South Korea Launches Global Fund to Boost Startup Investment

Sejong, South Korea—The Ministry of SMEs and Startups announced on Monday a record KRW 150 bln ($108.3 mln) allocation for its 2024 Global Fund of Funds program, which will raise KRW 1.17 tln ($844.8 mln) in venture capital for startups.

The Ministry of SMEs and Startups selected 15 venture capital firms from a pool of 80 applicants, representing an unprecedented 7.7:1 competition ratio. 

The program, designed to attract foreign investment into Korean startups, attracted the participation of major global investors.

The complete list of selected funds and their sizes is as follows (Total - Gov. Funding)

1. Co-GP funds:

• Shinhan-Global Brain FutureFlow Fund: KRW 28.7 bln ($20.7 mln) / KRW 4 bln ($2.9 mln)
• CICC Ascent Growth Fund I: KRW 112 bln ($80.9 mln) / KRW 14 bln ($10.1 mln)
• VentureSouq IMM MENA Asia Fund I: KRW 56 bln ($40.4 mln) / KRW 21 bln ($15.2 mln)

2. General GP funds:

• Third Prime Alpha Fund IV (U.S.): KRW 105 bln ($75.8 mln) / KRW 17.5 bln ($12.6 mln)
• igniteXL Ventures Fund II (U.S.): KRW 17.5 bln ($12.6 mln) / KRW 3.5 bln ($2.5 mln)
• ACVC Partners Fund II (U.S.): KRW 29.4 bln ($21.2 mln) / KRW 11.3 bln ($8.2 mln)
• Patron Fund II (U.S.): KRW 98 bln ($70.8 mln) / KRW 11.3 bln ($8.2 mln)
• Nautilus Venture Partners Fund III (U.S.): KRW 49 bln ($35.4 mln) / KRW 7 bln ($5.1 mln)
• Amadeus VI Technology (U.K.): KRW 81.3 bln ($58.7 mln) / KRW 9 bln ($6.5 mln)
• Mosaic Ventures III (U.K.): KRW 63 bln ($45.5 mln) / KRW 7 bln ($5.1 mln)
• DGDV Fund III (Japan): KRW 131.7 bln ($95.1 mln) / KRW 10.9 bln ($7.9 mln)
• Access Ventures III (Hong Kong): KRW 44.8 bln ($32.3 mln) / KRW 9.9 bln ($7.1 mln)
• Lion X Digital Innovation Fund (Singapore): KRW 136.1 bln ($98.3 mln) / KRW 7.4 bln ($5.3 mln)
• K3 Aquarius Fund IV (Singapore): KRW 163.1 bln ($117.8 mln) / KRW 9.2 bln ($6.6 mln)
• Qualgro Fund 3 (Singapore): KRW 56 bln ($40.4 mln) / KRW 7 bln ($5.1 mln)

Notable program beneficiaries include Viva Republica, the operator of the fintech app Toss. In 2014, Viva Republica received KRW 6.4 bln in funding and has since raised over KRW 1 tln in follow-up investments.

The Ministry of Strategy and Finance has set a target of raising over one tln won annually through the Global Fund program. 

This funding aims to provide support for Korean startups seeking to expand their operations internationally and attract investment.

(Exchange rate: US$1 = KRW 1,384.96)

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