Government injects 75 billion won into fund; banks, universities and companies join as contributors
Sub-fund investment program to launch in December, targeting 200 billion won total
Korea Venture Investment opens southwest regional center
A 131.3 billion won ($96.9 million) venture mother fund — the largest regional integrated mother fund in the country — has been launched to foster venture companies and startups in the South Jeolla-Gwangju integrated special city. The government, local authorities, financial institutions, universities and companies are jointly participating, with plans to build a venture fund totaling 200 billion won.
The Ministry of SMEs and Startups said Wednesday it held a launch ceremony for the South Jeolla-Gwangju Regional Growth Fund at the gymnasium of Sunchon National University.
The fund is the last regional growth fund to be established this year, following those for North Jeolla Province, Ulsan, Daejeon and the Daegu-North Gyeongsang Province region. It was created to focus investment on promising venture companies and startups in the South Jeolla-Gwangju integrated special city.
The mother fund totals 131.3 billion won. The government's Korea Fund of Funds contributed 75 billion won, with local governments including the South Jeolla-Gwangju integrated special city, Yeosu, Suncheon and Gwangyang also participating.
From the financial sector, Industrial Bank of Korea, Kwangju Bank, NH NongHyup Bank and Hana Bank joined as contributors. Regional universities — including Gwangju Institute of Science and Technology, Chonnam National University, Sunchon National University, Mokpo National University and Chosun University — as well as companies and institutions including Posco also took part.
The ministry plans to determine specific investment areas through a steering committee composed of Korea Venture Investment, the South Jeolla-Gwangju integrated special city and key contributing institutions. It aims to launch a sub-fund investment program in December and build a venture fund totaling 200 billion won.
Financial support for regional venture companies will also be strengthened. On Wednesday, Kwangju Bank, Jeonbuk Bank, Korea Venture Investment and Korea Technology Finance Corporation signed an MOU on productive financial cooperation to activate the southwest regional venture fund and venture ecosystem.
The four institutions agreed to establish a comprehensive venture finance support system linking investment, loans and guarantees, and to help regional companies secure funding.
Korea Venture Investment also expanded its regional investment presence. The Korea Venture Investment Southwest Regional Investment Center officially opened in the South Jeolla-Gwangju integrated special city Wednesday morning.
The Southwest Regional Investment Center is the second regional investment center to open, following the Southeast Regional Investment Center in Busan. It will connect regional venture companies and startups with venture capital firms and support the discovery of promising companies and the attraction of investment.
The regional growth fund is structured so that the government, local authorities and the private sector jointly contribute capital to create a pool for investing in regional companies. The 131.3 billion won raised is the mother fund that will be committed to sub-funds; additional capital from private investors such as venture capital firms will be brought in to build the actual investment fund of 200 billion won. The broader impact on investment in regional companies is expected to take shape as sub-funds are formed and investments are deployed.
The launch ceremony was held in conjunction with the opening of the 2026 South Jeolla-Gwangju Startup Festival, a two-day event beginning Wednesday. A forum was also held to share the current state of the regional startup and venture ecosystem and discuss future directions.
"We will expand the long-term growth capital supply and investment attraction support for regional venture companies and startups, based on the regional growth fund and Korea Venture Investment's regional investment centers, to build a sustainable regional venture ecosystem," said No Yong-seok, first vice minister of SMEs and Startups.
boo@heraldcorp.com
