POSCO will set up a 260 billion won ($230 million) fund to support shared-growth between large and small companies.

The plans were announced at the company’s Idea Marketplace event in Seoul on Thursday.

Of the 260 billion won, 160 billion won will be used for profit sharing and 50 billion won will be operated by the Large and Small Business Cooperation Foundation. The fund will also include 30 billion won for supporting establishment of venture companies and 20 billion won to help companies with dealing with POSCO to develop into global companies.

The steelmaker added that the 30 billion won for supporting new venture firms will be used to help companies whose operations are based on ideas selected by its Idea Marketplace scheme.

POSCO’s Idea Marketplace scheme awards cash prizes to those who submitted good business ideas. The company said that it will invest in the businesses established by the award winners if they choose to commercialize their ideas.

The company plans to provide compensation to those choosing not to set up businesses, and take measures to see such ideas commercialized.

POSCO said that business ideas can be submitted at www.poscoventure.co.kr and selected applicants will be awarded at an Idea Marketplace event that will be held on quarterly basis.

At Thursday’s inaugural event, the developers of the DNA analysis method FemtoPore and a social network service-based music service were given top prizes.

By Choi He-suk  (cheesuk@heraldcorp.com)