South Korea’s venture investment and venture fund formation both recorded double-digit growth rates in the first quarter of this year, indicating a recovery in the investment ecosystem.
According to data released by the Ministry of SMEs and Startups, venture investments totaled KRW 2.62 trillion in Q1, marking a 34.0% year-on-year increase. Meanwhile, venture fund formation rose 20.6% to KRW 3.07 trillion during the same period.
These figures represent the second-highest quarterly performance since 2022, reflecting growing investor confidence. Notably, deep tech startups have been key drivers of this investment surge. A total of 26 startups received investments exceeding KRW 10 billion in Q1, with artificial intelligence (AI) and biotechnology companies accounting for 10 of them (38.5%). Notable recipients include Wrtn Technologies and Cellark Bio.
Early-stage startups—those established within the last three years—also attracted significant funding, securing KRW 725.2 billion in Q1, an 81.7% jump from a year earlier.
By industry, information and communications technology (ICT) services led with KRW 586.5 billion in investments. The bio and medical sector followed with KRW 363.0 billion, up 11.2% year-on-year, while the electrical, mechanical, and equipment sector garnered KRW 355.6 billion. In contrast, the chemical and materials sector experienced a decline, with investments falling 20.1% to KRW 119.8 billion.
On the fund formation side, private sector contributions surged by 31.1% to KRW 2.57 trillion, accounting for 83.5% of the total. By contributor type, pension funds and mutual aid associations invested KRW 302.0 billion, a 47.8% increase, while financial institutions provided KRW 904.7 billion, up 41.4%.
The Ministry noted that the uptrend in private sector engagement and early-stage funding suggests a revitalized venture capital environment, setting the stage for continued growth in innovation-driven industries.
