Daol Investment & Securities headquarters on Yeouido, Seoul / Courtesy of Daol Financial Group

By Anna J. Park

Korea's first-generation venture capital firm Daol Investment, formerly known as KTB Network, has been put up in the M&A market, as its parent company aims to secure liquidity amid market uncertainties.

Daol Investment & Securities, a brokerage affiliate of Daol Financial Group which holds a 52 percent stake in the venture capital subsidiary, made it official Wednesday that it is up for sale. The brokerage company is aiming to sell the venture capital firm at a price of over 200 billion won ($151 million).

"The sale of Daol Investment aims at preemptively securing liquidity and operating more stable businesses," an official from the brokerage company said.

The parent company of Daol Investment has been taking a series of aggressive restructuring measures to increase its liquidity level, as it is known to have one of the highest risk exposures to real estate project financing and alternative investments among local securities companies. The brokerage company is currently seeking a potential buyer for its Thai affiliate for around 100 billion won, while it also received applications for voluntary retirement late last month.

Daol Investment was founded in 1981 as the first venture capital firm in Korea. During the past four decades since its establishment, it has so far managed over $3 billion in venture and growth capital funds, boasting numerous cases of successful investments. More than 300 of its portfolio companies have gone public on both domestic and overseas stock markets, accounting for over 10 percent of Korean IPOs during the time. The company also runs its U.S. subsidiary ― Daol Ventures ― in Silicon Valley.

As Daol Investment is one of the top venture capital firms in the country, based on both its 1.5 trillion won worth of assets under management and its long-held prestige, the acquisition of the firm is estimated to provide a potential buyer with a solid platform in the country's venture capital scene.

Market watchers expect Woori Financial Group, Eugene Financial Group or Shinyoung Securities to show interest in the venture capital firm. Considering Woori Financial Group's strategic plan to bolster its non-banking sectors since completing its privatization last year, the financial giant is expected to be the strongest candidate for acquiring Daol Investment to strengthen its relatively weak venture capital sector. Some speculate some conglomerate groups might be interested in acquiring the firm, as they aim to expand venture capital investments in search of new growth potential.