Ministry of SMEs and Startups Invests 9.5 Billion KRW, Ministry of the Interior and Safety Invests 4.5 Billion KRW
Expected to Be Established in the First Half of Next Year
The Ministry of SMEs and Startups announced on the 1st that it has begun raising a fund worth 21.7 billion KRW through the ‘Population Vitality Fund’ investment project.
The Ministry’s Korea Fund of Funds invested 9.5 billion KRW, and the Ministry of the Interior and Safety’s Local Extinction Response Fund invested 4.5 billion KRW, selecting two venture funds totaling 21.7 billion KRW.
The 21.7 billion KRW venture funds selected in this investment project are expected to be established by the first half of next year. Through this, venture investment supply to population-declining and interest areas is expected to be fully activated starting next year. There are a total of 107 cities, counties, and districts where regional extinction is feared due to population decline.
Despite being the first year of introduction for the Population Vitality Fund investment project, it attracted strong interest from the private sector. Fourteen fund managers applied for the two venture funds, resulting in a competition rate of 7 to 1. The fund size also increased by 1.7 billion KRW compared to the initial target of 20 billion KRW.
Kim Bong-deok, Venture Policy Officer at the Ministry of SMEs and Startups, said, “Starting with the Population Vitality Fund, we will supply venture capital to population-declining areas and strengthen support so that startups and venture companies in these areas can attract investment and grow.”
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