3 Trillion Won Support for Ventures and Startups... Creation of 20,000 Jobs (Comprehensive)

13th Korea New Deal Ministerial Meeting

Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, is delivering opening remarks at the 'Emergency Economic Central Countermeasures Headquarters Meeting and Korean New Deal Related Ministers Meeting' held on the 13th at the Government Seoul Office in Jongno-gu, Seoul. Photo by Kang Jin-hyung aymsdream@

[Asia Economy Reporter Jang Sehee] The government will provide complex financing of 3 trillion won to 3,000 venture startups and expand overseas orders in green energy to 30GW by 2025. Over five years, it will supply 30 trillion won in export financing for the Green New Deal and establish customized export insurance for Green New Deal projects. The public preliminary feasibility study (PFS) period for overseas projects will also be shortened from 4 months to 2 months.

Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, stated at the Emergency Economic Central Countermeasures Headquarters (Economic Central Headquarters) meeting and the Korean New Deal related ministers' meeting held at the Government Seoul Office on the 13th, "To resolve difficulties faced by companies without collateral excluding intangible assets such as technology, we will expand complex financing linked to investment, loans, and guarantees to the scale of 3 trillion won by 2022."

He added, "By supplying funds to about 3,000 venture startups, it is expected to create approximately 20,000 jobs."

The government will also introduce a Silicon Valley-style 'investment conditional loan system.' Deputy Prime Minister Hong explained, "We aim to diversify investment methods by benchmarking Silicon Valley's corporate investment approach," and "Within this year, we will revise the Venture Investment Act to introduce an investment conditional loan system where lending institutions provide low-interest funds on the condition of acquiring new stock subscription rights of companies."

Additionally, the government plans to increase the scale of combined support for research and development (R&D), investment, and guarantees for private companies from 30.8 billion won last year to 54.5 billion won this year.

Regarding the globalization strategy of the Korean New Deal, he expressed, "In the Green New Deal sector, we will make every effort to expand overseas orders, including green energy, from 15GW in 2019 to 30GW (cumulative) by 2025."

Accordingly, over five years, support will be strengthened by supplying 30 trillion won in export financing for the Green New Deal, establishing customized export insurance for Green New Deal projects, and shortening the public PFS period for overseas projects from 4 months to 2 months.