Mother Fund 86% Formation Completed... Rapid Investment in Second Half

37 out of 43 Funds Established Within 4 Months
Total Venture Funds Exceeding 900 Billion Won to Begin Full-Scale Investment in Second Half

The Ministry of SMEs and Startups announced on the 30th that 37 out of 43 funds, accounting for 86%, selected in the '2024 First Regular Call for the Korea Fund of Funds' have completed their formation within four months. This 86% formation completion rate in four months is the highest level since the launch of the Korea Fund of Funds. It marks an improvement of more than four times compared to last year's performance.

The remaining six funds have secured at least 90% of their minimum formation amount and are likely to be formed by August. Including the KRW 794.5 billion already formed, a total of over KRW 900 billion in venture funds is expected to actively invest in the second half of the year.

This early formation achievement is the result of a complete overhaul of this year's Korea Fund of Funds investment project, focusing on the likelihood of fund formation. This year, the Ministry of SMEs and Startups significantly increased the weight of the 'fund formation possibility' score in the fund selection evaluation, reflecting past private investor recruitment performance. Previously, the Korea Fund of Funds sub-funds set the initial formation deadline at three months, allowing an extension of up to six additional months. However, this year, only an additional two months extension is permitted, with clear extension conditions presented to convey the intention of early formation to the market. Due to these institutional improvements, as of the end of June, which is three months after the formation deadline, 20 funds have already been formed and started investing from July.

Minister Oh Young-joo of the Ministry of SMEs and Startups stated, “This year's Korea Fund of Funds investment project focused on quickly completing fund formation and rapidly supplying investment capital to accelerate the recovery of the venture investment market.” He added, “We expect the Korea Fund of Funds sub-funds, formed at the fastest pace ever, to lead the recovery trend of the venture investment market in the second half of the year.”

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