Jeonbuk Launches 103.6 Billion Won Regional Growth Fund, Opening the Door to Local Business Investment

Leading Among Five Regions Nationwide

To Be Operated for 12 Years from 2026 to 2038

Jeonbuk Special Self-Governing Province has launched a regional growth fund worth 103.6 billion won to expand the investment base for local startups and venture companies, becoming the first among five designated regions nationwide to establish such a fund.

On the 20th, at the Lahan Hotel in Jeonju, attendees including Governor Lee Wontak and Acting Minister of SMEs and Startups Noh Yongseok held a ceremony to establish a 103.6 billion won fund during the 'Jeonbuk Regional Growth Fund Formation Ceremony' and the venture investment platform 'J-Pium' event, posing for a commemorative photo. Provided by Jeonbuk Provincial Government Office

On August 20 at Rahan Hotel in Jeonju, Jeonbuk Province held a ‘Jeonbuk Regional Growth Fund Formation Ceremony’ and the venture investment platform ‘J-Pium’ event, with over 200 attendees including officials from the Ministry of SMEs and Startups, Korea Venture Investment Corp., financial institutions, business representatives, and universities.

This fund was created by combining 61.1 billion won from the government’s parent fund and 42.5 billion won contributed by Jeonbuk Province, financial institutions, corporations, and universities. Jeonbuk Bank, Nonghyup Bank, Hana Bank, as well as Hyundai Motor, VINATech, and Wonkwang University participated in the investment.

The fund has been designed to invest at least 80% of its total amount, or more than 80 billion won, into companies within Jeonbuk Province. The aim is to redirect venture capital, which is largely concentrated in the greater Seoul area, to Jeonbuk, thereby alleviating the funding shortages that local companies face during their growth stages.

The regional growth fund operates as a fund-of-funds, with the central and local governments, regional businesses, and financial institutions pooling capital to form a master fund, which in turn invests in venture funds. This creates a substantial pool of capital dedicated to investing in growth-potential companies in the region, thereby expanding direct investment into these companies.

The Jeonbuk Regional Growth Fund will be managed for 12 years, from 2026 to 2038. In October, Jeonbuk Province plans to select investment firms to manage a sub-fund worth 180 billion won through a master fund management committee and begin full-scale investments.

This initiative is aligned with the broader trend of expanding investment in regional venture companies. The Ministry of SMEs and Startups launched the regional growth fund program this year, creating master funds in non-metropolitan areas and announcing plans to provide more than 3.5 trillion won in sub-funds over the next five years.

Although Jeonbuk was originally not included among the priority regions, it was later selected as an additional location after its need for the project and level of preparedness were recognized. Since then, local government, financial institutions, corporations, and universities have participated as investors, making Jeonbuk the first among all target regions to complete the recruitment of contributors.

At the 'J-Pium' event held on the same day, more than 40 local startups met with over 50 domestic investment firms.

The companies presented their business ideas and growth potential to investors and engaged in one-on-one meetings with investment firms. The event was designed to go beyond simply forming a fund by directly connecting companies and investors and fostering actual investments.

This regional growth fund differs from previous individual funds in that it was created through joint contributions from the government, local government, financial sector, large corporations, local businesses, and universities. The ultimate performance of the fund will depend on how stably this structure can support the growth of local companies and facilitate subsequent investments.

Lee Wontak, Governor of Jeonbuk Special Self-Governing Province, stated, “Through this fund, we will ensure that promising companies in the province can grow without financial concerns,” adding, “We will create a region where startups can grow, and investment and business activities can continue unabated.”

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