On the 24th, Kim Juhyun, Chairman of the Financial Services Commission, visited Mapo Front One in Mapo-gu to listen to the difficulties faced by startups and the venture industry together with venture entrepreneurs, the venture investment sector, and the financial sector, and urged the expansion of investment and support from the financial sector.
[Asia Economy Reporter Song Hwajeong] The financial sector is actively supporting ventures and startups. As financial authorities plan to establish an Innovation Growth Fund totaling 15 trillion won over five years to support venture companies, financial firms are also strengthening their support for ventures and startups.
According to the Financial Services Commission on the 26th, the financial authorities will create an Innovation Growth Fund worth 15 trillion won over five years to support small and venture companies in new industries such as semiconductors and artificial intelligence (AI), providing the necessary funds for venture companies to grow into unicorn companies.
The Innovation Growth Fund will inject 300 billion won annually in public funds, raising 3 trillion won each year (with a 10% public investment ratio), totaling 15 trillion won over five years until 2027. The fund will allocate 1.5 trillion won annually each to innovative industries such as semiconductors, AI, aerospace, and strategic industries, as well as to growth support sectors including startup and venture companies aiming to become unicorns.
The Financial Services Commission plans to operate the fund by actively reflecting private sector opinions in investment criteria and expanding private sector participation in fund management through competitive public offerings, maximizing private autonomy.
Policy financial institutions (Korea Development Bank, Industrial Bank of Korea, Korea Credit Guarantee Fund) will establish a new program worth 6.3 trillion won that supplies funds to startup and venture companies through growth-focused evaluations rather than relying on financial statements and collateral value. In particular, the Industrial Bank of Korea will introduce Silicon Valley Bank-style venture loans by combining general loans with zero-interest convertible bonds, allowing venture companies to access loans at interest rates lower than market rates during the period between initial investment attraction and follow-up funding.
The Financial Services Commission, policy financial institutions, and the financial sector plan to continue reviewing additional support measures to further expand support for startup and venture companies.
Financial companies are also actively supporting ventures and startups on their own. Shinhan Financial Group signed a business agreement on the 24th with Daejeon Metropolitan City, Chungnam National University, and KAIST to revitalize the startup ecosystem. Through this agreement, Shinhan Financial plans to establish a public-private-academic cooperation system in areas such as ▲creating a Daejeon Startup Town ▲discovering and nurturing innovative startup companies ▲supporting investment and global expansion ▲sharing education and research infrastructure, contributing to local job creation and economic revitalization. Since 2020, Shinhan Financial has launched its startup nurturing platform, 'Shinhan Square Bridge,' fostering a total of about 480 startups in major domestic and international cities including Seoul, Incheon, Daegu, Jeju, and Vietnam.
Woori Financial Group selected 14 companies for the 3.5th batch of its startup collaboration program 'DINNOlab' earlier this month. Startups with excellent technologies in various fields such as AI, data, ESG, healthcare, platforms, and solutions were selected, and these startups will move into DINNOlab's second center, a specialized center focusing on new technologies like AI and mobility and ESG. Additionally, they will be provided with capacity-building programs and investment opportunities through external experts in venture capital, taxation, and law.
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