Korea’s five major financial groups have committed 1 trillion won in combined investment and loan funding to support the country’s venture and startup ecosystem, joining a landmark government-led initiative.
The Financial Services Commission (FSC) and the Ministry of SMEs and Startups (MSS) signed a multi-party MOU at TIPS Town in Gangnam, Seoul, with the five financial groups — KB, Shinhan, Hana, Woori, and NH NongHyup — along with related institutions. The agreement covers three core pillars: boosting venture investment, launching the “Everyone’s Startup” project, and transforming Korea’s financial sector into a more productivity-driven system.
The five groups will build an 800 billion won private venture mother fund by 2029, starting with 400 billion won in the first year. Hana Financial Group is set to lead the charge, committing 100 billion won annually for four years. In addition, the groups will co-create a 100 billion won LP Growth Fund with the Korea Fund of Funds (KoFoF), and contribute 20 billion won to a regional growth fund to bolster startup ecosystems outside major cities.
To help promising companies reach unicorn status, the five financial groups will leverage their overseas subsidiaries and global networks to support IR roadshows, follow-on investments, IPOs, and overseas expansion for companies backed by the government’s Korea Fund of Funds.
On the “Startup For All” project — the government’s national entrepreneurship initiative — the five groups will contribute a combined 20 billion won in special donations. Building on this, the Korea Technology Finance Corporation (KOTEC) will establish a new 150 billion won guarantee program for tech-track contestants in regional startup auditions. Guarantee fees will be fully waived and the guarantee coverage ratio raised from 85% to 100% to ease the financial burden on early-stage founders.
The financial groups will also provide mentoring from in-house finance experts, accelerating programs, and venture capital partnerships to support startup growth, while promoting participation through their banking apps.
