News & Media04. 28. 2015 : The Korea Economic DailyKorea Investment Partners launches 100 billion (KRW) ‘Global Contents Fund’
04.28.2015 The Korea Economic Daily
Korea Investment Partners launches \100 billion ‘Global Contents Fund’
Subsidiary of Korea Investment Holdings and top domestic venture capital, Korea Investment Partners (KIP, President Yer Hyun Baek) has organized \100 billion ‘Global Contents Fund’.
According to the venture capital industry on 24th, KIP is holding ‘Global Contents Fund No. 2’ General Organizing Meeting today (24th) 2PM at ASEM Tower Headquarters, Gangnam-Gu, Seoul, with the fund investors. The fund maturity is 10 years and Director Yo Sep Jeon is in charge as a representative manager.
This fund is the second global contents specialized investment fund created by Ministry of Culture, Sports and Tourism, which put \40 billion in trust to Fund-of-Funds for the development of domestic contents and related companies. The \123.6 billion Fund No. 1, created in 2011, is currently managed by Union Investment Partners. KIP has been working on the fund creation for about 5 months after it was selected as the final management firm of “Secondary Funds-of-Funds Fixed-time Business” last November.
Total of 7 film distributors, copyright distribution companies, contents production companies, etc. from in and outside of the country have participated in the Global Contents Fund No. 2. Novus Media Corp, a copyright distribution company to be listed on Singapore stock exchange, and film distributors NEW and Daemyung Culture Factory have invested. Isu Chemical from Isu Group, which is planning to start film distribution as a new business, has also participated.
Top game company Nexon also has invested few billion won, becoming a major shareholder. Besides, global animation production company Redrover, top domestic CG company Mofac Studio, etc. each has invested few billion won. Management firm KIP has invested \25 billion. Japanese advertisement company Hakuhodo Inc., which has been interested in Global Contents Fund from the beginning, is going to participate through additional investment during the first half of the year.
Global Contents Fund failed to create a succeeding fund for 3 years after Fund No. 1 creation in 2011. Companies selected as management firms gave up fund creation in succession as they failed matching private funds. In particular, Ministry of Culture, Sports, and Tourism has been concerned whether it should continue pushing ahead with additional fund creation as ambitiously created Fund No.1 did not perform well.
Yet, the creation of Fund No. 2 proceeded rapidly as the top domestic venture capital KIP was selected as a management firm last November. Although KIP had a hard time when Alibaba from China suddenly withdrew the investment, it eventually succeeded creating \100 billion fund by gathering other private investors.
The fact that KIP, the management firm, directly invested \25 billion had a big impact here. KIP, which has the best fund managing performance among domestic management firms, directly invested a massive capital to the fund through its inherent account and demonstrated strong confidence about the profitability. Experts analyze that this has induced the private investors’ trust.
Director Yo Sep Jeon said “investors with the best competence in various contents industries participated in this fund” and that “[he] feels tremendous responsibility in that he needs to have it in both ways: globalization of domestic contents and profitability”. He also added that he will “actively support Korean contents to pioneer global market using China office ad global local footholds, etc. as bridgeheads”.