The Financial Services Commission has announced the establishment of a 'Regional Investment League' within the National Growth Fund, committing to invest 200 billion won annually for five years, totaling 1 trillion won, into local companies.
Chairman Lee Ok-yeon made the announcement on July 3 during the 'Busan Advanced Industry and Venture Ecosystem Meeting' held at the Eurasia Platform in Busan. The meeting was attended by Busan Mayor Park Jae-soo, Industrial Bank of Korea Chairman Park Sang-jin, and Busan Bank President Kim Sung-joo.
Lee emphasized that due to structural limitations such as information imbalances and the concentration of production facilities in the capital region, capital does not naturally flow to local areas. He pledged to support localities with lower interest rates and higher funding limits.
The Regional Investment League fund is set to select around three management firms this month, with fundraising expected to begin in the second half of the year. The fund is designed to mandate that over 60% of its capital be invested in companies located in regional areas. This initiative aims to address the structural capital concentration issue in regions that receive less venture investment compared to the capital area.
Lee pointed out that there are currently no approved projects from Busan among the 21 projects under the National Growth Fund and stated that he aims to create an approval case for the Busan area through the second mega project focused on 'Future Mobility and Defense Support.'
During the meeting, suggestions were made regarding the establishment of a regional secondary fund, the creation of multi-purpose infrastructure with good urban accessibility, and the expansion of incentives for local management firms. The Financial Services Commission plans to incorporate these suggestions into the ongoing improvements for the National Growth Fund's operations.
Chairman Lee Ok-yeon made the announcement on July 3 during the 'Busan Advanced Industry and Venture Ecosystem Meeting' held at the Eurasia Platform in Busan. The meeting was attended by Busan Mayor Park Jae-soo, Industrial Bank of Korea Chairman Park Sang-jin, and Busan Bank President Kim Sung-joo.
Lee emphasized that due to structural limitations such as information imbalances and the concentration of production facilities in the capital region, capital does not naturally flow to local areas. He pledged to support localities with lower interest rates and higher funding limits.
The Regional Investment League fund is set to select around three management firms this month, with fundraising expected to begin in the second half of the year. The fund is designed to mandate that over 60% of its capital be invested in companies located in regional areas. This initiative aims to address the structural capital concentration issue in regions that receive less venture investment compared to the capital area.
Lee pointed out that there are currently no approved projects from Busan among the 21 projects under the National Growth Fund and stated that he aims to create an approval case for the Busan area through the second mega project focused on 'Future Mobility and Defense Support.'
During the meeting, suggestions were made regarding the establishment of a regional secondary fund, the creation of multi-purpose infrastructure with good urban accessibility, and the expansion of incentives for local management firms. The Financial Services Commission plans to incorporate these suggestions into the ongoing improvements for the National Growth Fund's operations.
* This article has been translated by AI.
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