Ministry of SMEs and Startups Selects Additional 600 Billion Won Fund of Funds... Accelerating AI Unicorn Development

Final Selection of Fund Managers for the "2025 Second Regular Investment by the Korea Fund of Funds"
Coupang Also Makes Large-Scale Investment in the "Next Unicorn Project Scale-Up Fund"

Through the second round of regular investments by the Korea Fund of Funds this year, venture funds totaling 600 billion won have been selected. Amid accelerating global competition for supremacy in artificial intelligence (AI) and deep tech, the plan is to support large-scale, focused investments so that promising domestic ventures and startups can grow from the founding stage to scaling up.

On September 11, the Ministry of SMEs and Startups announced that it had completed the selection of fund managers for the "2025 Second Regular Investment by the Korea Fund of Funds" project. With a competition rate of 6.5 to 1, the Fund of Funds invested 310 billion won to select 15 venture funds totaling 600 billion won. The selected funds are required to be established within three months, with the goal of completing formation and starting investments within this year.

The core of this second regular investment project is the Next Unicorn Project. The "Next Unicorn Project Startup Fund," which supports early-stage investments for startups founded by professional technical talent in the AI and deep tech sectors,has selected nine funds totaling 260 billion won. To secure a competitive edge in the rapidly changing deep tech field, the focus will be on investing in promising startups founded by professionals with industrial or research experience.

The "Next Unicorn Project Scale-Up Fund," which provides an average scale-up investment of over 10 billion won per company in the AI and deep tech sectors, has selected two funds totaling 310 billion won. This fund is planned to be linked so that companies recommended as outstanding performers by public institutions among participants in Ministry of SMEs and Startups support programs will receive focused investment. Coupang has also made a large-scale investment in this scale-up fund. With 75 billion won each from the Fund of Funds and Coupang, the Next Unicorn Project AI Convergence Scale-Up Fund will be established with a total of 150 billion won. The intention is for Coupang to foster up-and-coming companies that can contribute to the development of the domestic AI industry, leveraging the AI technology expertise it has accumulated over the years.

In addition, four "Small Startup Funds" totaling 20.1 billion won have been selected, which will provide investment not only to AI and deep tech but also to general early-stage companies. Startup planners, creative economy centers, and university technology holdings are expected to invigorate the startup ecosystem by supporting the entire cycle from discovering and nurturing to investing in promising startups.

Han Seong-sook, Minister of SMEs and Startups, said, "The results of this investment project are significant in that the private sector has actively responded to the government's AI and deep tech unicorn development policy." She added, "The Fund of Funds will expand its support so that promising companies discovered and supported by the government can grow into global leaders responsible for the nation's future growth engines."

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