The Korea Development Bank (KDB) has been working on seeking out reformative start-ups and helping them secure investments under the theory that the future of Korea will depend on how best the industries cope with the 4th Industrial Revolution.
The KDB “Next Round” is the name of the project that KDB has been working on to create Korea’s representative venture investment open market. To help startups prepare for the future, Korea Development Bank has been running the KDB Next Round program to helps link companies with new investors.
First launched in August last year, KDB’s Next Round was introduced in an effort to minimize market friction and promote market expansion in order to further develop startup investments in the wake of the “fourth industrial revolution.”
The state-run Korea Development Bank unveiled Oct. 17, 2017, plans to partner with Korea Venture Business Association to enhance investments in venture firms.
KDB will finance venture firms recommended by the association, according to the plan. The KDB’s investment platform does not involve a funding model or direct investment in ventures.
It also does not involve contributing to a capital fund that invests in ventures. Instead, Next Round is an investment inducement platform through which the KBD facilitates investments from startups and venture capitalists via investor relations networking opportunities, the company said.
The bank established a startup investor relations center on the first floor of its Seoul headquarters, where causal meetups for startups and venture participants are held Wednesdays and Fridays at 3 p.m.
Since its launch, the company has held 25 investor relations networking sessions with 97 participating companies, leading to a total of 43.6 billion won ($38.2 million) of investments in 22 startups.
This year, KDB plans to hold a total of 75 networking rounds with 300 participating startups and expects to attract venture capital investments of up to 100 billion won. KDB also plans to invest 15 billion won of its own capital in the next round of its program.
In addition, the nation’s largest state-run bank will seek ways to stimulate the emergence of local unicorns, or startups valued at over $1 billion, and ramp up investor relations programs for local startups.
KDB called the partnership an acceleration of the government’s “fourth industrial revolution” drive in a recent release.
This marks a step forward from KDB’s operation of “KDB Next Round,” an investor relations program normally held twice a week. Through KDB Next Round launched in August 2016, 48 venture firms had received a combined 145.8 billion won ($128.8 million) worth of investments through September, according to KDB.
Gov. Lee Dong-gull of said KDB will extend more loans to startups and SMEs whose main functions relate to the technologies in the 4th Industrial Revolution, in a switch from its traditional loan policy providing most of its loans to big corporations.
In a meeting with reporters at the “KDB Next Round 100th Memorial” events at Yeouido Grand Hotel Nov. 6, Lee said the role of KDB should also adapt following the changes in the economic paradigm with the arrival of the 4th Industrial Revolution.
The changes in KDB’s loan policy don’t mean large corporation can’t get KDB loans. The bank will still provide loans to big businesses trying to do their part amid the 4th Industrial Revolution, he said, adding that the companies that don’t change would not be able to survive.
The state-owned KDB was founded in 1954 with the mission of establishing and fostering the national economy, industries and infrastructure, financial and corporate system. KDB has been acting as the primary supporter of public finances and corporate sector all along its remarkable history.
The Bank was continuously broadening its business scope and gained exceptionally comprehensive expertise in the fields of development finance, corporate banking and corporate structure development.
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