Requesting Support for the Local Era Venture Fund
Emphasizing the Development of the Domestic Aviation MRO Industry
On the 13th, Park Wan-su, Governor of Gyeongnam Province, met with Kang Seok-hoon, Chairman of the Korea Development Bank (KDB) at the bank's headquarters in Seoul to request financial sector cooperation for the development of regional industries such as aerospace.
Governor Park introduced, "Gyeongnam is fostering future advanced industries such as aerospace, next-generation nuclear power, artificial intelligence, and bio alongside the digital transformation of its core industries including shipbuilding, automobiles, machinery, and defense."
He added, "We ask financial institutions like KDB to also work hard to create a regional venture ecosystem so that high value-added industries preferred by young people can take root in the region."
Park Wan-su, Governor of Gyeongnam Province (right), is shaking hands with Kang Seok-hoon, Chairman of the Korea Development Bank, at the Korea Development Bank headquarters in Seoul. Courtesy of Gyeongnam Provincial Government
He also emphasized the need to nurture the domestic aviation Maintenance, Repair, and Overhaul (MRO) industry and requested support from KDB.
Governor Park stated, "In Sacheon, Gyeongnam, Korea Aerospace Service (KAEMS), a subsidiary of Korea Aerospace Industries (KAI), owns a large-scale factory and is preparing to enter the private aircraft MRO market," adding, "If KDB supports this, it will greatly contribute to reducing the overseas dependency of domestic low-cost carriers and enhancing the competitiveness of the domestic aviation maintenance industry."
He continued, "For Gyeongnam to leap forward as a global aerospace capital, active support from KDB is essential," and proposed, "Please prepare various policy finance programs such as customized financial products for aerospace companies."
Earlier, Gyeongnam Province established the Gyeongnam-KDB Regional Innovation Venture Fund at the end of last year with participation from KDB and others, and separately plans to participate in the Ministry of SMEs and Startups’ Local Era Venture Fund formation contest.
The Local Era Venture Fund is a project promoted by the Ministry of SMEs and Startups over three years starting this year, targeting 14 non-capital metropolitan local governments to expand venture investment in non-capital regions. It operates through investments from Gyeongnam Province, banks, and local companies.
On this day, Gyeongnam Province explained to KDB the fund formation plan with a scale of 64.7 billion KRW to be operated from 2024 to 2036 and requested active participation.
Governor Park Wansu of Gyeongnam Province and Gyeongnam provincial officials are explaining the necessity of financial sector support for regional issues to Kang Seok-hoon, President of the Korea Development Bank, and other Korea Development Bank officials at the Korea Development Bank headquarters in Seoul. Photo by Gyeongnam Provincial Government
Regarding the aviation MRO industry development plan, they shared the current situation where about 80% of maintenance by domestic low-cost carriers is conducted overseas and discussed ways to meet the maintenance demand of domestic low-cost carriers within the country.
In addition to the direction for fostering the aviation MRO industry, they also discussed ways to activate special financial support under the ‘New Space Aerospace Industry Ecosystem Strengthening Agreement’ signed in November last year between KDB and the Aerospace Administration.
One part of the agreement, ‘Special Financial Support for the Aerospace Industry,’ allocates 300 billion KRW out of KDB’s 3 trillion KRW support fund for materials, parts, and equipment to the aerospace sector, offering up to a 1% interest rate discount.
Gyeongnam Province conveyed the difficulties faced by local companies gathered through corporate meetings and sought solutions with KDB.
Governor Park said, "We will continue to cooperate with financial institutions such as KDB to realize a ‘Gyeongnam of coexistence, growth, and hope’ that residents can feel."
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