National Growth Fund Launches "Regional League" to Invest 1 Trillion Won in Local Companies Over 5 Years

1 trillion won to be raised over five years, with 200 billion won invested annually
At least 60% of fund capital to be mandatorily invested in regional companies
Fund managers to be selected this month; fund formation begins in the second half

The financial authorities have established a new "Regional League" within the National Growth Fund and will focus a total investment of 1 trillion won in local companies over the next five years. Around three fund managers will be selected within this month, and the fund formation will begin in the second half of the year.

Lee Eogwon, Chairman of the Financial Services Commission, attended the Mother Fund-National Growth Fund Relay Meeting held at SVC in Mapo-gu, Seoul on the 23rd, delivering a greeting. 2026.06.23 Photo by Dongju Yoon

On July 3, Lee Eokwon, Chairman of the Financial Services Commission, attended the "Busan Advanced Industry and Venture Ecosystem Roundtable" held at the Eurasia Platform in Busan. There, he met with representatives from local advanced industry companies, startups, and venture capital (VC) firms to listen to their on-site challenges and discuss policy financial support measures, including the National Growth Fund. Jeon Jaesoo, who took office as the Mayor of Busan on July 1, also attended the meeting to explore support measures from the local government perspective.

In his opening remarks, Chairman Lee stated, "There are still strong calls from local industry sites for increased capital supply," diagnosing that, "structural limitations have become entrenched due to information asymmetry and the concentration of production facilities in the Seoul metropolitan area, making it difficult for capital to flow to the regions on its own."

He continued, "We will expand regional financial support in connection with the 'Five Axes, Three Special Zones' strategy and establish a sustainable public-private partnership system, such as by increasing startup and incubation platforms to foster regional entrepreneurship and a mutually beneficial financial ecosystem."

Chairman Lee emphasized, "It is essential to combine the development of leading advanced industry companies with the revitalization of the venture ecosystem." He added, "Currently, none of the 21 approved projects of the National Growth Fund involve companies from the Busan area. However, as Busan is a hub for next-generation transportation and the defense industry, we will ensure that, through mega projects such as 'Future Mobility and Defense Support' included in the upcoming second round, companies in the Busan area will also receive approval from the National Growth Fund."

The Financial Services Commission plans to invest 40% of the National Growth Fund in regions. In addition, the new "Regional League" will invest 200 billion won each year over five years, totaling 1 trillion won, in local companies. The fund will select around three fund managers within this month and begin capital formation in the second half. At least 60% of the fund's capital will be mandatorily invested in companies located in the regions, serving as a catalyst for the development of local venture ecosystems.

In the subsequent roundtable, local fund managers, advanced industry companies, and venture businesses in the Busan area shared updates on their operations and on-site challenges. Kwak Sungwook, CEO of Series Ventures, a venture capital firm based in Busan and Changwon, pointed out, "There is a shortage of self-sustaining fund managers who can supply capital in the region, as well as a lack of venues where capital and industry can interact. Efforts to develop integrated infrastructure in accessible urban locations are needed."

BNK Venture Investment, an affiliate of BNK Financial Group, stated, "If a region-exclusive secondary fund is created, it will help expand the reinvestment capacity of local VCs and accelerators (ACs) and establish a virtuous cycle of investment."

Park Sangjin, Chairman of Korea Development Bank, said, "Recently, Busan is transforming into a leading Asian venture and startup ecosystem hub through the formation of large-scale venture funds and the expansion of startup infrastructure. I am confident that the growth of the Busan region will become a successful new paradigm that drives national economic growth, and we will provide full support through close cooperation with local financial institutions."

Chairman Lee concluded, "In order to restructure our economy around the regions and achieve a major leap forward, it is necessary to discover and nurture advanced industry companies in the regions and make greater efforts to organically develop the venture ecosystem. We will fully reflect the suggestions raised at today's roundtable, such as incentives for local fund managers and improved capital accessibility for regional advanced ecosystem companies, in the 'National Growth Fund Operation Improvement Plan' currently being prepared."

This content was produced with the assistance of AI translation services.