'Busan Future Growth Venture Fund' Launches with a Scale of 260 Billion KRW
by Lee Seungjin
Published 21 Oct.2024 12:00(KST)
Ministry of SMEs, Busan City, and Industrial Bank Promote Fund Formation
'Local Era Venture Fund' Plan to Boost Regional Venture Investment
The Ministry of SMEs and Startups and Busan City announced the selection results of the ‘Busan Future Growth Venture Fund’ investment project on the 21st.
The ‘Busan Future Growth Venture Fund,’ the largest regional mother fund formed by investments from the Ministry of SMEs and Startups’ mother fund, Busan City, financial institutions, and others, has been proceeding with the selection process for fund managers since its formation on June 28 with a scale of 101.1 billion KRW. As a result of the selection, a total of 11 venture funds worth 258.9 billion KRW will be established. By sector, the regional league accounts for 67.9 billion KRW, and the metropolitan league accounts for 191 billion KRW.
In particular, among the 11 venture funds selected this time, seven venture investment firms with headquarters or branches located in Busan were selected as fund managers (or co-managers), and one metropolitan area fund manager also pledged to establish a Busan branch.
With this selection of fund managers, it is expected to foster venture investment firms active in Busan while inducing qualitative growth such as expanding metropolitan networking for startups and venture companies in the Busan region.
Minister Oh Young-joo of the Ministry of SMEs and Startups stated, “Starting with the Busan Future Growth Venture Fund, we will supply sufficient venture capital to the region to support local startups and venture companies in attracting investment and growing within the region.” He added, “Especially from 2025, the mother fund will provide bold incentives such as priority loss coverage, planning to additionally raise the ‘Local Era Venture Fund’ to 1 trillion KRW by 2027, and we will promptly prepare detailed implementation plans for the ‘Local Era Venture Fund.’”
Mayor Park Hyung-joon said, “The ‘Busan Future Growth Venture Fund,’ which has been cooperatively formed with institutions such as the Ministry of SMEs and Startups and financial sectors, is about to bear fruit. The unprecedented large-scale regional fund formation and investment will be like rain in a drought.” He added, “In the future, we will make venture investment a wheel that both the metropolitan area and the Southeast region can turn together, making it the growth engine of the regional economy.”
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