Top South Korean Venture Capital Managers Achieve Impressive Returns Through Strategic Investments

Daesung Private Equity Inc. Tops South Korean Venture Capital Managers in Realized Capital Gains

In a remarkable feat, Daesung Private Equity Inc. has been named the No. 1 local venture capital manager in South Korea for realized capital gains between 2018 and 2023. The PE firm, a unit within the Daesung Group, achieved this milestone by investing in high-growth companies such as gaming giant Krafton Inc. and cryptocurrency exchange operator Dunamu Inc.

Daesung PE’s success can be attributed to its strategic investments in companies like Krafton, which saw exponential growth with the launch of PlayerUnknown’s Battlegrounds, and Dunamu, the operator of the popular crypto exchange Upbit. The firm’s secondaries fund, formed in 2014 with 25 billion won ($18 million), was liquidated last year, resulting in a remarkable 3.85 times return on investment.

SV Investment, another prominent VC manager in Korea, also saw significant gains in 2022, achieving 1.4 times the principal investment. The firm’s success can be credited to investments in companies like Bridge Biotherapeutics Inc. and Biodyne Co., a developer of cervical cancer diagnostic kits.

Intervest, on the other hand, achieved exceptional returns with a 100 billion won pharmaceutical fund liquidated in 2020, resulting in a 2.37 times return on investment. The fund’s investments in new drug developers and biotech companies proved to be highly successful.

However, not all local funds fared as well, with some experiencing low returns due to investments in unsuccessful movies, games, and biotech companies that failed in clinical stages. Despite this, the overall performance of South Korean venture capital managers remains strong, with firms like Daesung PE leading the way in realizing significant capital gains.

For more information, contact Dae-Kyu Ahn at [email protected]. Jihyun Kim edited this article.