S.Korea to Deploy KRW 1 Trln Venture Fund in Growth Push

Seoul, South Korea - The Ministry of SMEs and Startups announced on Thursday a KRW 1 trillion investment through its mother fund to support the venture investment market in 2025.

Minister Oh Young-ju said during a venture capital industry meeting in Seoul that the ministry aims to facilitate the formation of venture funds totaling KRW 1.9 trillion through this investment initiative.

The ministry will allocate more than KRW 1 trillion to "Global Funds" to support domestic startups' overseas expansion, focusing on AI, climate tech, and secondary investments.

For regional economic development, the ministry will invest a record KRW 200 billion, targeting the formation of regional venture funds exceeding KRW 1 trillion over three years through collaborations with local governments, regional banks, and local anchor companies.

To address early-stage investment concerns, the ministry increased funding for early-stage startups by 25 percent to KRW 100 billion, up from KRW 80 billion the previous year.

The ministry introduced market reforms for 2025-2026, including a temporary allowance of up to 20 percent for secondary stock purchases as principal investments to stimulate the intermediate exit market.

Minister Oh said that the ministry plans to announce the mother fund investment program in January 2025 to ensure immediate capital deployment to the venture investment market during the meeting attended by Korea Venture Capital Association Chairman Yoon Geon-soo.