Promoting Small Businesses
The Ministry of SMEs & Startups and the Korea Venture Investment Corporation announced on July 26 that they add a total of 870 billion won (US$783 million) in a new fund of funds. This has to do with the Moon Jae-in administration’s policy to concentrate on the growth of SMEs, venture firms and startups.
This fund is to be invested in companies that are closely related to the fourth industrial revolution or own intellectual property rights as well as startups, regional companies, those in need of financing, etc.
Specifically, 330 billion won (US$297 million) is scheduled to be invested in startups led by young entrepreneurs. 250 billion won (US$225 million) goes to firms led by those who failed in the past so that more and more people can start their business without concerns about a failure.
In addition, 250 billion won (US$225 million) is invested in companies closely related to the fourth industrial revolution, 20 billion won (US$18 million) is invested in promising regional companies, and 20 billion won (US$18 million) goes to those that own valuable intellectual property rights and patents. It is expected that the investment by the ministry and the corporation will lead to a venture fund of 1.3 trillion won (US$1.17 billion).