The city of Seoul in South Korea recently announced that it has set aside ₩50 billion to invest in mid-sized venture companies through the Fourth Industrial Revolution Fund.
According to reports, this investment is intended at liberating Seoul workers from automatize tasks, setting them free so that they can concentrate on more complex business issues hence are promising them more freedom.
The Seoul Metropolitan Government had planned back in 2018 to set aside a ₩131 billion for Seoul Innovation Growth Fund in 2019. It intended to intensively invest in areas like fintech, blockchain and biotechnology and many more. The plan was therefore successful that led to a recent announcement made by the government.
In the budget of 2019, the government of South Korea ‘s capital intends 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. The first half will be distributed across five segments, that is: 2 billion won will go to Forth Industrial Revolution, Cultural content projects and Smart City that also supports the Blockchain Projects and 2.25 billion won will be invested into startup support and the remaining 3 billion won will be given out to the rehabilitation support.
According to the press release, the government has used 7 trillion won to create Seoul Innovation Growth Fund and it considers the Fourth Revolution Fund as part of the initiative. Besides, it will primarily invest in series A or seed funding of startup companies as reported by CoinDesk.
Reportedly, the government revealed its next move of investing 1.2 trillion won ($1.07 billion) in startups by 2022 via the investment funds. The city government also states that compared to the investment made in London and Silicon Valley, the average initial investment of South Korea’s Capital city should be raised to about $1.1 million.
“The Seoul Metropolitan Government has completed the ‘Fourth Industrial Revolution Fund’ … for 50 billion won (8 years of investment, 4 years of investment) In the early stage, we have already exceeded our target by more than 200%…”
The release states that “More than 80% of the 50 billion is invested in companies in the 4th industrial revolution sector, of which more than 26 billion won invest heavily in so-called ICT DNA such as 5G, AI, blockchain, and Big Data. In particular, more than 10 billion won will be invested in SMEs or venture companies in the 4th industrial revolution in Seoul,”