Gyeonggi Province to Create 1 Trillion Won G-Fund by 2026...Building 'Startup Paradise Gyeonggi'

[Suwon Ilbo=Park Nohoon, Reporter] Gyeonggi Province plans to create a 1 trillion won Gyeonggi G-Fund by 2026 to build a 'Startup Paradise Gyeonggi'.

Governor Kim Dong-yeon held a 'Gyeonggi G-Fund Vision Declaration and Agreement Ceremony' on the 23rd at the Startup Lounge of Gyeonggi Startup Campus in Pangyo, Seongnam, together with Kang Sung-cheon, President of the Gyeonggi Economic Science and Technology Promotion Agency, Shin Hyun-sam, Director of the Gyeonggi Creative Economy Innovation Center, Yun Geon-su, President of the Korea Venture Capital Association, and Shin Jin-o, President of the Korea Accelerator Association.

The creation of a 1 trillion won G-Fund is a campaign promise of Governor Kim Dong-yeon.

From 1999 to the end of December 2022, Gyeonggi Province formed a total of 21 funds worth 671.2 billion won. Excluding liquidated funds, the province currently operates 11 funds (9 policy funds and 2 mega-funds) worth 470.2 billion won in the areas of technology independence, carbon neutrality, and digital transformation.

Among the 470.2 billion won, funds scheduled to be liquidated by 2026 amount to 103.7 billion won. Excluding these, the province will operate funds worth 366.5 billion won by 2026.

The province plans to invest more than 20 billion won annually from this year and invest a total of 98 billion won by 2026 to raise at least 670 billion won in fund capital.

Beyond the 98 billion won, the remaining funds will be raised through private investment sources. The funds raised in this manner will be invested and divided into startup funds, carbon neutrality funds, and northern Gyeonggi balanced development funds.

Thus, the province plans to create more than 1 trillion won in G-Funds by combining existing 366.5 billion won in funds to be operated through 2026 and at least 670 billion won in newly created funds.

To this end, the province established a G-Fund operating strategy in February last year by adding 'mega-funds' to existing policy funds.

Unlike policy funds that budget on an annual basis, the 'Gyeonggi-type mega-fund' features the ability to stably conduct investments and operations by accumulating recovered settlement funds from existing policy funds as investment capital.

The existing 366.5 billion won in funds scheduled to be operated through 2026 will be accumulated in the mega-fund upon liquidation and continue to be operated long-term, investing in future and foundational industry sectors.

This year's Gyeonggi Province investment capital, contributed to raise 670 billion won in funds, is 20 billion won, representing an 82% expansion compared to 11 billion won last year.

The province plans to expand investment scale continuously by increasing annual investment amounts up to 30 billion won by 2026.

Governor Kim Dong-yeon said on the day, "I will make every effort to revitalize economic dynamism. The G-Fund must do that," and added, "Along with this, I will work to create a safe and fine-mesh social safety net based on principles of mutual prosperity and inclusion, ensuring equal opportunities are provided."