[StartupRecipe] AI Dominates Korea Startup Investments in August

Access to the latest Korean startup news and startup database for free

#Weekly Funding Overview

#FUNDING

#TREND ANALYSIS

AI Dominates K-Startup Investments in August

After a sluggish first half of the year, Korea’s startup investment market is showing signs of revival. Following a modest rebound in July, August recorded a sharp increase in funding announcements, particularly for AI-focused companies. Notably, several investments surpassed KRW 10 billion, driven by strong participation from global venture capital firms. This surge has been further supported by expectations surrounding the new government’s AI-centered industrial policies and expansionary fiscal measures.
The most significant deal of the month came from Upstage, which secured KRW 62 billion. The funding underscores the company’s strength in developing its own AI models and solutions. Global technology leaders Amazon and AMD joined as new investors, further validating the company’s competitiveness on the international stage. Upstage has also drawn attention as the sole startup chosen for a government-led independent AI model project.

Selectstar, a specialist in AI data solutions, raised KRW 20.5 billion, bringing its cumulative funding to KRW 37.9 billion. The company provides essential data collection and processing tools for AI development and recently launched DatuMo Eval, a solution designed to automatically verify the reliability of generative AI. Backed by the latest investment, Selectstar plans to accelerate overseas expansion in partnership with Salesforce.

ImpactiveAI, known for its AI-driven demand forecasting solution Deepflow, secured KRW 8.2 billion. Its technology helps optimize inventory and improve efficiency across the manufacturing and distribution sectors.

The funding boom was not limited to growth-stage firms. Friendly AI raised KRW 27.5 billion in a seed extension round. The company’s technology addresses critical challenges in deploying large-scale AI models and has attracted the attention of Silicon Valley investor

Solomon Lab, a provider of tax automation solutions, secured an additional KWR6.5 billion from domestic investors this month, following a previous round led by U.S.-based Bessemer Venture Partners. Based in New York, the company primarily targets the North American market with a product that dramatically reduces the time required for tax filing and settlement.

Other promising early-stage startups also drew investor interest. Sorcerix is building ambient AI technology, ThePlato operates the AI-powered note-taking service Tiro, and CLIKA develops solutions for AI model lightweighting.

The momentum seen in August can be captured in three words: AI, scale, and global. The companies that secured major funding rounds share common characteristics—active participation in both domestic and international markets and the ability to attract global investors.

Looking ahead, optimism is being fueled by strong government backing. The government recently announced a super budget of KRW 728 trillion for the next fiscal year, with plans to more than triple AI-related spending to KRW 10.1 trillion. Research and development funding will also be raised significantly to KRW 35.3 trillion, with additional support for six key advanced industries. These initiatives are expected to create more opportunities for AI startups to secure capital for technology development and business expansion, further accelerating the growth of Korea’s AI ecosystem.

#MORE NEWS

• FriendliAI,Secures $20 M to Advance AI Inference Platform
• VtoV Completes KRW 17.2 million in Series B Funding
• Smart Food Networks Secures KRW 15 billion