Jeonbuk's 104 billion won growth fund begins operations

The SMEs ministry said Thursday that Jeonbuk's first Regional Growth Fund began operations with 104 billion won ($73.9 million). The ministry said Jeonbuk became the first fund in the program following active participation from the local community centered on Jeonbuk Special Self-Governing Province.

The fund includes 60 billion won ($42.8 million) in seed capital from the Motae Fund. Other participating institutions include Jeonbuk Special Self-Governing Province, Iksan, Jeongeup and Gimje cities, Jeonbuk Bank, Hyundai Motor Group, Vinatech and Wonkwang University. An operating committee comprising Korea Venture Investment Corp., local governments and major investors will determine investment areas before the fund begins allocating money to sub-funds in September. The sub-funds are planned at a total of 180 billion won ($128 million).

Regional Growth Funds are fund-of-funds platforms formed and operated jointly by local communities, local governments and the Motae Fund. The program targets at least one fund in each of 14 non-capital regions, supplying more than 2 trillion won ($1.43 billion) in fund-of-funds capital over five years, beginning with 450 billion won ($321 million) this year.

"The Jeonbuk Regional Growth Fund is Jeonbuk's first investment platform, launched through the shared commitment of local universities, banks, established businesses and residents," Noh Yong-seok, acting minister and first vice minister at the Ministry of SMEs and Startups, said. "Starting with the Jeonbuk fund, the ministry will establish Regional Growth Funds as planned and foster ventures and startups as engines of regional growth."

The launch event in Jeonju also included investor presentations by four promising Jeonbuk companies, one-on-one investment consultations and a networking session between investors and regional companies.