CVC Investment Nears 3 Trillion Won, Marking Record High... Ministry of SMEs and Startups Expands Open Innovation Fund

21.3% of Total Venture Investment
Creation of a 250 Billion Won Open Innovation Fund

The annual investment by corporate venture capital (CVC) firms in Korea reached a record high of 2.9 trillion won last year. To further boost startup investment through CVCs and foster open innovation between large and mid-sized companies, the government plans to create a fund worth approximately 250 billion won in the second half of the year.

Signboard of the Ministry of SMEs and Startups in Sejong City. Photo by The Asia Business Daily Database

The Ministry of SMEs and Startups announced on June 26 that it held the "2026 Q2 CVC Council" and "2026 CVC Link Day" at the Startup Venture Campus (SVC) in Mapo-gu, Seoul, in collaboration with the Korea Venture Capital Association. The event was attended by representatives from the Ministry of SMEs and Startups, corporate venture capital firms (CVCs), startups, the Korea Venture Capital Association, and Korea Venture Investment Corp.

According to data released at the event, out of 444 domestic venture capital (VC) firms last year, 114 were CVCs. Among these, 13 were owned by general holding companies.

Last year, annual investment by CVCs amounted to approximately 2.9 trillion won, marking the highest level since statistics were first compiled in 2022. This figure accounts for 21.3% of the total venture investment, which stood at 13.6 trillion won. The investment by CVCs owned by general holding companies was tallied at 193.9 billion won.

The Ministry of SMEs and Startups is also working to establish new funds to expand the open innovation ecosystem centered on CVCs. As part of the "LP Growth Fund," which includes participation from pension funds, corporations, and the financial sector, the ministry plans to launch an open innovation fund of about 250 billion won to invest in strategic industries such as bio, defense, and beauty. Currently, discussions are underway with around 10 companies, and a call for fund management companies is scheduled for the second half of the year.

In addition, starting this month, the "Open Innovation Venture Fund" will be fully operated, linking follow-up investments from Korea Venture Investment Corp. when domestic and global large and mid-sized companies collaborate and invest in startups. Notably, this fund offers a put option for a portion of the investment equity to both investors and startups, thus promoting open innovation.

Kim Dohan, Chair of the CVC Council, said, "In a rapidly changing global market environment, the activation of CVCs is not a choice but a necessity. I hope this event serves as a platform for discovering new avenues of cooperation."

Kim Bongdeok, Director of Venture Policy at the Ministry of SMEs and Startups, stated, "CVCs are becoming a critical bridge connecting startup innovation and industry. We will actively support the further development of a collaborative ecosystem between industry and startups."

This content was produced with the assistance of AI translation services.