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Chuncheon city formed a KRW 20 bln FOF
The city of Chuncheon announced on Jun. 1 that the local authorities have successfully raised funds which total KRW 20 billion, by securing national budget of KRW 12 billion, privately formed funds, KRW 4 billion and the city budgets, worth KRW 4 billion, since they’ve allowed to invest in different mutual funds, directly granting fund assets to venture startup firms (or fund of funds) last April.
They’ve tried this type of investment scheme as local government for the first time ever. The fund of funds (FOF) approach is an investment vehicle that pools capital to finance different phases of venture firms and industry sectors, while creating a highly-diversified and comprehensive portfolio of investments, rather than a conventional and indirect way of money-sourcing, loans.
With high expectations of the FOF they’ve raised this time, the city government signed an MOU with private-public partners involved on Jun. 3, believing that the investment would bring out another round of venture capital boom in local economy.
hak@yna.co.kr
** This article was translated from Korean.
Date
2020.06.16
Views
336
According to Yonhap News,
The city of Chuncheon announced on Jun. 1 that the local authorities have successfully raised funds which total KRW 20 billion, by securing national budget of KRW 12 billion, privately formed funds, KRW 4 billion and the city budgets, worth KRW 4 billion, since they’ve allowed to invest in different mutual funds, directly granting fund assets to venture startup firms (or fund of funds) last April.
They’ve tried this type of investment scheme as local government for the first time ever. The fund of funds (FOF) approach is an investment vehicle that pools capital to finance different phases of venture firms and industry sectors, while creating a highly-diversified and comprehensive portfolio of investments, rather than a conventional and indirect way of money-sourcing, loans.
With high expectations of the FOF they’ve raised this time, the city government signed an MOU with private-public partners involved on Jun. 3, believing that the investment would bring out another round of venture capital boom in local economy.
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hak@yna.co.kr
Source: Yonhap News (Jun. 1 , 2020)
** This article was translated from Korean.