Officials sign a productive finance MOU for venture fund development and venture ecosystem revitalization at the 2026 Jeonnam-Gwangju Startup Festival, held Wednesday at Suncheon National University in Suncheon, South Jeolla Province. From left: Lee Dae-hee, chief executive of Korea Venture Investment; Lee Jong-hyeok, executive managing director of Kibo; Jeong Il-seon, president of Kwangju Bank; and Noh Ik-ho, deputy president of Jeonbuk Bank. [Kibo]
Officials sign a productive finance MOU for venture fund development and venture ecosystem revitalization at the 2026 Jeonnam-Gwangju Startup Festival, held Wednesday at Suncheon National University in Suncheon, South Jeolla Province. From left: Lee Dae-hee, chief executive of Korea Venture Investment; Lee Jong-hyeok, executive managing director of Kibo; Jeong Il-seon, president of Kwangju Bank; and Noh Ik-ho, deputy president of Jeonbuk Bank. [Kibo]

Productive finance MOU signed with Gwangju, Jeonbuk banks and Korea Venture Investment; linked support to cover startup discovery, investment, guarantees and loans; 131.3 billion won regional growth fund launched, 200 billion won venture fund in the works

Korea Technology Finance Corporation signed a memorandum of understanding with Kwangju Bank, Jeonbuk Bank and Korea Venture Investment to support fundraising for venture companies in southwest Korea, Kibo announced Thursday.

The MOU, titled "Productive Finance Agreement for Venture Fund Development and Venture Ecosystem Revitalization," was signed Wednesday at Suncheon National University in Suncheon, South Jeolla Province, on the sidelines of the 2026 Jeonnam-Gwangju Startup Festival.

The agreement aims to redirect venture investment — currently concentrated in the Greater Seoul area — toward regional companies, and to link investment, credit guarantees and loans for businesses outside the capital.

Under the MOU, Kibo will work with Kwangju Bank and Jeonbuk Bank to promote guarantee-backed lending. Korea Venture Investment will partner with both banks to establish and manage funds aimed at expanding venture investment in the southwest region.

The four institutions will also collaborate on identifying startups and recommending investment candidates. They plan to support working-capital financing for regional companies by promoting accounts-receivable factoring services.

The agreement is tied to the Ministry of SMEs and Startups' policy to expand regional venture investment. The ministry announced the launch of the Jeonnam-Gwangju Regional Growth Fund — worth 131.3 billion won ($97.7 million) — at Suncheon National University on the same day. Sixteen institutions contributed to the fund, including the Korea Fund of Funds with 75 billion won, along with local governments, financial institutions, universities and companies.

The ministry plans to launch a sub-fund investment program in December to build a venture fund worth around 200 billion won. Korea Venture Investment also opened a Southwest Investment Center on Wednesday to identify promising regional companies and connect them with venture capital.

"For venture companies that have received investment to sustain their growth without funding gaps, investment, guarantees and financial support must be organically linked," said Lee Jong-hyeok, executive managing director of Kibo. "We will continue to expand support so that innovative companies in the southwest can grow and lead the regional economy."


hong@heraldcorp.com