Gyeongbuk Province Creates 10 Billion KRW Youth Fund to Support Young Enterprises

Creation of the ‘Cheongnyeon Ae(k)kum Impact Fund’ and ‘Jiyeok Angel Stepping Stone Fund’
Expected to Play a Central Role in the Local Economy

[Asia Economy Reporter Kwangho Lee] Gyeongsangbuk-do is establishing a youth fund worth 10 billion KRW. It is expected to serve as a catalyst for the growth of youth enterprises.

On the 12th, according to Gyeongsangbuk-do, this fund will be composed of the ‘Gyeongbuk Youth Love Dream Impact Fund (hereinafter Impact Fund)’ and the ‘Gyeongbuk Regional Angel Stepping Stone Fund (hereinafter Angel Fund).’

The Impact Fund is a Gyeongsangbuk-do self-managed fund linked with SK Specialty that invests in competitive local youth startup companies. It is jointly operated by the Gyeongbuk Creative Economy Innovation Center, a local startup support organization, and Impact Square, a startup planner.

It is established with 5 billion KRW in capital from Gyeongsangbuk-do and SK Specialty, investing between 50 million KRW and up to 500 million KRW per company.

The Angel Fund is a government-led mother (national) fund funded by the Ministry of SMEs and Startups and managed by Korea Venture Investment Corp. It provides essential early-stage investment capital to local youth startup companies.

Managed by the startup planner Y&Archer, it is established with 5 billion KRW in capital from Gyeongsangbuk-do, Daegu City, and others, planning to invest between 50 million KRW and up to 300 million KRW per company.

Both funds will complete capital contributions by forming partnerships this year, recruit investment target companies mainly among youth startups located in the Gyeongbuk region, and select target companies through an investment review committee including on-site evaluations.

Lee Cheol-woo, Governor of Gyeongsangbuk-do, stated, “These funds will go beyond indirect support mainly through loans and directly invest in companies, providing a great opportunity for early-stage youth startups to grow. We will actively support youth to settle stably in the region and grow to play a pivotal role in the local economy.”