[Edaily Marketin KIM SUNG-SOO Reporter] Shinhan Asset Management is making a total investment of 319.1 billion won in the so-called “K-Deep Tech” sectors, including artificial intelligence (AI), semiconductors, robotics, and aerospace.

The company has selected sub-advisors for each sector to establish a Science and Technology Innovation Fund that invests in future technology fields. The fund’s total size is approximately 320 billion won, and the deadline for its formation is the end of December this year. Arrangements have been made to secure additional funds through the end of March next year.

Shinhan Asset Management to Contribute 116.3 Billion Won… 36% Share

According to the financial investment industry on the 24th

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Shinhan Asset Management recently finalized the selection of sub-advisors for the Science and Technology Innovation Fund. The total size of this fund is 319.1 billion won.

Shinhan Asset Management’s investment amounts to 116.3 billion won (approximately 36% of the total), and the company plans to raise additional funds, including private capital, to establish the fund.

The scope of investment targets is broad. It encompasses the entire spectrum of future technology sectors, including AI, as well as △advanced robotics and mobility, △next-generation security and networks, △semiconductors and displays, △advanced biotechnology, △aerospace and marine, and △quantum technology.

Shinhan Asset Management’s investment amounts for each sector are as follows: △Artificial Intelligence (AI): 24 billion won; △Semiconductors and Displays: 24 billion won; △Advanced Robotics and Mobility: 15 billion won; △Advanced Biotechnology: 15 billion won; △Next-Generation Security and Networks: 15 billion won; △Quantum Technology: 12 billion won; and △Aerospace and Marine: 11.3 billion won.

The fund’s term is up to 10 years from the date of establishment (extendable twice, each time by one year). Depending on the investment strategy, the term may be set at 10 years, 9 years, or other durations.

The investment period is within five years from the fund’s establishment date. The deadline for forming the fund is the end of December this year. To allow for securing additional funds, “multi-closing” will be permitted until the end of March next year.

“Multi-closing” refers to a method in which multiple investors make investments based on the same enterprise valuation or terms but finalize their respective contracts and capital contributions at different times. It is primarily used when it is difficult to raise the target amount all at once during the startup investment or fund formation process.

The advantage of multi-closing is “flexible fundraising.” This is because once early-stage investors are secured, it becomes easier to attract follow-on investors. Additionally, Shinhan Asset Management has set performance benchmarks for the investment. The target rate of return is “an internal rate of return (IRR) of 7% or higher.”

Investments in Future Technologies such as “AI, Robotics, Semiconductors, and Aerospace”

SL Investment will manage the “Artificial Intelligence (AI)” sector and receive 24 billion won in capital. SL Investment is a Korean venture capital (VC) firm established in February 2000.

SL Investment aims to be a specialized VC that focuses on managing early-stage and growth funds. It invests in small and medium-sized venture companies with core competitiveness in innovative growth sectors such as AI, robotics, biotech and healthcare, mobile platforms, content, and virtual reality (VR).

Major

in which SL Investment CEO Lee Seung-heon has invested include telecommunications equipment manufacturer Innowireless (currently known as LIG Acuber), semiconductor testing equipment specialist Techwing, game developer Devsisters, Kakao, Zikbang, and Yanolja.

KT Investment will serve as the fund manager for the “Semiconductor and Display” sector and will receive 24 billion won in capital. KT Investment, a venture capital firm established in 2015, invests in startups. Kim Jin-soo, Executive Vice President and Head of the Investment Division at KT Investment, focuses on investing in technology-based startups—such as those in AI, autonomous driving, and robotics—as well as startups in the mobile services sector.

Looking at Executive Director Kim’s key investment portfolio, companies that have achieved an exit include Hogangnono (acquired by Zikbang), the secondhand marketplace Bungeojangteo (acquired by Praxis Capital), machine learning and natural language processing startup Saltlux (IPO), HyperSense (acquired by Epic Games), EnGenBio (IPO), Auto& (IPO), Joongang Control (acquired by Lotte Information & Communications), Lunit (IPO), SoundHound (NASDAQ IPO), and NeuroMeca (IPO).

HyperSense is a facial motion capture startup founded in California, USA, in 2015. The company developed “HyperFace,” software that uses AI to capture facial expressions in real time, and was acquired by Epic Games, the developer of “Fortnite,” in November 2020.

SoundHound is a music recognition app that identifies songs playing in the user’s surroundings, as well as a company specializing in conversational voice AI technology. Additionally, NeuroMeka is an industrial robot manufacturer founded in 2013.

Target Internal Rate of Return (IRR) of 7% or higher… Fund to be formed by year-end

Friend Investment Partners (with 15 billion won in capital) was selected as the fund manager for the “Advanced Robotics and Mobility” sector, while Premier Partners (15 billion won) was selected for the “Advanced Biotechnology” sector.

Friend Investment Partners is led by Co-CEOs Yoon Il-seok and Shin Jin-cheol. Co-CEO Yoon Il-seok oversees company management and investment operations. Co-CEO Shin Jin-cheol oversees the identification of investment targets, investment due diligence, and post-investment management.

CEO Yoon is an investment expert with over 20 years of experience in venture capital and corporate finance. As Chief Investment Officer (CIO) and Head of the Overseas Investment Division at Samsung Venture Investment, he led investments in domestic and international technology companies and managed investment funds. He also built a broad investment network and gained extensive management experience while overseeing overseas investments in global markets such as the U.S., Europe, and Israel.

In addition, DA Value Investment (15 billion won) was selected as a fund manager in the “next-generation security and networking” sector. DA Value Investment is a specialized new technology business finance company (Shin-gi-sa) in which Dong-A L-Tech is the largest shareholder. Shin-gi-sa is a financial institution under the Specialized Lending Business Act that provides investments and loans to small and medium-sized enterprises (SMEs) and mid-sized companies developing or commercializing new technologies.

Jang Yong-wook, CEO of DA Value Investment, gained investment experience at LB Investment and TS Investment. He specializes in growth-stage and M&A investments and previously handled corporate finance (IB) and financial advisory services at NH Investment & Securities and Samil Accounting Firm.

The “Quantum” sector will be managed by Anda Asia Ventures and Aion Investment (totaling 12 billion won). Additionally, Company K Partners (11.3 billion won) was selected as the manager for the “Aerospace and Maritime” sector.

A financial investment industry official stated, “This Science and Technology Innovation Fund has expanded its investment scope to include not only sectors that are already highly significant across the industry, such as AI and semiconductors, but also sectors where securing long-term technological competitiveness is essential, such as robotics, quantum technology, and aerospace.” The official added, “With the fund established at a total scale of 319.1 billion won, attention is focused on which deep-tech companies will receive funding in the future.”