Startup Korea Fund Launches Formation of 840 Billion Won Scale Fund
Mother Fund and Private Investors Jointly Invest 560 Billion Won
The Ministry of SMEs and Startups announced on the 19th that the 'Startup Korea Fund' investment project selection results involve 19 private investors contributing 328 billion KRW, and the Korea Fund of Funds contributing 231 billion KRW, forming a total fund of 837.6 billion KRW.
The Startup Korea Fund is a public-private joint venture investment platform where private sectors such as large and medium-sized enterprises and financial institutions can participate in venture investments with government incentives. A key feature is that the Korea Fund of Funds offers bold investment conditions, such as first-loss coverage, to encourage more active venture investments by private investors.
Despite being the first year of the investment project’s introduction, this fund has attracted high private sector participation. The initial target fund size for this year was 500 billion KRW, but with expanded private participation, a venture fund of approximately 840 billion KRW, 1.7 times the target, is expected to be formed.
In particular, among the 19 private investors contributing 328 billion KRW, six institutions including Hanwha TotalEnergies and Kakao Mobility are making their first investments in venture capital partnerships, marking their initial step into venture investment. Among the 13 institutions with prior venture capital partnership investment history, nine have significantly increased their investment amounts compared to the previous year. A Ministry of SMEs and Startups official evaluated, "Since the Startup Korea Fund was designed as a private-sector-centered venture fund to expand private venture investment participation, this investment project has actually led to an increase in private investment."
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Minister Oh Young-joo of the Ministry of SMEs and Startups stated, “Through this year’s Startup Korea Fund, six institutions participated in venture funds for the first time, demonstrating the effect of promoting private investment. We will develop the Startup Korea Fund into an innovative and successful venture investment platform that the world will pay attention to,” adding, “We will promptly announce a venture investment revitalization plan in the second half of the year that includes innovative and groundbreaking policies to attract global investors, domestic large corporations, and financial sectors into the venture investment market.”
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