On January 23, the Ministry of SMEs and Startups, the Ministry of Culture, Sports and Tourism, the Ministry of Oceans and Fisheries, and Korea Venture Investment announced a plan to invest 2.1 trillion KRW to establish a 4.4 trillion KRW venture fund in 2026. This first round of funding will focus on five strategic areas: fostering AI and deep-tech unicorns, promoting regional growth, attracting global investment, supplementing the market and revitalizing exits, and supporting industry-specific funds. The Ministry of SMEs and Startups will contribute 1.6 trillion KRW, the Ministry of Culture, Sports and Tourism 499 billion KRW, and the Ministry of Oceans and Fisheries 15 billion KRW, with a total target of 4.4 trillion KRW. The initiative aims to boost the venture ecosystem, promote balanced regional development, and enhance global competitiveness.
The Ministry of SMEs and Startups will allocate 1.6 trillion KRW across 13 areas, including next-generation unicorn projects, regional growth, global funds, early-stage startups, second-chance funds, youth entrepreneurship, and exit activation, creating over 3.6 trillion KRW in venture funds. The AI and deep-tech unicorn project will receive 550 billion KRW, supporting a 1.3 trillion KRW fund, while 740 billion KRW will be added for startup and scale-up funds. A new unicorn fund will provide over 60 billion KRW in joint public-private investment, and a global expansion fund will be established with at least 250 billion KRW to foster K-Big Tech growth. Regional growth funds will see a record 230 billion KRW investment, aiming to create over 3.5 trillion KRW in sub-funds over five years.
The global fund will receive 130 billion KRW, forming a fund of over 1 trillion KRW and launching a new global mother fund in Singapore. Early-stage startup investment will double to 200 billion KRW, and the second-chance fund will quadruple to 120 billion KRW, supporting entrepreneurs who are not afraid of failure. Additional funds will support youth (66.7 billion KRW), women (16.7 billion KRW), and impact investment (33.4 billion KRW). Exit market activation includes a 200 billion KRW secondary fund and a 100 billion KRW M&A fund. The Ministry of Culture, Sports and Tourism will establish a 200 billion KRW IP fund, a 100 billion KRW content technology fund, and a 56.7 billion KRW Korean film main investment fund. The Ministry of Oceans and Fisheries will create a 21.5 billion KRW fund for marine life zone companies.
System improvements include mandatory regional investment, increased performance bonuses for regional and early-stage investments, and special rules for secondary share purchases. Fund manager proposals are accepted online from February 19 to February 26, with final selections in April. Regional governments can also apply to operate mother funds, with enhanced incentives such as loss compensation and put options. Nine additional ministries, including the Korea Aerospace Administration and Ministry of Health and Welfare, will announce their plans sequentially after February.
The 2026 Korea venture fund initiative strategically allocates capital to future growth engines such as AI, deep-tech, regional innovation, and global expansion, signaling a qualitative leap for the Korean venture ecosystem. The emphasis on regional growth and exit market activation is expected to decentralize investment from the capital area and establish a virtuous cycle of investment, exit, and reinvestment. The creation of global funds and the attraction of overseas VC participation will accelerate the global scale-up of Korean startups, while industry-specific funds will strengthen competitiveness in culture and marine sectors. This comprehensive policy package is poised to attract private capital and solidify the growth ladder for innovative companies.