Busan is good

Busan to Host “Future Industry Transition Fund” Investment Briefing to Support Corporate Growth and Industrial Transformation

내용

The Busan Metropolitan City (Mayor Park Heong-joon) announced that it will host the “Busan Future Industry Transition Fund” investment briefing at 3:00 PM on June 24 at the main auditorium of the Busan Chamber of Commerce and Industry (located in Busanjin-gu).

○ The “Busan Future Industry Transition Fund,” formerly known as the “(tentative) Busan Industrial Transition Green Fund,” was initially announced in February. The City plans to establish a KRW 2.3 trillion sub-fund over nine years by forming a KRW 55.1 billion main fund each year in collaboration with the Financial Services Commission and the Korea Development Bank (KDB).

The upcoming briefing is organized to ensure the successful launch of the first main fund by the end of June and to expedite investments in SMEs and mid-sized companies across Busan, Ulsan, and Gyeongnam.

As the first fund of its kind initiated by a local government, “Busan Future Industry Transition Fund 1” will provide large-scale capital (KRW 10–50 billion per company), supporting regional firms entering future industries and realigning the industrial structure toward high value-added sectors.

○ The five major commercial banks and KDB, which are investors in the fund, have completed their internal funding procedures. Notably, KRW 50 billion from the “Bank-led Mid-sized Enterprise Fund” will be invested in “Busan Future Industry Transition Fund 1,” and KDB has also secured approval for its participation.

The briefing will offer practical information for companies on how to attract investment and will include:

• ●Overview of fund formation and operation

• ●Investment attraction process

• ●On-site Q&A

• ●Introductions to support programs from various policy finance institutions

○ The Korea Growth Investment Corporation (main fund manager) will present the fund’s structure, investment targets, timeline, and real investment cases from the “Bank-led Mid-sized Enterprise Fund” to enhance understanding.

○ Private equity firms managing related funds will provide insights into the investment decision process and offer case studies focused on preparation and successful funding acquisition.

○ In addition, major institutions such as KDB, Korea Credit Guarantee Fund, Korea Technology Finance Corporation, Korea Asset Management Corporation, and Korea Industrial Complex Corporation will introduce their corporate support programs.

• ●Export support programs will also be introduced to help companies facing tariff challenges.

The City has requested allocation of matching funds in the second supplementary budget. Upon approval from the City Council, it will immediately initiate fund formation.

○ The main fund is expected to be established by the end of June. Sub-fund managers will be selected shortly thereafter, with sub-fund formation targeted for completion by September.

○ To ensure swift investment execution, Busan has established cooperation with local branches of the five major banks, regional financial institutions, corporate support agencies, and business associations to streamline the process.

Vice Mayor for Administrative Affairs Lee Jun-seung stated,

“Even amid difficult economic conditions, investment in the future must continue. The creation of this fund is an unprecedented and innovative local initiative, serving as a catalyst for industrial transformation in the region.”
He added, “We hope many SMEs and mid-sized firms will attend and explore opportunities for funding and future industry development.”

---

Appendix 1: Event Overview

Date: June 24, 2025 (Tue) 15:00
Location: Main Auditorium, 1st Floor, Busan Chamber of Commerce and Industry
Participants: SMEs and mid-sized enterprises in the Bu-Ul-Gyeong region, regional financial institutions, fund managers
Main Content:

• ●Fund overview and case studies

• ●Investment attraction process and success stories

• ●On-site Q&A

• ●Policy finance institution programs

Tentative Program Schedule

Time	Content	Remarks
15:00–15:10	Opening and guest introductions / Welcome remarks
15:10–15:30	Fund formation and operation (Korea Growth Investment)	Fund overview, investment targets, schedule, real case sharing
15:30–16:00	Investment process and cases (Private equity firm)	Application methods, evaluation, success cases
16:00–16:15	On-site Q&A
16:15–16:50	Institution presentations (KODIT, KIBO, KAMCO, KICOX, KDB)