On the 29th, the Ministry of SMEs and Startups announced that it has completed the selection of venture funds for the 'Startup Korea Fund' investment project.
This year, the Startup Korea Fund will be formed with a total of 640.1 billion won, with 27 private investors contributing 248.8 billion won and the Fund of Funds contributing 171.6 billion won. Specifically, ▲2.625 billion won for the super-gap and global sector, ▲2.17 billion won for the open innovation sector, and ▲1.606 billion won for the secondary market sector.
The secondary market sector involves investments that buy out the equity held by existing investors or founders, expanding the exit market and helping facilitate a positive cash flow within the startup ecosystem.
Among the private investors, eight institutions, including COSMAX and Sungkyunkwan University, took their first steps into venture investment through this fund. Nineteen other institutions, which had experience with venture fund investments in the past, significantly increased their investment size compared to last year.
This year, overseas corporations participated in the Startup Korea Fund for the first time. The Tokyo Seikei Center, along with Korean residents' corporations in Japan and the Japan-Korea cooperation corporate alliance, is supporting the growth of venture startups in their home country. Japan's largest clinical trial agency is also seeking to collaborate with domestic bio venture startups.
Nine new venture funds will be established in the newly created 'open innovation' sector. They are expected to play a central role in open innovation in strategic areas driving domestic future growth, such as beauty, bio, semiconductors, climate technology, and artificial intelligence (AI).
Kolmar Korea and COSMAX are each establishing venture funds of 20 billion won to invest across the beauty ecosystem, including K-beauty brand companies and beauty tech startups. The Korea Pharmaceutical and Bio-Pharma Manufacturers Association (KPBMA), along with 15 member corporations, plans to invest in promising emerging companies that will lead growth in the pharmaceutical and bioindustry.
NH Nonghyup Financial Group, POSCO Holdings, LX Semicon, Hyundai Marine & Fire Insurance, and GS Engineering and Construction are set to strengthen their cooperation with deep tech venture startups across businesses through this fund investment.
Minister Han Seong-suk said, "To elevate the domestic venture investment ecosystem to the highest level, attracting participation in venture investment from various private funds, including corporations and the financial sector, is the top priority."
She added, "As with the Startup Korea Fund, the Fund of Funds will provide many institutions with opportunities to participate in venture investment," and noted, "We will also push ahead with improvements to the venture investment-related systems in collaboration with relevant ministries so that the private sector can boldly engage in investments."