IBK Industrial Bank of Korea has formed a 120 billion won fund with Korea Development Bank to invest in promising innovative companies before they list.

IBK Industrial Bank of Korea said on Tuesday it jointly launched the “KDB-IBKS Next Stage Fund” with Korea Development Bank.

The fund was created to supply capital to innovative companies at the pre-listing stage, support entry into the KOSDAQ market and promote inflows of private capital.

IBK Industrial Bank of Korea and the Korea Development Bank group will each contribute 60 billion won, for a total of 120 billion won. IBK Industrial Bank of Korea and Korea Development Bank will each put in 50 billion won, while affiliates IBK Securities and KDB Capital will each contribute 10 billion won. IBK Securities and Korea Development Bank will jointly manage the fund.

The main investment targets are innovative growth companies that have signed an underwriting agreement for a listing or aim to go public within the next 3 years, as well as companies in the pre-IPO fundraising stage.

The fund is part of a task force IBK Industrial Bank of Korea is promoting to revitalise the KOSDAQ market.

IBK Industrial Bank of Korea plans to create funds worth a total of 500 billion won over the next 3 years and, following this pre-IPO fund, to set up an additional post-IPO fund targeting listed companies.

An IBK Industrial Bank of Korea official said, "We will continue to expand funding support by growth stage for innovative companies through additional fund formation."