Seoul, South Korea - The Ministry of SMEs and Startups (MSS) unveiled the details of its 2024 Fund of Funds 1st Regular Investment Call, outlining a significant commitment to boost South Korea's venture investment market.
Total investment:
KRW 910 billion was allocated in the first round, targeting a total fund size of KRW 1.7 trillion.
This represents a total allocation of the 2024 budget, highlighting the government's proactive approach.
Focus Areas:
- Global Fund: Record investment of KRW 150 billion to attract foreign capital to domestic startups, targeting a fund of over KRW 1 trillion.
- Regional Venture Fund: Historic high of KRW 100 billion for ventures and startups outside the capital region.
- Rookie League: Over KRW 1 billion to support new and small venture capital firms with innovative investment proposals.
Regional breakdown:
- Regional Innovation Venture Fund: KRW 550 billion, established jointly with local governments and public institutions.
- Regional Early Stage Fund: KRW 200 billion for regional entrepreneurs and technology holding companies.
- Raicon Fund: KRW 150 billion focused on entrepreneur-led small businesses in local areas.
Support for underserved sectors:
- Women: KRW 167 billion for women-owned businesses.
- Youth entrepreneurship: KRW 667 billion to support young entrepreneurs.
- Recovering businesses: KRW 500 billion for companies recovering from economic challenges.
- Impact investments: KRW 333 billion for projects with positive social and environmental impact.
Operational efficiency:
- Accelerate fund formation: Venture capital firms will be evaluated primarily on their potential for rapid fund formation.
- Strict timeline: Funds must be formed within three months of the first investment call, with unformed funds to be reallocated in July 2024.
- Temporary waiver of penalties: No penalties for failure to form funds in 2024 to reduce the burden on venture capital firms.
- Accountability and Transparency: Priority for active investors: Venture capital firms with a strong track record of investing in 2023 will be given priority for funding.
- Incentives for continued investment: Measures to encourage continued investment by funded companies.
- Post-Management Committee: Establishment of a committee to oversee fund management and ensure accountability.
Minister Oh Young-ju, emphasizing the urgency of market recovery, stated that the ministry aims to quickly finalize fund management companies and establish funds in the first half of the year, allowing for full-scale investment execution in the second half.
This ambitious plan positions the 2024 Fund of Funds as a vital driver of the Startup Korea initiative, which aims to revitalize Korea's venture ecosystem and boost its global competitiveness.
