Kim Ju-hyun, the head of the Financial Services Commission is hosting a “Venture Enterprise Field Meeting” at Mapo Frontwon in Seoul on the morning of the 16th to hear from the venture industry about their funding situation and concerns. Provided by the Financial Services Commission.
Kim Ju-hyun, head of the Financial Services Commission, is listening to the funding situation and concerns of the venture industry at the Venture Enterprise Field Meeting held at Mapo Frontwon in Mapo-gu, Seoul on the morning of the 16th. Provided by the Financial Services Commission
[Financial News] Kim Ju-hyun, head of the Financial Services Commission, announced plans to increase funding for the venture market by 30% from last year to 15.4 trillion won.
On the 16th, Chairman Kim held a “Venture Enterprise Field Meeting” at Mapo Frontwon in Seoul and expressed concerns that the operating environment of venture companies may become more difficult due to the persistence of uncertainties such as prolonged high-interest rates.
The meeting was organized to assess the effectiveness of policy financial support, such as the ‘Innovative Venture and Startup Funding Support and Competitiveness Enhancement Measures’ established last April in response to the venture investment cold spell, and to listen to the funding situation and concerns of the venture industry amid prolonged high-interest rates and economic downturn. Companies expanding through M&A, local companies, and companies seeking overseas expansion and foreign investment participated in the meeting, sharing experiences in resolving difficulties and requesting continuous expansion of the policy support role.
Dr. Park Yong-rin from the Capital Market Institute stated that despite the downturn in the global venture market, there are some signs of recovery in domestic venture investment due to the active role of policy financial support, and the situation is relatively favorable compared to international markets. He emphasized the importance of the continuous support and commitment of the authorities for a complete recovery from the downturn, which may take at least 2-3 years.
Chairman Kim reviewed the current status and future plans for funding support for venture companies by the Industrial Bank, the Korea Development Bank, the Korea Credit Guarantee Fund, and the Korea Growth Investment Management, and announced the support for ventures this year.
The plan is to supply about 15.4 trillion won in policy finance, an increase of about 30% from last year, to support the fundraising of venture companies with excellent technological capabilities and high growth potential. In particular, to ensure that early-stage startups do not face difficulties in fundraising, funding support will be strengthened, including the creation of funds totaling over 500 billion won within the next 3 years through IBK Venture Investment.
Furthermore, to improve the exit market focusing on IPOs, secondary funds of the Industrial Bank and the Korea Development Bank (amounting to 1.2 trillion won) have been established and are actively seeking investments starting from May this year. The newly established IBK M&A Center at the end of last year will enhance the M&A company information platform by providing intermediary services and advice, swiftly executing acquisition financing worth 300 billion won. Plans to institutionalize the sandbox currently designated to assist venture fund divestments are also expected to be announced by the end of the year.
To support venture companies in local areas where investment opportunities are relatively scarce and to activate the local startup ecosystem, a venture company nurturing platform will be established in Busan and Gwangju by the end of this year. Efforts will be made to offer preferential products for locally based entrepreneurship and to expand guarantee-linked investments.
For venture companies seeking to raise large funds for business expansion or overseas market entry, support through policy financial institutions’ overseas networks will be expanded. Efforts to increase overseas investments through large-scale IR events such as Saneun Next Round and by inviting overseas investors, as well as promoting non-financial support (office space, IR, overseas company connections, consulting, etc.) using overseas bases such as IBK Changong (Silicon Valley in the United States, Jalland in Germany) will continue to be expanded.
Chairman Kim stated, “I will continue to work with the Ministry of SMEs and Startups and other relevant agencies based on the voices from the field to make continuous efforts to nurture venture companies and activate venture investment.”
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