Congratulations on Semana de la INNOVACION

1. Venture Ecosystem of Korea

Venture Ecosystem of Korea: Strong Venture Infrastructure

Talent: Massive STEM Talent Pool R&D: Prioritized R&D Expenditure

Korea Fund of Funds: Government Initiative

China

India

S.Korea

Taiwan

Turkey

9%

29%

14%

6%

3%

S.Korea

Japan

US

France

UK

Canada

9%

3.3%

2.7%

2.2%

1.7%

1.7%

S.Korea

US

UK

Canada

France

Japan

Global Median

4,000

3,000

2,000

1,000

-0% 20% 40% 60% 80% 100%

* Science, Technology, Engineering, and MathematicsSource: OECD Stats, National Science Foundation, Statista 2018, MSS, White Star Capital

IT: Connected Way of Living

77% 17% 6%

72% 21% 7%

71% 11% 18%

62% 31% 7%

59% 33% 8%

59% 31% 10%

Has Smartphone

Has Mobile

Has Mobile

IT Bubble

CAGR

12.3%

KVIC &KFoF

Established

1

94%

▶ Top 5 International STEM PhDs in the US ▶Gross Domestic Expenditure on R&D (% of GDP)

6%

▶ Smartphone Penetration by Country ▶Venture Capital Deal Flow Before & After KVIC (Mil US$)

FVCIF

Established

Venture Ecosystem of Korea: Robust Cycle

New FUNDING

16,393

20,858 21,503 23,803

34,249

42,777 43,045

901 1,045

1,191 1,266

1,399

1,608

2,130

-

500

1,000

1,500

2,000

2,500

-

10,000

20,000

30,000

40,000

50,000

60,000

14 15 16 17 18 19 20

New Investments

26,100 26,205

37,793

45,881 48,470

42,433

65,676

82

108120

164

146

170

206

0

50

100

150

200

250

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

14 15 16 17 18 19 20

Exits

12,220

20,792 19,682

17,965

26,780

23,222

38.8% 38.0% 37.6%

44.8%

41.5%

37.5%

30.0%

35.0%

40.0%

45.0%

50.0%

55.0%

60.0%

65.0%

70.0%

-

5,000

10,000

15,000

20,000

25,000

30,000

'14 '15 '16 '17 '18 '19Source: KVCAUnits : 100mn KRW

VC investment / GDP is 0.22%. Ranked #4 in the world. (USA 0.4%, Israel 0.38%, China 0.27%)

2

Venture Ecosystem of Korea: Unicorns

Unicorns, More Promising Next Unicorns Startups Invested more than $10 Million (2020.6)

Source: CB Insights (2021.6)

Delivery Hero acquired Woowabrothers

(2019.12, It was excluded from Unicorn list)

3

10 Unicorns of Korea excluding Coupang and Woowa brothers

Coupang is listed in NYSE

(2021.03, It was excluded from Unicorn list)

Name Value ($Bn) Sectors Investors

Krafton Game Union $5 Game Tencent, Stonebridge, IMM

Yello Mobile $4 Mobile Formation 8

Toss $2.6 Fintech Bessemer, Qualcomm, KPCB

WEMAKEPRICE $2.34 E-commerce IMM, NXC

MUSINSA $2.2 E-commerce Sequoia

GPclub $1.32 Other Goldman Sachs

L&P Cosmetic $1.19 Consumer CDIB

Aprogen $1.04 Health Lindeman, Nichi-Iko

Yanolja $1 Travel SBI, Partners, GIC

Socar $1 Transportation Bain, Altos, Songhyun

Next Unicorns of Korea (more than $10M Invested by VC)

Venture Ecosystem of Korea: VC Investment

Distribution / Services

Source: Korea Venture Capital Association

Exceptional Increase of VC Investment in Bio & ICT

VC Investment by Industry 2019 Deal Activity by Industry – Deal Size

2019DealActivity by Industry– Number of Investees

1,200

1,000

800

600

400

200

-

ICT Manufacturing ICT Services

Chemicals / Materials

Film and TV / Performing Arts / Recording

Electrics / Machinery / Equipment

Biotech / Healthcare

87

7673

115

85 81

96

55 83 99

133141

365426

765

679

521

740

1,003

950

469

381

344369

227

288

277

266

186

174

30

25

20

15

10

5

0

Biotech/ Healthcare

ITCService

Distribution / Service

Film and TV / PerformingArts

Recording

25.8 24.4

19

8.7

25

20

15

10

5

0

4

30

Biotech/ Healthcare

ITCService

Distribution / Service

Film and TV / PerformingArts

Recording

25.1

20.2

16.9

13

(Unit: US$Million)

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Venture Ecosystem of Korea: Globalization

Activation Globalization Attraction Integration

Lack of Experience, Resource

A few successful casesin local market

Many successful global unicorns

Center of global venture ecosystem

Sharjah, Nur-Sultan, Cairo

Shenzhen, Sao Paulo, Toronto

Beijing, Shanghai, Tokyo,

Berlin, Singapore, SeoulBoston, London, New York,

Silicon Valley

5

2. Venture Ecosystem of Peru

Venture Ecosystem of Peru : Globalization from the beginning

Best Latin American country for investment

Country with the lowest risk- JP Morgan Chase, At Expo 2020 Dubai

6

Rapidly growing investment

in Peruvian startups

¾ of 2020 investment amount

was from global investors- Sources : PECAP

Venture Ecosystem of Peru : Attractive startups / investors

A fund of fund ($21M) managed by COFIDE- Similar approach to CORFO (Chile), Bancoldex (Colombia) and NAFIN (Mexico)

- Plan to invest in VC firms, which would in turn invest in around 120 startups

- COFIDE : Development Bank of Peru

7

Krealo, venture arm of Credicorp- Credicorp : Peru`s giant banking institution

Strength in Edtech,

E-commerce and Fintech- Sources : PECAP

3. Outline of KVIC

Outline of KVIC : Korea Fund of Funds

Limited Partners & Trickle – Down of Our Capital

8

• Small and Medium Business Administration

• Ministry of Culture, Sports & Tourism

• Korean Intellectual Property Office

• Korea Film Council

• Ministry of Science

• Ministry of Employment and Labor

• Ministry of Health & Welfare

• Korea Sports Promotion Foundation

• Ministry of Environment

• Ministry of Education

• Ministry of Oceans and Fisheries

• Ministry of Land, Infrastructure and Transport

Outline of KVIC : Korea Fund of Funds

(Unit: US$ Billion)

8 1,500

500

0

6

4

2

0

Source: KVIC Statistics, as of the end of August 2020

1,000

Aggregate Commitments

2015 2019 20202016 2017 2018

Korea Fund of Funds is single most biggest LP investor of Korea

KFoF21%

6%

6%14%

12%

11%

12%

5%

5% 8%

KDB

K Growth

Policy Finance

Financial Institutions

Pension

VC

Corporate Others

Individual

9

Source : 2020 KVCA Yearbook, As of December 2019

Aggregate # of Partnership Funds

LP Composition of Venture Fund Market in KoreaKey Figures of KFoF

Paid-in Capital of KFoF

418 488 586 672 765 831

2.032.22

3.11

3.66

4.11

5.32

3.13

4.43

5.05

5.99

6.98

7.74

Outline of KVIC : Foreign VC Investment Fund

Specialized vehicle of KVIC for the globalization of Korea VC ecosystem

10

Korea

Fund of Funds

Foreign VC

Investment

Fund

Venture Funds

Korean

Startups

Contribute

- Special Vehicle to invest in foreign venturefunds

Contribute

- Invest in Korean Startups

- Attract follow-on Investors

- Add Global Value to Startups

Invest

- International growth with the help of foreignVCs

Partner VCsStructure of Foreign VC Investment Fund

US(17)

South

America(1)

Europe(2)

China(4)

Southeast

Asia(6)

China

Fortune Link & SV

KCA Partners

Yuansheng & KIP

Legend Capital

Southeast

Asia

Kejora & Intervest

Golden Gate Ventures

True Incube & Kona

Vickers Venture Partners

Access Ventures

Asian Development Bank

EuropePartech

Northzone

South America Angel Ventures

30 VCs

US

BlueRun Ventures

Altos Ventures

Big Basin Capital

Storm Ventures 500 Startups

Draper Athena

Strong Ventures

Asset Management Ventures

Top Tier Capital Partners

Walden & SKTA

Formation Group

Applied Ventures

Translink Capital

White Star Capital

ERA

Kensington & SV

Primer Sazze

• Established in ’13

• Located in Menlo Park, California

• 2 Managers from HQ, 2 Locals

• Established in ‘14

• Located in Pudong District, Shanghai

• 1 Manager from HQ, 2 Locals

• Established in ‘15

• Located in Centennial Tower

• 1 Manager from HQ, 1 Local

Outline of KVIC : KVIC Overseas Offices

Three Sites and More in Consideration

11

Outline of KVIC : K-Unicorn Project

Launched “K-Unicorn Project” to Support Select Startups in Our Pool

12

K-Unicorn 2020 PoolK-Unicorn Supporters

Venture

Capitals

Securities

Firms

Con-

glomerates

Asset

Management

Companies

Major

Banks

▶ Consists of 50 Institutions that engage in the venture market

leading large-scale investments

▶120 promising Startups in growth stage

Outline of KVIC : K-Unicorn Project

13

From PR to Fund Raising

Fund Raising

A

▶Domestic

- Connect with K-Unicorn Supporters of 50

Investors and financial Institutions

- Online Fund Raising Platform

▶Overseas

- Connect with Foreign VCs or CVCs in

KVIC’s Network

Loan & Guarantee

Support

Networking Promotion & IR

Video Marking

B C B

- Help Startups in their debt financing in

Cooperation with KIBO & KOSME

- Regular Meet-up Events with VCs,

Major Corporates, Securities,

and Unicorns

- Support the making of their promotion

materials

4.Performance of FVCIF

Performance of FVCIF: Financial Performance

2013 2014 2018 2019 2020

Investments(Commitment) since Inception Capital Calls & Distributions since Inception

(Unit : US$ Mil) (Unit : US$ Mil)

120.0

100.0

80.0

60.0

40.0

20.0 18.2

-

60.0

50.0

30.0

20.0

10.0

-

104.9

67.0

88.2

110.2

95.8

13.6

27.7

61.4

31.5

67.9

10.01.0

4.01.3

2.1

21.5

42.5

54.8

19.2

33.5

96.7

2015 2016 2017

Initial Asset Allocation Commitment Contribution Distribution

40.0 38.9

2015

14

2016 2017 2018 2019

33.1

Performance of FVCIF: Financial Performance

DPI & RVPI TVPI & Pooled IRR

2015 2016 2017 2018 2019

DPI RVPI

125%

3% 7% 7% 6% 16%

5.87%

6.39%

7.96%

112%117% 120% 126%

2018 20192015 2016 2017

TVPI

* End-to-End IRR from the year of 2013 to each year above

IRP

250%160%

140%

120%

100%

80%

60%

40%

20%

0%

9.00%

7.40%8.00%

6.00%

4.00%

7.00%

5.00%

3.00%

2.00%

1.00%

0.00%

200%

150%

100%

50%

0%

128% 119% 124% 126% 141%

15

Performance of FVCIF: Strategic Accomplishment

Korean Companies Landed 2.5 Times FVCIF’s Capital Contribution into Partnership Funds

2013 20152014 2016 2017 2018 2019 2020.7

Capital Contribution Korea Company Investment

2.9 4.6

17.9

47.4

143.6

74.8

100.0

67.9

87.6

45.4

31.7 33.5

19.2

54.842.5

49.9

160

140

120

100

80

60

40

20

0

CompanyFVCIF’s

Partner GPFollow-on Investment

Woowa Brothers Altos Ventures

Goldman Sachs,

GIC, Hillhouse,

Sequoia Capital China

Market Kurly FormationSequoia Capital China,

Hillhouse

Zigbang Altos VenturesGoldman Sachs,

PIA

Memebox Altos VenturesFormation8,

AME Cloud Ventures

Foreign VC Investment Fund

$2.9B in 33 Foreign VC Funds

(KVIC committed $332M)

$596M invested in 652

startups through our

partnership funds

$5,158M invested

in 35 startups via

follow-on rounds

by Global Investors

16

Korean Company Investments made by Partnership Funds How Our Partner GPs Invested and Helped Korean Companies?

5.Collaboration with LAC

Angel Ventures : 1st LAC VC partner of KVIC

Fund Name(VC)

Angel Ventures Pacific Alliance Fund II, L.P.(Angel Ventures II GP LP)

Stage Early ~ Early Growth

Sector/Region

- Sector: Consumergoods / ICT / Media / Health / Biotech / Fin-tech- Region : Korea, Mexico, Colombia, Chile, Peru

AUM US$120M

GP Commitment 1% of AUM

LP (example)FVCIF (KVIC) US$8M (6.7% of AUM),

IDB Labs (IDB) US$4M (3.3% of AUM)

Korean Companies At least 1.5x amount of KVIC Commitment

Period 8 years (twice of ‘+1year extension’)

Fees Management Fee 2%, Preferred return 10%, Carried Interest 25%

Payment Capital Call

Key Persons Hernan Fernandez Lamadrid, Camilo Kejner

Approval of Commitment

2017.12

Formation of Fund2018.10

1st Capital Call

2018.10

17

• (Established) 1959

• (Office) Washington, D.C.

• (Employees) 2000+

100%

Governance

48 Member Countries(LAC 26, Other 22)

IDB

USA 30%, Brazil 11.4%, Argentina 11.4%, Mexico 7.3%, Japan 5.0%, Canada 4.0%,… Korea 0.00394%

IDB Labs 100%

Outline

IDB : Inter-American Development Bank

Feature

• Largest source of development financing for LAC

• IDB Labs (former MIF) invests both directly and

indirectly in LAC startups

• VC Commitment : $300M+

• Number of VC partnership funds : 100+

• With KVIC

18

LAC-Korea Startup Fund

19