Our Region Becomes a Youth Startup 'Silicon Valley'... Gyeongsan City Establishes a '25 Billion Won Scale' Youth Startup Support Fund

Local Companies Actively Invest at Least 3 Billion Won

Gyeongsan City, Gyeongbuk, and Daesung Startup Investment signed a business agreement to establish a fund worth 25 billion KRW to foster the youth startup ecosystem and support the growth of venture companies.

[Asia Economy Yeongnam Reporting Headquarters Reporter Yeo Jong-gu] Gyeongsan City in Gyeongbuk Province is establishing a youth startup support fund worth 25 billion KRW to create a foundation for local startups and nurture startups (new ventures).

To this end, Gyeongsan City and Daesung Startup Investment signed a business agreement to establish a fund for creating a youth startup ecosystem and supporting the growth of venture companies.

Through this agreement, the two organizations plan to complete the fund formation within the year, activate investment attraction for small and venture companies in Gyeongsan City, discover promising local startups, and cooperate in fostering Gyeongbuk-style unicorn companies.

The fund size totals 25 billion KRW, including 10 billion KRW from the Korea Fund of Funds contributed by the Ministry of SMEs and Startups.

Main limited partners (LPs) include the Korea Fund of Funds, Gyeongsan City, Daesung Startup Investment and Daesung Holdings (management companies), public institutions, and general corporations.

Investment targets will allocate at least 20% to local companies and at least 60% to youth entrepreneurs aged 39 or younger, actively investing in promising small and venture companies expected to achieve high growth.

Going forward, startups will focus on technology development and operate stably over a total period of eight years.

More than 200% (3 billion KRW) of the city’s 1.5 billion KRW investment will be mandatorily invested in companies located in Gyeongsan City, which is expected to greatly contribute to the growth of local companies and the creation of youth jobs.

Cho Hyun-il, mayor of Gyeongsan City, said, “In addition to indirect support mainly through loans, we will promote various support projects through fund formation so that startup youth can realize their dreams and become a new growth engine leading the future development of Gyeongsan.”

Gyeongsan City plans to establish the ‘Gyeongbuk Future Convergence Venture Town (tentative name)’ in the Imdang Station area, which will serve as a core hub for startup and small business support.