Korea’s New $115 Million Fund Aims to Propel Startups Worldwide
Reading Time: 3 minutesThe Korean Ministry of SMEs and Startups (MSS) announced the selection results for fund management companies for the 2024 global fund.
This year’s investment project is unprecedented in scale, with KRW 150 billion (approx. USD 115 million). The project received applications from 80 companies, including top-tier venture capital firms, recording the highest-ever competition rate of approximately 8:1, garnering significant attention. The high interest and participation in the Global Fund are attributed to the recent recognition of the outstanding technological capabilities of Korean startups and the significant interest from foreign investors.
A total of 15 funds were selected for the Global Fund investment project. KRW 150 billion (approx. USD 115 million) was invested from a Fund of Funds, and over KRW 1.2 trillion (approx. USD 920 million) in new global funds are expected to be raised. The selected venture capital firms include five from the United States, three from Singapore, two from the United Kingdom, two from Japan, two from China (including Hong Kong), and one from the UAE.
Since Minister OH Youngju took office, domestic VC firms have shown interest in participating in the Global Fund. In response, MSS established a new Co-GP track for joint fund operations with both foreign and domestic venture capital firms. Through this track, three domestic venture capital firms were selected. The rising interest and recognition of the Global Fund attracted participation from major global investment firms such as Third Prime Capital (USA), Amadeus (UK), Global Brain (Japan), and CICC (China). These large firms have the capacity to make substantial investments in Korean startups, leading to additional investment effects.
To date, the Global Fund has invested KRW 1.2 trillion (approx. USD 920 million) in 598 domestic companies. This represents a 1.7 times increase from the initial investment of KRW 0.7 trillion (approx. USD 540 million) from a Fund of Funds. As most funds are still under management, the investment amount is expected to grow further. Numerous success stories, such as Viva Republica, Woowa Brothers, Daangn Market, and Moloco, have emerged from Global Fund investments. Recently, startups like GoPizza, MyRealTrip, and Elice have received investments from the Global Fund and are actively expanding globally with significant follow-up investments.
In 2018, the startup GoPizza received a KRW 2.4 billion (approx. USD 1.8 million) investment from Global Fund B, funded by a Fund of Funds. This investment accelerated the company’s global expansion into Thailand, India, Singapore, and other countries. Recently, the company secured an additional KRW 14 billion (approx. USD 10.7 million) investment from a Thai company.
In 2015 and 2020, the travel platform startup ‘MyRealTrip‘ received investments totaling KRW 13.8 billion (approx. USD 10.6 million) from Global Funds A and K, funded by a Fund of Funds. In 2024, it successfully attracted a large-scale investment of KRW 190 billion (approx. USD 145 million) from various global venture capitals, enabling aggressive business expansion.
The AI Edtech startup ‘Elice‘ received a KRW 13.8 billion (approx. USD 10.6 million) investment in 2024 from Global Fund V, funded by a Fund of Funds. The company has secured a total investment of KRW 33.5 billion (approx. USD 25.7 million) from global venture capitalists. This funding enabled the establishment of subsidiaries in the United States and Singapore, accelerating its global expansion efforts.
Minister OH Youngju stated, “Global funds play a significant role in helping Korean startups become unicorns by connecting them with foreign investors. These investments not only facilitate fundraising but also provide extensive networking opportunities with global investment firms.” She emphasized, “In the future, we will continue establishing global funds of over KRW 1 trillion (approx. USD 770 million) annually to fully support the attraction of foreign investments and the global expansion of Korean startups.”
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