Woongjin Capital, the private equity arm of South Korean conglomerate Woongjin Group, is in the market fundraising for its third fund targeting KRW1 trillion ($830 million; €650 million), a spokesman confirmed to PEI Asia.
The Mobile Korea Renaissance Fund is expected to have a final close by September, and will start investing in the smartphone industry in Korea in October. The spokesman declined to disclose how much has been raised so far.
The fund, which will be managed in partnership with South Korean telecommunications company KT Corporation, will invest across the smartphone industry, including hardware, software and new technologies. KT Corp will act as technology advisor.
The primary target companies of the fund, the Woongjin spokesman said, would be smartphone hardware companies. Only about 10 to 20 percent of the fund would go to software companies, said the Woongjin spokesperson, as this sector doesn’t account for a large percentage of the industry in Korea.
In terms of investors, the spokesman said they would raise money from domestic LPs first, followed by foreign LPs if the amount raised does not match their target. The spokesman did not provide additional information about potential LPs.
Woongjin Capital has previously raised two funds with a combined capital of $400 million. Both fund are now fully invested, the spokesman said.
Renaissance Fund, a generalist fund and the larger of the two, was entirely invested by the beginning of 2009. Finance industry-focused Woongjin Financial Partners Fund finished investing earlier this year.
Established as an educational publication business in 1980, Woongjin Group has grown to an enterprise with 14 affiliated companies in seven business areas including home appliance and food and beverage, according to the company's website.
Founded in 1981, KT Corporation established the broadband network in Korean and launched Korea’s first communications satellite, according to the company’s website. The firm’s business scope includes telephone services, wireless and internet services and mobile communication.