Chungnam Province, South Korea – Chungnam Province has initiated a comprehensive "Powerful Partnership" with NH Nonghyup Bank and the Shin Yong Bojeung Fund (Credit Guarantee Fund) to foster the growth of future unicorn companies within the Bay Valley region. This collaborative effort, formalized on June 19, aims to establish Bay Valley as a preeminent global economic hub, spearheading South Korea's Fourth Industrial Revolution.
The cornerstone of this initiative is the establishment of a 100 billion won Local Era Venture Fund. The fund's structure allocates 60 billion won from the Korea Fund of Funds (Ministry of SMEs and Startups), 8 billion won from Chungnam Province, and 32 billion won from various financial institutions and corporations. NH Nonghyup Bank has committed an initial 5 billion won to this master fund, signaling a significant investment in the region's startup and venture ecosystem.
Through this master fund, Chungnam Province intends to facilitate the creation of over 150 billion won in sub-funds. These sub-funds will strategically target four critical investment sectors: innovative industries, mobility, carbon neutrality, and early-stage startups. A key mandate for these sub-funds is to channel over 60 billion won directly into businesses located within Chungnam Province, representing a substantial 7.5-fold return on the province's initial 8 billion won investment.
Beyond the venture fund, the partnership includes robust financial support mechanisms for businesses in Bay Valley. Chungnam Province will implement new investment policies to invigorate the local economy, offering a 2.0% interest subsidy for two years to small and medium-sized enterprises (SMEs) that secure special contribution agreement guarantee loans. Complementing this, NH Nonghyup Bank will provide a 1 billion won special contribution to the Shin Yong Bojeung Fund to facilitate loans for Bay Valley-based SMEs, encouraging their investment in facilities and research and development. In turn, the Shin Yong Bojeung Fund will extend 50 billion won in credit guarantees to regional enterprises and subsidize guarantee fees. Eligible recipients for this funding are companies recommended by Chungnam Province within the Bay Valley area, including Cheonan, Asan, Dangjin, Seosan, and Yesan, with a maximum loan limit of 500 million won per entity.
Governor Kim Tae-heum articulated an ambitious vision for Bay Valley, stating the province's aim to cultivate a venture ecosystem that surpasses the scale of Pangyo Techno Valley. This includes plans to expand the venture fund to between 500 billion won and 1 trillion won by 2028, alongside the establishment of over 1,300 new startup spaces primarily in Cheonan, Asan, and Yesan. Governor Kim highlighted the crucial role of NH Nonghyup Bank's 5 billion won contribution as a "priming pump" for venture investment, emphasizing the province's commitment to allocating 60 billion won from the Local Era Venture Fund to high-growth potential venture firms over the next four years.
Furthermore, Governor Kim announced the creation of a new Bay Valley fund dedicated to bolstering SME support. This fund will augment the province's existing 1.25 trillion won policy fund for SMEs and small business owners, providing an additional 50 billion won in support through interest subsidies and guarantee fee reductions for Bay Valley enterprises in collaboration with NH Nonghyup Bank and the Shin Yong Bojeung Fund. The overarching goal is to solidify Chungnam Province's reputation as the most conducive environment for venture businesses in South Korea.
Bay Valley, a monumental inter-provincial initiative, encompasses the Asan Bay area, connecting Chungnam Province (Cheonan, Asan, Seosan, Dangjin, Yesan) with Gyeonggi Province (Hwaseong, Pyeongtaek, Anseong, Siheung, Ansan). The project's strategic objective is to transform this region into a global economic powerhouse, leading advancements in crucial Fourth Industrial Revolution sectors such as semiconductors, hydrogen economy, and future mobility. Envisioned as "Bay Valley, the Economic and Industrial Capital of South Korea," the project aims to invest 33 trillion won by 2050 to elevate the region's Gross Regional Domestic Product (GRDP) from its 2020 standing (comparable to Portugal, ranked 48th globally) into the top 20 worldwide.
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