13 Global Fund Managers Selected, At Least 270 Billion Won to Be Invested in Korea

New Global Fund Worth 2.4 Trillion Won to Be Established

The Ministry of SMEs and Startups announced on August 3 that it has selected 13 fund managers for this year's Global Fund and plans to newly establish a fund worth 2.4 trillion won. The Global Fund is a program in which the Korea Fund of Funds invests in funds operated by outstanding overseas venture capitalists, requiring them to invest at least the amount contributed by the Fund of Funds into Korean companies. To date, it has operated 74 funds worldwide, with a total scale of 12.3 trillion won.

The Ministry of SMEs and Startups has been operating the Global Fund since 2013, and 652 Korean ventures and startups have received investments totaling 1.3 trillion won. It has contributed to the emergence of global unicorns such as Toss, Danggeun Market, and Rebellions.

This year, the Global Fund increased its investment budget to a record-high 170 billion won and newly established categories for AI, climate tech, and secondary funds. The Ministry of SMEs and Startups, through Korea Venture Investment, accepted applications after announcing the investment plan, then conducted document screening, on-site due diligence, and an investment review committee to finally select 13 global venture capital firms as Global Fund managers.

In selecting fund managers, Korea Venture Investment evaluated the likelihood of fund formation, investment expertise, and contribution to the domestic venture investment ecosystem, including investments in Korea. By category, the selected managers include 10 general, 1 artificial intelligence (AI), 1 climate tech, and 1 secondary fund. By region, venture capital firms from six countries?United States, France, United Kingdom, Singapore, Japan, and Taiwan?were selected.

This year’s Global Fund will be formed with a 170 billion won investment from the Fund of Funds and is expected to reach a record-high total of 2.4 trillion won, including about 1 trillion won for the AI fund. The mandatory investment in Korean companies is also expected to reach a record-high of over 270 billion won.

The Ministry of SMEs and Startups will announce the results of the Global Fund selection on the Korea Venture Investment website starting August 5. The selected fund managers must establish their funds within six months of the announcement; if not, the formation period may be extended by up to six months after a review.

Han Seong-sook, Minister of SMEs and Startups, stated, "The Global Fund can provide a great opportunity for Korean startups, not only by attracting investment but also by connecting them to the networks of global investors." She added, "The Ministry of SMEs and Startups will continue to expand the Global Fund to help Korea become one of the world’s top four venture powerhouses, and will actively support overseas investment attraction and global expansion for our ventures and startups."