SEOUL, Jan. 11 (Xinhua) -- South Korea will spend 200 billion won (178.7 million U.S. dollars) to support launching a venture investment fund, a government-run agency said Monday.

    According to Small and Medium Business Administration, the South Korean government plans to pour the money into venture businesses and the green growth sector, which will likely contribute to job increase.

    Accordingly, the government will set up a policy-driven fund that will focus on newly launched enterprises, for which 70 percent of the money will be tapped from the government's fund of fund (FoF), the administration said.

    The government in late December announced that it will set up an FoF amounting to 1.6 trillion won (1.43 billion U.S. dollars) and additionally launch a venture fund by raising 3.5 trillion won(3.13 billion U.S. dollars) from the private sector by 2012, it added.

    An FoF refers to an investment strategy of holding a portfolio of other investment funds rather than investing directly in shares, bonds or other securities.

    Moreover, the government is eyeing setting up an Asian joint investment fund with financial companies in China and Singapore, in addition to an M&A fund targeting small and medium-sized enterprises, according to the administration.

    The plan will kick off in upcoming May, it said, with details to be announced later on, the administration said.

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