Hana Financial Group on Monday announced the establishment of South Korea’s first privately led “venture fund of funds” with an investment of 100 billion won ($77.44 million).

The announcement follows the Ministry of SMEs and Startups’ proposal last year to expand funding for venture capital and boost the startup industry together with the private sector.

The launch ceremony, which was attended by SMEs and Startups Minister Lee Young and Hana Financial Group Chairman Ham Young-joo, was held at the Seoul Startup Hub Scale-up Center on Monday.

While investments into Korean startups have been lagging, the Hana-led venture fund of funds is expected to create a more dynamic venture ecosystem, the financial group said.

Operated by Hana Ventures, the 100-billion-won venture fund of funds is a pool of Hana Bank and Hana Ventures. It will prioritize investment in startups operated by young entrepreneurs and those improving their competitive edge with promising technology.

“The private-led venture fund of funds was the first policy that I promoted after my appointment,” said Lee. “The Ministry of SMEs and Startups will spare no efforts to support the startup industry led by the private sector.”

“I hope that the Hana-led venture fund of funds revitalizes investment into SMEs and startups, serving as a bridge for private investment, " added Ham.

During the ceremony, the Korea Venture Investment Corp. also signed an agreement with Hana to give guidance on managing and developing a venture fund of funds.