Korea Development Bank will set up a venture capital firm in Silicon Valley to back Korean startups in making inroads to global markets and fostering unicorn companies, the state lender announced on July 30.

The bank plans to open the venture capital unit by the end of this year. The venture capital will make direct investment and provide financing to startups and small companies with strong growth potential. It will also work to help Korean startups connected to other venture capitalists and businesses in Silicon Valley, said the bank.

It expected the venture capital to support promising Korean startups grow as global unicorns.

The bank has been running a Global Partnership Fund since 2016, which invests in international venture capitalists for Korean startups’ increased exposure to the global market. It also operates venture investment platform KDB NextRound and accelerator program KDB NextOne in Korea.

Maeil Business News