[Asia Economy Yeongnam Reporting Headquarters, Trainee Reporter Hwang Dooyul] The ‘Busan Regional New Deal Venture Fund’ is starting focused investments in BNK Venture Investment and small and venture companies in Busan.
Busan City has established the first sub-fund of the ‘Busan Regional New Deal Venture Fund,’ called the ‘BNK Busan Regional New Deal Venture Fund.’
On the 9th, Busan Mayor Park Hyung-joon, Korea Venture Investment Venture Investment Headquarters Director Jang Sang-ik, and BNK Venture Investment CEO Do Seunghwan will attend the first sub-fund formation ceremony.
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The ‘BNK Busan Regional New Deal Venture Fund’ is raised with a total of 25 billion KRW, including 15 billion KRW from the parent fund ‘Busan Regional New Deal Venture Fund,’ 4 billion KRW from BNK Venture Investment, 3 billion KRW from Busan Bank, 2 billion KRW from Gyeongnam Bank, and 1 billion KRW from BNK Capital.
The fund is planned to be operated with an investment period of 3 years and a duration of 8 years.
The fund plans to invest more than 60% of the total committed amount in Busan City’s seven strategic industries, small and venture companies in Busan, and small and venture companies within the regulatory free zone. In particular, it plans to invest more than 6.5 billion KRW in Busan’s small and venture companies.
The ‘Busan Regional New Deal Venture Fund’ is one of the annual formation plans of a 1.2 trillion KRW scale startup fund. The fund was established to form a venture investment ecosystem in Busan and foster local small and venture companies.
Busan City, Korea Technology Finance Corporation, and Korea Fund of Funds will establish a parent fund worth 91.2 billion KRW over three years. Based on this, a sub-fund worth 130 billion KRW will also be formed.
On November 5th, the first phase of the parent fund was completed with 30.4 billion KRW. The sub-fund plans to be formed with a total of 50 billion KRW within 2021.
Busan Mayor Park Hyung-joon said, “By establishing a 1.2 trillion KRW scale startup fund, we will create a virtuous cycle in Busan’s venture investment ecosystem and make Busan a ‘city good for business.’”
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