Global Fund Raised Over 250 Billion KRW... "Promoting the Birth of Unicorn Companies"

Investment of 824.2 Billion KRW in 384 Domestic Startups and Ventures Since 2013

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[Asia Economy Reporter Kim Cheolhyun] The Ministry of SMEs and Startups (Minister Kwon Chilseung, hereinafter referred to as the Ministry) announced on the 29th that it will invest 100 billion KRW through the 2022 call for contributions to the Overseas Venture Capital Global Fund (hereinafter referred to as the Global Fund).

Through this investment, a Global Fund with a scale of over 250 billion KRW is expected to be established. Since 2013, the Ministry has been creating Global Funds operated by overseas venture capitalists with contributions from the Korea Fund of Funds to support domestic companies in attracting overseas investment and expanding abroad. As of the end of last year, the Fund of Funds has contributed 453.4 billion KRW and attracted 3.8205 trillion KRW in overseas capital, managing 39 funds with a total scale of 4.8559 trillion KRW. These funds are distributed worldwide, including 24 in the United States, 5 in China, 6 in Southeast Asia, 2 in Europe, 1 in the Middle East, and 1 in Latin America.

Through the Global Fund, 384 domestic companies have received investments totaling 824.2 billion KRW, which is 1.8 times the Fund of Funds' contribution amount. These companies have grown into unicorns by leveraging overseas networks established through the Global Fund to attract follow-up investments, mergers and acquisitions (M&A), and overseas expansion. Representative examples include Woowa Brothers, Viva Republica, and Kurly, which have grown into unicorn companies through follow-up investments. Woowa Brothers and Hyperconnect were acquired by overseas companies for amounts in the trillions of KRW.

Proposals for this announcement can be submitted via email from the 30th until the 21st of next month. After preliminary and final reviews, the fund managers will be selected in June. During the selection process, fund managers proposing higher investment amounts in domestic companies and those applying jointly with domestic venture capitalists will be given preferential treatment. Yang Seungwook, the Ministry's Venture Investment Division Chief, stated, "Now is the right time for domestic companies to attract overseas investment and enter foreign markets as the global venture investment market is reaching an all-time high," adding, "We will continue to expand the Global Fund, which has shown various achievements, to help promising ventures and startups grow into unicorn companies."

This content was produced with the assistance of AI translation services.