KSD Supports Matching Investment Funds for Crowdfunding with 8 Public Institutions and Social Enterprises in Busan Region

[Asia Economy Reporter Oh Ju-yeon] The Korea Securities Depository announced on the 8th that it has provided matching investment funds of 30 million KRW through the 'Busan Social Economy Support Fund (BEF)' to 13 social enterprises that achieved their target funding amounts in a crowdfunding project, together with eight public institutions in the Busan area.

The eight public institutions participating in this activity in the Busan area are the Korea Technology Finance Corporation, Busan Urban Corporation, Busan Port Authority, Korea Housing & Urban Guarantee Corporation, Korea South-East Power Co., Ltd., Korea Securities Depository, Korea Asset Management Corporation, and Korea Housing Finance Corporation. Since 2018, they have been entrusting the operation of the BEF, which aims to raise 5 billion KRW over five years to support social economy enterprises in the Busan area, to the Social Enterprise Research Institute.

This crowdfunding project was conducted in March with a matching investment method, where if social enterprises achieve their target funding amounts through participation (donations) from the general public, BEF provides additional funds. The purpose is to support social enterprises in the early stages of business or preparing for commercialization to pioneer sales channels and expand sales.

Compared to last year, participation by the general public increased by 192% (218 people → 406 people), and the funding amount increased by 144% (25 million KRW → 36 million KRW). As all 13 social enterprises participating in this crowdfunding, such as 'Yeongdo Haenyeo' and 'Dongnae Chabatgol Flower Tea,' achieved their target funding amounts, BEF is providing a total of 30 million KRW in matching investment funds.

The Korea Securities Depository stated, "Together with public institutions in the Busan area, we are conducting various financial support projects such as crowdfunding for the mutual growth and development of social enterprises, and we will continue to contribute to revitalizing the local economy and creating good jobs through continuous support for social enterprises."

Meanwhile, the eight public institutions in the Busan area plan to raise 5 billion KRW in BEF by 2022, including 1.04 billion KRW in 2020, and support the startup and growth of social enterprises in the Busan area through various programs such as financial support projects, management consulting, growth support education including academies, and support for establishing social cooperatives.