Regional Parent Fund with Major Conglomerate Participation: 'Gyeongbuk-POSCO Innovation Growth Venture Fund' Established at 100 Billion Won

Gyeongbuk-POSCO Innovation Growth Venture Fund Launched, Focusing on Investments in North Gyeongsang Province
Parent Fund of 101.1 Billion Won Established with 60 Billion Won from Korea Fund of Funds and Participation from POSCO and Others
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The Gyeongbuk Fund, which focuses on investments in North Gyeongsang Province, has completed its fundraising and will begin full-scale operations. A parent fund worth 100 billion won has been established, with major investors including large corporations such as POSCO and local governments.

On October 22, the Ministry of SMEs and Startups announced that the "Gyeongbuk-Posco Innovation Growth Venture Fund" formation ceremony was held at Changeup Ground in Pohang. Earlier this year in February, the ministry invited local governments to participate in the creation of regional parent funds dedicated to areas outside the Seoul metropolitan area. With the launch of the Gyeongbuk Fund, a total of four parent funds-Chungnam, Busan, Gangwon, and Gyeongbuk-have been established, amounting to 400 billion won. In the second half of the year, the ministry plans to launch a sub-fund investment project, ultimately creating venture funds totaling 700 billion won.

Hansung Sook, Minister of the Ministry of SMEs and Startups, is delivering a congratulatory speech at the "Gyeongbuk-POSCO Innovation Growth Venture Fund Inauguration Ceremony" held on the 22nd at Changeup Ground in Pohang, Gyeongbuk. Ministry of SMEs and Startups

The Gyeongbuk Fund was established as a large-scale parent fund totaling 101.1 billion won, with 60 billion won in seed capital provided by the Korea Venture Investment Corp. Parent Fund. Additional investors include North Gyeongsang Province, anchor corporation POSCO, Pohang City, Gumi City, Gyeongju City, Gumi City, and Nonghyup Bank.

This marks the first time since the Ministry of SMEs and Startups began its regional parent fund initiative in 2021 that a local conglomerate has participated as an investor. The Gyeongbuk Fund is expected to strengthen mutually beneficial cooperation between local startups, venture companies, and POSCO.

The Gyeongbuk Fund will finalize its investment focus at an operations committee meeting in November and will begin sub-fund investment projects that same month. Over the next two years, the fund aims to create venture funds totaling 200 billion won, with more than 80 billion won to be invested primarily in startups and venture companies based in North Gyeongsang Province, as well as companies relocating to the region.

Han Sung-sook, Minister of SMEs and Startups, who attended the formation ceremony, stated, "The Gyeongbuk-Posco Innovation Growth Venture Fund is especially meaningful as it is the first time a local conglomerate like POSCO has participated as an investor in the regional parent fund initiative. Drawing on the establishment cases of the Chungnam, Busan, Gangwon, and Gyeongbuk regional parent funds this year, the Ministry will further develop the program so that more local community investors can participate in future regional parent funds."

This content was produced with the assistance of AI translation services.