Staff correspondent
Kim elaborated on KIPSEA’s close collaboration with its portfolio companies
Encompassing elements such as overseeing their administration and offering strategic advice and facilitating relationships with partners as needed. “These initiatives are essential for generating value within our portfolio companies,” he declared.
KIP, a subsidiary of the publicly traded financial behemoth Korea Investment Holdings, has a wide-ranging portfolio that includes securities, asset management, banking, credit financing, private equity, and real estate. Korea Investment Holdings has formed a fund focused on Southeast Asia for the second time. In 2018, it formed a partnership with Golden Equator Ventures to create the GEC-KIP Technology and Innovation Fund in Singapore. Kim elucidated that KIP initially endeavored to find a collaborator for its Southeast Asia endeavor, but eventually acquired the assurance to establish an autonomous office in Singapore and commence its own fund. A fraction of KIPSEA’s investment will be exclusively designated for South Korean enterprises aiming to expand into Southeast Asia. The substantial population of Southeast Asia is a significant factor that draws the interest of Korean companies. Southeast Asia, comprising many countries, has a population of approximately 650 million, making it the third most populous region in the world. Moreover, the region’s swiftly evolving venture ecosystem and the increasing attraction from international investors have bolstered the liquidity of its financial markets.
Synclare Kim, Head of KIPSEA
South Korean investors are investing more in Southeast Asian businesses, creating a “investment corridor” connecting the two areas. Examples of this trend include Naver, South Korea’s top online platform, investing in Southeast Asian firms like Bukalapak Carousell, Happy Fresh, and Zi lingo. South Korea’s most popular messaging app, Kakao, has supported Southeast Asian firms like KoinWorks, Shop Back, and Style Theory.South Korean angel network Bon Angels has invested in over 20 Southeast Asian firms, including Grab, Gojek, Traveloka, and Tokopedia.South Korean private equity firm STIC Investments has funded Southeast Asian firms like Carro, Carousell, Pomelo, and Zilingo.Investments give funds and access to South Korea’s advanced technology, people, and market. One of the world’s most innovative nations, South Korea ranks second in the Global Innovation Index 2021. Opportunities also exist in its enormous and sophisticated customer base, with over 50 million people and a GDP per capita of nearly $30,000.
South Korean and Southeast Asian tech ecosystems share potential and problems in digital transformation, e-commerce, fintech, edtech, healthtech, and social impact, thus collaboration is projected to grow. KIPSEA is one of the funds promoting this partnership and creating benefit for both regions.