Ansan City: "Claims of Low Youth Startup Fund Investment Unfounded...On Track to Meet Targets"

Ansan City Achieves 40% of Mandatory Investment Target

Ansan City, Gyeonggi Province (Mayor Lee Minkun), has issued a direct rebuttal to recent concerns raised by some media outlets over the "low investment from the Ansan City Youth Startup Fund in local companies." On April 20, Ansan City stated that these reports cited only selective figures without understanding the fund's unique operational structure, and clarified that actual investments are progressing smoothly and in line with the target goals.

Aerial view of Ansan City Hall. Provided by Ansan City

The city emphasized that the Youth Startup Fund is a policy-based fund established in accordance with the Special Act on the Promotion of Venture Businesses. This fund combines Ansan City's investment with private capital, based on the government's parent fund.

An official from Ansan City explained, "It is appropriate to evaluate the fund's performance based on the 'mandatory investment standard' set according to the city's contribution, rather than its total size." The official pointed out that using the entire fund amount, which includes private capital, to calculate the investment rate could distort the intent of a policy-based fund.

The second Youth Startup Fund, established in 2024, totals 74.6 billion won, of which the city's capital contribution is 2 billion won (approximately 2.68%). As of April 2026, investments totaling 2 billion won have been successfully attracted to two local companies, achieving 40% of the mandatory investment amount of 5 billion won. When including an additional investment of 500 million won (for one more company), the fund has already exceeded the amount contributed by the city.

Furthermore, this fund reached the halfway point of its four-year investment period since its establishment in July 2024, and an additional investment of around 3 billion won in local companies is planned going forward. The city explained that due to the nature of venture investment, the initial phase focuses on sourcing and reviewing investment opportunities, followed by more active disbursement later on.

Regarding concerns over the possibility of investment recovery, the city stated that the managers of both the first and second Youth Startup Funds are showing stable performance, and some companies are expected to enter the exit stage through IPOs starting at the end of 2026.

Ansan City highlighted that the Youth Startup Fund is a core policy that not only provides financial support but also leads to the inflow of businesses and job creation. In fact, some investee companies have relocated their headquarters to Ansan, contributing to the revitalization of the local economy.

Ansan City, Youth Startup Fund Investment Companies No. 4 and No. 5 Plaque Presentation Ceremony. Provided by Ansan City

Park Jinwoo, Director of Youth Policy, stated, "The Youth Startup Fund is designed to attract external capital by using the city's investment as a catalyst, strategically promoting investments in local companies, business relocations, and the creation of quality jobs." He added, "Rather than making simple numerical comparisons, it is important to evaluate the fund by considering its structure and overall investment approach."

Meanwhile, Ansan City plans to continue revitalizing the local startup ecosystem by discovering promising youth enterprises and expanding investment attraction efforts.

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