The Ministry of SMEs and Startups announced on the 12th that they have established a 100 billion won fund called ‘Busan Future Growth Venture Fund’ for the startup ecosystem in the Busan region. Through this initiative, the ministry plans to create a venture fund worth 2.58 trillion won.
This fund is a regional fund created under the Ministry’s ‘Regional Innovation Venture Fund’ project. It was formed with a total of 1 trillion won, with 250 billion won from the seed fund, 500 billion won from Korea Development Bank, 100 billion won from BNK Busan Bank, 50 billion won from Busan Bank, and 50 billion won from the Korea Institute of Industrial Technology. Among the regional innovation venture fund investment projects, this fund is the largest ever.
Korea Venture Investment Corp. plans to invest in the Busan Future Growth Venture Fund in three categories: regional league, capital region league, and global league, totaling 2.58 trillion won.
First, they will invest 400 billion won in the regional league. Venture capitals (VCs) and startup planners (ACs) in the Busan region are eligible for investment in the regional league. The regional league aims to reduce the burden of external investments for local VCs and ACs, with the Ministry planning to create a total of six funds worth 576 billion won in the regional league.
There is also a capital region league for VCs and ACs in the capital region. The capital region league plans to invest 500 billion won to create five funds totaling 1.67 trillion won. Among the capital region league funds, one will be selected to facilitate strategic cooperation between the holding company of a corporate venture capital (CVC) and companies in the Busan region.
Lastly, they plan to invest 100 billion won in the global league targeting overseas VCs to create a fund worth 334 billion won.
The proposal documents for investment will be accepted online from 10:00 am on the 26th to 2:00 pm on the 2nd of next month (September). After the first round of evaluations (document review and field inspections) and the second round of evaluations (presentation of proposals by fund managers), the final selection of fund managers is expected to be made in mid-October.
Minister of SMEs and Startups Oh Young-joo stated, “This investment project for the Busan Future Growth Venture Fund, the largest ever, will be a turning point for the growth of venture and startup companies in the Busan region, along with the Korea-style station F to be created in Busan North Port.” Minister Oh also expressed his commitment to establishing a foundation for creating various venture funds with the participation of regional banks and anchor companies in other regions starting from Busan.
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