Focused Investment and Development of Innovative Companies in Ulsan·Gyeongnam Region and Regulatory Free Zones
Promotion of Formation of 6 Sub-Funds Worth a Total of 120 Billion KRW over 3 Years
[Asia Economy Yeongnam Reporting Headquarters Reporter Dongguk Lee] The ‘Southeast Region New Deal Venture Fund,’ jointly established by Ulsan City, Gyeongnam Province, Korea Venture Investment Corp., and Korea Water Resources Corporation, is officially kicking off the activation of the venture investment ecosystem in Ulsan and Gyeongnam with the formation of its first sub-fund.
On May 17, Ulsan City formed the first sub-fund of BNK Venture Investment, named ‘BNK Southeast Region New Deal Venture Fund,’ and began focused investments in promising local small and venture companies. The fund size is 20 billion KRW.
This fund plans to focus investments on small and venture companies located in Ulsan and Gyeongnam, especially those in regulatory free zones and the water industry sector. It is expected to provide significant support to local small and venture companies that have excellent technology but suffer from financial difficulties.
The water industry refers to water resources and water-related industries, including expandable sectors such as smart cities and industries related to the 4th Industrial Revolution.
The ‘Regional New Deal Venture Fund’ is a regionally based mother fund jointly established by Korea Venture Investment Corp., public institutions, and local governments to create a self-sustaining regional innovation enterprise ecosystem. The ‘Southeast Region (Ulsan·Gyeongnam) New Deal Venture Fund’ is the third such fund established nationwide, following Busan and the Chungcheong region.
Mother fund: a fund that invests in other funds (Fund of funds); Sub-fund: a fund that invests in companies
Through the first call for investment in December 2021, BNK Venture Investment and Gyeongnam Venture Investment were selected as the investment firms to operate two sub-funds totaling 40 billion KRW.
By 2024, over three years, a total of six sub-funds worth 120 billion KRW will be established, with 40 billion KRW invested annually.
Ulsan City plans to continue new investments to activate local venture investment by adding the ‘Southeast Region New Deal Venture Fund’ to the five venture funds currently in operation, thereby strengthening the virtuous cycle investment ecosystem of ‘startup → investment → growth → exit → reinvestment.’
A city official said, “We hope the Southeast Region New Deal Venture Fund will serve as a pillar of support for promising local small and venture companies,” adding, “We will continue to provide interest and support for the successful operation of the ‘Southeast Region New Deal Venture Fund’ and the sustainable growth of regional innovative companies.”
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