Gangnam-gu Launches Full-Scale Investment in 36 Billion KRW 'Gangnam Startup Fund No. 3'

Mandatory Investment of Over 500% (5 Billion KRW) of Old Capital in Small and Venture Companies in Gangnam-gu... Driving the Leap to Unicorn Companies

Gangnam-gu (District Mayor Jo Seong-myeong) has established a fund worth 36 billion KRW through the 'Gangnam Startup Fund No. 3' last February, and will now actively support investments in small and venture businesses.

The district contributed 1 billion KRW from the Small and Medium Business Development Fund for this fund formation, publicly recruited a general partner (management company), and selected BSK Investment. Subsequently, 14 partners from public and private institutions, including the Korea Fund of Funds established based on the Ministry of SMEs and Startups' fund, were formed. The total capital raised reached 36 billion KRW, which is 16 billion KRW more than the initial target of 20 billion KRW.

The Gangnam Startup Fund No. 3 plans to focus investments on early-stage startups or small and venture businesses engaged in technological innovation and management innovation. In particular, at least 500% of the district's contribution (over 5 billion KRW) will be mandatorily invested in small and venture businesses located in Gangnam-gu that have been established within the last 7 years, serving as a catalyst for the growth of these companies.

Meanwhile, the district has been operating Gangnam Startup Funds No. 1 and 2, investing over 27.5 billion KRW in small and venture businesses located in Gangnam-gu, supporting their leap toward becoming unicorn companies.

A unicorn company is a startup with a corporate valuation exceeding 1 billion USD. As of 2023, Gangnam-gu has a total of 11 unicorn companies (22 nationwide), the highest number in the country.

Jo Seong-myeong, Mayor of Gangnam-gu, stated, “Early investment plays a crucial role in the growth of startups with potential. Through investments in the startup fund, we will strongly support the growth of promising companies and establish a virtuous cycle in the venture investment ecosystem, continuing Gangnam’s reputation as the Silicon Valley of Korea.”