South Korea's Startup Fund Aims to Revolutionize Innovation

2025-04-24 general

Seoul, Thursday, 24 April 2025.
On April 24, 2025, South Korea launched the 600 billion won Startup Korea Fund, encouraging growth in deep-tech sectors with increased private investment and strategic collaborations.

Significant Investments and Contributors

The South Korean government’s Startup Korea Fund (SkoFund) is a landmark initiative, prominent for its size and involvement from 30 private contributors, investing over 250 billion won. This fund, combined with a government contribution of 170 billion won, creates an initial fund of 420 billion won within 2025. Major corporations such as POSCO Holdings, LX Semicon, and GS Engineering & Construction are key players in this venture[1].

Focus on Open Innovation and Strategic Sectors

A novel feature of the 2025 SkoFund is its focus on open innovation across strategic sectors. More than 200 billion won is allocated to support open innovation in sectors like biotech and semiconductors, reflecting the fund’s commitment to innovation and collaboration[1][3]. This approach aligns with South Korea’s economic strategy to create diversity and reduce dependency on conglomerates (chaebol) by stimulating growth in high-risk, high-potential sectors through private sector engagement in startups[3].

International Collaboration Drives Forward

International collaboration is a cornerstone of the SkoFund, with overseas institutions such as CMIC and Tokyo Seikyo Center participating. CMIC’s involvement is particularly notable, as it supports domestic biotech ventures entering the Japanese market. This collaboration is part of a broader strategy to enhance global market access for Korean startups, particularly in the pharmaceutical and biotechnology sectors[1].

Future Expansion and Economic Impact

Looking forward, the Ministry of SMEs and Startups plans to select a fund operator by May 2025 to establish further sub-funds with an expected total scale of 600 billion won[1][4]. The SkoFund aims to transform South Korea into a leader in the global deep-tech arena by maximizing private participation in venture capital investment markets and creating opportunities for dynamic growth in emerging technologies[3].

Bronnen

Innovation Entrepreneurship