South Korea to spend $66 billion in creating own 'Silicon Valley'

South Korea plans to spend a total of 80 trillion won ($65.9 billion) in creating startups and promising businesses in 2016.

Investments in startups will focus around Pangyo, a city south of Seoul that already houses local tech giants such as Kakao and Nexon, dubbed the local version of Silicon Valley.

The Ministry of Science, ICT and Future Planning and five related government agencies made the announcement in their administrative report to President Park Geun-hye.

8 trillion won of the budget will be direct investments, while it will loan 49 trillion won and stand surety for 23 trillion won.

The ministry will continue its Center of Creative Economy and Innovation (CCEI) program, which runs startup incubators with support of local conglomerates such as Samsung and LG, to foster local talent.

The investment will help create a startup hub in Pangyo and help them expand abroad. Foreigners and foreign startups will also be invited and get financial and administrative assistance, the ministry said.

Businesses related to IT, robotics, bio, health, smart cars, energy and new materials will qualify for assistance, it added.

A centre for culture and contents for holograms, virtual reality (VR), computer graphics (CG), and 3D media will also be built in Sangam, Seoul.

Source: ZDNet.co.kr