Government to Raise 300 Bln Won in New Growth Engine Fund

More than 300 people on hand at the 1st Technology Finance Commercialization Award & Forum

Vice Minister for Industry and Technology Rim Che-min said the government plans to raise 300 billion won in a fund to commercialize technologies related to new growth engines that will drive the Korean economy in the years to come.
Rim made the remarks during his meeting with reporters on the sidelines of the 1st Technology Finance Commercialization Award & Forum held on Nov. 27 at the Imperial Palace Hotel in Nonhyeon-dong, Seoul.
"The circulation of information, manpower and financing are the prerequisites of technology transfer and commercialization, and these have to be harmonized. We plan to raise about 300 billion won in a new growth engine fund," Rim said.
"The first factor in promoting technology transfer and commercialization is sharing information, and the second one is about manpower. In an era of technology convergence, there should be people who have insight into convergence technology as well as those who are well versed in management and financing. And finally, money is an essential factor," said the vice minister, adding that even though there are several technology financing techniques, venture capital is the most common method. "We're going to take our cue from Singapore and Israel, which provide public funds." Commenting on the details of the planned new growth engine fund, Rim said the plan calls for raising between 250 billion and 300 billion won. The government has earmarked 50 billion won in the 2009 budget and additional money will be financed by the private sector. He noted that the government will initially play a role in raising seed money in the early stage of developing technology with the goal of making the planned fund profitable and meeting market demands.
As to ways of providing support for commercializing green technologies, the government is attaching a focus on the proliferation of environmentally friendly technologies so that they can be spread to the whole of industry, and it is significant to establish a regime in which many people can share green technology and information.
About 350 people from universities, research institutes, technology parks, financial institutions, companies and technology practitioners participated in the award ceremony and forum, organized by the Korea Technology Transfer Center (KTTC) and the business daily Money Today. Two people won the Money Today Award and the KTTC President Award, respectively.
During the award ceremony, 10 people, including Cho Sang-bae, general manager in charge of technology transfer of the Korea Institute of Machinery and Materials, and Hwang Jung-won, a KTTC expert, grabbed the knowledge economy minister's award.
Rep. Bae Eun-hee, of the Grand National Party, who is a member of the National Assembly Knowledge Economy Committee, said in her commemorative speech, "Practices of commercializing technology have been increasing since 2000 when the act on facilitating technology transfer took effect. Efforts to invigorate technology finance and commercialization should be redoubled."
She noted, "SMEs could encounter a 'Death Valley' in the course of technology commercialization, so financial institutions and technology companies should play a role in bridging the valley."
Success stories on technology transfer and commercialization were presented in the afternoon session of the forum, and presentations by experts on technology financing followed.
P&IB Co. President Kim Gil-hae made a presentation about her company's transfer of a technology related to punching hangul, the Korean alphabet, into a handset, and Daedoo Foods Co. Vice President Choi Bong-young announced the process of purchasing and commercializing a technology related to the rice flour brand Haepssal Maru. They both received thunderous applause from the audience.
Lee Kang-soo, a senior advisor on investment scrutiny, spoke about the role of technology financing in commercializing technology. He stressed the need for raising long-term financing sources for investments by expanding funds for commercializing technology and redoubling efforts to expand investment-related R&D activities.
At the same time, an explanation session on technology transfer related to new growth engines was held in another room of the hotel. The audience exceeded the room's seating capacity by about 50 people, signaling a keen interest in green technology transfer following the announcement of the government's low-carbon, green growth initiatives. nw

(from left) Vice Minister of Knowledge Economy Rim Chae-min gives a speech at the 1st Technology Finance Commercialization Award & Forum in Seoul on Nov. 27.