• Journal of Korea Technology Innovation Society
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• v.13 no.4
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• pp.717-737
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• 2010

In the face of climate changes and economic crisis, nations across the world spare no efforts to identify new growth engine industries and lift the domestic economy by promoting green technologies and tightening environmental regulations. The Korean government also tries to create and promote new growth engine industries. As part of these efforts, it launched the New Growth Engine Fund in 2009, a private and public initiative to support small- and medium-sized companies that own promising new green technologies. However, it has a limitation on making investment in the fund due to the global economic crisis, the significant size of necessary capital investment and the difficulty of finding investment companies. The lukewarm response of the private sector arose a need to change the fund management method. Against this backdrop, this paper aims to propose efficient strategies of managing various funds such as cooperation fund between the central and local governments, incubator fund financed by the government and financial institutions and win-win cooperation fund for the government, large companies and partners as a means of developing and supporting new growth engine industries in a sustainable way. The importance of this research lies with the proposition of various funds that can be used to implement the government's strategic goal of developing new growth engine industries.

• Journal of Korean Electronics
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• v.30 no.4
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• pp.40-41
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• 2010

• Journal of Korea Technology Innovation Society
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• v.13 no.3
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• pp.538-557
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• 2010

Korean Government has supplied small-medium enterprises with various technology financing programs such as R&D grant." loans, equities, guarantees since 1980's. The purpose of this study is to render policy suggestions for policy makers by analysing problems with regard to regulations. The suggestions of this study are such as the following. First, the current three months of the fund formation period should be extended within six months for general partners to have enough time to raise funds in the current tough capital market situation. Second, the government's non priority loss devotion system should keep going to prevent general partner's moral hazard. Third, in order to fulfill the policy purpose that is to create globally well-known companies, the government investment ratio should scale up from the current 20% to 30% of the total fund size in that the stable capital supply for core technology commercialization, industrialization and globalization of companies is achieved. Finally, general partners of the New Growth Engine Fund should showoff their investment abilities to the potential investors such as institutional investors by accumulating all track records and know-hows that prove their specialities and implementing action plans to achieve the best result of their investment. This study provides general considerations of the selection procedure, the government investment ratio, the government priority loss devotion system and so on when formating the public funds.