Report Date	From Morning paper of 2018.7.26.(Thu)	Distribution Date	2018.7.25.(Wed)
Contact	Seo Dong-Gyeong, Team manager(042-865-7030), Kim Si-Han(042-865-7031) of Project Planning Team, Office of Future Strategy

INNOPOLIS Foundation, To Create INNOPOLIS Fund of 70 Billion Won for Job Creation

- To held the 3-3rd INNOPOLIS Fund General Meeting (Fund name: INNOPOLIS Job Creation Fund No. 2)

- To invest earnestly from August this year to support growth of SMEs and Ventures in INNOPOLIS!!!

- Complete the fund by stage (3 stages) for Technology Commercialization of INNOPOLIS

□ On 25th this month, INNOPOLIS Foundation (Director: Yang Seong-Gwang, ‘INNOPOLIS FOUNDATION’) said that it held 3-3rd INNOPOLIS Fund General Meeting(Fund name: INNOPOLIS Job Creation Fund No. 2) in order to support the growth of SMEs and Ventures and activation of job creation in INNOPOLIS

ㅇ 3-3rd INNOPOLIS Fund is supposed to act as priming water for growth of corporations such as extending job creation and advancement to local and overseas markets by intensively investing in SMEs and ventures in the INNOPOLIS.

□ Till now, INNOPOLIS Foundation has implemented to created the fund by growth stage suitable for the company’s characteristics in accordance with the 3rd INNOPOLIS Fund creation plan.

< 3rd INNOPOLIS

Fund Creation Plan >

Classification		3-1st Fund [Creation Stage(1～3 years)]		3-2nd Fund [Product Development(Less than 5 years)]		3-3rd Fund [Growth Stage(Over 5 years)]		IPO/ M&A
Associated Project		∘INNOPOLIS Campus ∘Accelerating		∘Technology Transfer R&BD ∘INNOPOLIS Research Institute Spin-off R&BD		∘Support market advance ∘Support specialization by INNOPOLIS
Technology Fiance		[Micro VC Fund] (18.8 Billion Won, Creation in May 2016)		[Public Technology based Fund] (50.1 Billion Won, Creation in April 2017)		[Job Creation Fund No. 2] (70 Billion Won, Creation July 2018)

ㅇ Beginning 3-1st Fund (Fund name: Chungcheong Area Startup Accelerating Fund)  for supporting the start-up companies earlier than 3 years in 2016, 3-2nd Fund (Fund name: INNOPOLIS Public Technology based Fund) which intensively supports public technology companies such as 2017 INNOPOLIS Research Institute Spin-off continuously.

□ The 3-3rd INNOPOLIS Fund created this time is the last stage fund in creation plan of the 3rd INNOPOLIS Fund,

ㅇ INNOPOLIS Fund has a plan to invest total 70 billion Won till 2022 investing 20 billion Won, the amount collected from the 2nd INNOPOLIS Fund plus the investment from the Fund of Fund and local governments in the INNOPOLIS Area, including Daejeon, Gwangju, Daegu, Gyeongbuk and Gyeongsan-Si.

< Annual Investment Plan of 3-3rd INNOPOLIS Fund (Draft) >

Investor		2018	2019	2020	2021	Total(100M Won)
INNOPOLIS Foundation(Ministry of Science and ICT)		20	60	60	60	200
Fund of Fund		28	84	84	84	280
Management Company		5.2	15.6	15.6	15.6	52
Associated local government	Daejeon TP(Daejeon-Si)	10	30	30	30	100
	Gwangju TP(Gwangju-Si)	3	9	9	9	30
	Daegu TP(Daegu-Si)	3	9	9	9	30
	Gyeongbuk TP(Gyeongbuk-Do, Gyeongsan-Si)	0.8	2.4	2.4	2.4	8
Total		70	210	210	210	700

ㅇ Major subjects to be invested by this fund are the companies located in the INNOPOLIS or the local government area where the INNOPOLIS belongs to, which already demonstrated or will demonstrate the technology commercialization,

- Above all, the fund has been designed so that subsequent investment can be associated without suspension in order to create the market for new products and promote growth of the 3-1, 3-2 fund investment companies.

□ Meantime, various results have been created through the 1st and 2nd INNOPOLIS Funds which were created and managed by INNOPOLIS Foundation.

ㅇ The 1st INNOPOLIS Fund (Fund name: Daeduk INNOPOLIS Patent Technology Commercialization Investment Association) achieved outstanding results recording the disinvestment return rate of 164.4%, while 9 companies out of 27 companies have been listed in the stock market.

ㅇ The 2nd INNOPOLIS Fund (Fund name: INNOPOLIS Job Creation Investment Fund) which is currently under disinvestment also has shown excellent result in the job creation employing 532 persons have been additionally by 51 investment companies,

- especially, the investment company, ‘Corestem’shows a significant growth rate creating jobs for 33 persons (employment growth rate: 257%) listing in the KOSDAQ in 2015.

□ Yang Seong-Gwang, director of INNOPOLIS Foundation said, “The technology commercialization has been completed by stage first time in Korea by organizing the 3-3rd INNOPOLIS Fund”

ㅇ and added, “this fund will not only create premium jobs in INNOPOLIS but also become the foundation for stable growth and success cases of SMEs and ventures. We will make an effort to expand the virtuous cycle ecosystem of the technology finance continuously.”

Attachment: 1. Overview of 3-3rd Fund Creation

2. Overview of the 3rd INNOPOLIS Fund Creation (Plan)

Attachment 1		Overview of the 3rd INNOPOLIS Fund Creation (Plan)

□ (Creation) The first closing was created to the size of 70 billion Won in June 2018 and additional amount will be created through Multiple Closing in the future when necessary.

□ (Investment) INNOPOLIS Foundation will invest total 20 billion Won (partial payment over 4 years) from 2018 to 2021 according to the annual investment plan (draft).

* The financial resources of 20 billion Won of INNOPOLIS Foundation will be reinvested by revolving method from the 2nd Fund (Job Creation Investment Fund 1).

< Overview of 3-3rd Fund >

Classification

Details

Association name

INNOPOLIS Job Creation Investment Fund No. 2

Closing date

‘18.7.25.

Management Company

POSCO Technology Investment K-Run Ventures

Closing size

70 billion Won

Target (Reference) Return rate

IRR 5%

Survival period

‘18.07~’26.7 (8 years management)

- 4 years investment ('18.7.~'22.7.), 4 years disinvestment ('22.7.~'26.7.)

Major investment conditions

① Invest more than 60% of the fund in the technology based companies in the INNOPOLIS area

- 50% of which will be preferentially invested in the companies in the INNOPOLIS

② More than 2 times of investment money of each local government will be invested in the area of local government.

Investment size

1-5 billion Won is invested per a company considering the subsequent investment in SMEs and ventures.

Investors

Investor		2018	2019	2020	2021	Total
INNOPOLIS Foundation		20	60	60	60	200
Fund of Fund		28	84	84	84	280
Management company		5.2	15.6	15.6	15.6	52
Local government	Daejeon TP(Daejeon Si)	10	30	30	30	100
	Gwangju TP(Gwangju-Si)	3	9	9	9	30
	Daegu TP(Daegu-Si)	3	9	9	9	30
	Gyeongbuk TP(Gyeongbuk-Do, Gyeongsan-Si)	0.8	2.4	2.4	2.4	8
Total		70	210	210	210	700

Attachment 2		The 3rd INNOPOLIS Fund Creation (Plan)

□ Complete the road map of INNOPOLIS Technology Finance by planning (Fund creation by stage) Startup stage(Micro VC Fund)→Product development stage(Public Technology Based Fund)→Growth stage(Job creation fund No. 2).

Classification		3-1st Fund [Startup stage(1～3 years)]		3-2nd Fund[Product development(less than 5 years)]		3-3rd Fund [Growth stage(Over 5 years)]		IPO/ M&A
Associated business		∘INNOPOLIS Campus ∘Accelerating		∘Technical transfer R&BD ∘INNOPOLIS Research Institute Spin-off R&BD		∘Support market entry ∘Support specialization by INNOPOLIS
Technology Finance		[Micro VC Fund] (18.8 Billin Won, Closing in May 2016)		[Public Technology based Fund] (50.1 billion Won, Closing in April 2017)		[Job Creation Fund No.2] (70 billion Won Closing in August 2018)

	< Major Sections of INNOPOLIS Stage Fund >

Classification		3rd Fund
		(3-1st Fund)	(3-2nd Fund)	(3-3rd Fund)
Overview	Name	Chungcheong Area Startup Accelerating	INNOPOLIS Public Technology based Fund	Job Creation Investment Fund No. 2
	Major investment area	Invest more than 60% of closing money in the startup companies not longer than 3 years since established.	Invest more than 60% of closing money in technical transfer company or investees in INNOPOLIS	Invest more than 60% of closing money in SMEs and ventures in the local government area where INNOPOLIS is included.
	<Management company	Daeduk Venture Partners	INNOPOLIS Partners	POSCO Technology Invest, K-Run Ventures
	Closing date	2016.5	2017.4	2018.7
	<Management period	8 years (Investment 4 years+Disinvestment 4 years)	8 years (Investment 4 years+Disinvestment 4 years)	8 years (Investment 4 years+Disinvestment 4 years)
	Total closing amount	18.8 billion Won	50.1 billion Won	70 billion Won (Scheduled)
	Foundation investment money	1 billion Won(5.3%)	15 billion Won(29.9%)	20 billion Won(28.6%)