700 Billion Angel Investment... Creating a 'Hub' to Revitalize Marginalized Non-Capital Regions

Lack of Specialized Institutions for Angel Investment Activation
Ministry of SMEs Opens 'Angel Investment Hub' in Daejeon and Gwangju

Kang Sung-chun, Vice Minister of the Ministry of SMEs and Startups / Photo by Hyunmin Kim kimhyun81@

[Asia Economy Reporter Kim Bo-kyung] The Ministry of SMEs and Startups held the opening ceremony of the 'Regional Angel Investment Hub' simultaneously in Daejeon and Gwangju on the 26th to expand angel investment in non-capital regions.

Angel investment, where individuals invest in startups, has grown to nearly 700 billion KRW last year through continuous policies and systems such as expanded income tax deductions.

However, in 2018, out of the total angel investment amount of 632.8 billion KRW, the capital region accounted for 516.6 billion KRW, representing 81.6% of the total investment, while non-capital regions accounted for 116.2 billion KRW, or 18.4%, showing that most investments were concentrated in the capital region.

This is because non-capital regions have lacked specialized institutions to revitalize angel investment, making it difficult to improve awareness and discover angel investors, as well as to connect early-stage startups and venture companies with investors.

Accordingly, the government has promoted the establishment of regional angel investment hubs, specialized institutions that can assist angel investment. This year, angel investment hubs will be first opened in the Chungcheong and Honam regions, with plans to expand to the Yeongnam and Gangwon regions in the future.

The Korea Angel Investment Association and the Creative Economy Innovation Centers, which nurture early-stage startups in the respective regions, will collaborate to promote various programs to expand angel investment.

Key programs include ▲discovering companies seeking investment ▲guidance on preparing business investment proposals and investment presentations ▲education to improve awareness and discovery of angel investors by regional networks ▲building customized networks between founders and investors, and facilitating information exchange between the capital region and local areas.

Dedicated funds for angel investment hubs by metropolitan area will also be operated. The Ministry of SMEs and Startups and local governments will contribute funds to form regional funds and invest in promising early-stage startups and venture companies within the region.

Kang Sung-chun, Vice Minister of the Ministry of SMEs and Startups, said, "We will do our best to prepare policies to serve as a catalyst for revitalizing startups through angel investment."

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