Gyeongbuk Province, Six Cities and Companies Join Forces to Create 10 Billion Won Public-Private Fund for Advanced Sector Investment

Gyeongbuk Province announced on September 21 that it will officially launch the “G-star Gyeongbuk Potential Fund,” a 10 billion won fund designed to foster promising local successor companies and expand the foundation for self-sustaining growth in the region.

To this end, on September 18, Gyeongbuk Province, six cities and counties, regional mid-sized and senior companies, and professional investment firms signed a business agreement (MOU) during the “2025 Gyeongbuk Startup Investment Matching Day” held at the Cheonma Art Center of Yeungnam University.

A memorandum of understanding signing ceremony for a public-private fund jointly participated by Gyeongbuk Province, six cities and counties, and companies is taking place.

The total amount of the fund is 10 billion won. Gyeongbuk Province and six cities and counties (Pohang, Gyeongju, Andong, Gumi, Gyeongsan, and Chilgok) will contribute 7 billion won. Regional mid-sized and senior companies, including Penta Security, Ajin Industrial, SEA Mechanics, Sandong Metal Industry, Talentotal Solution, and Daegu University Technology Holdings, will contribute 2.2 billion won. The Gyeongbuk Center for Creative Economy and Innovation and Partners Lounge will participate as general partners (GPs) with an investment of 800 million won.

This fund holds significant meaning as the nation’s first public-private partnership fund jointly invested by Gyeongbuk Province, six cities and counties, and regional mid-sized and senior companies.

The fund will be managed for eight years from 2025 to 2032 (four years for investment, four years for recovery). Its main investment targets are early-stage deep-tech startups in ten key advanced sectors, including system semiconductors, bio-health, future mobility, eco-friendly energy, and big data/artificial intelligence (AI). The fund also plans to actively incorporate the opinions of senior companies participating as investors in Gyeongbuk’s core industries to discover promising businesses.

Once the fund is established at the end of September, the Gyeongbuk Center for Creative Economy and Innovation, the region’s dedicated startup support organization, plans to recruit new operators for the Ministry of SMEs and Startups’ TIPS (Tech Incubator Program for Startup) program. TIPS provides up to 700 million won in government R&D and commercialization funding over two years to startups invested in by private operators. The center aims to make the discovery of promising companies through TIPS a key regional economic growth strategy.

Kim Hak-hong, Vice Governor for Administrative Affairs of Gyeongbuk Province, stated, “The ‘G-star Gyeongbuk Potential Fund’ will serve as the cornerstone of a virtuous venture investment ecosystem that nurtures local companies with local resources. We will spare no effort in supporting our region’s technology-driven startups and venture companies so they can grow into global enterprises and usher in a new era led by Gyeongbuk.”