Hankook launches corporate venture capital arm to invest in deeptech sectors

South Korea's automobile parts giant Hankook & Company Group has embarked on a significant expansion by establishing its own corporate venture capital arm, Hankook & Company Ventures. Announced a few months ago, this venture is backed by a capital commitment of 15 billion won, which is roughly $10.7 million. The company intends to focus its investments on cutting-edge sectors, including artificial intelligence, robotics, aerospace technology, and quantum computing. This is a strategic move towards diversifying operations beyond just tire manufacturing, positioning Hankook to compete in the rapidly evolving tech landscape. The new CVC will primarily invest in startups at various stages, from seed funding to Series B rounds. With several tens of billions of won allocated for this fund, it represents a concerted effort to nurture innovation and technological advancements within South Korea and potentially globally. This initiative appears not only as a financial strategy but also as a means to maximize synergies through resource and technology integration, particularly following Hankook's recent acquisition of Hanon Systems, which specializes in automotive thermal management. Hankook has a history of engaging with startups and venture investing, having previously collaborated with We Ventures since 2021 to create a portfolio focused on autonomous mobility technology. Their initial investment in the 3D mapping startup Mobiltech reflects their ongoing commitment to exploring innovative technological avenues. The establishment of the new venture capital arm marks a significant milestone, as it is Hankook's first official venture capital entity, indicating their readiness to actively participate in the investment ecosystem, especially in high-tech domains. This development comes in the context of a broader trend in South Korea, where several major conglomerates have been increasingly entering the venture investment space. This shift has been facilitated by the government's relaxation of regulations on establishing corporate venture capital firms in 2021. Organizations like Hyosung Ventures and GS Ventures have also emerged as key players within this burgeoning investment landscape. The Ministry of Trade, Industry and Energy has launched a CVC Alliance that includes 42 firms, all striving to create a significant fund pool by 2025. The growing involvement of conglomerates in the startup ecosystem indicates a shift in the corporate landscape of South Korea, where traditional industrial giants are now positioning themselves as players in tech innovation and entrepreneurship.