Ministry of Health and Welfare to Establish Social Service Investment Fund... Total Scale of 14 Billion KRW

The Ministry of Health and Welfare announced on the 7th that it will launch a public notice for the '2023 2nd Regular Investment of the Mother Fund,' aiming to establish the first social service investment fund worth a total of 14 billion KRW.

The Mother Fund is a fund that does not invest directly in companies but invests in funds formed by the private sector, established with contributions from 10 government ministries. While investments through the Mother Fund have been made in areas such as environment, culture, and education, this is the first time a Mother Fund focusing on the social service sector is being created.

The social service investment fund will be established with a total of 14 billion KRW, including 10 billion KRW from government contributions this year and 4 billion KRW from private investments. It is expected to invest not only in companies providing new and innovative social services but also in companies that help deliver high-quality social services by utilizing digital and advanced technologies.

Considering the characteristics of a small-scale fund, to ensure that funds are intensively supported in areas with high policy support needs, investments in the health care and environmental sectors are excluded, and at least 20% of the fund's capital must be invested in companies related to care for the elderly and disabled (including social enterprises and social ventures).

Investments will be made over four years from the fund's establishment date, and recovered resources will be reinvested in social service-related fields to create a virtuous cycle of investment, growth, and reinvestment. Korea Venture Investment Corp. will select and announce the final fund managers in May after the first review (document screening and on-site inspection) and the second review (fund manager proposal presentation).

Jeon Byeongwang, Director of Social Welfare at the Ministry of Health and Welfare, said, "Through the social service investment fund, we hope that social service-related companies will receive funding for technology development and operating expenses to innovate based on technology or improve the quality of services," and added, "We plan to continue strengthening support by gathering opinions from social service demanders and providers in the future."

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