[Asia Economy Reporter Mun Je-won] The third Urban Regeneration Fund of Funds to support youth startups and small and venture businesses is being launched.
The Ministry of Land, Infrastructure and Transport announced on the 9th that it will recruit private fund managers to operate the third Urban Regeneration Fund of Funds until the 31st.
The third Urban Regeneration Fund of Funds will be established with a scale of 12.5 billion KRW. A private fund manager will be selected in the first half of this year, and full-scale investment will begin in the second half.
The Urban Regeneration Fund of Funds is a policy fund that discovers and invests in promising youth startups and small and venture businesses with high growth potential within urban regeneration revitalization areas.
It was introduced in 2019 with the goal of supporting the activities and participation of economic agents within urban regeneration areas for sustainable and self-sustaining urban regeneration.
The first fund, established with a scale of 25 billion KRW, started investing in June last year and has invested 4.5 billion KRW in five promising companies to date. The second fund (25 billion KRW scale) selected its fund manager in December last year and will begin investing next month after the partnership formation is completed.
Moon Seong-yo, head of the Urban Regeneration Project Planning Division at the Ministry of Land, Infrastructure and Transport, said, "Recently, due to COVID-19 and other factors, the business environment for youth startups and small and venture businesses in old downtown areas has become more difficult," adding, "I hope the Urban Regeneration Fund of Funds will serve as a stepping stone for promising companies to continue growing and contribute to revitalizing the region."
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