CHANGWON — South Gyeongsang Province's startup and venture fund pool has grown to 768.8 billion won ($564 million). The province said it aims to expand that to more than 1 trillion won by next year and to build a 1.5 trillion won investment ecosystem by 2030.
The growth began in the second half of 2022, according to the provincial government on the 1st. Over the four years from July 2022 through June this year, the province raised 556.6 billion won in startup and venture funds — 2.6 times the 212.2 billion won raised over the 12 years from 2010 through the first half of 2022. The foundation was laid in July 2022, when the province created a startup support unit, now the Startup Support Division, and became the first local government in the country to establish a dedicated investment fund for small and medium-sized enterprises and venture firms, enacting an ordinance to govern its operation.
The fundraising translated into actual investment. Venture investment in the province by venture capital firms and partnerships rose to 117.7 billion won last year from 68 billion won in 2024 and 30.2 billion won in 2023. Last year's figure ranked second among non-capital regions after Daejeon and was the highest on record. The 73.1% increase, or 49.7 billion won, from 2024 was the second-largest gain nationwide after Sejong. Over the same period, venture investment nationwide rose 2.7%, while the total for non-capital regions fell 17.8%. After posting 55.3 billion won in the first half of this year, the province aims to reach more than 130 billion won by year-end and top 100 billion won for a second straight year.
Companies that received investment have posted follow-on results. Robos, Mr. Appa and Christine Company secured additional funding after their initial investments, lifting revenue, employment and corporate value. Workation and Reset Company moved their headquarters or business bases to the province after receiving investment. Beomhan Mecatec, a small modular reactor company, filed a preliminary review application for a KOSDAQ listing with the Korea Exchange after receiving 10 billion won from the province's nuclear power industry investment fund.
The number of investment firms has also increased. Gyeongnam Venture Investment was the only venture capital firm registered with the Ministry of SMEs and Startups with headquarters in the province, but BTB Ventures and G Square Invest registered this year, bringing the total to three. The province expects that more investment firms familiar with local industry will spur investment tied to key sectors such as aerospace, defense, nuclear power, shipbuilding, machinery and advanced manufacturing, while easing the burden on local companies that must seek out investors in the capital region.
The province also laid out a path to 1.5 trillion won. It plans to raise 780 billion won in new funds year by year through 2030. From the second half of this year through next year, it will first raise 350 billion won across an early-stage startup fund, a regional innovation scale-up fund, a New Space aerospace fund, an AX/AI fund and the Gyeongnam Future Growth Venture Fund, with the goal of reaching 1 trillion won ahead of schedule by 2027. It will then add 430 billion won through a secondary fund, a region-focused culture and content fund, an impact social venture fund and a second-chance fund.
Some funds are close to being formed. In August, two managers were selected for the second Gyeongnam-KDB regional innovation venture fund, which plans to complete a 46.9 billion won closing by year-end. After being designated in March as a regional growth fund site by the Ministry of SMEs and Startups, the province will also raise the Gyeongnam Future Growth Venture Fund of more than 50 billion won in the first half of next year. It plans to use that as seed money to draw private capital and form regional funds totaling more than 90 billion won in stages.
"Startup and venture funds are a powerful tool to prevent technologically capable startups in the province from relocating to the capital region to raise the funding they lack, and to attract promising companies from outside the region," said Jeon Beom-sik, head of the province's Startup Support Division. "We will continue to expand funds that can provide seamless support from early-stage startups through scale-up and second chances, and from culture and social ventures to strategic and future industries, making Gyeongnam a place where companies can raise capital and grow."
