The Korea Broadcasting Advertising Promotion Corporation (Kobaco) announced the launch of Korea’s first advertising and marketing focussed venture fund, the ‘BNK-Kobaco Advertising and Marketing Investment Association.’

Kobaco explained, “It is the first fund in Korea that’s main investment target is for small and medium-sized venture companies that want to open a market through advertising and marketing of products and brands.”

 In this fund, with a total scale of 30 billion won ($22 million), Kobaco will match an investment of 5 billion won to the 10 billion won ($3.5 to $7.5 million) invested by the Ministry of SMEs and Startups and Busan Bank, Kyongnam Bank, BNK Capital, and JoongAng Ilbo, affiliated with BNK Financial Group, will contribute 10 billion won ($7.5 million) as private investors. BNK Venture Investment, a fund management company, will also invest 5 billion won ($7.5 million).

 This fund has been launched per the advertisement and marketing business agreement to support the market and job creation for small and medium-sized venture companies signed by Kobaco with the Korea Communications Commission, the Ministry of SMEs and Startups, and Korea Venture Investment in December of last year. Kobaco will also provide advertising and marketing consulting to investee companies.

It is expected to support small and medium-sized venture companies experiencing increased difficulties due to global inflation and the economic downturn caused by the base rate hike to expand sales through advertising and marketing along with operating funds.

Lee Man-man, CEO of Kobaco, said, “We will create a virtuous cycle in which small and medium-sized venture companies that have grown through the BNK-Kobaco advertising and marketing fund create good jobs and then expand advertising and marketing. Through this, we will create synergies that can satisfy both the investing and invested companies.”