Creating Social Value Through Impact Investment, Smilegate Investment … 2024-03-26

■ The report, published for the third time as of this year, contains the impact investment principles and investment performance of Smilegate Investment.

On March 15, Smilegate Investment (CEO Nam Ki-moon) announced that the firm has published the ‘2023 Impact Report’ (hereinafter ‘Report’), which summarizes the current status of social value creation and annual investment activities regarding companies the firm invested in in 2023.

Regarding the publication of the third report, Smilegate Investment CEO Nam Ki-moon stated, “We think that creating social value means investing in companies that are building a better future to develop sustainable value.” On the purpose of this year’s report, he said, “Through these reports, we are building up cases of exemplary businesses that benefit both customers and our world while capturing the essence of the businesses to pursue profit.”

This year’s report introduced investment cases applying Smilegate Investment's 3S principles^​[1] of impact investment and areas of impact creation based on the UN SDGs. The report also contains the ESG score of each company that Smilegate Investment has invested in over the past year through IBK-Smilegate ESG Fund No. 1, formed at the end of 2022, as well as the current state of sales, employees, and major products of these companies.

The report also unveiled the key results for 2023, including the outstandingly successful liquidation of the ‘Anipang Next Generation Digital Contents Fund’, which was established with 30 billion won in funding back in 2014. This fund achieved an internal rate of return (IRR) of 21.1% with an approximate 400% return on investment.

Smilegate Investment has also secured approximately 300 billion won in new investment resources through successful fundraising efforts. Along with Smilegate Holdings, various institutions including the National Pension Service, Korea Development Bank, and Military Mutual Aid Association have participated as investors in the fund formed by Smilegate Investment. As a result, the assets under management of Smilegate Investment have surpassed 1.4 trillion won.

A company spokesperson revealed the firm’s future plans, stating, “Despite the economic recession, we are planning to increase our investments in creative companies by at least 150 billion won this year,” and added, “We are also planning to further accelerate the process of creating a larger impact in our society as well as discovering future unicorn companies.”

The full text of the 2023 Impact Report can be found on the official Facebook page and website of Smilegate Investment.

▶ View the full text of the 2023 Impact Report(KR)

[1] 3S Principles for impact investment: Social Mobility, Safe and Sound, Sustainable Growth