International Data Group, a US-based media company, will commit at least $25m in its second Korean corporate venturing fund that will start being raised this year.
Matthew Lee, managing partner at IDG Ventures Korea, the general partner (GP) for the country’s corporate venturing vehicles, by email said: "The target fund size will be $100m and IDG will sponsor at least 25% of [the] total commitment."
IDG traditionally commits the whole amount raised in the first fund for a specific region and then third parties can invest as limited partners in the second and subsequent funds. IDG Ventures Korea raised $100m in late 2007 for its first fund.
Lee added that the second fund would focus on growth investments in the technology sector as the investment environment in country evolved.
IDG was the first non-Korean company to set up a GP for nascent companies in the country. Although returns have been relatively good for the top quartile firms, at 13.2% in 2009, the Korean government has increased its support for the industry by committing to venture funds.
IDG said 80% of the GPs in the country were sponsored by companies, such as Novartis, Samsung and Posco.