Fund Managers for “Vision 2030 Fund” Finalized
300 Billion Won to Be Invested This Year, Fund Formation by December
“Supporting Private Capital Attraction Despite Investment Slowdown”
The Seoul Metropolitan Government is set to ramp up focused investment in artificial intelligence (AI) and bio startups. This initiative is part of the creation of the 250 billion won “Seoul Vision 2030 Fund,” with plans to invest 30 billion won this year.
On September 5, the Seoul Metropolitan Government announced that it had selected eight fund management companies across three sectors-AI Transformation, Bio, and First Step Companion-for the operation of the “Seoul Vision 2030 Fund.”
By sector, 15 billion won will be allocated to AI Transformation, 10 billion won to Bio, and 5 billion won to First Step Companion. The First Step Companion Fund is specifically designed to support early-stage startups that face greater challenges in securing funding, serving to foster the stable growth of companies at the angel and seed stages.
Based on this investment, the selected management companies (four for AI Transformation, two for Bio, and two for First Step Companion) have proposed to invest at least 200% of Seoul’s committed capital in innovative companies based in Seoul, and at least 20% in startups that are either tenants or graduates of Seoul’s startup support facilities. The aim is to provide comprehensive support for startups at all stages, from those struggling with funding in their early days to those in the growth phase.
To select outstanding management companies, Seoul focused on evaluating the feasibility of fund formation, the expertise of fund management teams, the strengths of each company, and their financial stability during the review process. Notably, this year, in response to fierce global competition in the AI industry, Seoul established the new “AI Transformation” sector to ensure funding reaches the entire value chain, including AI semiconductors, data analytics, and convergence services. The results of the selection were announced on the Seoul Metropolitan Government’s website on September 2, and the selected fund managers are required to establish their funds and begin investing in venture companies within three months of selection.
The city’s track record with investment funds has been remarkable. From 2019 to 2022, through the “Future Innovation Growth Fund,” Seoul invested 175.1 billion won, creating a total fund size of 3.6857 trillion won and investing 3.0429 trillion won (as of the end of 2024) in 1,538 companies. This led to the rise of unicorn companies such as Toss, Rebellions, and Furiosa, and more recently, Autocrypt successfully went public on KOSDAQ, further proving the effectiveness of these investments.
The Vision 2030 Fund is a follow-up project aimed at carrying this momentum forward, with a goal of raising 5 trillion won from 2023 to 2026. In its third year, the fund has added the “AI Transformation” sector to respond to rapidly changing industry demands. Joo Yongtae, Director of Economic Policy at the Seoul Metropolitan Government, stated, “Even amid an investment downturn, we will attract private capital and focus investment on strategic industries, laying the groundwork for the emergence of Seoul’s next unicorn companies. In particular, the fund will serve as a strong catalyst to help AI and bio startups expand into global markets.”
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