Lee Ok-yeon, Chairman of the Financial Services Commission, announced plans to utilize the National Growth Fund as a key policy tool for transitioning to a region-centered economic structure. The goal is to invest over 40% of the fund in regional projects, establishing a dedicated regional league within the fund to focus on investing 1 trillion won in local businesses over the next five years.
On July 3, the Financial Services Commission held a meeting on advanced industries and the venture ecosystem in Busan, attended by Chairman Lee, Busan Mayor Park Jae-soo, and representatives from local finance and industry sectors.
In his opening remarks, Lee stated, "There is still a strong demand for more capital supply in local industrial sites," and diagnosed that "the structural limitations of asymmetric information and the concentration of production facilities in the metropolitan area have entrenched a situation where capital does not flow to the regions on its own."
He continued, "We will support all efforts to ensure that funds can be accessed in the regions at lower interest rates and higher limits," adding that the commission aims to expand financial support for local areas in conjunction with the 'Five Extremes and Three Specialties' strategy and to enhance startup and incubation platforms to establish a sustainable public-private cooperation system.
To clarify the regional investment goals of the National Growth Fund, the commission will create a 'regional league.' The plan is to raise a total of 1 trillion won over five years, investing 200 billion won annually in local businesses. The commission intends to select around three management firms this month to begin fundraising in the second half of the year, with a requirement that over 60% of the fund's total amount be invested in companies located in the regions.
Since its launch, the National Growth Fund has approved 13.9 trillion won in funding over six months, with 46.8% or 6.5 trillion won allocated to local areas. The commission plans to allocate over 40% of the 150 trillion won expected to be supplied over the next five years to regional investments.
Regarding Busan and the southeastern region, Lee emphasized, "Busan, with its potential for advanced industry development, including the world's second-largest transshipment port and an MRO cluster, must combine the cultivation of leading advanced industry companies with the activation of the venture ecosystem to enhance its competitiveness."
He also noted, "Currently, there are no Busan companies among the 21 approved projects under the National Growth Fund, but we will work to ensure that approval cases emerge from the region through secondary mega-projects such as future mobility and defense support."
During the meeting, local venture capital firms and businesses also provided policy suggestions. Series Ventures highlighted the need for nurturing local management firms and expanding communication spaces between capital and industry, while BNK Venture Investment proposed establishing a regional secondary fund to create a virtuous investment cycle.
Korean Air presented plans to expand its AI-integrated flight operation control, unmanned aerial vehicles, and MRO businesses, while strengthening collaboration with local academia and industry to establish a future aviation cluster.
Lee concluded, "More efforts are needed to discover and nurture advanced industrial companies in the regions and to foster a self-sustaining venture ecosystem. We will incorporate the suggestions raised during the meeting, such as incentives for local management firms and improving access to funding, into the operational improvements of the National Growth Fund."
* This article has been translated by AI.
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