Gyeongnam Province Signs MOU to Establish 'Harmo Fund' for Impact Investment in Youth Enterprises

Governor Kim Kyung-soo "Supporting the Realization of Youth Dreams"

[Asia Economy Yeongnam Reporting Headquarters, Reporter Kang Woo-kwon] Gyeongnam Province announced on the 13th that it held a business agreement signing ceremony to establish the 'Gyeongnam Youth Impact Investment Fund' (Hamo Fund) in the provincial government office meeting room.

The name 'Hamo Fund' combines the positive exclamation in the Gyeongsang dialect 'Hamo' and the idea that 'everyone who wants to participate' ('Ha' + 'Mo') can join the fund.

An impact investment fund refers to a fund that seeks economic returns while investing in businesses or companies that can have a positive influence on social or environmental issues.

The Hamo Fund plans to invest more than 70% of the fund formation amount over the next three years in Gyeongnam's youth local value creators (local creators) and social value-based startup companies (social ventures). The remaining 30% will also be invested in social value-based startup companies that impact Gyeongnam.

Participants in this agreement as fund contributors include Geoje City, BNK Gyeongnam Bank, NH Nonghyup Bank Gyeongnam Headquarters, Korea Social Value Solidarity Fund, Central, and Korea Aerospace Industries. The contributors and co-managing institutions are MY Social Company and Gyeongnam Creative Economy Innovation Center. Tongyeong City plans to undergo city council approval procedures for its contribution in September.

The fund size is expected to be 2.3 billion KRW in total, including the planned contribution from Tongyeong City. Although not a large scale, Gyeongnam Province explained that this is the first case where only local governments, related regional institutions, and companies participate in funding without the involvement of a mother fund.

Governor Kim Kyung-soo emphasized, "I ask that the fund be operated to address the needs on the ground and scratch where it itches. We will do our best to make the Southeast region centered on Gyeongnam, Busan, and Ulsan another metropolitan area and a land of opportunity for youth."

The Hamo Fund is scheduled to hold its inaugural general meeting at the '2020 Gyeongnam Social Innovation Expo' at the end of September and begin operations from October.