The Ministry of SMEs and Startups said on the 29th that it has finalized 60 venture funds through the "2026 Mother Fund first regular commitment" program.
A total of 875 billion won will be committed to create a 1.7548 trillion won fund. Most funds are conditioned on being formed within three months, so fund formation will be completed by July, with full-scale investments to begin in the second half.
By sector, the startup and scale-up category related to the "NEXT UNICORN Project" to foster AI and deep-tech unicorns accounted for the largest share at 824.4 billion won. The startup category was selected as 12 funds totaling 374.4 billion won, and the scale-up category as three funds totaling 450 billion won.
Considering the contraction in early-stage investment, 356.2 billion won was allocated to the early-startup sector. This includes 10 rookie league funds (168.4 billion won) and 54.8 billion won for small early-startup funds.
The re-challenge fund was selected as eight funds totaling 210.8 billion won. Starting this year, the investment scope was expanded to include corporations undergoing business model pivoting.
To invigorate the exit market, three secondary funds totaling 140 billion won were selected. A corporate succession M&A fund will also be created at 100 billion won.
In addition, a youth startup fund of 70 billion won, a women-led business fund of 16.7 billion won, and an impact fund of 36.7 billion won were included.
Starting with this commitment program, regional investment obligations and incentives were strengthened. General Mother Fund sub-funds were given a 20% non-capital region investment requirement. Managers with high shares of regional and early-stage investments were given preference.
As a result, more than 80% of all selected funds became subject to the non-capital region investment requirement. The share of managers based in the provinces also rose to 13.3% from 8.8% a year earlier.
In the early-startup sector, preferential criteria were applied to long-term funds with a duration of 10 years or more. About 70% of the funds eligible for incentives were selected with long-term operating structures.
Purchases of existing shares will be recognized, on a temporary basis through 2030, as a primary investment purpose for up to 20%. This is a measure to expand secondary investments and invigorate the exit market.
Minister Han Seong-sook of the Ministry of SMEs and Startups (MSS) said, "Venture investment in Korea last year totaled 13.6 trillion won, the second-largest on record," adding, "We will ensure the selected funds are formed quickly so that capital is supplied to ventures and startups in a timely manner."