[Provided by Seocho-gu]
[Provided by Seocho-gu]

Seoul's Seocho-gu announced Tuesday it has established the Seocho AICT Startup Fund No. 2, worth 55 billion won ($35.9 million), to support promising AI and ICT startups. Seocho AICT is an AI industry hub centered on the Yangjae and Umyeon-dong areas of the district, designed to provide tailored support for the growth of AI and information and communications technology companies.

The district followed up its Fund No. 1 from last year with this second fund, further expanding its support for AI startups. The district and the Seoul Business Agency had previously solicited fund managers through an open recruitment process, conducting written and in-person reviews before selecting two management firms with proven investment capabilities and track records. The two firms are set to hold a fund formation meeting this month before launching full-scale investment in AI and ICT startups within Seocho AICT.

Combined with Fund No. 1, the total size of the Seocho AICT Startup Fund series now exceeds 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 — double the mandatory investment ratio of 200 percent and higher than the 333 percent pledged by the three managers selected for Fund No. 1 last year.

The district also runs a range of investment attraction programs to ensure the funds translate into actual investment for startups in Seocho AICT. In March, it held the Seocho AICT IR Day, where startups and investors met directly for investment consultations and networking. Startups from fields including AI-based data analytics, robotics, healthcare AI and industrial solutions took the stage, drawing investor attention with their differentiated technology and growth strategies. In June, the district ran a Private IR Day offering tailored follow-up meetings and investment matching for companies with strong funding prospects. A demo day is planned for November to give companies broader access to investors and expand opportunities for fundraising and partnerships.

"We will use the Seocho AICT Startup Fund No. 2 as a springboard to further strengthen the investment ecosystem that allows AI startups to grow on stable footing," Seocho-gu District Mayor Jeon Seong-su said. "We will do our utmost to develop Seocho AICT into South Korea's leading AI industry hub — one that produces unicorn companies — through AI talent development, startup cultivation and investment linkages."


cook@heraldcorp.com