TLDR:
– The Ministry of small and medium enterprises (SMEs) and Startups in Korea plans to invest KRW 910 billion to raise a venture capital (VC) fund of KRW 1.7 trillion.
– The investment will be made through the public announcement for the first round of regular investment in a Fund of Funds.
– The funds will support investment areas that have been overlooked and create specialised funds.
The Ministry of small and medium enterprises (SMEs) and Startups in Korea has announced its plans to invest KRW 910 billion in order to raise a venture capital (VC) fund of KRW 1.7 trillion. This investment will be made through the public announcement for the first round of regular investment in a Fund of Funds.
The first round of regular investment involves a record-breaking KRW 150 billion investment in the Global Fund, which aims to create over KRW 1 trillion. The Global Fund is focused on supporting attracting overseas investment in domestic startups.
In addition, a record-breaking KRW 100 billion will be invested in the ‘Regional Venture Capital Fund,’ which specializes in supporting startups and venture businesses outside the capital region. This investment is aimed at improving the support available for startups in these areas.
Another important part of the investment initiative is the over KRW 100 billion that will be injected into the Rookie League fund, which is exclusive to newly established small and medium-sized VCs. This investment project aims to revamp its operational method and ensure that rookie venture capitals are able to directly propose investment in challenging areas.
Lastly, the ‘Startup Korea Fund,’ which involves large corporations, financial institutions, and successful ventures, is currently assessing private investors’ willingness to participate. A separate investment announcement is scheduled for March 2024.
This initiative by the Korean government seeks to provide much-needed support for startups and venture businesses in the country. By creating specialized funds and investing in overlooked areas, the government aims to boost innovation and growth in the startup ecosystem.
