Hana Securities said on Thursday it will form a private venture fund of funds (a private fund of funds venture investment association), the first such move in the securities industry.

The fund of funds is set to launch in the first quarter of 2026 with a size of 200 billion won. It is a key strategic business aimed at deploying funds secured through its short-term debt business into productive finance.

Since receiving approval for its short-term debt business, Hana Securities has pushed expanding the supply of risk capital as a key management task. In the first year of the business, it set a goal of raising about 2 trillion won this year and supplying 500 billion won, or 25 percent, as risk capital.

The mandatory ratio for risk-capital supply by comprehensive financial investment business operators is to expand in stages from 10 percent this year to 20 percent in 2027 and 25 percent in 2028. Hana Securities plans to supply 25 percent from the first year.

The private venture fund of funds is a core pillar of the execution strategy. The company plans to build a system that continuously supplies funds to strategic industries and innovative companies by using its own capital.

The fund aims to supplement the existing contribution structure centred on policy funds and to revitalise a venture investment ecosystem led by purely private capital.

The 200 billion won fund of funds will be managed as a fund-of-funds structure that commits capital to sub-funds run by domestic venture capital firms.

After the fund is formed in the first quarter of 2026, it plans to execute commitments to sub-funds in stages. It aims to expand the base of private contributions and ensure funds are supplied across the investment ecosystem by growth stage.

In line with this, Hana Securities plans to strengthen a dedicated organisation for managing the fund of funds and to bolster its capabilities by expanding specialist screening personnel.

Investment targets will focus on fields designated by the government as the '12 national strategic technologies'. They include semiconductors and displays, secondary batteries, next-generation nuclear power plants, hydrogen, aerospace and maritime, advanced bio, AI and next-generation communications, cybersecurity, robots, future mobility, quantum technology and advanced materials, among others linked directly to securing future growth engines.

Youngsoo Choi (최영수), head of the Global PE Business Division at Hana Securities, said investing funds secured through the short-term debt business in future growth industries and innovative companies is an important role for financial firms. He said the company will contribute to boosting the self-sustaining capacity of the venture ecosystem through expanded private-led supply of risk capital, strengthening competitiveness in national strategic industries and balanced regional development.