Korean exam-prep firms Lee Kangeryu and Megastudy set up venture investment units

Lee Kangeryu, which runs the Lee Kang Academy chain of college entrance and school grade consulting academies in Seoul, has set up a venture investment company named Bukgukseong Ventures, Asia Economy reported on June 5, 2023. The new company started with capital of 1 billion won and needs another 1 billion won to reach the 2 billion won required for a startup investment company license from Korea's Ministry of SMEs and Startups. The move followed Megastudy Group's creation of its own venture unit, Thanks Ventures.

Bukgukseong Ventures lists investment in founders as its main business purpose. Lee Kangeryu chief executive Yang Jae-yeon is its first head, and its inside directors include Seo Kyung-seok, a former head of hedge fund management at Hyundai Asset Management. According to the report, the industry expects the unit to focus on edtech companies that could create synergies with the academy business. The report did not mention any investments made by Bukgukseong.

Thanks Ventures is 70% owned by Megastudy and concentrates on education technology. Its first investment, made through a vehicle called Thanks Signature Investment Association No. 1, went to edu-fintech company Lemontree, with Signite Partners, the corporate venture arm of Shinsegae Group, also taking part. The report said Megastudy chief executive Son Eun-jin, who is a shareholder in the unit, personally closed that deal. Megastudy has prior venture experience: it ran investment firm Megainvestment from 2012 before selling it to JB Financial Group.

Lee Kangeryu was founded in 2004 and specializes in preparation for school grades and the CSAT, South Korea's college entrance examination, along with admissions consulting. Its academies are among the major operators in Daechi-dong, a Seoul district the report described as a center of private education, with campuses across Seoul and in other education hubs in the capital region. The two new units show established exam-preparation businesses in Korea moving into early-stage investment in education technology.