South Korean Authorities To Allocate $1 billion For DLT In Seoul
The government of Seoul is going to invest more than $1 billion in various startups, including those related to DLT and financial technologies, Coindesk Korea reports.
Projects will be supported through the Innovation Growth Fund, which the South Korean metropolitan authorities launched last year. The money will be primarily received by young startups that could not attract investors for seed funding.
The budget of the fund is planned for the period up to 2022. In the current year, Seoul will invest about $11.5 million in blockchain and other projects in the first half of the year, and $7.5 million in the second half.
Blockchain will be supported as one of the breakthrough technologies, and projects in this area will be funded through the fund’s units responsible for development of the Fourth Industrial Revolution and the concept of smart city.
Seoul authorities stated that on average, a South Korean startup receives nearly $1.1 million of initial investments — several times less than projects in London or Silicon Valley.
Jo In-dong, the head of the economy department of Seoul, said that support for innovative projects will be the key for corporate growth in South Korean society.
Last fall, the mayor of Seoul announced the transition of the capital industry to blockchain. For these purposes, a public-private fund will be created, the finances from which will be used to develop DLT platforms and establish two business complexes by 2021. The latter will house 200 blockchain companies that will educate specialists and develop solutions based on decentralized technologies.
Previously, the German authorities helped stakeholders to enter the blockchain industry.