The South Korean government has released a report on investment trends in deep tech startups* for the first half of 2024, revealing a significant surge in the sector. Deep tech startups are spearheading the recovery of venture investments in South Korea, with new investments in the field growing by an impressive 80% compared to the same period last year, outpacing growth in other sectors.
Out of a total of 1,228 companies that received investments totaling 2.68 trillion won, deep tech startups, including AI-focused firms, accounted for 38% (469 companies) of the recipients and 47% (1.24 trillion won) of the total investment. This represents a substantial increase of 54% in the number of companies and 80% in investment amount compared to the first half of 2023 (305 companies, 693.2 billion won).
The report highlights remarkable year-on-year growth rates across various deep tech sectors: AI (+447%), cloud computing (+198%), aerospace (+156%), and green technology (+152%, primarily in secondary batteries).
Deep tech startups also dominated large-scale investments. Notable companies such as Rebellions, Upstage, and DeepX, all classified as deep tech startups, secured investments exceeding 100 billion won each.
The government’s support programs for startups show a similar trend. An analysis of 1,471 companies selected for government support programs reveals a significant proportion of deep tech startups. In the past three years (2022-2024), deep tech startups accounted for 80% of the companies selected for key investment-linked support programs like TIPS (Tech Incubator Program for Startup) and the Global Unicorn Project, both run by the Ministry of SMEs and Startups.
Deep tech sectors=1) AI and big data, 2) system semiconductors, 3) robotics, 4) mobility, 5) cloud and network technologies, 6) aerospace, 7) green technologies, 8) quantum technologies, 9) biotechnology, and 10) next-generation nuclear power.
