The launch ceremony for the Startup Korea Fund 2025 was held in Seoul on Wednesday, April 24, with the participation of key investors and stakeholders.
The Startup Korea Fund is a new initiative established through collaboration among large corporations, financial institutions, small and medium-sized enterprises (SMEs), and the government. The fund’s primary goal is to support the realization of the Startup Korea vision by fostering a dynamic and innovative startup ecosystem.
To encourage greater private sector participation in venture capital investments, the government is offering enhanced incentives such as priority loss absorption, additional evaluation points for shared growth initiatives, and official government commendations. These measures aim to decrease the government’s direct investment share while increasing the contribution of private capital.
Over the four-year period from 2024 to 2027, the fund is expected to raise over KRW 2 trillion in equity capital. Unlike traditional fund-of-funds models, the Startup Korea Fund features a structure composed of 30% government contributions and 70% private sector funds, with the private sector portion comprising 40% from private investors and 30% from additional venture capital firms.
Following its initial launch last year, the fund attracted investments totaling KRW 326 billion from 19 private investors, alongside KRW 229.5 billion from a government-led fund-of-funds, creating a combined venture fund worth KRW 873.3 billion. Within just a few months of its inception, the fund invested KRW 27.5 billion across 20 startups specializing in deep-tech sectors such as artificial intelligence (AI), biotechnology, and robotics. These early investments have laid a strong foundation for more robust activity in 2025.
This year, 30 private investors are expected to contribute more than KRW 250 billion, leading to the creation of a new venture fund valued at approximately KRW 600 billion. Additionally, a new focus on open innovation will be introduced, with the aim of establishing anchor companies in strategic industries such as biotechnology, semiconductors, and beauty. More than KRW 200 billion will be allocated specifically for fostering venture funds dedicated to open innovation initiatives.
30 Participating Companies=CMIC, Tokyo Sekyung Center, COSMAX, Kolmar Group, Korea Pharmaceutical and Bio-Pharma Manufacturers Association, Daesang Group, Hanil Holdings, Hanil Cement, KG Steel, Kyungdong Pharmaceutical, ISU Petasys, ST International, Shoplinker GNC, Il Sung IS, ASICLAND, Spoon Labs, Sungkyunkwan University Technology Holdings, Kooksoondang, Now Robotics, Seoul Medical Science Institute, PIE, RedoxBio, IBK Industrial Bank of Korea, NH NongHyup Financial Group, Hyundai Marine & Fire Insurance, Mirae Asset Capital, Yellow Umbrella Mutual Aid Fund
