425 Billion KRW 'Jungnang Donghaeng Startup Fund' Formation Completed

Published 06 Jan.2025 06:25(KST)

Approval of Union Registration on December 27... Establishment of Union Worth a Total of 42.5 Billion KRW

425 Billion KRW 'Jungnang Donghaeng Startup Fund' Formation Completed

Jungnang-gu (Mayor Ryu Kyung-gi) has received approval for the registration of the ‘T8 Technology Innovation Association’ from the Ministry of SMEs and Startups on December 27th last year.

Accordingly, the district completed the formation of the association one month ahead of the original target date of January 2025.

The ‘T8 Technology Innovation Association’ is a sub-association of the ‘Jungnang Donghaeng Startup Fund,’ and T Investment Co., Ltd., which was selected as the general partner (GP) through the district’s public offering last October, is responsible for the formation and operation of the association.

The initial capital commitment of the association was 39.5 billion KRW, but an additional 3 billion KRW was added on January 6th, forming a total of 42.5 billion KRW. This amount greatly exceeded the initial target of 10 billion KRW set during the selection of the general partner. Investors include Jungnang-gu, Korea Growth Investment Corporation, and T Investment as the general partner (GP).

The main investment targets of the association are companies engaged in ten leading-edge gap sectors: ▲system semiconductors ▲bio-health ▲future mobility ▲eco-friendly energy ▲robotics ▲big data and artificial intelligence (AI) ▲cybersecurity and networks ▲aerospace and marine ▲next-generation nuclear power ▲quantum technology.

According to the operating regulations, the mandatory investment amount in Jungnang-gu companies is 200% of the district’s capital contribution of 1 billion KRW, meaning at least 2 billion KRW will be invested in Jungnang-gu during the investment period.

The investment targets are startups, ventures, and small and medium enterprises in Jungnang-gu or companies planning to relocate to Jungnang-gu within one year after investment.

The association’s duration is 10 years, with a 5-year investment period and a 5-year recovery period. However, T Investment, the general partner (GP), plans to complete investments within 3 years and focus on company growth and capital recovery from the 4th year, so visible results are expected to be confirmed early.

Ryu Kyung-gi, Mayor of Jungnang-gu, stated, “We plan to actively cooperate with related organizations to discover companies with high technological capabilities and growth potential,” adding, “We will not only invest but also explore various projects to strengthen the capabilities of companies.”