Dong-a Ilbo said in its report on October 16 that more than 7 trillion won worth of government financed funds will be provided to support venture companies this year.
Among the list, the Financial Services Commission’s Growth Ladder Fund ranked the top in volume which amounts at 6 trillion won. Korea Development Bank and Industrial Bank of Korea will finance 1.85 trillion won and the rest will be funded from the private sector. The fund will be invested in venture companies throughout their business cycle during the next three years.
The Small and Medium Business Administration(SMBA) is also launching various funds. The SMBA launched 600 billion won worth of ‘Future Creation Fund’ and 224.7 billion won worth of ‘Foreign Capital Fund’. ‘Future Creation Fund’ will be invested in companies at their early and medium phase of business cycle where as 67% of ‘Foreign Capital Fund’ will be poured into Korean companies operating overseas.
The Ministry of Science, ICT and Future Planning also announced its plan to introduce ‘Software Specialized Fund’ amounting at 15~20 billion won in early next year. The fund will be invested in outstanding software companies with less than 3 years of operation. Moreover, the Ministry of Trade, Industry and Energy has recently introduced ‘Death Valley Fund’ worth 25 billion won.
It is beyond question that small and medium companies with innovative ideas and technology have to flourish in order for our economy to grow. Such ample liquidity is expected to boost venture industry which will eventually become a strong backbone sustaining Korea’s economy.