South Korea’s Seoul Metropolitan Government To Invest $1B USD In FinTech And Blockchain Startups

Announcements, Blockchain, FinTech, Investing, News | February 20, 2019 By:

The Seoul Metropolitan Government is planning to invest 1.2 trillion won ($1B USD) in FinTech and blockchain startups by 2022.

The government of Seoul, the capital city of South Korea, announced earlier this week that the investment will be made via the Seoul Innovation Growth Fund, which was launched in 2018 to create jobs and accelerate economic growth in the region. The fund will focus on FinTech and blockchain startups that have investments problems with Series A funding rounds.

For 2019, the government is planning to invest 13.25 billion won ($11.7M USD) in the first half and 8.4 billion won ($7.4M USD) in the second half. The government said that the fund will change the poor investment market for startups in Korea. According to the governement, the average investment per company in Silicon Valley and London is roughly $6 million to $7 million, compared to only $1.1 million in Korea.

“Innovative startup investments will be the cornerstone of corporate growth that creates innovation in our society and will be a crucial driving force for the growth of innovative venture companies,” said Jo In-dong, the head of the economic policy department at the Seoul Metropolitan Government. “We will expand our investment to […] stimulate the startup investment market and create an entrepreneurial ecosystem.”

The announcement came after the Seoul Metropolitan Government formed a working group to explore the potential of blockchain in administrative services. Called the Seoul Blockchain Governance Team, the group consists of 100 employees between the ages of 21 and 77, including students, developers, association executives, and corporate representatives.