The Ministry of SMEs and Startups has selected 13 management companies for its 2.4 trillion won “2025 Global Fund.” This initiative aims to support Korean startups by investing through partnerships with leading global venture capital firms. The Global Fund has been operating since 2013. It involves a mother fund investing in various funds managed by international venture capital firms.
These firms must invest amounts exceeding the mother fund’s input in Korean businesses. There are currently 74 funds operating globally under this program, managing a total of 12.3 trillion won. So far, 652 Korean ventures and startups have received investments totaling 1.3 trillion won from the Global Fund.
This has helped foster the growth of significant global players like Toss, Carrot Market, and Rebellion. This year, the fund has set aside a record budget of 170 billion won for investments. The investment areas have been expanded to include new sectors such as artificial intelligence (AI), climate technology, and secondary industries.
The Ministry, through Korea Venture Investment, started the investment process in January and accepted applications in April. After thorough assessments, it announced the selection of 13 global venture capital firms.
Global fund expands AI investments
The evaluation process involved document reviews, on-site inspections from April to June, and an investment review committee that concluded in July. The selected firms are from six countries including the US, France, the UK, Singapore, Japan, and Taiwan. Notable selections include TTCP from the US and Jolt Capital from France.
The 2023 Global Fund will invest 170 billion won from its mother fund, with a projected total fund formation of 2.4 trillion won. About 1 trillion won is specifically allocated to AI ventures. The investments in Korean companies are expected to exceed 270 billion won.
The Ministry of SMEs and Startups will publicly announce the results on the Korea Venture Investment website. The selected management firms have six months to form their funds, with an option for a six-month extension if necessary. Minister of SMEs and Startups Han Seong-sook expressed optimism about the initiative.
She stated, “Global funds can be a great opportunity for Korean startups not only in terms of attracting investment but also in terms of connecting with networks of global investors.” She emphasized the Ministry’s commitment to helping Korea advance to one of the top four global venture powerhouses by expanding global funds and supporting ventures in attracting international investment and scaling globally. This structured initiative aims to provide Korean startups with valuable opportunities to grow and compete on a global stage.