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Singapore - 26th August 2024
On August 26, 2024, Lion X Ventures Pte. Ltd. (referred to as "Lion X") , a subsidiary of Lion Partners Capital based in Singapore, was invited to participate in the "K-Inovation Day in Singapore" organized by the Korea Venture Investment Corp. (KVIC) and the Korean Ministry of SMEs. During the event, KVIC and Lion X officially signed an agreement, with Mr. SOO KeeWee, Partner at Lion X, attending the signing ceremony. KVIC will invest USD 5.2 million in the Lion X Digital Innovation Investment Fund through its parent fund the Foreign VC Investment Fund.
In February 2024, KVIC announces the Investment Plan of Foreign VC Investment Fund (the “FVCIF”) for the year of 2024, leading to a total of 80 venture capital funds from various countries applying. After five months of due diligence conducted by KVIC , a total of 18 funds were selected for investment by KVIC. Among these, three funds from the Southeast Asia region were chosen, with Lion X being one of them. KVIC is a member organization under the Korean Ministry of SMEs, managing the Korean national guidance and being the only government-supported fund management organization. It’s mandated to promote Korea's development by creating a better startup ecosystem. KVIC is a global venture capital institution with offices in Korea, Shanghai, Singapore, New York, and San Francisco. To date, KVIC has invested about 1,300 venture funds so far over USD 1billion annual deployment into funds, and KVIC have invested about 11,000 direct and indirect portfolios.
The Foreign VC Investment Fund was established to support entry of Korean startups and SMEs into the overseas market, and to promote the advancement of the venture capital ecosystem in accordance with “Ways to Promote the Virtuous Cycle of the Venture Foundation Fund Ecosystem” (announced in May 2013). In recent years, the rapid economic growth in Southeast Asia has been driven by its large and young labor force and consumer market, increasing foreign investment, regional economic cooperation promoting trade and investment flows, and the development of emerging industries driven by digital technological innovations. As a result, not only enterprises from Greater China but also those from other Asian countries, including South Korea, are increasingly choosing Southeast Asia as a strategic destination for expansion.
Looking for new drivers in the international market, Southeast Asia's vast population and young demographics presents significant potential demand, making it a prime target for South Korean companies looking to expand overseas. Beyond the traditionally dominant sectors of semiconductors and automobiles, in recent years a rising proportion of South Korean companies has been expanding into medical devices, artificial intelligence, fintech, beauty and personal care, and jewelry manufacturing. In this process, government guidance funds from various countries play a crucial role as navigators by investing in overseas funds or enterprises, quickly entering local business networks and preparing domestic companies for international expansion. This is a major consideration behind KVIC's investment in Lion X Digital Innovation Investment Fund.
Lion Partners Capital, a private equity investment firm with a background in Southeast Asian financial groups, began its SEA fund expansion in 2022. This move was driven by the "Belt and Road" strategy and the rapid development of emerging industries in Southeast Asia. The firm established its overseas holding subsidiary, Lion X, in Singapore and completed the initial closing of the Lion X Digital Innovation Investment Fund in January 2024. The fund mainly focus in new digital infrastructure, industry digitization, the new media ecosystem and ESG within the Southeast Asian market. The fund benefits from cornerstone investors such as Singapore's oldest local bank OCBC Bank Group, and fintech leader Yusys Technology (stock code: 300674).
It also receives support from institutional investors including Malaysian sovereign wealth fund Khazanah (Via Jelawang Capital), automotive retailer group Starchase, and multi-family office manager EIA Capital. The extensive network of resources and industry expertise of Lion X and its sponsors and anchor investors can empower Korean companies to accelerate their entry into the Southeast Asian market. In addition, Woori Financial Group (KRX: 316140), one of the largest financial institution in South Korea, will also make a strategic investment in the Lion X Digital Innovation Investment Fund. Woori Financial Group owns 12 subsidiaries including Woori Bank and has also acquired Dongyang Asset Management and ABL Global Asset Management, operating in a wide range of business areas. Leveraging its strong domestic and international business network, extensive personal, corporate, and institutional client base, differentiated digital technology capabilities, and excellent staff, Woori Financial Group provides high-quality financial services to its clients and is committed to becoming an internationally leading financial group.
Ms. Irene GUO, Founding Managing Partner of Lion Partners Capital and Lion X, stated: "The participation of the Korean government guiding fund KVIC and one of the South Korea's largest financial institution Woori Financial Group (KRX: 316140), is a strong testament of Lion Partners Capital and Lion X's investment management capabilities and the investment potential of the Southeast Asian market. Lion X will continue to focus on building an investment and collaboration ecosystem through the fund, empowering investors and portfolio companies to achieve stable wealth returns and expand Multi-Win Pattern in Southeast Asia."
