Launch of the '1st Urban Regeneration Mother Fund'... Supporting Startup Companies

Urban Regeneration Mother Fund Structure Diagram (Provided by the Ministry of Land, Infrastructure and Transport)

[Asia Economy Reporter Chunhee Lee] The Ministry of Land, Infrastructure and Transport is launching an urban regeneration mother fund created to directly support startups, small and venture companies, and youth startups in the urban regeneration sector.

On the 14th, the Ministry announced that the first urban regeneration mother fund, 'The Wells Urban Regeneration Investment Association,' has completed the registration process as a venture investment association with the Ministry of SMEs and Startups and will begin full-scale activities starting on the 15th.

Managed by The Wells Investment, this fund was established after the urban regeneration account was newly created within the mother fund in September last year. The management company was selected in December, and the association formation was completed in the second week of this month.

The first urban regeneration mother fund was created with a total of 25 billion KRW, including 20 billion KRW from the Housing and Urban Fund and 5 billion KRW from private investments. Going forward, it will invest in various companies, mainly small and venture companies that contribute to restoring social, cultural, environmental, and economic vitality in urban regeneration activation areas and improving residents' quality of life. The goal is to discover and invest in startups and youth startups that will revitalize declining areas through developing resident community spaces and regionally specialized cultural content, thereby establishing a sustainable urban regeneration ecosystem.

The Wells Investment, selected as the management company, has experience investing in various companies, including youth startups. Over the next three years, it will seek out and invest in about 20 promising companies and manage the fund for a total of seven years, including a four-year investment recovery period.

The Ministry plans to open a public offering for the management company of the second urban regeneration mother fund, also totaling 25 billion KRW with 20 billion KRW from the fund and 5 billion KRW from private investments, in September this year. Furthermore, in the second half of next year, it will also open a public offering for the third mother fund, totaling 12.5 billion KRW with 10 billion KRW from the fund and 2.5 billion KRW from private investments. The total fund contribution will be 50 billion KRW from the fund and 12.5 billion KRW from private investments, amounting to 62.5 billion KRW. The amount of private investment may increase depending on the conditions for attracting investors.

Kim Dong-ik, Director of the Urban Regeneration Economy Division at the Ministry of Land, Infrastructure and Transport, said, "The launch of the first urban regeneration mother fund is the first step toward building a sustainable urban regeneration ecosystem. By launching the second and third funds this year and next year, we will create quality jobs in urban regeneration activation areas and lay the foundation for revitalizing old downtown areas."

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