‘New Deal Venture Fund’ Busan Takes First Step... 43 Billion Won Decided, Park Hyung-jun's Pledge of 1.2 Trillion Won Gains Momentum

300 Billion Won Investment, 13 Billion Won Private Investment Firm to be Established Within the Year

The seven strategic industries targeted for investment by the Busan Regional New Deal Venture Fund.

[Asia Economy Yeongnam Reporting Headquarters Reporter Kim Yong-woo] The pledge project of Busan Mayor Park Hyung-jun to create a startup fund worth 1.2 trillion won is expected to gain momentum.

Busan City announced on the 6th that it will establish the 'Busan Regional New Deal Venture Fund' to foster startups and venture companies and create jobs.

Busan City and Korea Venture Investment announced the 2021 investment project plan for the Regional New Deal Venture Fund and decided to recruit fund management companies by August 27.

This investment project was initiated as the Ministry of SMEs and Startups and Busan City signed an agreement to establish the Regional New Deal Venture Fund to promote regional balanced New Deal, making Busan the first in the nation to create the 'Busan Regional New Deal Venture Fund.'

Busan plans to invest 30 billion won in the Busan Regional New Deal Venture Fund and raise more than 13 billion won from private investment companies, totaling 43 billion won.

Since the first Busan Venture Investment Fund in 2000, Busan City has raised 532.6 billion won through 33 funds. Currently, 5 funds have been liquidated, and 28 funds worth 484.2 billion won are being managed.

Despite COVID-19, Busan City's startup venture fund achieved an average sales increase of 3.866 billion won per company and created more than 8 new jobs per company through investments in Busan companies last year.

The preliminary briefing session for this fund formation will be held at 2 p.m. on August 12.

The Busan Regional New Deal Venture Fund to be established this time will form a mother fund jointly participated by the mother fund, local governments, and regional public institutions, and use it as seed money to create sub-funds involving private participation.

This fund will be invested in seven strategic industry sectors in the Busan region, regional innovative companies, companies within regulatory free zones, and promising startup venture companies in emerging industries.

Investments will target smart marine, intelligent machinery, future transportation devices, global tourism, intelligent information services, life care, and clean tech sectors.

Busan Mayor Park Hyung-jun said, “We will nurture innovative youth startup companies and support venture companies to leap forward at each growth stage,” adding, “Starting with the regional venture fund, we will steadily fulfill the pledge to create a startup fund worth 1.2 trillion won for technological innovation and fostering startups and venture companies.”

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