This article was displayed on the ChosunBiz MoneyMove (MM) site on May 20, 2026, at 4:33 p.m.
New registrations of venture investment companies returned to growth for the first time in four years. Seven firms registered from January through April this year, matching last year's annual total in just over four months. After steadily declining for three years since 2022 (42 firms) due to the effects of high interest rates and an economic downturn, registrations have rebounded this year.
According to the Ministry of SMEs and Startups and the Korea Venture Capital Association (VC Association) on the 20th, seven venture capital (VC) firms newly registered as venture investment companies from January through April this year. Four firms registered in the first quarter (January–March), and three more were added in April alone.
Based on the Ministry of SMEs and Startups notice, registrations as venture investment companies began with GIST Holdings in January and BTV Ventures in February. Then, Incheon Venture Investment and KCGI Ventures registered in March, followed by Partners Hyun, UNIST Holdings, and Link Asset Partners in April.
The number of venture investment companies increased from 231 in 2022 to 246 in 2023 and 249 in 2024, but new registrations fell from a peak of 42 in 2022 to 19 in 2023, 10 in 2024, and 7 in 2025. In particular, seven registrations were canceled last year, leaving net growth at "0."
The direct cause of the three-year decline in registrations was a funding squeeze. Interest rates, which were 1% through the end of 2021, surged to 3.25% in 2022 and 3.5% in 2023. Coupled with concerns about an economic downturn, the flow of money into the venture investment market was effectively shut off.
In fact, new formations of venture funds plunged from 11.0618 trillion won in 2022 to 5.8425 trillion won in 2024. As financial institutions and general corporations, the main limited partners of venture funds, cut back on investments, capital gravitated toward large VCs, leaving little room for new VCs.
This year's turnaround in new registrations has been underpinned by expectations for a revitalized venture investment market, as interest has grown amid an artificial intelligence (AI) and deep-tech boom. Venture investment reached 6.8111 trillion won last year, the highest since 2022 (6.7640 trillion won).
Funding expectations are also spurring the establishment of new VCs. Backed by the government's policies to boost venture investment, large-scale policy funds are set to be deployed. The budget for the parent fund, regarded as a key funding source for new VCs, has increased, and the supply of funds from the 30 trillion won Public Growth Fund is also on the way this year.
The institutional environment has also changed. Starting this year, the government extended the period for meeting investment obligations for venture investment companies from three years to five. Previously, failing to fulfill required investments within three years of registration was subject to administrative action; with the deadline extended, the operational burden on new VCs has eased.
Some say new registrations of venture investment companies this year could exceed three times last year's level. On a simple annualized basis, the number of new venture investment company registrations this year would surpass 20, and with rising expectations for a third venture boom centered on AI, demand for preemptive investment in promising corporations is also growing.
A VC industry official said, "For the past three years, funds weren't forming, so there was a mood of giving up on new registrations altogether, but this year, with policy funds being released and financial institutions resuming commitments, the atmosphere has changed dramatically," adding, "I understand applications for registration are already lining up."
Meanwhile, under the Act on Special Measures for the Promotion of Venture Businesses, to register as a venture investment company, a corporation such as a joint-stock company, limited company, or limited liability company must have capital of at least 2 billion won. It must also have at least two full-time professionals. Registration is finalized after review by the Ministry of SMEs and Startups.