Ministry of Environment and K-water Foster Water Industry Startups with Social Funds

[Asia Economy Reporter Joo Sang-don] The Ministry of Environment and Korea Water Resources Corporation announced on the 7th that they will actively promote the 'Social Fundraising (Crowd Funding) Support Project' to discover and nurture water industry startups in collaboration with the Research & Development Special Zone Promotion Foundation.

This project involves raising investment funds from the general public, with the Ministry of Environment and related agencies forming a social fund to nurture startups related to the water industry.

There are two types of investment funds: 'reward-based' and 'investment-based.' The reward-based type provides the investor with the company's products or services after investment, while the investment-based type allows investors to receive the company's stocks or bonds.

The support targets of this project include ▲ water industry and Green New Deal (including integrated water management, water energy, smart cities) innovative startups ▲ social startups (social ventures) that promote products and services aimed at providing benefits to society as a whole.

Since January 26th, the Ministry of Environment and Korea Water Resources Corporation have been recruiting interested companies through the 'Social Fundraising Support Project' website for one month. The selection of supported companies (expected 10) will be conducted through document review and investment review committee deliberations. Selected companies will receive training on preparing company presentation materials for one month starting mid-February. From mid-March, online company presentations and investment subscriptions will begin for the selected companies.

Korea Water Resources Corporation and related organizations such as the Research & Development Special Zone Promotion Foundation plan to purchase products from companies selected under the reward-based type to secure sales channels.

Citizens who subscribe to investment funds under the investment-based type can receive stocks or bonds in a form eligible for income tax deductions. The Research & Development Special Zone Promotion Foundation will provide follow-up growth support for selected companies, including ▲ investment and sales channel support ▲ activation of the regional startup ecosystem ▲ discovery of demand for technologies owned by Korea Water Resources Corporation, technology transfer, and establishment and nurturing of research institute companies.

Park Jae-hyun, President of Korea Water Resources Corporation, said, "Through this collaboration, we will provide multifaceted support that startups desire," adding, "As a specialized water management institution, we will take the lead in nurturing the water industry and creating an innovative startup ecosystem."

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