Chung Mong-Hyuck, Chairman of Hyundai Corporation
Hyundai Corporation, a general trading company established a specialized financial company for new technology businesses with the name of Prologue Ventures and has completed the registration with the financial authority for the purpose of challenging the corporate venture capital (CVC).
According to the financial circles on the 8th day of the month, the Prologue Ventures of CVC by Hyundai Corporation has completed the registration of the financial company for new technology businesses with the Financial Supervisory Service. The capital is 10 billion won and the Hyundai Corporation and the holding company of Hyundai Corporation Holdings hold 81.8% and 18.2% of the shares respectively.
CVC is the giant enterprise that invests in venture companies for strategic purpose. In the past, by the principle of the separation between finance and industry, holding companies of general giant enterprises were not able to establish the CVC. However, starting last year, after the revised enactment of Fair Trading Act, the way to establish the CVC has been opened to holding companies of giant enterprises.
Prologue Ventures is also the financial company for new technology businesses which is one of the types of CVC. The financial company for new technology businesses invests in or supports a loan for an enterprise that develops new technology or applies the technology to commercialize. Different from the venture investment company that only finances the SMEs within 7 years of business commencement, the financial company for new technology businesses is not limited to the related guideline.
Followed by Dongwon Group and GS Group, the registration of CVC by Hyundai Corporation was the third time that a giant enterprise established a CVC. This year, “Dongwon Technology Investment” by Dongwon Group and “GS Ventures” by GS Group have completed the registration of the financial business for new technology businesses with the Financial Supervisory Service in April and May respectively.
The executive director Shin Kwan-Ho has been appointed as the CEO of Prologue Ventures who had a career in NH Venture Investment. The CEO Shin graduated from the Department of Business Administration in the State University of Indiana in the US. He worked for SBI Investment, LIG Investment & Securities, and Hanwha Investment & Securities. He is a well-known figure with rich experiences as to play a role of investment screening.
An authority of Hyundai Corporation said, “As a general trading company, we plan to discuss with Prologue Ventures and organically create the synergy when promoting new domestic and overseas businesses.”
July 8, 2022, Chosunbiz