Korea's KDB establishes innovation fund for auto parts companies

The state-run Korea Development Bank (KDB) announced on Friday that it has established the KDB-Quantum Mobility Value Chain Open Innovation Fund worth 31 billion won ($24 million) to support the open innovation of mid-sized companies in the traditional auto parts manufacturing industry.

KDB will invest 9 billion won and 13 mid-sized companies will invest 22 billion won.

The fund is managed by Quantum Ventures Korea.

The companies participating in the fund will explore opportunities for shared growth through business cooperation or M&A with startups invested in the fund.

"As the automotive industry supply chain is rapidly reorganizing, this fund will contribute to the establishment of a collaboration system between mid-sized companies and startups and the transformation of the domestic mobility market value chain," said Lee Jun-sung, deputy head of the Innovation and Growth Division at the KDB.

Write to Hyun-Woo Kang at hkang@hankyung.com