South Korea and Singapore will set up a fund worth at least 237.5 billion won ($213.2 million) to invest in Korean startups that seek to enter the Singaporean market and vice versa. 

The state-backed fund of funds management firm Korea Venture Investment Corp. will partner with Singapore-based investment company Temasek Holdings to create the fund within six months, according to the Korean fund manager Monday.

The size of the global fund could be expanded, depending on the volume of the Singaporean partner’s investment, given the investment from KVIC is fixed at some 95 billion won, while the portion of investment cannot exceed 40 percent of the fund, an official at KVIC told The Korea Herald on Monday.

The Singaporean partner will invest at least half of the pledged amount. The fund will operate for 10 years once created.

Both KVIC and Temasek will invest in the fund as limited partners, whose role is limited to the amount of their investment. The manager of the fund, known as the general partner, has yet to be determined, according to the KVIC official.

This came about a month after South Korean Minister of SMEs and Startups Hong Jong-hak signed a memorandum of understanding with Png Cheong Boon, head of state-owned Enterprise Singapore, to boost cooperation in small enterprises and startups during President Moon Jae-in’s state visit to Singapore.

By Son Ji-hyoung (consnow@heraldcorp.com)