South Korea launches $98M cross-regional fund for Daegu-Gyeongbuk startups
What's the deal? The Ministry of SMEs and StartupsDealroom has a profile for this one. Try Dealroom → has launched the Daegu-Gyeongbuk Integrated Regional Growth Fund, a US$109M fund of funds backing venture companies across the two neighbouring regions. Announced October 21 at a formation ceremony in Daegu, it is the first regional parent fund to join two or more local governments.
What's the endgame? The fund aims to seed roughly US$167.7M in venture sub-funds, with the operating committee set to finalise target sectors and begin sub-fund investments within the year. At least 80% of the capital is to be directed to local firms.
Who's backing it? The government's fund of funds is contributing US$62.9M — the largest single commitment to any regional growth fund. Daegu, Gyeongbuk Province, Gumi, and Gimcheon joined alongside private investors including iM Bank, Industrial Bank of KoreaDealroom has a profile for this one. Try Dealroom →, NH Nonghyup Bank, Hana BankDealroom has a profile for this one. Try Dealroom →, DGIST, Kyungpook National University, and local companies.
Why now? The fund is the fourth regional growth vehicle after those in Jeonbuk, Ulsan, and Daejeon. It sits within a broader government push to spread venture capital beyond Seoul, with plans for regional funds across 14 non-capital areas and more than US$1.68B in parent-fund resources over five years.
First Vice Minister Roh Yong-seok called the fund "a new attempt to connect the innovative capabilities of Daegu and Gyeongbuk into one, transcending administrative boundaries." He said the ministry would also build "a cooperation system between financial institutions and public venture finance institutions to create a sustainable regional venture ecosystem."
Separately, Korea Venture Investment, iM Bank, and the Korea Technology Finance Corporation signed an agreement to link investment, loans, and guarantees for local venture companies — the second such regional pact after a southeast deal in February.
What could go wrong? Commitments and targets do not guarantee returns. The fund's impact hinges on execution: whether capital reaches promising startups and generates durable gains.
The signal: South Korea is testing whether pooled public and local capital can build venture ecosystems outside the capital. The cross-provincial structure makes Daegu-Gyeongbuk a template to watch as more regions follow.
Read more: chosun.com
Image credit: Ministry of SMEs and Startups
