S Korea venture investment rises 3.5% to KRW 5.7T in H1 2025

Sejong, South Korea - The nation recorded KRW 5.7 trillion (US$4.22 billion) in new venture investment during the first half of 2025, a 3.5% increase from the same period in 2024, the Ministry of SMEs and Startups announced.

Venture fund formation totaled KRW 6.2 trillion (US$4.59 billion) in the six months, up 19.4% year-on-year. Private sector funding accounted for 84% of total fund formation, the ministry said.

The ministry reported that 1,901 companies received venture investment during the period, down 20.2% from 2,382 companies in the first half of 2024.

Average investment per company was KRW 29.9 billion (US$22.1 million), compared to KRW 23.0 billion (US$17.0 million) in the corresponding period last year.

Five companies received investments exceeding KRW 30 billion (US$22.2 million) during the first half of 2025, compared to one company in the first half of 2024, according to ministry data.

Investment in the biomedical sector increased by KRW 124 billion (US$91.9 million) compared to the first half of 2024. 

Gaming sector investment rose 100% year-on-year, the ministry said.

Two companies achieved corporate valuations of KRW 1 trillion (US$741 million) or more for the first time. 

FuriosaAI, established in April 2017, designs artificial intelligence semiconductors. Benow, founded in August 2018, manufactures cosmetics, according to the ministry.

Private sector contributions to venture funds totaled KRW 51.7 trillion (approximately US$38.3 billion), representing a 22% increase from the previous year.

Pension funds and mutual aid associations contributed KRW 5.8 trillion (approximately US$4.3 billion), representing a 130% year-over-year increase.

General corporate investment reached KRW 16.3 trillion (US$12.1 billion), a 58% increase.

Policy finance contributions were KRW 9.9 trillion (US$7.3 billion), representing a 7.6% increase from the first half of 2024.

The number of newly formed venture funds decreased to 358, down from 409 in the first half of 2024, according to ministry data.

Full-year venture investment in South Korea was KRW 119.5 trillion in 2024, KRW 109.1 trillion in 2023, KRW 124.7 trillion in 2022, and KRW 159.4 trillion in 2021, according to ministry figures.

Minister Han Seong-sook said the year-on-year increase in venture investment and the growth in fund formation were positive indicators. 

Minister Han added that policy efforts would continue to support company growth through venture investment and entry into global markets.

The data combines figures from venture capital firms, partnerships, and new technology financing companies, the ministry said.