The metropolitan government of the South Korean capital has officially announced (Feb 18) it plans to invest 1.2 trillion won ($1.07 billion) by 2022 in blockchain and fintech startups.

Its Seoul Innovation Growth Fund, which launched last year, will be used to support primarily blockchain and fintech startups with Series A funding rounds. For 2019, the fund will be divided into two parts – 13.25 billion won ($11.75 million) for the first, and 8.4 billion won ($7.45 million) for the second half.

Seoul’s announcement highlighted that the average initial investment made per company for South Korean startups stood only at about $1.1 million in comparison to the $6 million to $7 million given to those in London and the US.

“Innovative startup investments will be the cornerstone of corporate growth that creates innovation in our society and will be a crucial driving force for the growth of innovative venture companies. We will expand our investment to […] stimulate the startup investment market and create an entrepreneurial ecosystem,” said Jo In-dong, head of economic policy at the Seoul Metropolitan Government.

Seoul has been on a drive to support and promote the use of blockchain. Seoul’s mayor, Park Won-soon, unveiled a five-year plan called “Blockchain City of Seoul” late last year.  

Earlier this year, the Seoul Metropolitan Government also announced the launch of its Seoul Blockchain Governance Team. Consisting of 100 employees, its aim is to look into the potential and benefits of applying blockchain to various government services.