Shinhan Financial forms W100b venture mother fund to back AI, regional innovators

Shinhan Financial Group has formed a 100 billion won ($66.5 million) private venture mother fund and is moving to invest in national advanced strategic industries — including AI — as well as regional innovation sectors.

Shinhan Financial Group announced Friday it had completed the formation of "Shinhan Venture Nexus Mother Fund No. 1," a 100 billion won private venture mother fund it had flagged in April. Through the fund, the group aims to consolidate the investment capabilities of its affiliates and build a productive, private-sector-led financial virtuous cycle.

Shinhan Bank, Shinhan Card, Shinhan Investment and Shinhan Capital jointly contributed capital to the fund, with Shinhan Venture Investment serving as manager. Shinhan Financial plans to invest in fund-of-funds vehicles run by domestic venture capital firms to attract private capital, then use that base to assemble 1 trillion won in sub-funds.

Shinhan Venture Investment will draw on its direct investment experience and industry expertise in AI and other innovation sectors to select top general partners, while expanding its direct investment capabilities into fund-of-funds investing to strengthen the group's venture investment platform.

The group will also participate in venture funds with regional investment mandates and in LP growth funds — known as platform funds — organized by the Ministry of SMEs and Startups and Korea Venture Investment, broadening the investment base for regional innovators. In the third quarter, the group plans to issue its first call for sub-fund managers, select general partners and proceed with sub-fund formation on a rolling basis.

"We will use this mother fund as a springboard to put our productive finance strategy into concrete action and continue supporting the growth of future industries and the venture investment ecosystem," a Shinhan Financial official said.