South Korean venture capital conducts large-scale organizational restructuring to activate 40 trillion won in annual risk funds

Korea Venture Investment Corporation announced a major organizational restructuring to support the expansion of the venture capital market and the implementation of government national policy initiatives. To activate the 40 trillion KRW venture funds annually and increase private capital inflows, the internal organization will be restructured and related functions strengthened.

On January 2, Korea Venture Investment Corporation announced that through this organizational restructuring, the system will expand from the original 6 headquarters, 3 departments, and 20 teams to 6 headquarters, 4 departments, and 23 teams. Additionally, the number of centers will increase from 1 to 2. This reorganization is interpreted as an effort to improve venture capital management efficiency and to inject substantive momentum into key policy directions such as regional balanced development and attracting private capital.

One of the core changes is the establishment of a new “LP Platform Team” within the Fund Operations Department. This team will focus on discovering new limited partners (LPs) and strengthening cooperation with the private financial sector. The government and institutions aim to gradually reduce reliance on insufficient public funds and increase private sector participation through this initiative.

Fund management functions are also shifting from a decentralized structure to an integrated one. The previously dispersed management of fund-of-funds operations by each headquarters will be unified under the “Fund Management Headquarters” to achieve efficient risk management and performance analysis. This headquarters will also broadly participate in post-investment management, performance evaluation, and investment contract review of parent funds.

The organization for regional investment expansion has also been restructured. The original Regional Innovation Headquarters and Regional Balanced Development Department will be merged into a newly established “Regional Growth Headquarters,” which will directly lead the activation of regional risk ecosystems. This headquarters will be fully responsible for the operation of regional growth parent funds and the management of regional offices. The original matching investment division will be transferred to the Innovation Investment Department to build a more specialized support system.

The division of functions by specialization has also been enhanced. The Research and Analysis Team has been expanded into the Venture Investment Research Center to strengthen specialized research in the risk sector; the Digital Innovation Team has been reorganized into the “AI Innovation Team,” focusing on the highly discussed artificial intelligence field. To strengthen cooperation with the government and the venture capital industry, a new External Cooperation Department has been established, and a Legal Support Team has been created to solidify legal operations.

Lee Dae-hae, CEO of Korea Venture Investment Corporation, stated, “This organizational restructuring is the first step toward realizing new government policies such as expanding private investment, performance-centered fund management, and regional balanced growth,” adding, “We will activate the venture market to promote the birth of unicorn companies.”

This organizational restructuring is expected to serve as an opportunity to strengthen the roles of private and public capital, guide the venture investment system toward qualitative development, and further, to upgrade the startup ecosystem into a more competitive foundation in conjunction with government innovation growth policies.