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The Korea Herald
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THE INVESTOR
March 29, 2024

Finance

[INTERVIEW] World Bank’s IFC bets big on Korea for SE Asia push

  • PUBLISHED :December 14, 2017 - 15:52
  • UPDATED :December 14, 2017 - 17:49
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[THE INVESTOR] The next couple of years will be critical for Korean venture capitalists and startups to secure a footing in the burgeoning Southeast Asian market where they have little presence now, according to Giri Jadeja, global head of financial innovation at International Finance Corporation, a private equity arm of the World Bank Group, on Dec. 13.

“Look, familiarity and cultural commonness exist for a while until the market becomes completely global and open. And Korea needs to take advantage of that now,” the Singapore-based investment veteran, who has more than 20 years of experience in Asia, told The Investor in a recent interview in Seoul.

“You’ve got a 12-18 months window with your head start because of the cultural affinity. Then, it will go away.” 


Giri Jadeja



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[INTERVIEW] ‘Korean startups need to be self-confident’: SoftBank VC



Jadeja was visiting Seoul this week to attend the IFC Korean unit’s Innovation Day conference, titled “Korea’s VCs and Startups and Opportunities in Emerging Markets.” He also held several meetings with local firms for possible partnerships.

“I think Korean VCs are as smart as any other in the world. But the opportunities they tend to look at are more domestic, than international,” he added.

"Global thinking will multiply both the size of your business and visibility. IFC is happy to help market that using our connections and offices in the region." 

Unlike the International Bank of Reconstruction and Development, a development bank of World Bank, the IFC is specialized in private sector investments. It is one of the biggest investors in emerging markets, with annual investments reaching about US$19 billion.

Since the early 2000s, it started investing in early-stage technologies, and the total investments have exceeded the US$1 billion mark. More recently, it is making a big push in Southeast Asia -- a market with 600 million people and home to the hottest names in today’s startup scene like Tokopedia, Go-Jek and Grab.

Jadeja, who joined the IFC in 1995, has high expectations of Korea playing a bigger role in speeding up the renewed push as more Korean firms equipped with technological and management skills are turning their eyes to the region for global expansion while their local counterparts are willing to learn from them.

The IFC operates more than 100 offices globally, which compares to less than five of other typical PEFs or VCs. And getting funds from the IFC is also considered a “stamp of approval” for the next funding rounds or partnerships globally.

“If IFC says it is OK to invest, it must be a good company,” he said. “Once we say yes, many people accept it as a stamp of approval. We always have that long honeymoon period before we say yes. But once we say yes, we become a long-term partner.”

Balancing profitability with development impact may be the beauty of the IFC investment. And Jadeja admitted attracting more businesses to join the long-term mission is always a challenge.

“On the one hand, you have the private sector that wants profit yesterday, not even today. On the other hand, the government and public sector don’t care if they make money or not. We try to bridge that gap,” he said.

He pinpointed “productive use of money” as the key criteria for the IFC to pick up companies to invest in.

“What you are really backing in this space is the market potential of what you are trying to do and the people who are implementing it. You are paying for the people, not really for the assets of the company,” he said.

“You have to be prepared to not just value the assets but the potential, the growth.”

By Lee Ji-yoon and Ahn Sung-mi
(jylee@heraldcorp.com) (sahn@heraldcorp.com)

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