Korea Growth Investment Corporation (KGIC) announced on November 11 that it would raise a fund of 7.8 billion won (US$6.9 million) in order to assist in crowdfunding for startups.
To this end, the corporation is going to select one securities firm as the manager of the fund within this year among those specialized in assistance for small and medium enterprises such as IBK Investment & Securities and Korea Asset Investment Securities.
The selected securities firm is required to provide 60% of the fund as seed money when a startup collects funds by crowdfunding. In addition, 15% or so is to be invested in companies registered on the Korea Startup Market under the Korea Exchange.
Opened on November 14, the Korea Startup Market is a stock exchange where the stocks of companies that succeeded in crowdfunding can be traded.
“We are expecting that this fund will provide an opportunity for individual investors who wish to participate in crowdfunding,” the corporation explained.