Busan, Financial Services Commission and Korea Development Bank hold high-tech venture forum
FSC chief calls for 'joint operation' of central government, regions, industry and finance
Mayor Jeon Jae-soo pledges to follow up on proposals raised Friday
Busan has launched a joint effort with the Financial Services Commission, Korea Development Bank, Busan Bank and other financial and investment institutions to energize the city's venture ecosystem.
Busan Mayor Jeon Jae-soo attended the "Busan High-Tech Industry Venture Ecosystem Forum" hosted by the Financial Services Commission at Busan Eurasia Platform on Friday morning, where he heard firsthand accounts of challenges facing local companies and investors and discussed ways to boost regional venture investment and support the growth of innovative firms through the National Growth Fund.
About 30 people attended the forum, including FSC Chairman Lee Eok-won, Korea Development Bank President Park Sang-jin, BNK Busan Bank CEO Kim Seong-ju, and representatives of local investment firms and promising startups.
BNK Venture Investment (CEO Jeong Seong-jae) and Series Ventures (CEO Gwak Seong-uk) — sub-fund managers under the city-established Busan Future Growth Venture Fund — outlined their portfolio management plans as indirect investment managers under the National Growth Fund, which is being built up to 150 trillion won ($96.5 billion) over five years.
Korean Air's aerospace and defense division (executive director Jeong Hyeon-bo) proposed ways to strengthen the local industrial ecosystem to nurture future industries including space, aerospace and advanced manufacturing. Christine Company (CEO Lee Min-bong), which operates Shinpl, a smart footwear manufacturing platform, raised difficulties it has faced since its founding, including securing investment.
FSC Chairman Lee said that while the greater Seoul area and the regions split the population roughly 51 to 49 and gross regional domestic product 53 to 47, the regions account for only 37 percent of bank lending and 27 percent of venture investment. "Finance must play its role for the regions to move again," he said. Lee added that visiting Busan had shown him "far more diverse and vigorous activity than the vague impression I had held," and called for central and local governments, industry and finance to "create the momentum for change through a joint operation."
Mayor Jeon pledged to act on the day's discussions. "The answers to policy questions lie in the field," he said. "I will personally follow up on every proposal and solution raised today and check what action has been taken."
Building on the approximately 1.5 trillion won in venture funds it has accumulated, Busan plans to grow its venture fund pool to 2 trillion won by 2030 to strengthen the supply of risk capital to promising local companies.
The city also plans to move beyond relying on the government's fund-of-funds as its primary financing source, pursuing a public-private venture mother fund that draws in private capital — with the aim of spreading venture investment beyond its current concentration in the greater Seoul area to the regions.
kaf2002@heraldcorp.com
