Chungcheongnam-do, NH NongHyup, and Korea Credit Guarantee Fund Join Forces to Create 150 Billion KRW Bay Valley Venture Fund

1 trillion KRW Parent Fund and 50 billion KRW in Corporate Financial Support
2.0% Interest Subsidy for SMEs for Two Years

(From left) Chae Byungho, Standing Director of the Korea Credit Guarantee Fund, Kim Taeheum, Governor of Chungcheongnam-do, and Park Jangsun, Head of NongHyup Bank Chungnam Headquarters, are taking a commemorative photo at the "Chungcheongnam-do Bay Valley Resident SME Development Financial Support Agreement Ceremony." / Chungnam Province

Chungcheongnam-do will establish a venture fund worth 150 billion KRW to create "Bay Valley" for nurturing unicorn companies.

On June 19, the province held the "Local Era Venture Fund Investment Commitment and Bay Valley Capital Agreement Ceremony" in the situation room at the provincial government office, attended by Kim Taeheum, Governor of Chungcheongnam-do, Baek Namseong, Vice President of NH NongHyup Bank, and Chae Byungho, Standing Director of the Korea Credit Guarantee Fund.

Through this agreement, the parties pledged to create a 100 billion KRW parent fund and provide financial support to companies totaling over 50 billion KRW.

The venture fund will be composed of 60 billion KRW from the Ministry of SMEs and Startups' Fund of Funds, 8 billion KRW from Chungcheongnam-do, and 32 billion KRW in private capital.

Of this, NH NongHyup Bank committed to invest 5 billion KRW as a parent fund resource. Based on this, the province plans to establish sub-funds focusing on four key areas: innovative industries, mobility, carbon neutrality, and early-stage startups, with plans to invest more than 60 billion KRW in local companies.

The province will subsidize a 2.0% interest rate for two years for SMEs located in Bay Valley, while NH NongHyup Bank will make a special contribution of 1 billion KRW to the Korea Credit Guarantee Fund to facilitate corporate loans. The Korea Credit Guarantee Fund will provide guarantees totaling 50 billion KRW and partially support guarantee fees.

Governor Kim Taeheum stated, "We will intensively foster venture companies in Bay Valley to create a technovalley that surpasses Pangyo," adding, "By 2028, we will expand the venture fund to a scale of 1 trillion KRW and secure more than 1,300 startup spaces."