The Ministry of SMEs and Startups (MSS) launched the Startup Korea Fund to boost startup funding ecosystem.
The fund combines public and private investment. Private entities such as large corporations, banks, and established venture capital firms contribute alongside a government-managed fund of funds. A key feature is the use of incentives to encourage private investors to take on bolder ventures.
Last year, the government set a goal of raising over 2 trillion won for the fund between 2024 and 2027.
For the first year (2024), 21 private investors, including Samsung and LG, are participating with over 300 billion won. Combined with the government’s contribution of more than 200 billion won, the total initial investment surpasses 500 billion won. This creates an 800-billion-won fund focused on innovative startups with global ambitions.
After announcing investment projects in May 2024, the ministry plans to select a fund manager, with full-scale operations planned for the second half of the year.
21 private investors=Hyosung, Samsung Life, Samsung Fire, LG Uplus, Hanwha Total Energies Petrochemical, Samchully, Kakao Mobility, Industrial Bank of Korea (IBK), KB Kookmin Bank, KBIZ, Doowon, LF, NPC, Chong Kun Dang Pharm., KC Corporation, Shinsung group, Mapal HiTech Co., Shinhan Diamond, Viva Republica.
