Seoul has completed the selection of management companies for the 2.5 trillion won “Seoul Vision 2030 Fund” and is set to focus on investments in AI and bio startups. This year, Seoul will invest 30 billion won and attract private funds to establish the fund by December 2, aiming to jumpstart investment.
On September 5, Seoul announced the confirmation of management firms: four in the AI Transformation sector, two in bio, and two for the First Step Initiative, totaling eight firms.
Seoul plans to invest over 200% of the committed funds in Seoul-based innovative companies and more than 20% in companies that reside in or have graduated from Seoul’s startup support facilities. The allocations by sector are 15 billion won for AI Transformation, 10 billion won for bio, and 5 billion won for the First Step Initiative Fund, which will focus on supporting early-stage startups that have difficulties in raising funds. The fund managers will establish funds within three months and begin investing in venture companies.
Previously, from 2019 to 2022, the city allocated 175.1 billion won to the “Future Innovation Growth Fund,” which generated a fund of 3.6857 trillion won. The fund invested 3.0429 trillion won in 1,538 companies, leading to the formation of unicorn companies like Toss, Rebellion, and Furiosa. Recently, AutoCrypt successfully went public on KOSDAQ.
The “Vision 2030” fund is a subsequent project from 2023 to 2026 with a goal of raising 5 trillion won. In its third year, the fund investment strategy will be flexibly managed to align with changes in industrial environments.
Ju Yong-tae, head of Seoul’s Economic Policy Division, stated, “Even amid investment downturns, we will draw in private funds and make concentrated investments in strategic industries to foster the growth of second and third-generation unicorn companies in Seoul. The fund will play a pivotal role, particularly focusing on enabling AI and bio startups to expand into the global market.”