The government of South Korea’s capital city has recently announced that it will be investing about 1.2 trillion won ($1.07 billion) into startups covering fintech and blockchain technology from now till 2022.
Seoul Innovation Growth Fund
The announcement, coming from the Seoul Metropolitan Government made it known that the investment will be carried out through the Seoul Innovation Growth Fund, which launched last year. The growth fund will invest in multiple sectors covering fintech and blockchain technology. The main goal of the project is to help startups in these sectors scale through the initial huddle of Series A or seed funding. This is expected to improve the startup space of the city.
This year, the government has plans to invest 13.25 billion won ($11.75 million) in the first half and 8.4 billion won ($7.45 million) in the second half. Investment in each half of the year has as been divided into different segments. The first half has five segments. The five segments are Fourth Industrial Revolution, Smart City, cultural content projects, startup support and rehabilitation support. A total of 2 billion won ($1.77 million) will be invested in these three segments: Fourth Industrial Revolution, Smart City and cultural content projects. 2.25 billion won ($2 million) will be invested into startup support and 3 billion won ($2.66 million) into rehabilitation support.
According to the report announcing the investment plans, the Blockchain projects will likely be covered through the Fourth Industrial Revolution or Smart City allocations of the fund.
Need For Increase in Average Initial Investment For Startup
According to Jo In-dong, head of the economic policy department within the Seoul Metropolitan Government “the average initial investment of South Korean startups needs to be increased from about $1.1 million currently, as compared to $7 million in London and $6.5 million in Silicon Valley.” “Innovative start-up investment will be the cornerstone of corporate growth … in our society,” Jo In-dong, explained.