Chungnam Establishes 35 Billion KRW Fund to Support SMEs and Venture Companies

[Asia Economy (Naepo) Reporter Jeong Il-woong] Chungnam Province is establishing a fund worth 35 billion KRW to support small and venture businesses.

According to the province on the 6th, the fund will be created through an investment partnership formed by the Ministry of SMEs and Startups, Chungnam Technopark, and the investment management company T-Investment Co., Ltd.

The fund will initially raise 26.5 billion KRW by contributions of 3 billion KRW from the province, 17.5 billion KRW from the government’s mother fund, 1 billion KRW from the fund management company, and 5 billion KRW from four partners including the Industrial Bank of Korea. Additional investors will be recruited until November 5 this year to raise an extra 8.5 billion KRW, bringing the total fund size to 35 billion KRW.

The province plans to operate the fund over the next eight years, investing at least 60% of the total committed amount in small and venture businesses within three years of establishment and startups with annual sales of 2 billion KRW or less.

Additionally, it will invest at least 7.5 billion KRW in companies located in the region or those relocating to the province.

Kim Seok-pil, head of the province’s Economic Office, said, “We hope that the establishment and utilization of the fund will revitalize the local venture startup ecosystem,” adding, “The province will continue to discover early-stage startups with technological competitiveness and strive to activate the startup investment market.”