South Korea’s Shinhan Financial Group has announced plans to establish a new fund to invest in startups from both Japan and South Korea. The fund, with a capital of roughly 5 billion yen or $36.5 million, is expected to be set up this month, supported by Shinhan Venture Investment, a subsidiary, and Japanese investors.
The new fund is Shinhan’s first-ever initiative to support startups from both countries. The fund will receive support from Mizuho Bank and Mizuho Financial Group’s venture investment firm, Mizuho Innovation Frontier, in Japan. The fund will be operated by Global Brain, a Japanese VC company.
The financial group will consider launching a second fund if the first one reaches the investment target quickly. Shinhan’s startup fund will invest 70% of the money in promising Japanese startups and the remaining 30% to South Korean startups looking to expand their business in Japan. Investments will range from 50 million yen to 100 million yen per company.
The fund will focus on identifying startups engaged in digital businesses, healthcare, and deep tech solutions, which are based on scientific and engineering advances. Shinhan’s startup accelerator program, Shinhan Future’s Lab Japan, launched in November, aims to bring together ideas and know-how from companies based in Japan and South Korea.
The launch of the new fund aligns with Japanese Prime Minister Fumio Kishida’s government’s long-term goals of fostering 100 unicorns and 100,000 startups. This move will create more opportunities for both countries’ startups to collaborate and benefit from each other’s strengths.
The startup ecosystem in South Korea has seen significant growth in recent years, with government and private sector support to promote innovation and entrepreneurship. Shinhan Financial Group’s new fund is an important milestone for startups in both Japan and South Korea.This development signifies increasing cooperation and synergy between the two countries, poised to drive innovation and economic growth in the region.
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