Jeonnam-Gwangju Integration... KRW 125 Billion Regional Growth Fund Established

Jeonnam Provincial Government Office Exterior View

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On March 31, Jeollanam-do announced that it has been jointly selected with Gwangju Metropolitan City for the Ministry of SMEs and Startups' "2026 Regional Growth Fund" investment project, paving the way for the era of integration by establishing the "Jeonnam-Gwangju Regional Growth Fund" with a total size of KRW 125 billion.

Jeollanam-do and Gwangju secured KRW 75 billion from the Korea Fund of Funds (Jeonnam KRW 50 billion, Gwangju KRW 25 billion). Including local government funding and private capital, the total exceeds KRW 125 billion.

The Regional Growth Fund is a regional venture fund-of-funds introduced to expand the base of venture investment nationwide in line with the government's strategy to become one of the world's top four venture powerhouses. In the public offering, Jeollanam-do and Gwangju presented a "super-regional cooperation model" that breaks down the boundaries between the two regions, achieving the best possible government funding.

The fund was created with the participation of Jeollanam-do, Gwangju, and five cities and counties-Yeosu, Suncheon, Gwangyang, Naju, and Haenam. Major corporations such as POSCO Holdings, as well as financial institutions like NongHyup Bank, Kwangju Bank, and IBK Industrial Bank of Korea, and leading local universities including Gwangju Institute of Science and Technology (GIST), Chonnam National University, and Chosun University, all took part as investors.

The fund will be operated for a total of 12 years, providing a long-term investment environment for stable growth of local businesses. Jeollanam-do and Gwangju plan to require that at least 60% of the fund's capital be invested in regional companies to enhance the self-sufficiency of the local economy.

The main investment targets include Jeollanam-do's strategic industries such as new energy businesses, offshore wind power, aerospace, and advanced bio, as well as Gwangju's core industries including artificial intelligence (AI), semiconductors, and next-generation mobility.

In particular, the fund aims to closely support the entire growth cycle by actively discovering promising companies that have moved beyond the initial startup phase and entered the growth stage, helping them succeed in initial public offerings (IPOs) and mergers and acquisitions (M&A).

Through the creation of this fund, the two regions aim to attract venture capital, which has been concentrated in the Seoul metropolitan area, to the local area. This will provide a strong impetus for companies with outstanding technology but suffering from a lack of funding-so-called "Death Valley"-to overcome these challenges.

Seo Eunsoo, Director General for Jobs, Investment and Attraction at Jeollanam-do, stated, "Attracting the Regional Growth Fund is a major achievement in economic cooperation following the passage of the Jeonnam-Gwangju Integration Special Act," adding, "We will focus investment and support so that local companies can grow into unicorn companies with global competitiveness."

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