Seoul City Creates 2.1 Trillion Won 'Future Innovation Growth Fund', Investing in 501 Companies

Exceeded 172% of Target by Combining Private Investment
Additional 500 Billion Won Raised This Year for Investment in Innovative Companies

[Asia Economy Reporter Lim Cheol-young] The Seoul Metropolitan Government's 'Future Innovation Growth Fund,' launched in 2018 to nurture innovative companies, has surpassed 2.1 trillion KRW in fund size within three years. This year, Seoul plans to additionally raise 500 billion KRW across six sectors for the 'Future Innovation Growth Fund.'

On the 17th, Seoul announced that based on active city funding and private investment in startups, it has exceeded its original five-year target of 1.2 trillion KRW by 172%. Through the 'Future Innovation Growth Fund,' 501 innovative companies in new growth industries such as bio, cultural content, and smart cities have received investments.

Seoul had announced in 2018 its plan to raise 1.2 trillion KRW over five years for the 'Future Innovation Growth' fund to invest in innovative companies. Now in its fourth year, the city has invested 77.05 billion KRW of its own funds and established and operated 41 funds. So far, 501 innovative companies in new growth industries such as bio, cultural content, and smart cities have been invested in through the 'Future Innovation Growth Fund.'

The 'Future Innovation Growth Fund' is raised by Seoul contributing resources through the 'Small and Medium Business Promotion Fund' and attracting the remaining funds from government and private mother funds. To improve fund operation efficiency, each fund is managed by a professional management company (GP).

This year, Seoul will additionally raise 500 billion KRW across six sectors?4th Industrial Revolution, smart cities, cultural content, startup support, re-challenge support, and Seoul bio?and proceed with investments. To prevent the innovation company investment ecosystem from shrinking due to COVID-19, Seoul plans to select preferred negotiation operators early in March, significantly advancing the previous selection period of April to August.

The city is recruiting investment management companies responsible for fund formation and operation by March 10. Especially, to strengthen investment linkage with Seoul city policy-supported companies, support operators who specifically present policy linkage plans and investment intentions will be actively favored (15 points) in the second face-to-face evaluation.

Seoul added that it will select management companies that can actively raise venture capital alongside public policy funds such as mother funds to support challenging innovative technologies and companies to grow in the market. From the recruitment stage, the aim is to manage so that 'strategic investments by growth stage of innovative startups and promising industry sectors' are possible.

Kim Ui-seung, Director of Seoul's Economic Policy Office, said, “The Seoul Future Innovation Growth Fund will serve as a primer to help promising small and venture companies overcome difficulties caused by COVID-19 and continue to grow. We will continue strategic investments by growth stage and industry sector so that Seoul’s startups, which will be new growth engines in the post-COVID era, can gain more attention domestically and internationally.”

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