Seoul's Seocho-gu district has established the 55 billion won ($35.7 million) "Seocho AICT Startup Fund 2" to provide full-scale investment support for promising AI and ICT startups operating within the Yangjae AI Special Zone and the Yangjae ICT Promotion District — collectively known as "Seocho AICT."
Following last year's Fund 1, the district has now launched a second consecutive fund, further expanding its support for AI startups. The move aims to create a stable investment environment for companies from their earliest stages through growth, and to strengthen the AI industry ecosystem by linking public fund support with private investment.
Seocho-gu and the Seoul Business Agency publicly recruited fund managers, selecting two firms through written and in-person screening based on their investment capabilities and track records. The two managers are set to hold a fund formation meeting in July before launching investments targeting AI and ICT startups within Seocho AICT.
Fund 2 totals 55 billion won, and combined with Fund 1, the cumulative Seocho AICT startup fund base has grown to more than 148.2 billion won.
Both newly selected managers committed to investing 400 percent of the district's 2 billion won contribution into Seocho AICT companies.
That figure is double the mandatory investment ratio of 200 percent, and exceeds the 333 percent pledged by the three managers selected for Fund 1 last year. The result reflects the private investment market's growing confidence in Seocho-gu's AI sector, driven by the district's sustained efforts to build out its AI infrastructure — including construction of the Seocho AICT Excellence Center and the additional designation of the Yangjae ICT Promotion District.
The district is also running a range of investment attraction programs to ensure the fund translates into real investment for Seocho AICT startups. In March, it held the "Seocho AICT IR Day," where startups and investors met directly for investment consultations and networking. In June, it ran a "Private IR Day" offering tailored follow-up meetings and investment matching for high-potential companies. A Demo Day is planned for November to give startups broader access to investors and partnership opportunities.
A representative of a company based at the Seocho AICT Excellence Center said that even AI startups with strong technology often struggle to connect with investors and secure follow-on funding. "Seocho-gu's startup fund and IR Day events have opened up more opportunities for investment and communication, which has been a great help for companies like ours," the representative said.
Seocho-gu District Mayor Jeon Seong-su said the second fund would help build a stronger investment ecosystem in which AI startups can grow on stable footing. "We will do our utmost to develop Seocho AICT into South Korea's premier AI hub — one that produces unicorn companies — by nurturing AI talent, fostering startups, and connecting them with investment," Jeon said.
seouldream01@heraldcorp.com
