The Financial Services Commission (FSC) in South Korea, led by Chairman Kim Joo-hyun, convened a meeting on May 16th to discuss strategies for promoting investment in startups and venture businesses.

The meeting focused on the progress of policy measures implemented since April 2023. These initiatives aimed to enhance funding support for innovative startups and venture businesses, bolstering their competitiveness amidst a global investment slowdown. Experts present at the meeting acknowledged positive signs of recovery in the domestic investment landscape, attributing this success partly to the active role of government policy funds.

The meeting also featured successful businesses that benefited from these policy measures. Representatives shared experiences in leveraging various programs for:

• Expanding business operations through mergers and acquisitions (M&A)
• Utilizing support for businesses located outside the Seoul metropolitan area
• Facilitating overseas expansion or attracting foreign investment

These businesses emphasized the need for continued and expanded support through existing policy measures.

Chairman Kim reviewed the current funding landscape, examining resources made available by institutions like the Korea Development Bank (KDB), Industrial Bank of Korea (IBK), Korea Credit Guarantee Fund, and Korea Growth Investment Corporation. Subsequently, he outlined plans for supporting startup and venture investments in 2024.

Key highlights include:

• Increased Policy Funds: A 30% year-on-year increase in policy funds, totaling KRW 15.4 trillion, will ensure seamless funding for promising tech-driven startups.
• Early-Stage Funding Boost: IBK’s venture investment program will allocate KRW 500 billion or more to support early-stage startups.
• Secondary Market Enhancement: KDB-IBK’s KRW 1.2 trillion secondary fund began operations in May 2024, aiming to improve the secondary market’s functionality and conditions.
• Regional Ecosystem Development: Authorities plan to establish dedicated platforms for startup and venture business development in Busan and Gwangju by year-end, along with introducing specific lending and investment support programs for these regions.
• International Investment and Expansion: Policy-driven financial institutions will leverage their global networks to provide both financial and non-financial support, facilitating foreign investment for business expansion and overseas ventures of Korean startups.

Chairman Kim emphasized the FSC’s commitment to collaborating with relevant ministries. This collaboration aims to continuously address the needs of startups and venture businesses, ultimately fostering investment and growth in the Korean entrepreneurial landscape.