The government will contribute 2.6 trillion won this year, the largest amount ever, to pool efforts not only to foster unicorn corporations in AI and deep tech but also to nurture regional innovation ventures and startups.
The Ministry of SMEs and Startups held the 2nd 2026 Mother Fund Investment Strategy Committee meeting on the 14th, chaired by Minister Han Seong-sook, to discuss performance in managing the Mother Fund, next year's contribution plan, and future directions.
Industry officials and experts in SMEs and AI attended the meeting, including Song Byung-jun, head of the Venture Business Association, Lee June-hee, vice chair of the Korea Venture Capital Association, and Hwang Seong-yeop, head of the Korea Financial Investment Association. In particular, ahead of drafting the 2027 budget proposal, all 13 ministries participating in Mother Fund contributions, including the Ministry of Culture, Sports and Tourism, the Ministry of Science and ICT, the Ministry of Climate, Energy and Environment, and the Korea Aerospace Administration, attended together for the first time.
◇ Mother Fund, 17 trillion won in cumulative contributions… Serving as a priming pump for venture investment
Since its launch in 2005, the Mother Fund has contributed a cumulative 17 trillion won to create sub-funds totaling 50 trillion won and invested in more than 11,700 innovative ventures and startup corporations. Accounting for about 57% of cumulative domestic venture investment, it serves as a key priming pump for the venture investment market.
Through 2025, Mother sub-funds that completed liquidation recorded a stable average annual return of 8%. In particular, by focusing on early-stage investments, they served as a foundation for the growth of unicorn corporations. In fact, about 87% of domestic unicorn corporations, including Rebellions, FuriosaAI, and Galaxy Corporation, received investments from Mother sub-funds, and 82% of KOSDAQ technology special-listing corporations over the past five years also turned out to be Mother sub-fund portfolio corporations.
It has also taken the lead in spreading the regional venture investment ecosystem. The government created a 1.8 trillion won fund dedicated to regional investment to back more than 600 regional innovation corporations, and regional funds liquidated over the past five years recorded returns of over 11%.
◇ Expanding AI and deep tech investment… Strengthening the regional growth fund
The Ministry of SMEs and Startups (MSS) plans to concentrate investment capacity in deep tech fields such as AI. Considering the characteristics of deep tech industries, which have high initial expense and long payback periods, it will expand the supply of long-term "patient capital." Through the newly established LP (limited partner) Growth Fund this year, it will also promote the creation of sub-funds totaling 850 billion won together with around 25 institutions, including pension funds, the financial sector, and corporations.
To vitalize regional venture investment, it will expand the regional growth fund centered on the "4 hubs and 3 specialties" zones. Local governments and regional corporations, universities, banks, and private investment institutions will participate together to strengthen the regional investment ecosystem and provide investment incentives.
To encourage participation by a variety of institutional investors such as pension funds, financial firms, and industry in venture investment, it will also accelerate the creation of the newly established LP (limited partner) Growth Fund this year. Together with around 25 institutions, including pension funds, the financial sector, and corporations, it will form sub-funds totaling 850 billion won. In addition, to promote regional venture investment, it will create a Regional Growth Fund for the "4 hubs and 3 specialties" zones with participation from local governments, corporations, universities, banks, and other private investment institutions, granting benefits to spur investment within regions.
Each ministry will expand investment in strategic industries such as culture and tourism, Climate Tech, bio, mobility, and new space, and will continue support for university startups, local maritime corporations, and disaster safety and public security.
To enhance the transparency and credibility of the Mother Fund, the government plans to introduce a disclosure system. It will disclose the status of contributions, formation, investment, recovery, liquidation returns, and exemplary investment cases to expand the inflow of private investment funds. It will also strengthen joint investor relations (IR) sessions among funds and investment linkage systems to improve the efficiency and strategic use of government resources.
Minister Han Seong-sook said, "Over the past 20 years, the Mother Fund has discovered promising ventures and startup corporations and nurtured them into unicorn corporations, playing a key role in the growth and development of the venture investment market," adding, "Working with related ministries, we will strengthen the Mother Fund's priming role in producing big tech corporations through relay investing, spreading the regional investment ecosystem, and attracting private investment funds."