503 KT&G creating New Growth Investment Partnership no. 1 with Mirae Asset … initiating investment in new businesses in earnest 2022.10.11
On October 7, KT&G (CEO Baek Bok-in) formed New Groth Investment Partnership no. 1, a strategic matching fund, with Mirae Asset to identify and develop new business areas.
KT&G and Mirae Asset respectively invested 20 billion won to start New Growth Investment Partnership no. 1. Based on the performance of the first fund, a subequent fund will be formed to expand the basis of developing a business for new plant species.
The fund will be managed by Mirae Asset Capital. The periods of investment and maintenance of the fund are four and ten years respectively. KT&G and Mirae Asset Capital will cooperate with each other in such processes as reviewing new businesses, identifying an investment area and executing the investment.
KT&G's strategy is to find and develop the driving force of the company's growth through the strategic matching fund with Mirae Aset. The main areas of investment are health care, ESG and industries of new growth, and the goal is to secure an opportunity to enter into a new business field, while maximizing a synergetic effect with existing busiensses.
Lee Woong-kyu, an official in charge of Growth and Investment Department said: "We are forming a strategic alliance with Mirae Asset for investment in new-growth industries in order to secure sustainable growth in the midst of the rapidly changing business environment and to identify businesses of new plant species." He explained that "KT&G will actively investment in new business fields, while strengthening capacity of existing businesses."
Meanwhile, KT&G is making efforts in various ways to obtain force for new development by investing in venture funds and building up equity in venture corporations. KT&G so far made equity investment in a total of 12 venture firms at a value of 27.5 billion won. The cumulative investment in venture funds reached 43 billion won.
(Photo description) On October 7, KT&G (CEO Baek Bok-in) formed New Growth Venture Partnership no. 1, a strategic matching fund, with Mirae Asset, to identify and develop new businesses. The image in the photo is the corporate logo (CI) of KT&G.