LB Investment

LB Investment, launched in 1996 as LG Venture Capital and renamed to its current identity in 2008, is one of Korea's leading venture capital firms whose core business is forming and operating venture investment associations and private equity funds (PEFs) to invest in early- and growth-stage companies and to exit through IPOs or M&A.

The firm operates twelve venture investment associations and one private equity partnership, with operating revenue composed of management fees, performance fees, gains on financial instruments, and equity-method gains.

Its investment focus centers on artificial intelligence and deep tech, extended into bio/healthcare, content and services, and robotics, with recent expansion into next-generation sectors such as aerospace.

The firm has invested in more than 550 startups cumulatively, listed 140 of them, and grown 14 into unicorns valued above KRW 1 trillion, earning it a reputation as a 'unicorn factory.' Notable portfolio names include past successes such as HYBE, Pearl Abyss, and Kakao Games, alongside current holdings like Musinsa, Ably, Nota, Protina, RevsMed, and Semifive.

Its controlling shareholder is holding company LB Co., which owns 100% of shares, while listed peers include Ajoo IB Investment, SBI Investment, SV Investment, Mirae Asset Venture Investment, and Daol Investment.

Recently the firm has continued raising hybrid combined funds that blend secondary and M&A strategies, backed by institutional limited partners such as the Korea Development Bank, the Korea Teachers Pension, and church pension funds.

The firm positions its 'full-cycle investing' approach of repeated follow-on investment plus 'selection and concentration' on a smaller number of portfolio companies as its core competitive edge.

Consolidated revenue for 2025 came to KRW 26.4 billion, down from KRW 30.3 billion in 2024, yet operating profit reached KRW 9.7 billion and owners' net profit KRW 12.4 billion—a sharp increase from KRW 8.6 billion in 2024—so revenue and profit moved in opposite directions.

The operating margin improved steadily from 25.7% in 2022 to 30.7% in 2023, 35.9% in 2024, and 36.6% in 2025.

On a quarterly basis, revenue of KRW 6.88 billion, operating profit of KRW 2.64 billion, and net profit of KRW 2.13 billion in the second quarter of 2025 jumped to revenue of KRW 8.14 billion, operating profit of KRW 5.28 billion, and net profit of KRW 4.65 billion in the third quarter, a swing attributed to equity-method valuation gains on portfolio companies and a concentration of asset exits.

In the fourth quarter, revenue fell to KRW 6.09 billion and operating profit dropped sharply to KRW 0.72 billion, yet net profit rose further to KRW 4.86 billion, suggesting non-operating items or the timing of performance-fee recognition played a large role.

In the first quarter of 2026, revenue surged to KRW 13.1 billion, well above prior quarters, but net profit was only KRW 1.27 billion, showing revenue growth did not translate directly into profit growth, before the second quarter returned to steadier profitability with revenue of KRW 8.54 billion, operating profit of KRW 3.44 billion, and net profit of KRW 3.15 billion.

Over the trailing four quarters (Q3 2025 through Q2 2026), cumulative owners' net profit reached KRW 13.9 billion, already exceeding the full-year 2025 net profit of KRW 12.4 billion.

On a cash-flow basis, operating cash flow was negative at KRW -6.3 billion in 2022 and KRW -2.6 billion in 2024, before turning positive at KRW 1.6 billion in 2023 and KRW 5.6 billion in 2025, an improving trend.

Equity capital rose steadily from KRW 94.5 billion in 2022 to KRW 127.0 billion in 2025 across four consecutive years, while the debt ratio fell from 10.0% in 2023 to 6.9% in 2025, reflecting a stable and strengthening capital structure.

Korea's venture capital industry is seen as entering a recovery phase in 2026 after roughly two years of capital scarcity, though the recovery is uneven across segments.

Heungkuk Securities' research center projected in a February 2026 interview that 2026 would see 86 new listings in total—12 on KOSPI and 74 on KOSDAQ—approaching 2021 levels and marking the start of an upward IPO cycle.

At the same time, some analysis points to a widening 'barbell' style polarization, with capital concentrating on core sectors such as AI, bio, and semiconductors and on companies with proven technology and track records, while early-stage and non-mainstream areas see slower investment.

Additional supply of policy capital such as the National Growth Fund and refinements to venture capital operating regulations are cited as factors improving the fund-raising environment, alongside growing emphasis on distributed-to-paid-in (DPI) cash-return metrics as a performance benchmark.

Secondary markets are emerging as a mainstream exit channel, a trend LB Investment is addressing by raising its third secondary fund backed by capital from the Korea Development Bank, the Korea Teachers Pension, and a church pension fund.

Within the industry, deal-sourcing systems, value-adding capability, and the ability to execute exit strategies beyond IPOs alone are seen as the key variables widening performance gaps between houses, and LB Investment points to its unicorn track record and full-cycle investment strategy as its competitive edge.

LB Investment has set a 2026 target of growing all three pillars—fundraising, investment, and exits—by more than 30% year on year, with specific goals of roughly KRW 400 billion in fundraising and about KRW 200 billion in new investment execution.

On the exit side, the firm aims to raise its portfolio IPO count into double digits in 2026, up from eight in 2025, and has stated it holds a number of IPO-track portfolio companies including Musinsa, Recence Medical, and Rableup.

A company representative said the firm expects more than KRW 200 billion in exit proceeds from its IPO-track portfolio alone, describing Musinsa as a company that represents Korea's fashion platform market and expects it to draw strong attention in the domestic IPO market.

On the investment strategy front, the firm is expanding AI-centered deep-tech investment, with a company representative stating it plans roughly KRW 200 billion in new investment this year, continuing to focus on AI infrastructure, deep tech, and next-generation industry sectors.

On fund formation, after the roughly KRW 300 billion 'LB Next Future Fund' pushed assets under management past KRW 1.5 trillion, the firm is now raising a third secondary fund of more than KRW 200 billion backed by capital from the Korea Development Bank, the Korea Teachers Pension, and a church pension fund.

In an interview with The Bell, the CEO said assets under management are expected to expand to around KRW 1.5 trillion in scale, describing the year as one the firm is preparing to elevate beyond Korea's top VC status toward a global level, while also outlining plans to expand overseas investment and cooperative networks with top-tier global VCs.