’s infrastructure and technology.”

In line with industry expectations, KEPCO Technology Holdings also plans to focus on identifying and nurturing unicorns. The holding company supports startup creation and commercialization by integrating promising new energy technologies and patents held by KEPCO and the public sector with private-sector innovation capabilities. Through this effort, it aims to cultivate 10 “K-Energy” unicorn companies by 2050.

An official from a domestic venture capital firm noted, “The absence of domestic energy unicorns stemmed from a rigid existing industrial structure,” adding, “With the rise of artificial intelligence (AI), energy has now become a matter of survival, and in the U.S., investments in the trillions are already being made in energy companies.” He continued, “Just as there was a need to increase the scale of investment in Korea, the launch of KEPCO Technology Holdings drew intense industry attention,” adding, “I believe KEPCO Technology Holdings’ role lies in identifying and nurturing technologies sought by the market in collaboration with industry stakeholders.”

KE

PCO Reaches Out to Investment Firms… Building an Ecosystem with the Private Sector

KEPCO is also using the launch of KEPCO Technology Holdings as an opportunity to expand its collaboration with private investment firms. KEPCO Technology Holdings was established to commercialize KEPCO’s technologies and patents to create competitive domestic companies. To this end, KEPCO Technology Holdings has partnered with domestic investment firms. Together, they plan to jointly identify and invest in promising technologies and companies in the new energy industry sector.

To mark its launch, KEPCO Technology Holdings signed a “Memorandum of Understanding (MoU) for an Investment Alliance to Foster an Investment Ecosystem for New Energy Businesses” with 10 investment institutions. The alliance includes: △Korea Development Bank (KDB) △IBK Industrial Bank of Korea △Korea Investment Partners △IMM Investment △LB Investment △StoneBridge Ventures △Pureun Investment △Korea Science & Technology Holdings △ETRI Holdings △Sopung Ventures.

The industry also believes that private investment firms will be able to secure various business opportunities in the future through joint investments, open innovation, technology commercialization, and acceleration programs. Prior to the launch of the technology holding company, KEPCO had already envisioned a full-cycle business model for fostering energy companies, including △technology business △business incubation △support for innovative growth △strategic investment and performance feedback.

In addition, KEPCO will go beyond mere exhibitions at the “Bitgaram International Power Technology Expo (BIXPO),” to be held in Gwangju this November, to further strengthen connections between startups and the investment ecosystem. This will include establishing a separate program to support startup growth. Furthermore, KEPCO will facilitate meetings between VC and AC investors, as well as large and mid-sized companies, and promising startups to foster tangible investments and collaborations.

An official from a global VC firm stated, “Investment firms seem to have a strong interest in KEPCO Technology Holdings because it naturally allows them to expand their limited partner (LP) networks.” He continued, “Conversely, there are Japanese LPs interested in domestic energy startups to create synergies with overseas LPs, particularly local portfolio companies,” adding, “With the launch of KEPCO Technology Holdings bringing attention to the domestic energy ecosystem into one place, Japanese LPs are already calculating that they will be able to source high-quality deals.”