Daejeon City Establishes '1 Trillion Won New Deal Fund' to Foster New Industries and Support Growth

[Asia Economy (Daejeon) Reporter Jeong Il-woong] Daejeon City will establish a ‘Daejeon-type New Deal Fund’ worth 1 trillion won by 2025.

According to the city on the 4th, the Daejeon-type New Deal Fund will be created to inject vitality into the stagnant local economy by focusing investments on promising startups and venture companies within the region, and to support the fostering and growth of new industry startups.

Currently, the city has formed 16 funds totaling 629.4 billion won from national and private capital, investing 140.2 billion won in 136 companies to support business startups and growth.

In addition, the city plans to newly establish the Daejeon-type New Deal Fund over five years starting with 200 billion won this year to further ignite the startup momentum.

The Daejeon-type New Deal Fund will focus on supporting new growth industries such as the DNA (Data·Network·AI) sector, the BIC3 sectors including semiconductors, bio, and future cars, as well as non-face-to-face industries.

Through this, the city plans to create a sustainable startup ecosystem with Daejeon as a leading city in science and technology.

Prior to establishing the Daejeon-type New Deal Fund, the city amended related ordinances to allow investments from the city’s Small and Medium Business Development Fund for the fund’s creation and is exploring ways to reinvest the principal and profits recovered in the future back into the New Deal Fund.

Ko Hyun-duk, Director of the City’s Job and Economy Bureau, said, “The city will ensure that policy funds serve as a foundation to complete a private-led investment ecosystem,” adding, “We will strive to make Daejeon a cradle of technology-based startups with the Daejeon-type New Deal Fund as the seed.”

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