Humbling experience leads to VC success ⁠– LG Tech Ventures CEO

Kim Dong-su, CEO of Silicon Valley-based LG Technology Ventures said that the failures he experienced while working at a boutique investment firm have helped him build character. 

During an interview with The Korea Economic Daily, Kim said the frustration he felt has taught him a lot. 

Prior to joining LG in May 2018, he worked as the overseas head of Samsung Venture Investment. Some might call him one of the old boys of South Korea’s corporate venture capital ecosystem.

The corporate venture capital arm of the LG Group is an integral part of the conglomerate with $480 million in working capital. The goal is to operate as the chaebol’s advance guard to not only find but vet new businesses for aquisition. 

Kim did his undergraduate studies at the California Institute of Technology (Caltech) and went on to get his master's and doctorate at Princeton University. 

He was hired by Samsung Electronics Co. in 1997 and later joined the chipmaker’s venture capital team. 

Kim’s position changed after the Samsung Electronics’ venture capital team merged with Samsung Venture Investment. But because his heart was in venture capital, he left Samsung in 2008 and joined a boutique firm. 

The switch was a big shock to his system given his elite schooling and work experience until then. 

While working for the lesser-known boutique, he said he learned the true meaning of being a second-tier service provider – a humbling experience.

“I try to understand the startups’ challenges even as we inject capital into them,” said Kim. “Instead of wondering why a startup is not performing as well as it should, I try to step into their shoes and think through the challenges together.”

The venture capitalist said the most important virtue for the venture capital industry is to grow with the invested startups rather than to think your work is finished once the investment is made.

Kim has the reputation of being generous with sharing his knowledge, know-how, and experience with others in the venture capital ecosystem. 

“Sharing is such an amazing culture prominent in Silicon Valley,” he stressed.

Building on the unlikely experience of working at a boutique firm, he was scouted to join the Silicon Valley office of Samsung Venture Investment and made a name for himself through successful investments in various semiconductor startups. 

Thanks to Kim, who invested in a number of up-and-coming tech firms such as Pure Storage and Inpria, South Korea’s chipmakers had a smooth transition to collaborating with them. 

Pure Storage develops all-flash data storage hardware and software products; while Inpria is a leader in metal oxide photoresist design, development and manufacturing.

Inpria was a particularly valuable partner when Tokyo placed restrictions on photoresist exports to South Korea. 

“In addition to each startup’s technological competitiveness, it is important to also consider the overall market’s growth potential,” Kim cautioned. 

Earlier this month, the Silicon Valley-based corporate venture capital firm celebrated its fourth anniversary. 

Going forward, Kim said his main challenge is to create an office culture that will entice top talent. 

Write to Jeong-Soo Hwang at hjs@hankyung.com
Jee Abbey Lee edited this article.