South Korea’s Ministry of SMEs and Startups (MSS) has launched its largest flagship global startup investment effort to date, coordinating a ₩2.4 trillion KRW (~$1.84B USD) Global Fund program combining government capital and foreign VC contributions. Anchored by ₩170 billion KRW (~$130 million USD) from the government’s Mother Fund, the initiative seeks to attract top-tier foreign VCs to invest in Korean startups across AI, climate tech, and secondary funding.
The program represents a growing effort by Korea to deepen international VC collaboration while reinforcing domestic startup growth through targeted foreign investment.
Korea Global Fund 2025: What It Is and Why It Matters
Launched in 2013, the Global Fund is a flagship public-private investment program managed by the Ministry of SMEs and Startups and capitalized through Korea Venture Investment Corp (KVIC)—the country’s national fund-of-funds for venture capital formation.
The concept is straightforward: the government invests in foreign-run VC funds through its “Mother Fund,” Korea’s central venture fund-of-funds (commonly known as KFoF – Korea Fund of Funds), managed by KVIC,with the condition that these funds channel at least the equivalent of the government’s investment directly into Korean startups.
To date, 74 global funds have been formed under this structure, mobilizing over ₩12.3 trillion KRW ($9.4B USD) in capital and supporting more than 650 Korean startups—including unicorns like Toss and Danggeun Market.
In 2025, the Global Fund expands in both size and scope, signaling Korea’s intent to remain globally competitive amid tightening capital markets and intensifying startup funding challenges.
13 Foreign Venture Capital Firms (VCs) Selected for Korea’s Global Fund 2025 Deployment
According to MSS, 13 international venture capital firms (VCs) were selected to manage the Global Fund 2025. Each firm will operate its own fund with the obligation to reinvest in Korean startups, including firms based in the U.S., France, U.K., Singapore, Japan, and Taiwan. Among the named participants are TTCP (U.S.), Jolt Capital (France), and DCI Partners (Japan).
The breakdown includes:
- 10 general investment funds
- 1 AI-specific fund
- 1 climate tech fund
- 1 secondary fund (for later-stage equity/liquidity rounds)
The required minimum investment into Korean companies has been set at ₩270 billion (approx. $207 million USD). This marks the highest mandatory Korean investment commitment since the Global Fund’s launch in 2013.
Each VC selected is required to establish its fund within six months of the announcement, with an option for a 6-month extension upon review.
Key Statement and Highlights of Global Fund 2025
Furthermore, Korea’s 2025 Global Fund program also reflects a diversified sectoral focus, addressing both tech growth areas and gaps in Korea’s VC ecosystem.
In addition, the government’s contribution via the Mother Fund (managed by KVIC) has increased from ₩150 billion in 2024 to ₩170 billion KRW (~$130 million USD) in 2025, reinforcing confidence in the Global Fund’s structural strength and investor appeal.
As Minister of SMEs and Startups Han Seong Sook stated in an official release,
“The Global Fund not only supports fundraising efforts for startups but also connects them to international investment networks. We will continue to actively support the global expansion of Korean ventures and startups.”
Global Fund 2025: Why This Matters for Korea’s Startup Landscape
The Global Fund 2025 serves multiple strategic purposes:
- Bridges the foreign capital gap in sectors where local funding is risk-averse or underdeveloped.
- Boosts startup credibility by connecting them with globally reputable VCs.
- Encourages global scale-up, making Korean startups more resilient and export-ready.
Despite Korea’s growing startup ecosystem, international investors often face barriers to entry. This fund reduces friction by co-aligning investment mandates with domestic policy goals, creating a rare win-win framework for public and private sectors.
What’s Next
With global VC activity declining in 2024 and early 2025 due to macroeconomic uncertainty, Korea’s bold move may position it as a stable gateway for cross-border startup investment in Asia.
The outcome of this initiative will also influence future policy models in Japan, Singapore, and Europe, where public-private funds are under similar evolution.
Finally, startups interested in accessing Global Fund-backed capital are advised to monitor KVIC’s official site starting August 5, when selected fund managers and procedures will be formally published.
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