Korea Development Bank to Establish 350 Billion Won Fund to Boost Southern Region Economy

Korea Development Bank Announces Call for Proposals for the
"2025 Southern Region Local Growth Support Fund" Investment Project

Korea Development Bank announced on June 20 that it has launched a call for proposals for the "2025 Southern Region Local Growth Support Fund" investment project, aiming to promote balanced regional development by revitalizing the local economy in the southern region.

With 100 billion won in seed capital from the bank, a total fund of 350 billion won will be established. The bank plans to select three management companies to operate VC funds and two management companies to operate PE funds.

This investment project marks the first directly established regional fund since the launch of the Southern Region Headquarters in October of last year. VC and PE funds will be created to build a support system for the growth strategies and life cycles of companies in the southern region.

The VC funds are expected to invest in small and venture businesses operating in the strategic industries of each local government in the southern region, thereby fostering these industries and strengthening the regional venture ecosystem. The PE funds will actively invest in helping small and medium-sized enterprises and mid-sized companies in the southern region, which are engaged in traditional manufacturing, to enter new industries and restructure their businesses. This is intended to help these companies secure industrial competitiveness and improve their business structures.

Korea Development Bank will close proposal submissions on August 1 and plans to select the final management companies in September through a fair and prompt evaluation process. A bank official stated, "In order for the Korean economy to overcome low growth and achieve a new leap forward, it is necessary to foster the southern region, where the share of gross regional domestic product (GRDP) has been declining," and added, "As Korea's leading policy financial institution, we will continue to play our role in promoting balanced regional development."