Jeong Jin-wan (from left) the president of Woori Bank, Jeong Sang-hyuk the president of Shinhan Bank, Yoo Sang-im Minister of Science and ICT, Hong Won-hwa the chairman of the National Research Foundation of Korea, Kim Seong-tae the president of IBK Industrial Bank, and Jo Jae-min the CEO of Shinhan Asset Management are taking a commemorative photo at the signing ceremony for the establishment and operation of the Science and Technology Innovation Fund held at TP Tower in Yeouido, Seoul on Nov. 4. /Courtesy of Yonhap News Agency

A fund worth 1 trillion won will be established, focusing on investment in technology commercialization corporations and national strategic technology innovation corporations.

The Ministry of Science and ICT noted that it signed a business agreement to establish the 'Science and Technology Innovation Fund' at the TP Tower in Yeouido on the afternoon of the 4th. The agreement included three banks that contributed funds: Shinhan Bank, Korea SMEs and Startups Agency, and Woori Bank, along with Shinhan Asset Management, selected as the fund manager, and the National Research Foundation of Korea, the dedicated agency for managing research and development funds.

The Science and Technology Innovation Fund is a specialized fund in the scientific field, established with funds from commercial banks and is expected to focus investments on domestic technology commercialization corporations and 12 national strategic technology-related corporations. It plans to concentrate investments in technology commercialization corporations, such as research institute corporations and public technology transfer corporations, to create a technology commercialization ecosystem and support the growth of research and development innovation corporations.

The Science and Technology Innovation Fund will be established with a total size of 494 billion won, funded by Shinhan Bank, Korea SMEs and Startups Agency, and Woori Bank, which have been selected as the dedicated banks for managing R&D funds for national research and development projects. Shinhan Asset Management will be responsible for managing the fund.

Over the next four years, a main fund of 125 billion won will be established annually, and funds will be invested in sub-funds created by accelerators or venture capital firms. The sub-fund managers will match private funds equivalent to the main fund's investment, managing a total of 2.5 billion won annually, leading to a total of 10 trillion won over four years. The funds established each year will be managed for eight years before liquidation.

Minister Yoo Sang-im stated, 'The Science and Technology Innovation Fund will play a crucial role in commercializing innovative technologies in Korea and ensuring our technologies can be competitive in the international market,' adding, 'The Ministry of Science and ICT and the private sector will join forces to lead investments and innovations for technology commercialization and enhancing global competitiveness.'

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