South Korean institutional investor the Korea Teachers’ Credit Union said Tuesday that it planned to commit 150 billion won ($126.8 million) to 10 external partners this year to create blind pool funds for venture investments.

KTCU will pick three large venture capital houses, four mid-sized VCs and three rookie VCs. Eligible candidates must be based in Korea. Applications will be accepted by Sept. 24.

Selected partners will be announced in late November and will have to complete the investments within four years. The partners are expected to attract additional investment to create a total of at least 650 billion won worth of blind pool funds targeting startups.

KTCU said the move is aimed at creating a sustainable startup growth ecosystem and laying a groundwork for unicorn startups in Korea, or privately-held venture firms with over $1 billion valuation.

“Given the recent fast pace of growth in the venture capital market, KTCU will commit up to 150 billion won to VCs this year and team up with outstanding partners,” KTCU Chief Investment Officer Kim Ho-hyun said. “(KTCU) will seek to fulfill our duty as an institutional investor to nurture innovative businesses.”

KTCU committed 129 billion won to VCs in 2017 and 90 billion won in 2019.

KTCU is dedicated to welfare and financial support to teachers and school administrators. It was overseeing 33.1 trillion won financial assets as of end-June. Its exposure to alternative assets exceeded 55 percent.

By Son Ji-hyoung (consnow@heraldcorp.com)