Over 2.5 Trillion Won Invested by 30 Private Investors
Venture Fund of 600 Billion Won to Be Established
The "2025 Startup Korea Fund," which focuses on investing in deep tech startups aiming to enter the global market, has been launched. This fund was jointly established by large corporations, small and medium-sized enterprises, mid-sized companies, financial institutions, and the government.
On April 24, the Ministry of SMEs and Startups announced that it held the "2025 Startup Korea Fund Launch Ceremony" together with participating investors and related organizations. The Startup Korea Fund is characterized by the government providing enhanced incentives, such as first-loss absorption, additional points in the co-prosperity evaluation, and government awards, to encourage the private sector to make bolder venture investments. The government explained that by reducing the proportion of public funding and increasing the share of private capital, the fund has doubled the effect of attracting private investment.
In its inaugural year, 19 private investors contributed 326 billion won, and the government’s parent fund invested 229.5 billion won, creating a venture fund totaling 873.3 billion won. Within just a few months of its formation, these funds invested a total of 27.5 billion won in 20 deep tech companies in fields such as artificial intelligence (AI), biotechnology, and robotics. Full-scale investments are expected to begin this year.
This year, 30 private investors have committed to invest over 250 billion won, and the government will match with more than 170 billion won, resulting in a combined public-private investment of about 420 billion won and the creation of a venture fund worth approximately 600 billion won. When combined with last year’s 873.3 billion won, the Startup Korea Fund will total 1.5 trillion won over two years.
Oh Youngjoo, Minister of SMEs and Startups, is delivering a congratulatory speech at the launch ceremony of the "2025 Startup Korea Fund" held on the 24th at Hotel Naru Seoul MGallery in Mapo-gu, Seoul. Ministry of SMEs and Startups
This year, the Startup Korea Fund has attracted the participation of many new investors with no prior experience in venture investment associations. Ten companies, including Cosmax, Spoonlabs, Tokyo Seikyo Center, and Sungkyunkwan University Technology Holdings, are making their first venture investments. Among them, Spoonlabs, a company that grew through venture investment, is now investing in younger startups. Tokyo Seikyo Center, a company run by Korean residents in Japan, joined to support Korean ventures and startups. In addition, 20 companies with previous experience in venture investment associations have significantly increased their investment compared to last year by participating in this year’s Startup Korea Fund.
Starting this year, a new "open innovation" category has been established to promote strategic collaboration between large corporations, SMEs, mid-sized companies, and startups through venture investment. In addition to the previously launched "K-Beauty Fund," funds for open innovation in strategic sectors such as biotechnology and semiconductors will be created, totaling over 200 billion won. In particular, a fund will be established to promote strategic collaboration in the bio sector. "CMIC," the largest clinical research organization (CRO) in Japan, has joined to support cooperation with Korean bio startups and ventures and to help them enter the Japanese market. The Korea Pharmaceutical and Bio-Pharma Manufacturers Association has also formed a consortium with 15 member companies to participate in venture investment for the first time, aiming to discover new growth engines for the pharmaceutical and biotechnology industry.
Additionally, LX Semicon has launched an open innovation fund specializing in the system semiconductor sector, while NH Nonghyup Financial Group, Hyundai Marine & Fire Insurance, POSCO Holdings, and GS Engineering & Construction have joined to seek collaboration with deep tech ventures and startups across their existing business areas.
Following the launch ceremony, the 2025 investment program will be announced in May, and the selection of fund managers and the full-scale formation of the fund will begin in the second half of the year. Minister of SMEs and Startups Oh Youngjoo stated, "The Startup Korea Fund will provide open innovation opportunities among ecosystem participants in each deep tech sector and expand its role as a platform to encourage more companies and financial institutions to participate in the venture investment market, thereby supporting Korea’s leap forward as a global deep tech powerhouse."
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