Top S. Korean firms launch $476.4 million AI fund in India

Internet giant Naver said on Tuesday it has created a 700 billion-won ($476.4 million) investment fund with Krafton and Mirae Asset Group to foster companies in the artificial intelligence (AI), fintech and content sectors in India.

The companies co-hosted an event in New Delhi to introduce the Unicorn Growth Fund (UGF) to Indian companies and venture capital firms, attended by Industry Minister Kim Jung-kwan, Naver Chief Executive Officer (CEO) Choi Soo-yeon, Krafton CEO Kim Chang-han and Swarup Mohanty, vice chairman of Mirae Asset Investment Managers India, according to Naver.

The UGF was initially set up by Krafton with a 200 billion-won investment earlier this year, followed by Naver and Mirae Asset, which contributed a combined 500 billion won. The partners have agreed to expand the fund to 1 trillion won, reports Yonhap news agency.

Naver said the fund aims to invest in high-potential technology companies in India across AI, fintech and content sectors.

"Building on its abundant IT talent and dynamic startup ecosystem, India is rapidly emerging as a hub of global digital innovation by expanding its AI industry ecosystem," Choi said.

"The UGF will serve as a key foundation for investing in high-growth tech firms and creating synergies by combining the core competencies of the three companies," she added.

The internet giant also signed a memorandum of understanding (MOU) with the information technology (IT) arm of India's Tata Group to explore business opportunities in the South Asian nation.

The agreement with Tata Consultancy Services (TCS) was signed during a South Korea-India business forum hosted by the Federation of Korean Industries in New Delhi, attended by South Korean Industry Minister Kim Jung-kwan, Naver Chief Executive Officer (CEO) Choi Soo-yeon, Commerce Minister Piyush Goyal and TCS President Ujjwal Mathur, according to Naver.

Under the MoU, Naver and TCS will combine their capabilities in artificial intelligence (AI), cloud and business-to-consumer (B2C) services to pursue opportunities in AI and digital transformation, with a focus on the Indian market.