Korea-Japan Joint Venture Fund of USD 100 Million Officially Launched in Tokyo
Reading Time: 3 minutesThe Ministry of SMEs and Startups (MSS) of Korea hosted the ‘Korea-Japan Venture & Startup Investment Summit 2024’ at Toranomon Hills Mori Tower in Tokyo, Japan, on the 10th. During this event, Korea and Japan agreed to establish their first joint fund.
The summit comprised three segments: a Korea-Japan investment cooperation event, a startup investment pitch session, and a Corporate Venture Capital (CVC) summit. The event saw participation from over 150 attendees, including Minister Oh Young-joo of MSS, Director Agosimpay from Japan’s Ministry of Economy, Trade and Industry, and representatives from both countries’ venture capital and startup sectors.
Minister Oh Young-joo emphasized in her opening remarks the significance of the event as a milestone in fostering cooperation between Korean and Japanese startup ecosystems. This includes launching the first venture fund jointly supported by both governments and enhancing collaboration among private CVCs and organizations. She expressed optimism that by leveraging the strengths of both countries and fostering trust-based cooperation, a collaborative ecosystem could be established, potentially nurturing global unicorn companies. She also committed to maintaining close communication with the industry to navigate the challenges Korean startups face when entering the Japanese market, with MSS providing robust support to ensure their global success.
The first segment of the event featured the formation ceremony of the Korea-Japan joint fund and a Memorandum of Understanding (MOU) signing between CVC organizations. The joint fund, with a total value of USD 100 million, includes a USD 5 million investment from Korea’s Fund of Funds, with additional contributions from Japan’s Industrial Innovation Investment Corporation (JIC) and private investors.
The Korea-Japan joint fund is notable as the first venture fund collaboratively established by the governmental agencies of both nations, mandating a minimum investment of $5 million in Korean companies. This fund is poised to significantly support Korean startups in their expansion into the Japanese market by facilitating connections with local investors.
The event also marked the debut of the ‘K Global Star’ program, an integrated investment attraction initiative by MSS aimed at introducing Korean startups to international investors. The first ‘K Global Star’ event was held in Japan, with future events scheduled for the United States, Asia, and Europe. Later this year, the program will also extend to non-metropolitan areas in Korea that are typically underserved in investment opportunities.
Leading domestic and international venture capitals participated as ‘K Global Star Supporters’. Participants included prominent Korean venture capitals such as SBVA, IMM Investment, Shinhan Venture Investment, SV Investment, and KB Investment, alongside five Japanese venture capitals. Additionally, an MOU was signed between the ‘Korea CVC Council’ and ‘Japan FIRST CVC’, representing the CVC organizations of both countries.
In the second segment, twelve startups (six from Korea and six from Japan), carefully selected by venture capitalists, delivered investment pitches. The six Korean firms, participating for the first time in ‘K Global Star’, predominantly operate in deep tech fields like AI and are seeking investment. The program aims to select about 30 companies this year, offering them various investment opportunities and providing extensive follow-up support.
Before the investment presentations, two investment cases involving startups from both countries were revealed. Japanese venture capital ‘COLOPL NEXT‘ decided to invest KRW 1 billion in Korean startup ‘Ray-Med‘, and Korean CVC ‘GS Ventures’ invested 80 million yen in Japanese startup ‘Goiku Battery‘. ‘RayMed’, which received investment from Japanese venture capital, is a company developing an AI-based cancer treatment system, planning to accelerate its expansion into the global market, including Japan.
The final segment of the event, the ‘Korea-Japan CVC Summit’, featured around 80 participants, including CVC organizations and venture capitalists from both countries. They shared cases of investment cooperation and engaged in expert discussions to foster mutual collaboration.
Minister Oh Young-joo remarked, “The high level of interest in investment cooperation between startups and venture capitals from both countries was evident, with over 150 attendees at the first Korea-Japan venture/startup cooperation event. Japanese investors, in particular, showed significant interest in the innovative technology of Korean startups. The Ministry of SMEs and Startups is annually raising a global fund exceeding KRW 1 trillion to propel Korean startups into leading positions in global markets. We are committed to fully supporting the realization of Startup Korea, which includes actively helping startups attract global investment through the ‘K Global Star’ program.”
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