Largest-ever sub-fund under the Culture Account of the Korea Fund of Funds

Ministry of Culture contributes 60 billion won, Nexon 58.8 billion won

An exterior view of Nexon's headquarters [Nexon]
An exterior view of Nexon's headquarters [Nexon]

The government has teamed up with Nexon to establish the largest-ever sub-fund under the Culture Account of the Korea Fund of Funds, aimed at expanding investment in the gaming sector.

The Ministry of Culture, Sports and Tourism announced Tuesday it had formed a 120 billion won ($87 million) IP fund to invest in game intellectual property and related areas through the Culture Account of the Korea Fund of Funds.

The fund draws contributions of 60 billion won from the ministry, 58.8 billion won from Nexon, and 1.2 billion won from fund manager Kona Venture Partners. Sub-funds under the Culture Account with major game companies as contributors have been formed before, but this is the first time a fund of more than 100 billion won has been established in the gaming sector.

The ministry said it aims to combine policy financing with large-scale private capital to support K-game titles from early development through growth as internationally recognized IP. The fund will direct a portion of its total capital toward seed investments in early-stage game developers, with follow-on Series A funding available for companies and projects that demonstrate growth potential.

The ministry will supply funding for early- and growth-stage content companies, while Nexon — as the primary private contributor — will draw on its industry knowledge and market experience to help invigorate the investment ecosystem.

Investment targets will center on the gaming sector and extend to areas with strong global expansion potential, including narrative IP and convergence content IP.

"This fund is the largest sub-fund ever formed under the Culture Account, and a case where policy financing and large-scale private capital have joined forces to broaden the growth foundation for K-games," said Kim Gyeong-hwa, director general for cultural industry policy at the ministry. "To realize a 400 trillion won era for K-culture, we will use policy financing to prime the pump for content IP investment and build a virtuous cycle in the content finance ecosystem where private investment follows."


pink@heraldcorp.com