TLDR:
- The “Startup Korea Fund” received nearly 900 billion won in investment applications
- 40 General Partner (GP) firms applied for the fund, exceeding the proposed investment scale
In an effort to boost venture investments in South Korea, the Ministry of SMEs and Startups, Oh Young-joo, attended the “Startup Korea Fund Launch Ceremony” on June 24 at Hotel Naru Seoul MGallery in Mapo-gu, Seoul. The Korea Venture Investment Corp (KVIC) received applications for the fund, with 34 in the “super-gap” sector and six in the secondary sector, totaling 898.1 billion won, surpassing the proposed investment scale.
There is a notable connection between the private Limited Partners (LPs) participating in the fund and the GPs applying for the project, raising concerns about fairness. Thirteen out of the 20 private LPs have their Corporate Venture Capital (CVC) or affiliates participating, potentially influencing the selection process. Critics argue that the selection criteria favor GPs related to private LPs.
Despite complaints, the goal of the Startup Korea Fund is to incentivize passive venture investors to engage in venture investment actively. Private LPs participating in the fund have increased their investments compared to last year, emphasizing the importance of scale alongside distribution. The investment review committee, composed of KVIC and private LPs, will determine the final investment scale based on proposals submitted by GPs.
