K-water, Water Industry Startup Crowdfunding

Two Types: Reward-Based and Investment-Based

Investment-Based Allows Up to 10 Million KRW Annual Investment
Recruitment Until the 16th... Final Selection of 10 Companies on the 18th

[Sejong=Asia Economy Reporter Joo Sang-don] Korea Water Resources Corporation (K-water), together with the Ministry of Environment and the Research & Development Special Zone Promotion Foundation, is launching a ‘Social Fundraising (Crowdfunding) Support Project’ to discover and nurture water industry startups.

On the 9th, K-water announced that the crowdfunding support project will be open for applications until the 16th. This project raises social funds by receiving investments from the general public and related organizations such as the Ministry of Environment to nurture startups related to the water industry.

The investment types are divided into ‘reward-based’ and ‘investment-based.’ The reward-based type involves investing (or sponsoring) to realize corporate value and receiving products or services in return. The investment-based type issues shares equivalent to the investment amount; general investors can invest up to 5 million KRW per transaction and up to 10 million KRW annually. For example, if you subscribe to a startup making portable water purifiers through the reward-based type, you receive the portable water purifier, whereas subscribing through the investment-based type grants you shares or bonds equivalent to the investment amount.

Eligible companies include △ water industry and Green New Deal sectors (including integrated water management, water energy, and smart cities) △ social startups (social ventures) aiming to provide benefits to society through products and services. K-water will select a total of 10 companies on the 18th after document review and investment committee deliberation. These companies will receive indirect support through participation in various programs. From mid-month for one month, specialized crowdfunding education and consulting, content production, and online marketing support will be provided. Subsequently, an online corporate briefing and investment subscription will begin for the selected companies. Related organizations such as K-water and the Research & Development Special Zone Promotion Foundation plan to purchase products from companies selected under the reward-based type to support market access.

Citizens subscribing to the investment-based type can receive shares or bonds with income tax deductions available up to 30 million KRW. The Promotion Foundation will support the selected companies by linking follow-up growth such as △ investment and market access △ revitalization of the regional startup ecosystem △ demand discovery for technologies owned by K-water, technology transfer, and establishment and nurturing of research institute startups. Park Jae-hyun, President of K-water, said, "Through this collaboration, we will provide multifaceted support that startups desire," adding, "We will take the lead in nurturing the water industry and creating an innovative startup ecosystem."