In a move aimed at fostering the growth of technology-driven startups in the central region of South Korea, the Innopolis R&D Special Zone Promotion Foundation has revealed plans to establish a new fund exceeding 40 billion won (29 million USD). The fund, tentatively named the ‘Initial Central Region Special Zone Fund,’ to be completed by end of the year, will focus on injecting much-needed investment into technology-based startup enterprises in the central region special zone.
To facilitate its operations, the Foundation is in the process of selecting a qualified manager to oversee the fund, with the selection process anticipated to conclude in the coming month. Proposals from interested parties are currently being accepted, and a business briefing session is scheduled for the August 23 at the conference room on the 18th floor of the Shinsegae Expo Tower in Daejeon, aimed at domestic venture capital stakeholders involved in the manager selection process.
Meanwhile, the Special Zone Foundation has commited to drive local technology company growth by investing a total of 354.8 billion won (264k USD) in 221 companies through nine special zone funds formed starting with the Daedeok Innopolis Patent Technology Commercialization Investment Association in 2006. An official from the Special Zone Foundation said, “The creation of this new special zone fund focuses on intensively supporting the scale-up of technology-based companies located in the central region of the special zone.”
The scope of the Special Zone Foundation’s efforts encompasses not only the central region but also extends to various other areas. The existing metropolitan and small stronghold R&D special zones have been expanded to include central areas such as Daejeon, Cheonan/Asan, Cheongju, Ansan, Seoul Hongneung, Incheon Seo-gu, and Chuncheon. Additionally, the Yeonghonam area, which includes cities such as Jinju, Changwon, Gimhae, Ulsan, Ulju, Pohang, Gyeongbuk-Gumi, Naju, and Gunsan, is also within the Foundation’s purview.
For each region, tailored funds closely aligned with their unique attributes and requirements are in the pipeline. The focus of these investments will center on technology-based companies within the special zone, early-stage startups with less than 7 years of operational history, and enterprises engaged in the commercialization of public technologies related to areas of national strategic importance and societal and environmental impact.
Kang Byeong-sam, chairman of the Special Zone Foundation, emphasized, “Continuous expansion of the Special Zone Fund to nurture local technology companies is very important now that venture companies are facing financial difficulties due to the shock of the overseas economic environment. This new fund will expand the investment resources of the special zone fund, centered on special zones located in the central region.”
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