Seocho District Establishes 55 Billion Won 'AICT Fund No. 2'

Supporting the Entire Growth Process of AI Startups
Full-Scale Investments to Begin Following Inaugural General Meeting

Seocho District, Seoul (District Mayor Jeon Seong-su), announced on July 7 that it has established the "Seocho AICT Startup Fund No. 2" with a total value of 55 billion won, and will begin investing in AI and ICT startups located in Yangjae AI Special Zone and Yangjae ICT Promotion District (Seocho AICT).

The scene from Seocho AICT IR Day last March. Provided by Seocho District.

Following last year’s creation of the first fund, the district has now launched a second fund, expanding its support for AI startups. Seocho District and the Seoul Business Agency conducted a public recruitment process for fund management companies, and after document and in-person reviews, selected two final managers. These firms are expected to begin full-scale investments following an inaugural general meeting later this month.

The second fund amounts to 55 billion won, bringing the total size of the Seocho AICT Startup Fund, when combined with the first fund, to over 148.2 billion won. Both of the newly selected management companies have committed to investing an amount equivalent to 400% of the district’s 2 billion won investment into Seocho AICT companies. This is twice the required investment ratio of 200%, and higher than the 333% proposed by three management companies during the creation of the first fund last year.

Along with the fund, the district is also running an investment attraction program. Last March, it hosted the "Seocho AICT IR Day," facilitating consultations and networking between startups and investors, and in June, it operated the "Private IR Day," supporting follow-up meetings for companies with high investment potential. A demo day event is scheduled for November.

A representative from one of the companies at the Seocho AICT Outstanding Enterprise Center commented, "Even if AI startups possess excellent technological capabilities, it is not easy to meet investors and secure follow-up investments. Opportunities for investment and communication have increased through Seocho District’s startup fund and IR Day, which has been a significant help for companies."

District Mayor Jeon Seong-su stated, "With the launch of the Seocho AICT Startup Fund No. 2, we will further strengthen the investment ecosystem, enabling AI startups to grow stably. Based on nurturing AI talent, supporting startups, and connecting investments, we will do our best to ensure that Seocho AICT grows into Korea’s leading base for the AI industry, capable of producing unicorn companies."

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