Venture investment in Korea in the first half of this year neared 9 trillion won, the highest on record. Large sums flowed into artificial intelligence (AI), semiconductors, and robots, and investment in early-stage corporations and in regions outside the capital area also rose sharply.
The Ministry of SMEs and Startups said on Aug. 19 that new venture investment in the first half of 2026 was 886.76 billion won, up 54.3% from a year earlier.
The funds drawn to venture investment in the first half of this year surpassed the 2022 boom-year results, the largest first-half total ever. New venture fund formation reached 843.66 billion won, up 33.0%, the second largest for any first half.
Commitments from policy finance increased 58.3%, and those from the private sector rose 28.1%. In particular, commitments from financial institutions climbed 54.9% to 2.6061 trillion won, helped by measures such as easing venture fund risk weights.
By industry, information and communications technology (ICT) services drew the most at 1.86 trillion won. Electrical, machinery, and equipment followed at 1.5359 trillion won, and bio and medical at 1.5041 trillion won. Compared with a year earlier, ICT manufacturing rose 143.3%, electrical, machinery, and equipment 90.4%, and ICT services 62.2%. Mega-deals of 100 billion won or more in areas such as AI Semiconductor and memory chips and humanoids led the uptrend.
Investment in early-stage corporations within three years of founding also came to 1.8282 trillion won, up 56.4%. Of the 16 early-stage corporations that raised 10 billion won or more through venture investment companies and funds, nine were AI and robot corporations.
By region, investment in the capital area rose 49.9% to 3.0972 trillion won, while investment outside the capital area increased 104.7% to 1.0647 trillion won. Daejeon attracted 435.9 billion won, the most outside the capital area, centered on life sciences and aerospace. Investment in North Chungcheong Province also reached 101.2 billion won, up 343.9%, helped by bio and fine chemicals.
The government plans to expand parent fund commitments for early-stage corporations and extend the operating-history threshold for corporations eligible for venture investment tax incentives from seven years to 10 years. It also plans to raise the tax credit rate for corporations that invest directly in venture corporations in population-decline areas from 5% to 7%.
Kim Bong-deok, venture policy director at the Ministry of SMEs and Startups (MSS), said, "With both venture investment and fund formation increasing sharply in the first half of this year, the domestic venture investment market has entered a growth phase," and added, "We will steadily push policy support so that expanded venture investment leads not only to innovative growth of startups and venture corporations but also to job creation for young people and revitalization of regional economies."