Daejeon City to Establish Daejeon Investment Finance Co., Ltd. in July...Nation's First Public Investment Institution

Daejeon City Fully Invests 50 Billion KRW Capital... Expected to Be a Catalyst for Local Startups and Venture Finance

Mayor Lee Jang-woo of Daejeon is briefing on the establishment of Daejeon Investment Finance Co., Ltd. on the 21st. / Daejeon City

Daejeon City will establish Daejeon Investment Finance Co., Ltd., the nation's first public investment institution fully funded by the city to serve as a catalyst for local startup and venture financing, in July.

Since August 2022, Daejeon City has completed consultations with the Ministry of the Interior and Safety and related agencies, conducted its own feasibility studies and reviews by specialized institutions, and on the 19th received approval for establishment from the Ministry of the Interior and Safety.

Daejeon Investment Finance Co., Ltd. is a new technology business finance company funded by Daejeon City, with a capital of 50 billion KRW fully invested by the city. Additionally, 100 billion KRW of private funds will be raised as mother fund capital to leverage fund management.

The operating funds are planned to be managed at about 300 billion KRW for five years after establishment (2024?2028) and expanded to 500 billion KRW by 2030.

Considering the initial stage of establishment, the organization will consist of one office (Investment Office), two teams (Management Support Team, Investment Team), and 10 members, with plans to add four more staff by 2028.

The main tasks will include providing long-term and stable investment resources to promising local startups and venture companies to address the concentration of venture investment in the Seoul metropolitan area through direct and indirect investments and loans.

The city plans to proceed smoothly with administrative procedures such as corporate establishment and registration as a new technology business finance company, aiming for establishment in July.

Daejeon City expects that the establishment of Daejeon Investment Finance Co., Ltd. will generate production inducement effects of 317.8 billion KRW, value-added inducement effects of 127 billion KRW, and employment inducement effects of 1,896 jobs.

Mayor Lee Jang-woo of Daejeon said, “In a situation where venture investment is decreasing annually and concentrating in the metropolitan area, Daejeon Investment Finance Co., Ltd. will lead innovative growth through focused investment in deep-tech companies in Daejeon’s four core strategic industries.” He added, “As Daejeon City is the first in the nation to promote this establishment, we will do our best to position it as a nationwide role model suitable for balanced regional development and the era of local autonomy.”

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