First Interregional Integrated Fund of Funds, 'Daegu-Gyeongbuk Integrated Regional Growth Fund,' Launches at 130 Billion Won

Daegu Metropolitan City, Gyeongsangbuk-do Province, Daegu Gyeongbuk Institute of Science and Technology, iM Bank, Industrial Bank of Korea, and others
13 institutions take part

The first regional integrated fund of funds, the Daegu-Gyeongbuk Integrated Regional Growth Fund, has launched with a size of 130 billion won.

The Ministry of SMEs and Startups said on October 21 that the venture fund of funds, which will focus on investments in the Daegu-Gyeongbuk region, has completed raising commitments from investors and is beginning full-scale operations. The ministry made the announcement at the fund’s formation ceremony held at EXCO in Daegu.

Noh Yongseok, First Vice Minister of SMEs and Startups, delivers remarks at the formation ceremony for the Daegu-Gyeongbuk Integrated Regional Growth Fund at EXCO in Buk-gu, Daegu, on the 21st. Ministry of SMEs and Startups.

The Daegu-Gyeongbuk Integrated Regional Growth Fund, the fourth regional growth fund to be formed after those in Jeonbuk, Ulsan and Daejeon, is the first fund of funds to integrate multiple regions. The Korea Fund of Funds will contribute 75 billion won, the largest amount ever. A diverse group of investors, including banks, universities and companies in the Daegu-Gyeongbuk region, will also participate. They include Daegu Metropolitan City, Gyeongsangbuk-do, Gumi City, Gimcheon City, iM Bank, Industrial Bank of Korea, NH NongHyup Bank, Hana Bank, Daegu Gyeongbuk Institute of Science and Technology (DGIST), Kyungpook National University, ISU Petasys, Hwashin and Korea OSG. The fund will be formed with a total of 130 billion won.

The Daegu-Gyeongbuk Integrated Regional Growth Fund plans to determine its investment areas through an operating committee made up of Korea Venture Investment Corporation, Daegu Metropolitan City, Gyeongsangbuk-do and major investors. It will launch a program to invest in sub-funds by the end of this year, with the goal of creating venture funds worth about 200 billion won.

On the same day, iM Bank, Korea Venture Investment Corporation and the Korea Technology Finance Corporation signed a “Productive Finance Business Agreement to Revitalize Venture Funds and the Venture Ecosystem in the Daegu-Gyeongbuk Region.” This is the second collaboration with regional financial institutions, following the “Productive Finance Agreement to Revitalize Venture Funds and the Venture Ecosystem in the Southeastern Region” signed in February by Busan Bank, Kyongnam Bank, Korea Venture Investment Corporation and the Korea Technology Finance Corporation. The three institutions will work closely together to establish a comprehensive venture finance support system for the Daegu-Gyeongbuk region that links investment, loans and guarantees.

Noh Yongseok, First Vice Minister of the Ministry of SMEs and Startups, said, “The Daegu-Gyeongbuk Integrated Regional Growth Fund, the nation’s first regional integrated fund of funds, is a new initiative that transcends administrative boundaries to bring together the innovation capabilities of Daegu and Gyeongsangbuk-do. We will build a sustainable regional venture ecosystem not only by creating the fund, but also by establishing a cooperation framework between leading regional financial institutions and public venture finance institutions.”

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