Applications for Global Fund Formation Reach 1 Trillion Won
Investment Budget Set at 170 Billion Won... 6 to 1 Competition Ratio
On May 29, the Ministry of SMEs and Startups announced that 79 investment firms from around the world have applied to participate in the 2025 Global Fund for overseas venture capital (VC). The total amount of capital requested for investment reached approximately 1 trillion won, resulting in a competition ratio of about 6 to 1 based on the investment budget of 170 billion won.
The Global Fund is a program in which the Korea Fund of Funds invests in funds operated by outstanding overseas venture capital firms, with the requirement that at least the amount invested by the Fund of Funds must be invested in Korean companies. This initiative has been in operation since 2013. To date, 73 funds worldwide have been managed under this program, totaling 12.2 trillion won, and 645 Korean ventures and startups have received investments amounting to 1.3 trillion won.
This year, in accordance with the "Plan for Advancing the Venture Investment Market" announced in October last year, the Global Fund increased its investment budget to a record-high 170 billion won, raised the maximum fund investment limit to 50 million dollars, and newly established investment areas in artificial intelligence (AI), climate tech, and secondary markets. As a result, both the investment scale and the range of investment fields have been expanded and diversified.
The total amount proposed by all applicants for fund formation this year was approximately 13.5 billion dollars (about 18 trillion won), with capital requests totaling around 716 million dollars (about 1 trillion won), leading to an overall competition ratio of about 6 to 1 based on the investment budget of 170 billion won.
By sector, 60 funds applied in the general category, resulting in a competition ratio of about 5.8 to 1. In the newly established AI, climate tech, and secondary categories, 19 funds applied, recording a competition ratio of about 6 to 1.
The participation of global VCs in the new categories is analyzed as reflecting the expansion of large-scale investments in the global AI technology sector, the future growth potential of the climate tech industry, and the investment value of Korean startups.
By region, 28 VCs from the United States, 27 from Asia, 17 from Europe, 5 from China (including Hong Kong), and 2 from the Middle East submitted applications.
Korea Venture Investment plans to evaluate the applicants next month through document screening and on-site due diligence, focusing on fund management capabilities, the feasibility of fund formation, and contributions to investment in Korea. Subsequently, the final selection of Global Fund managers will be made through the Investment Review Committee in July, and the selected managers are scheduled to begin fund formation starting in December this year.
Kim Bongdeok, Director of Venture Policy at the Ministry of SMEs and Startups, stated, "The Global Fund not only attracts investment but also connects venture and startup companies to the investment networks of global investors, providing significant opportunities for overseas expansion." He added, "We will continue to fully support overseas investment attraction and global expansion of our ventures and startups by creating more than 1 trillion won in Global Funds every year."
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