Preparations Begin in Earnest for the $200 Million K-Global Mother Fund by 2026
The Ministry of SMEs and Startups has begun preparations to complete the establishment of the 'K-Global Mother Fund' (tentatively named K-VCC) by 2026.
The ministry announced on the 28th that its affiliated organization, Korea Venture Investment Corp. (KVIC), has established a local corporation in Singapore. Until now, KVIC had operated a local office in Singapore rather than a corporation, handling tasks such as managing and operating global funds, supporting the entry of Korean venture companies and startups into the local market, and attracting investment.
The establishment of this corporation is intended to facilitate the inflow of global investment capital into the domestic venture investment market, in line with the 'Plan for Advancing the Venture Investment Market' announced in October last year. This can be seen as the first step toward creating a $200 million 'K-Global Mother Fund' in Singapore by 2026.
The Singaporean government introduced the VCC (Variable Capital Company) system in 2020 to attract global investment capital, providing tax benefits on investment gains and dividends for VCC funds. Currently, 565 fund management companies in Singapore operate 1,029 VCC funds.
The 'K-Global Mother Fund' to be established in Singapore will be managed by the KVIC Singapore corporation as the general partner (GP), creating a VCC fund that will allow not only domestic venture capital but also global investment capital to participate as sub-funds of the K-Global Mother Fund.
Following the establishment of the local corporation, the Ministry of SMEs and Startups and KVIC are preparing subsequent measures such as recruiting local personnel and applying for VCC-related licenses, aiming to launch the 'K-Global Mother Fund' in the second quarter of 2026.
Kim Bongdeok, Director of Venture Policy, stated, "The K-Global Mother Fund is expected to significantly facilitate the establishment of offshore funds by domestic venture capital firms and their global investment expansion from Singapore, the financial and venture investment hub of Asia. It will also greatly contribute to attracting global investment capital for Korean ventures and startups, and to their global expansion by leveraging local investment networks." He added, "The Ministry will thoroughly prepare subsequent measures to expand the KVIC Singapore corporation into a key base for venture and startup investment in Asia, and to actively support the entry of domestic startups into the Asian market."
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