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The Seoul Metropolitan Government said Thursday it plans to start an investment
fund worth 1 trillion won (US$886 million) to support the city's new growth
engines.
The fund the city government plans to create will be in the
form of a fund of funds (FoFs), a mutual fund that invests in other investment
funds rather than directly investing in individual securities.
With an
aim to promote eight key next-generation industries, the municipal government
began receiving applications to recruit a contractor who will conduct a
feasibility study on the plan along with finding ways to create and manage the
new mutual fund, the city said. The application period ends on March
5.
If launched, it would mark the first time the city has established
an FOF, according to the city.
The core businesses expected to serve
as the city's future growth engines include financial services, knowledge-based
industries, smart technology-based businesses, and creative fields such as
fashion and design, according to the city.
"The FoF is expected to
increase diversity so as to lower volatility and create stable profits," a city
official said. "Along with the plan to launch the new fund, we will explore ways
to promote private sector investment in venture capital funds, which will be
used to support more industries that have not been covered by city
budgets."
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