Ministry of SMEs and Startups Forms 640.1 Billion Won 'Startup Korea Fund'

Cosmax, Nonghyup, and 25 Other Private Investors Join the Fund
New Open Innovation Funds Launched in Strategic Sectors
First Participation by Overseas Companies... Strengthening Global Collaboration

On August 29, the Ministry of SMEs and Startups announced that it has completed the selection of venture funds for the 'Startup Korea Fund' investment project.

The Startup Korea Fund is a venture fund jointly established by large corporations, small and medium-sized enterprises, mid-sized companies, financial institutions, and the government to focus on investing in deep-tech startups aiming for the global market. This year, 27 private investors have committed 248.8 billion won, and the Korea Fund of Funds has invested 171.6 billion won, resulting in a total fund size of 640.1 billion won. By sector, 262.5 billion won is allocated to the super-gap and global sector, 217 billion won to the open innovation sector, and 160.6 billion won to the secondary sector.

Notably, among the 27 private investors participating in the Startup Korea Fund this year, eight institutions, including Cosmax and Sungkyunkwan University Technology Holdings, are making their first venture investment through this fund. Nineteen institutions with previous experience in venture fund investment have also significantly expanded their commitments compared to last year. For the first time, overseas companies are participating in this project. Organizations such as the Tokyo Seikyo Center, alliances of Korean-Japanese and Korea-Japan cooperation companies, and Japan's largest CRO company, CMIC, have joined to collaborate with domestic bio ventures and startups.

In the newly established open innovation sector this year, nine new venture funds have been created. These funds are expected to play a pivotal role in open innovation across strategic fields that will drive Korea's future growth, including beauty, bio, semiconductors, climate tech, and artificial intelligence (AI).

KOLMAR Korea and Cosmax are each establishing 20 billion won venture funds to invest across the cosmetics ecosystem, including K-beauty brand companies and beauty tech startups. The Korea Pharmaceutical and Bio-Pharma Manufacturers Association, together with 15 member companies, will invest in promising next-generation companies. In addition, NH Nonghyup Financial Group, POSCO Holdings, LX Semicon, Hyundai Marine & Fire Insurance, and GS Engineering & Construction plan to use this fund investment as an opportunity to strengthen collaboration with deep-tech ventures and startups across their businesses.

Han Sung-sook, Minister of SMEs and Startups, stated, "To elevate the domestic venture investment ecosystem to a world-class level, the top priority is to attract diverse private capital from corporations and the financial sector into venture investment." She added, "The Korea Fund of Funds, as a platform, will provide more institutions with opportunities to participate in venture investment, and together with related ministries, we will promote improvements to venture investment systems so that they can make bolder commitments."

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