Lotte Forms Fund for Startup Investment with Busan Creative Economy Innovation Center

Active Investment in Promising Startups
Operating 'Elcamp Busan' with Busan City
Contributing to the Revitalization of the Local Startup Ecosystem

[Asia Economy Reporter Lim Hye-seon] Lotte Accelerator, together with Busan Creative Economy Innovation Center, is establishing a new technology business investment fund called 'Lotte-BCCEI Startup Fund No.1' to nurture startups in the Busan and Gyeongnam regions. Lotte Accelerator is an investment corporation established by Lotte Group in 2016 to support youth entrepreneurship activation.

On the 25th, the two organizations held a fund establishment ceremony and decided to actively invest in promising startups jointly discovered and nurtured through programs such as 'L-Camp Busan.'

In February last year, Lotte Accelerator launched 'L-Camp Busan' in collaboration with Busan City, promoting a 'public-private cooperative startup platform' to revitalize the local startup ecosystem. This was a case of operating 'L-Camp,' Lotte Accelerator's representative comprehensive startup support program, centered on the Busan and Gyeongnam regions following the Seoul metropolitan area.

L-Camp Busan operates on a yearly basis. After 10 startups participated as the first cohort, 9 startups were selected for the second cohort in March. They receive 50 million KRW in startup support funds, office space, management support such as IT legal services, and expert mentoring.

Although the Busan region has a startup ecosystem activated second only to the metropolitan area, there are few investment institutions such as venture capital firms operating locally, making it difficult for excellent startups to secure investment opportunities. Additionally, due to the physical distance from the metropolitan area, market entry has not been smooth, creating a challenging environment for startup growth. Lotte Accelerator plays a hub role connecting metropolitan investment institutions and startups to address these issues.

Musma, an Internet of Things (IoT) platform for construction asset management and a graduate of L-Camp Busan's first cohort, recently secured a Series A investment of 2 billion KRW. Since its founding in 2017, it currently manages over 17,000 construction assets for more than 30 major construction companies.

CareDoc, which operates a platform for elderly care facility brokerage and caregiver matching, has expanded its service range from the Busan region to nationwide and has attracted two rounds of follow-up investments.

Flower Farm, an online flower wholesale platform established in January last year, surpassed 1,300 client companies within one year of opening and recorded annual sales of 1.2 billion KRW. This year, it is expanding its business nationwide beyond the Busan and Gyeongnam regions.

Lee Jin-seong, CEO of Lotte Accelerator, stated, "Through the operation of this fund, we will serve as a solution to help local startups overcome challenges such as market expansion and follow-up investments."

Meanwhile, the metropolitan area-centered L-Camp selected and is supporting 14 companies in its 7th cohort at the end of May. Lotte Accelerator has supported and invested in about 120 domestic and international startups centered around L-Camp to date.

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