[Provided by North Gyeongsang Province]
[Provided by North Gyeongsang Province]

Daegu and North Gyeongsang Province have launched a joint regional growth fund worth 129.4 billion won ($97.4 million) to nurture local venture companies and energize the regional investment ecosystem.

The two local governments held a fund launch ceremony at EXCO in Daegu on Wednesday, marking the start of full operations.

The event drew about 100 attendees, including Daegu Mayor Choo Kyung-ho, North Gyeongsang Province Governor Lee Chul-woo and Vice Minister of SMEs and Startups Noh Yong-seok, along with representatives from financial institutions, major contributing organizations and investment firms.

The fund was seeded by a 75 billion won contribution from the Ministry of SMEs and Startups' Korea Fund of Funds, with additional capital from local governments — including Daegu, North Gyeongsang Province, Gumi and Gimcheon — as well as financial institutions such as iM Bank, Industrial Bank of Korea, NH NongHyup Bank and Hana Bank, and regional companies and universities, bringing the total to 129.4 billion won.

Of the parent fund's capital, 116.4 billion won will be committed to blind funds, including local startup and innovation venture funds and funds dedicated to regional accelerators and venture capital firms.

The remaining 13 billion won is earmarked for a 7 billion won project fund and 6 billion won in follow-on investment.

Daegu and North Gyeongsang Province have designed the sub-funds so that more than 80 percent of the total capital is invested in companies based in the two regions. They also plan to raise additional sub-funds worth more than 200 billion won to help promising local firms secure growth financing.

Primary investment targets include technology startups drawing on the research and development capabilities of the Daegu Gyeongbuk Institute of Science and Technology and local universities and government-funded research institutes, as well as companies in the region's future growth industries — robotics and mobility, healthcare and biotech, semiconductors and advanced manufacturing.

Korea Venture Investment and Daegu plan to finalize the sub-fund structure through a steering committee involving major contributors and launch the investment program in January next year.

In addition, the two sides plan to work with regional innovation organizations to identify promising companies and hold monthly investor briefings to expand contact between firms and investors.

At the ceremony, iM Bank, Korea Venture Investment and Korea Technology Finance Corporation signed an MOU to promote the venture ecosystem in the Daegu-North Gyeongsang region.

The event also featured a presentation by Korea Venture Investment on its fund management direction, a research briefing by Kyungpook National University on the local startup ecosystem, and a panel discussion.

"We will build a success story of a virtuous cycle — where companies start up, attract investment and grow right here in Daegu and North Gyeongsang Province — using public and local government funds as the catalyst," North Gyeongsang Province Governor Lee said.

"We have laid a new investment foundation for young startup companies and deep tech firms in the region to grow," Daegu Mayor Choo said. "We will continue to expand that foundation so that innovative companies do not miss their chance to grow due to a lack of funding."


kbj7653@heraldcorp.com