Shinhan Investment teams up with Japan's UMI Ventures for deep tech cross-border fund

Shinhan Investment is joining forces with Japanese venture capital firm UMI Ventures to establish a fund for joint investment in deep tech companies in South Korea and Japan.

Shinhan Investment announced Wednesday that it has signed an MOU with UMI Ventures — a Japanese VC specializing in materials, components and equipment — to create a cross-border venture fund targeting deep tech firms in both countries.

The agreement marks the two firms' first official partnership. Shinhan Investment and UMI Ventures plan to share the networks and investment expertise each has built in their respective home markets to pursue co-investments and support companies seeking to expand into new markets.

The two firms will jointly identify promising companies in deep tech sectors including semiconductors, robotics, aerospace and defense. They will channel venture capital into high-growth-potential technology companies and help Korean and Japanese firms enter each other's markets.

The two firms earlier co-hosted a Korea-Japan deep tech conference in Tokyo on Aug. 19. They plan to hold another conference in South Korea in October to introduce the Japanese deep tech market and highlight promising companies, continuing their joint investment and exchange activities.

"This agreement is an important milestone for Shinhan Investment and UMI Ventures to connect the deep tech ecosystems of Korea and Japan," said Jang Ho-sik, head of Shinhan Investment's CIB1 Group. "We will develop this into a partnership that goes beyond simple investment to support companies from both countries in entering each other's markets."

Shosuke Kiba, chief executive of UMI Ventures, said he was pleased that the partnership with Shinhan Investment would lay the groundwork for connecting South Korea's strong capital and networks to the Japanese ecosystem. "We hope this agreement will serve as a genuine bridge linking the deep tech industries and investors of both countries," he said.

Shinhan Investment has been expanding its venture capital supply in recent months. In line with Shinhan Financial Group's push for productive finance, the firm is deploying funds raised through promissory notes into corporate finance and venture capital investment, while broadening support for mid-sized companies, small and medium-sized enterprises and startups through its group network and investment capabilities.