Daesung PE tops Korean venture funds by return in 2018-2023

Its 2014 fund posted 3.85 times original investment; the top venture funds invested in gaming, cryptocurrency and bio industries

(Courtesy of Getty Images)
(Courtesy of Getty Images)
Dae-Kyu Ahn 1
2024-04-17 14:29:01 powerzanic@hankyung.com
Private equity

Daesung Private Equity Inc. in South Korea has become the top local venture capital manager in terms of realized capital gain between 2018 and 2023, by investing in fast-growing firms such as gaming giant Krafton Inc. and the country’s top cryptocurrency exchange operator Dunamu Inc.

Daesung PE, a unit within South Korean energy conglomerate Daesung Group, formed a secondaries fund with 25 billion won ($18 million) in 2014 and liquidated last year. It made 3.85 times its original investment, according to data from government agency Korea Venture Investment Corp. on Tuesday.

The Seoul-based PE house invested in Krafton before the game publisher launched PlayerUnknown’s Battlegrounds and exited after the firm went public. The VC manager has also achieved significant returns from Dunamu, the operator of crypto exchange Upbit.

SV Investment topped Korean VC managers in terms of realized capital gain in 2022, achieving 1.4 times the principal investment.

SV created a PE fund of 37.4 billion won in 2014 and invested in Bridge Biotherapeutics Inc., a new drug developer for idiopathic pulmonary fibrosis treatment, and Biodyne Co., a cervical cancer diagnostic kits developer, and drug delivery system maker Peptron Inc.

Intervest liquidated a 100 billion won pharmaceutical fund in 2020 and achieved 2.37 times the initial principal investment, an exceptionally high return rate for a bio fund.

The fund invested in new drug developers including Genexine Inc., Neoimmunetech Inc., CG Invites Co., Ligachem Biosciences Inc., Y Biologics Inc., ChunLab Inc. and botulinum toxin maker Hugel Inc.

Among the local funds liquidated between 2018 and 2023, the lowest performance was 0.34 times the initial principal. A majority of asset managers that bet on unsuccessful movies and games and biotechs that failed in clinical trials made low returns, a VC industry source said.

Write to Dae-Kyu Ahn at powerzanic@hankyung.com

Jihyun Kim edited this article.
#Korea venture capital #Korea VC firm #Korea Daesung Private Equity #Korea SV Investment #Korea Intervest #Korean startups

Korea's AI startup Upstage raises $72 mn for global expansion

Korea's AI startup Upstage raises $72 mn for global expansion

(Courtesy of Upstage) Upstage, South Korea’s artificial intelligence startup, raised about 100 billion won ($72 million) in its latest funding round, which the company will mainly use to win more orders for its AI programs from overseas enterprises, the company announced on Tuesday. Accor

Korean startup CEOs away from home lead global expedition

Korean startup CEOs away from home lead global expedition

(Courtesy of Getty Images) South Korea’s promising startup founders, who normally double as chief executive officers for their companies, are leaving their home turf to find new opportunities in foreign countries with more relaxed regulations.“I now have a clearer picture of what to

Krafton eyes mega M&A, PUBG franchise deals: Krafton chair

Krafton eyes mega M&A, PUBG franchise deals: Krafton chair

(Courtesy of Krafton) Krafton Inc., South Korea’s gaming behemoth, is gearing up for the second chapter of its business through “mega” M&A deals and franchises of its global mega-hit PlayerUnknown’s Battlegrounds (PUBG) intellectual property this year, said its chief

Dunamu to nurture 500 Korean startups to create jobs

Dunamu to nurture 500 Korean startups to create jobs

Dunamu, a South Korean unicorn startup, runs a cryptocurrency exchange and an over-the-counter stock trading platform Dunamu, the operator of South Kora’s largest cryptocurrency exchange Upbit, has launched two programs to support 500 startups over the next five years, which it expects to
(* comment hide *}