Daejeon City Promotes Establishment of '(Tentative Name) Hanguk Venture Investment Bank' Rooted in the Region

[Asia Economy (Daejeon) Reporter Jeong Il-woong] The establishment of a bank focused on corporate finance headquartered in the Daejeon area is being promoted.

Daejeon City plans to establish this bank as a specialized bank for investment and fostering of new industries and new technologies, aiming for it to perform functions such as financing, management, and intermediation of new industry and new technology funds similar to the U.S. Silicon Valley Bank Group (SVB).

The city announced on the 28th that it has formed a promotion committee for the establishment of the (tentative name) Hanguk Venture Investment Bank and held an inaugural ceremony.

The committee consists of 27 members, including former bank executives, financial experts, local businesspeople, research institutions, and academic experts.

The chairpersons are jointly held by National Assembly member Yoon Chang-hyun (People Power Party proportional representative) and Jeong Tae-hee, chairman of the Daejeon Chamber of Commerce and Industry.

At the inaugural ceremony, the committee members reached a consensus on the necessity and justification for establishing a specialized bank headquartered in Daejeon. They also formalized their activities by discussing future directions for the bank’s establishment and ways to build a cooperative system between the city and the promotion committee.

The establishment of a corporate finance-centered bank headquartered in the region is a regional pledge of the Yoon Seok-yeol administration and a key pledge of the city’s 8th elected government.

The city expects that the establishment of the (tentative name) Hanguk Venture Investment Bank will contribute to fostering new industries and new technologies, which are difficult to receive investment from existing policy finance institutions such as the Korea Development Bank and the Industrial Bank of Korea due to characteristics such as risk, uncertainty, and information asymmetry.

Daejeon Mayor Lee Jang-woo said, “To enable venture companies to grow into stable ‘unicorn companies’ after passing through startup and the valley of death, establishing an innovative financial support system is an urgent task,” adding, “The establishment of the (tentative name) Hanguk Venture Investment Bank will enable specialized investment in new industries and new technologies, create a virtuous cycle ecosystem where venture companies’ growth and reinvestment occur, and become a core source to enhance the competitiveness of local companies.”

He also emphasized, “The city will make all-out efforts, including government appeals and the formation of regional consultative bodies, to establish the (tentative name) Hanguk Venture Investment Bank.”

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