Seoul, South Korea — The venture investment market in South Korea continued its recovery in the first quarter of 2024, with new investments reaching KRW 1.9 trillion (US$1.39 billion) and fund formation at KRW 2.4 trillion (US$1.75 billion), according to a Monday announcement by the Ministry of SMEs and Startups.
The figures represent a 6% and 42% increase, respectively, compared to last year.
Over the past five years (2020-2024), venture investments and fund formation have exhibited an average annual growth rate of 6% and 23% during the first quarter, respectively.
South Korea's venture investment recovery exhibited a more robust pace than in major advanced countries such as the United States and the United Kingdom.
In comparison to the levels observed before the onset of the global pandemic (Q1 2020), South Korea's venture investment in the first quarter of 2024 increased by 15%.
Conversely, the United States and the United Kingdom experienced a 10% and 8% decrease, respectively.
Moreover, the ministry observed a favorable investment climate for cutting-edge technology startups in space, artificial intelligence (AI), and robotics.
The government has announced its intention to continue supporting the stable growth of the venture investment market through various measures, including establishing a market trend analysis system and creating dedicated funds for different sectors.
Despite the generally positive outlook, the ministry cautioned that uncertainties persist due to concerns over prolonged high interest rates and the need to monitor market conditions closely.
