Ministry of SMEs and Startups Announces 'Mother Fund 2023 1st Regular Investment' Notice
[Asia Economy Reporter Kim Cheol-hyun] The Ministry of SMEs and Startups (Minister Lee Young) announced on the 3rd through the '2023 1st Regular Investment of the Mother Fund' notice that it plans to create a venture fund worth approximately 280 billion KRW.
Out of the 313.5 billion KRW budget for the 2023 Mother Fund investment project confirmed by the National Assembly, 183.5 billion KRW will be invested to supply venture investment funds worth 280 billion KRW, and the remaining 130 billion KRW will be supplied additionally early this year along with recovered funds.
Looking at the detailed contents by major investment sectors, first, to support startups in market underinvestment areas, a fund focusing on youth entrepreneurship, women, and re-challenge sectors will be created with more than 100 billion KRW. To this end, 330 billion KRW will be invested to establish a 'Youth Startup Fund' that supports young entrepreneurs with innovative ideas. Of this, 200 billion KRW will be invested in the Youth Startup Rookie League, which was established to support small and medium-sized fund managers who have recently found it more difficult to form funds.
130 billion KRW will be invested in the 'Women Entrepreneurs Fund,' which focuses on women-led startups, and 160 billion KRW will be invested in the 'Re-challenge Fund,' which invests in companies re-established by business restructuring/transition approved companies and closed business owners. Additionally, 350 billion KRW will be invested to create a 700 billion KRW scale 'M&A Fund' to revitalize mergers and acquisitions (M&A) and the intermediate recovery market for SMEs, startups, and venture companies, and 300 billion KRW will be invested in the 'Materials, Parts, and Equipment Fund,' which focuses on SMEs and venture companies in materials, parts, and equipment, creating a 500 billion KRW scale fund.
To promote regional balanced development and nurture regional innovative ventures and startups, 330 billion KRW will be invested in the 'Regional Innovation Venture Fund (Mother Fund).' The Regional Innovation Venture Fund is a mother fund jointly established by the Mother Fund, local governments, and public institutions, aiming to create sub-funds worth up to 500 billion KRW by 2024. 235 billion KRW will also be invested in the 'Overseas Venture Capital (VC) Global Fund' to support domestic companies' overseas expansion and growth into global unicorn companies.
Kim Jeong-ju, head of the Venture Investment Division at the Ministry of SMEs and Startups, said, "In the second investment notice early this year, we plan to announce an investment project composed of a rich portfolio including the remaining 130 billion KRW budget and recovered funds, such as the Super Gap Fund and Secondary Fund."
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