Export-Import Bank makes first venture fund investment with W112.5b defense, supply chain fund

The Export-Import Bank of Korea will make its first investment in a venture fund since its founding. The bank and the Supply Chain Stabilization Fund will each contribute 20 billion won ($14.1 million) to help establish a 112.5 billion won fund supporting venture companies in the defense and supply chain sectors, and will separately invest 7.5 billion won in Airs Medical, a medical AI firm.

The bank announced Thursday that it and the Supply Chain Stabilization Fund have begun selecting a delegated manager for the "LP Growth Fund."

The LP Growth Fund will be structured as a blind fund, meaning investment targets will not be designated in advance. The bank and the Supply Chain Stabilization Fund will each contribute 20 billion won, with the total target size set at 112.5 billion won.

The fund plans to invest in companies producing finished defense products as well as parts and materials, advanced technology firms in defense-applicable fields such as drones, robots and AI, and companies tied to key supply chain items.

The bank will also collaborate with BNK Financial Group and the Korea Fund of Funds in building out the fund. Earlier, in April, it signed an MOU with the Ministry of SMEs and Startups, Busan Bank and Kyongnam Bank to cooperate on small and medium-sized enterprise support and regional investment.

A notice for manager applications will be posted on the bank's website Friday. The bank plans to finalize its selection of a fund manager in the second half of this year after receiving approval from the Minister of Economy and Finance.

The bank will also make a separate investment in Airs Medical. It has agreed to contribute 7.5 billion won to a 30 billion won project fund being established by Samho Green Investment.

Airs Medical develops software that uses AI to cut MRI scan times by up to half. Eight years after its founding, the company now generates more than 90 percent of its total sales overseas. Through this investment, the bank plans to provide funding to help the company expand its overseas sales network and secure local regulatory approvals.

The investment was made possible by amendments to the Export-Import Bank of Korea Act and the Supply Chain Stabilization Act in the first half of this year, which expanded the bank's eligible investment targets to include venture funds. The bank plans to establish additional funds in the second half of the year to support key export industries and growth sectors such as AI.

Meanwhile, the bank has been broadening its venture investment activities — in June, it made a direct 20 billion won investment in Furiosa AI, an AI chipmaker.