"Activation of Investment in Regional Innovative Companies... Support for Regional Balanced New Deal"
[Asia Economy Reporter Moon Chaeseok] A new 'Regional Industry Vitality Fund' has been established to invest in non-metropolitan companies to support technology commercialization of regional innovative enterprises.
The Ministry of Trade, Industry and Energy announced on the 9th that it will start investing in the Regional Industry Vitality Fund, worth 26 billion KRW, which was jointly funded and established with Korea Development Bank, Korea Growth Investment Corporation, and others, from the 10th.
The fund will invest in companies in non-metropolitan areas such as the Chungcheong region, Honam region, Daegyeong region, Dongnam region, and Gangwon-Jeju region that are pursuing technology transfer and technology commercialization.
More than 60% of the fund's capital will be invested in companies that have their headquarters, factories, or corporate research institutes in Daejeon, Sejong, Chungbuk, Chungnam (Chungcheong region), Gwangju, Jeonbuk, Jeonnam (Honam region), Daegu, Gyeongbuk (Daegyeong region), Busan, Ulsan, Gyeongnam (Dongnam region), Gangwon, or Jeju (Gangwon-Jeju region), or plan to relocate there within one year.
According to the Ministry of Trade, Industry and Energy, the asset management company operating the fund is currently conducting investment screening for a digital new deal-related company (5G optical communication materials and components) in Daejeon. The investment is expected to be finalized within this month, which will be the fund's first investment case.
The Ministry stated that starting with the operation of this fund, it plans to continuously promote the establishment of follow-up funds to support the activation of investments in non-metropolitan companies.
Additionally, if local governments in non-metropolitan areas wish, the fund regulations have been prepared to allow local governments to make additional contributions beyond the 26 billion KRW established this time.
The Ministry said it will continuously analyze the fund's performance and its impact on the regional economy and will consider expanding the investment scale and targets if necessary.
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