Government to Establish Venture Fund Worth 1.143 Trillion KRW with 501 Billion KRW Investment

Ministry of SMEs and Startups and 7 Other Ministries Select 42 Venture Funds
Sub-Funds Also Apply Venture Investment Promotion Incentives

The Ministry of SMEs and Startups and seven other ministries have established a venture fund worth 1.143 trillion KRW.

On the 26th, the Ministry of SMEs and Startups announced that it had selected 42 venture funds through the "Mother Fund 2023 2nd Regular Selection Results" in collaboration with the Ministry of Education, Ministry of Science and ICT, Ministry of Culture, Sports and Tourism, Ministry of Health and Welfare, Ministry of Environment, Ministry of Employment and Labor, and Ministry of Land, Infrastructure and Transport.

Photo by Ministry of SMEs and Startups

The 2nd regular investment project was announced on March 8 by the Ministry of SMEs and Startups and the other seven ministries, and investment reviews were conducted according to each ministry’s jurisdiction. The total size of the finally selected funds is 1.1433 trillion KRW. The government’s investment amount is 501 billion KRW.

Among these, the fund size selected under the jurisdiction of the Ministry of SMEs and Startups accounts for more than 70% of the total, amounting to 829.8 billion KRW. Specifically, the “Super Gap Fund,” established for the first time this year to lead investments in deep tech startups, was selected with a size of 244.2 billion KRW. The “General Secondary Fund,” invested for the first time in six years to revitalize the mid-term recovery market, is 233.5 billion KRW; the “Early Startup Fund,” aimed at investing in startup growth stages, is 186.7 billion KRW; the “Scale-up and Mid-sized Leap Fund” is 125 billion KRW; and the “LP Equity Securitization Fund” is 40.4 billion KRW.

Sector funds selected by seven ministries including the Ministry of Culture, Sports and Tourism and the Ministry of Science and ICT, covering new industries such as mid- and low-budget films, tourism, sports, new space, future environment, land and transport, social services, and university startups, are expected to be formed with a total size of 313.5 billion KRW.

The sub-funds selected through this 2nd regular round will also be subject to venture investment promotion incentives, just like the 1st regular round.

Lee Eun-cheong, Venture Policy Officer at the Ministry of SMEs and Startups, said, “Following the ‘Innovative Venture and Startup Funding Support Plan’ announced in the second quarter of this year, we hope that the mother funds selected in this 2nd regular round will open the way to resolving funding difficulties for ventures and startups.”

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