Gwanak-gu Establishes 10 Billion KRW Nakseong Venture Valley Startup Support Fund

Nationwide First Fund Established at Basic Local Government Level to Foster Startup Companies... Recruiting Fund Managers with Investment Capability and Discovering Excellent Companies Until May 15

[Asia Economy Reporter Park Jong-il] Gwanak-gu (Mayor Park Jun-hee) is establishing the ‘Nakseong Venture Valley Startup Support Fund’ worth approximately 10 billion KRW to drive the continuous growth of startups based on core technologies.

Since fund formation for nurturing startups has mainly been carried out at the metropolitan government level, the Gwanak-gu ‘Nakseong Venture Valley Startup Support Fund’ is significant as it is the first fund formation project initiated by a basic local government nationwide.

The reason Gwanak-gu is creating this fund to foster startups is that most startups, despite having excellent talent, suffer from a lack of funds due to insufficient collateral, causing difficulties in technology development and company operations.

During the 7th term of the elected government, Gwanak-gu has been promoting the ‘Nakseong Venture Valley Development Project’ around Nakseongdae and the back gate area of Seoul National University, modeling after China’s Zhongguancun and the United States’ Silicon Valley, to build a startup ecosystem with Seoul National University and youth as core assets.

Over the past two years, the district has laid the foundation for attracting excellent companies by establishing startup infrastructure such as the Nakseong Venture Startup Center, Nakseongdae R&D Center, and Seoul Startup Cafe Nakseongdae Branch, and has prepared institutional grounds to support company growth through startup support funds and investments by revising ordinances.

From April 20 to May 15, the district will recruit a management company to operate the ‘Nakseong Venture Valley Startup Support Fund,’ followed by a three-month period to recruit general investors, and plans to hold a partnership registration and formation general meeting around October.

The total scale of the Nakseong Venture Valley Startup Support Fund is 10 billion KRW, of which Gwanak-gu’s investment of 500 million KRW will require at least 200% (1 billion KRW or more) to be mandatorily invested in companies located within the district to promote the growth and settlement of local companies.

The investment targets are small and medium enterprises or venture companies within seven years of establishment. The fund plans to invest and recover over a total of eight years to allow early-stage startups to focus on technology development and operate their companies stably.

Companies interested in participating in the Nakseong Venture Valley Startup Support Fund investment project can prepare proposals and related documents during the application period and submit them in person or by mail to the Job Venture Division of Gwanak-gu Office (☎879-6682).

Mayor Park Jun-hee said, “Startup companies, the future of Korea, should never have their wings clipped before they even try to fly due to financial difficulties,” and added, “We ask for the keen interest of fund management companies and general investors in the formation of this fund, which will serve as a catalyst for venture startups.”

For more details, please visit the Gwanak-gu Office website (www.gwanak.go.kr) (News & Notices → Announcements) and the K-Startup website (www.k-startup.go.kr).

This content was produced with the assistance of AI translation services.