"Let's Raise 600 Billion Won to Foster Local Ventures and Startups" Discussion on Establishing a Region-Led Mother Fund

Busan City to Propose Regional Balanced New Deal Fund on Nov 20 at 3 PM in BIFC 4th Floor Auditorium
Creating a Regional Virtuous Cycle Startup Investment Ecosystem ... Collecting Opinions on National Balanced Development Measures

Regional-Led Mother Fund Operation Structure.

[Asia Economy Yeongnam Reporting Headquarters Reporter Kim Yong-woo] Busan City is directly taking the lead in creating a mother fund to invest in venture or startup investment associations.

On the 20th at 3 p.m., Busan City will hold a "Regional Balanced New Deal Fund Creation Forum" at the 4th-floor auditorium of the Busan International Finance Center to realize a regional balanced New Deal.

The reality of venture investment support policies, such as the central government-led mother fund implemented since 2000 to create a technology-innovation-type SME and venture startup ecosystem, is challenging for local governments.

In the case of the mother fund, 70.3% of the total investment amount and 91.3% of startup investment companies are concentrated in the Seoul metropolitan area, while Busan accounts for about 1.5%, showing minimal regional investment.

As a result, regional startup companies relocate to the Seoul metropolitan area to receive follow-up investments for growth after initial investment in the region, accelerating the outflow of local talent. In short, the economic sector is experiencing intensified concentration in the Seoul metropolitan area.

To resolve this concentration in the Seoul metropolitan area, Busan City plans to create and operate a regionally customized fund called the "Regional Balanced New Deal Fund (RBNF)" designed directly in the region, considering regional strategic industries and company growth stages.

The fund will cover four regions: Busan-Ulsan-Gyeongnam, Daegu-Gyeongbuk-Gangwon, Chungcheong, and Honam, with a total scale of 600 billion KRW (300 billion KRW from the government, 300 billion KRW from local governments and private capital), with 150 billion KRW allocated per region.

Before concretizing the fund creation, Busan City prepared this forum to gather practical measures and diverse opinions to establish a virtuous cycle startup investment ecosystem in the region and achieve national balanced development.

The forum, hosted by Busan City and organized by Busan Technopark, will proceed with a keynote presentation on "Regional Balanced New Deal Fund Creation" by Professor Eom Cheol-jun of Busan National University, followed by an expert discussion in finance and venture fields chaired by Professor Kim Ho-beom of Busan National University.

Byun Sung-wan, Acting Mayor of Busan, said, "We must expand venture investment infrastructure concentrated in the Seoul metropolitan area to local areas to lead to the creation of quality jobs," adding, "It is important to create a healthy startup ecosystem where people want to visit, stay, grow, and leap forward together in Busan."

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