Gyeonggi-do Creates 50 Billion Won 'Scale-Up Fund' to Support Startup Companies

Gyeonggi Provincial Government

Gyeonggi Province has established and begun operating a 50 billion KRW investment fund to nurture companies in the early growth stages, such as startups, into mid-sized enterprises.

On the 28th, Gyeonggi Province announced that it formed the "IBK Scale-up Gyeonggi G-Fund" on the 11th, and has started actively discovering companies and making investments from this month.

Including the scale-up fund, Gyeonggi Province plans to create a total of 208 billion KRW Gyeonggi G-Funds across four sectors to support economic revitalization and corporate growth.

The Gyeonggi Scale-up Fund consists of 5 billion KRW contributed by Gyeonggi Province and 45 billion KRW from private capital and others.

The investment targets are small and medium-sized venture companies in the province that meet one or more of the following criteria: ▲high-growth companies with an average annual sales growth rate or employment growth rate of 10% or more over the past three years ▲companies requiring follow-up investment due to reasons such as research and development (R&D) or facility expansion ▲candidate companies for mid-sized enterprises under the "Special Act on the Promotion of Growth and Competitiveness of Mid-sized Enterprises."

The fund managers are required to invest at least 200% of Gyeonggi Province's contribution into local companies.

The scale-up fund's operation period is eight years, until August 2031, and fund management will be jointly handled by DT&I Investment Co., Ltd. and Coropra Next Korea Co., Ltd.

Gyeonggi Province is also considering linked support measures to strengthen scale-up assistance so that companies can grow beyond the initial stage and expand their scale.

Park Jeong-nam, head of the Financial Planning Team at Gyeonggi Province, stated, "In the current venture investment winter, the role of the Gyeonggi G-Fund has become even more important. Starting with the scale-up fund, we will actively strive to establish large-scale funds in various sectors so that Gyeonggi startups can leap into global companies."

Meanwhile, Gyeonggi Province plans to establish Gyeonggi G-Funds worth 208 billion KRW in the second half of this year across four sectors, including scale-up, startups, balanced development of northern Gyeonggi, and future growth industries.