Singapore’s Temasek Holdings Private Limited will spend 284.7 billion won ($242 million) to acquire a 12 percent stake in S. Korean’s Seoul Semiconductor and a 9 percent stake in affiliate Seoul Optodevice, according to an article on Reuters.

The state investor of Singapore has confirmed the investment, according to Reuters, saying that investing in the South Korean companies fits well with Temasek's investment theme of supporting emerging champions.

"SSC is well-positioned to benefit from the industry's long-term growth potential as LEDs continue to gain traction as an energy efficient and eco-friendly lighting alternative," Peng-Huat Ang, a managing director of Temasek Holdings, said in an emailed statement, in reference to Seoul Semiconductor.

South Korean brokerage Daishin Securities said Seoul Semiconductor and Seoul Optodevice would use the fresh money from Singapore's wealth fund for research and development as well as expanding production capacity.