Posco to invest 1 trillion won in start-ups

Posco inked a partnership with the Ministry of SMEs and Startups and the Korea Venture Capital Association on Tuesday to inject 1 trillion won ($837 million) into start-ups by 2024.

The steelmaker said it hopes to nurture new business areas by fostering and investing in start-ups.

Of the 1 trillion won, 200 billion won will be spent on creating a so-called venture valley, offering infrastructure for start-ups so they can conduct research and share technologies with each other. Posco said the new buildings will be built in Pohang, North Gyeongsang, and Gwangyang, South Jeolla. The two places are where the steelmaker’s steel mills are located.

The remaining 800 billion won will be spent on creating a venture fund to help start-ups commercialize their products and services. While Posco alone will raise 800 billion won from this year through 2024, it will raise 1.2 trillion won from outside investors to operate a 2 trillion won fund.

Posco said it will make strategic investments into start-ups at home and abroad with the fund and also open up its own global sales and marketing network to them in the hopes of venturing into new business areas through the investments.

The government will aid Posco in providing overall support while the Korea Venture Capital Association helps the steelmaker find promising start-ups to invest in.

After formalizing the partnership, Posco on Tuesday held its own event called “Idea Market Place” to find and nurture start-ups. The 16 start-ups selected by the steel producer exhibited their prototype products and presented their business plans during the event.

BY KIM JEE-HEE [kim.jeehee@joongang.co.kr]