Government and ADB Establish Venture Fund to Support Developing Countries' Market Entry

Ministry of SMEs and Startups and Ministry of Economy and Finance Invest 15 Million USD in 60 Million USD ADB Venture Fund

Asian Development Bank Headquarters in Manila, Philippines. Photo by Yonhap News

[Asia Economy Reporter Kim Heeyoon] Opportunities for domestic ventures and startups to enter New Southern Policy target countries are expanding, and cooperation between Korea and the Asian Development Bank (ADB) is expected to strengthen.

The Ministry of SMEs and Startups and the Ministry of Economy and Finance announced on the 1st that they will invest $15 million in the newly established "ADB Venture Fund" by ADB. The total fund size is $60 million, with participation from the Finnish government ($22 million), the Climate Investment Fund ($13 million), and the Nordic Development Fund ($10 million). The government will contribute $10 million from the Ministry of SMEs and Startups' operating mother fund and $5 million from the Ministry of Economy and Finance's ADB "e-Asia Knowledge Cooperation Trust Fund."

The ADB Venture Fund will invest in sectors necessary for sustainable development in Southeast Asian developing countries, and domestic startups entering Southeast Asia are also included as investment targets. It also has the character of a "Social Impact" fund that pursues social values such as poverty, climate, healthcare, and gender equality alongside profitability.

ADB plans to hold the launch event for the venture fund during the 2020 ADB Annual Meeting, which will be held in Songdo from September 18 to 21 this year. Synergistic effects are also expected with the "Excellent Venture and Startup Investment IR" jointly conducted with ADB during the annual meeting.

Park Ilyoung, Director General of Development Finance at the Ministry of Economy and Finance, said, "ADB has shown great interest in cooperation with Korean institutions from the early stages of the venture fund launch," adding, "It is expected to provide innovation and sustainable growth opportunities for developing countries and serve as an opportunity to strengthen cooperation with ADB for our companies and investors."

Park Yongsun, Venture Innovation Policy Officer at the Ministry of SMEs and Startups, said, "It will be an opportunity to support domestic companies' entry into the Southeast Asian market by utilizing the local network of the Asian Development Bank," and added, "We will actively support investment IRs so that Korea's excellent ventures and startups can enter emerging markets."

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