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POSCO to invest KRW 1 trillion to nurture startups

Steel News - Published on Thu, 23 May 2019

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Korea Times reported that POSCO will invest 1 trillion won (USD 838.4 million) to create industrial complexes and funds to nurture venture firms and startups, explore new growth drivers and find new business opportunities. The company signed an agreement with the Ministry of SMEs and Startups and Korean Venture Capital Association during its Idea Marketplace event and announced its plan to earmark 800 billion won for a venture fund and 200 billion won for building industrial complexes by 2024 in Pohang and Gwangyang, where POSCO's steel mills are located. POSCO Chairman Choi Jeong-woo said during the event at POSCO Center in Seoul that "The most convincing way of driving future growth is exploring innovative ideas and commercializing them. By building a venture platform we will expedite the country's effort to nurture the startup ecosystem and create jobs."

SMEs Minister Park Young-sun said that "The ministry will spare no efforts to support the creation of a virtuous cycle of startups becoming large companies nurturing other venture firms."

According to POSCO, it will set up a startup incubating center in Pohang, North Gyeongsang Province, and a knowledge-based industry center in Gwangyang, South Jeolla Province, by 2022, and establish additional synchrotron facilities at Pohang Accelerator Lab.

Run by the ministry, the venture fund will raise 2 trillion won by 2024, with POSCO pitching in 800 billion won.

POSCO said it will make strategic investments in prospective sectors and firms with a chance of including them in the group's portfolio. Invested companies will be provided with access to POSCO Group's international network and consultations on marketing, intellectual property, legal and financial issues.

A POSCO official said that "With the investment, POSCO will set up a venture valley where startups and venture companies can research, develop and share technologies and draw investments. With the fund, the group will support startups' stable growth in all stages of their growth cycle, so that it can serve as the platform for a startup ecosystem."

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Posted By : Rabi Wangkhem on Thu, 23 May 2019
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