KB Financial to launch 150 billion won unicorn scale-up fund

The roughly $102 million vehicle will target growth-stage companies in AI, semiconductors, aerospace and other advanced industries as KB Financial revamps its credit framework around future growth value.

Summary

KB Financial Group is setting up the 150 billion won, or about $102.1 million, KB Kookmin Growth Unicorn Scale-Up Fund to invest in growth-stage companies across advanced industries including AI, semiconductors, secondary batteries, aerospace, mobility, robotics and biotech. The fund, approved at the group’s fourth Productive Finance Council meeting on July 24 and announced July 27, will be fully financed by KB Financial affiliates and managed by KB Securities’ PE Growth Investment Division, with internal estimates pointing to investments in about six companies. The move is part of a broader shift at KB Financial from corporate assessments focused on past financial statements toward a framework centered on technological capability and future growth potential, alongside new review units, outside specialist hires and a group study forum intended to deepen expertise in advanced strategic industries.

Terms & Concepts
  • unicorn: A privately held startup generally valued at $1 billion or more.
  • PE: Private equity, investment capital used to back companies that are not publicly listed.
  • credit framework: A lender’s system for assessing a company’s creditworthiness and financing risk.