Investing in Venture Companies in Population Decline Areas... 20 Billion Won Scale 'Population Vitality Fund' Established

Ministry of SMEs and Startups and Ministry of the Interior Join Hands with Separate Investments
Supporting Regional Economic Revival through Local Business Attraction

The government is establishing a 20 billion KRW-scale 'Population Vitality Fund' to invest in small and venture businesses in areas experiencing population decline.

Minister Oh Young-joo of the Ministry of SMEs and Startups
[Photo by Yonhap News]

On the 6th, the Ministry of SMEs and Startups announced that it will create the Population Vitality Fund in collaboration with the Ministry of the Interior and Safety to foster companies in population-declining and interest areas.

The Population Vitality Fund will be capitalized with 9.5 billion KRW from the Ministry of SMEs and Startups' mother fund and 4.5 billion KRW from the Ministry of the Interior and Safety's Local Extinction Response Fund. Additionally, private investments will be attracted to raise the total fund size to 20 billion KRW within this year.

The goal is to support the growth of startup and venture companies located in regions where economic vitality has diminished due to population decline and the resulting job losses. It also aims to promote the attraction of companies within the region to help revitalize the local economy.

The Ministry of SMEs and Startups plans to invest at least 60% of the fund in small and venture companies located in population-declining and interest areas, as well as companies that relocate their headquarters to such areas within two years after investment or establish branches, research centers, or factories there.

Detailed information about the project announcement will be available on the Korea Venture Investment website starting from the 7th. Contribution proposals for private investors participating in the Population Vitality Fund will be accepted online through the Venture Investment Comprehensive Information System from 10 a.m. on the 21st to 2 p.m. on the 28th.

Oh Young-joo, Minister of SMEs and Startups, emphasized, "Through this fund launched by inter-ministerial cooperation, the government will support innovative small and venture companies to lead the economic revitalization of population-declining areas."

Lee Sang-min, Minister of the Interior and Safety, said, "The Population Vitality Fund will support many small and venture companies facing difficulties in population-declining areas. We will continue to strive to revitalize the economies of these areas and improve residents' quality of life through robust and diverse support for local companies."

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