As Korea’s venture ecosystem matures, the government is shifting its focus from startup creation to capital sustainability. The 20th anniversary of the Mother Fund marks a pivotal moment: redefining how public and private investment can fuel deep tech, AI, and bio innovation — and ensure founders have the patient capital needed to compete in the global market.

Mother Fund Marks 20 Years, Eyes Next Phase of Growth

On November 27, the Ministry of SMEs and Startups (MSS) and Korea Venture Investment Corporation (KVIC) held the Mother Fund Future Strategy Forum at Sofitel Ambassador Seoul, marking two decades since the Fund’s establishment. The event gathered policymakers, research institutions, global fund managers, venture capital firms, and startups to discuss how the Mother Fund can evolve to meet new innovation challenges.

The forum explored ways to strengthen the Fund’s role as a national venture investment platform, with sessions focused on AI, bio, and deep tech industries — sectors recognized as the pillars of Korea’s next growth phase. Participants examined global pension funds’ venture investment strategies and emphasized the need to adapt these models to Korea’s domestic market conditions.

Participants also discussed the importance of strengthening the Mother Fund’s platform role through regional investment and specialized sub-funds.

Several regional Mother Fund initiatives, including those established in Busan, Chungnam, and Gangwon, already serve as localized anchors for this strategy. Operated in partnership with local governments and coordinated by Korea Venture Investment Corporation, these funds aim to decentralize venture capital flows and stimulate balanced regional innovation growth.

Deep Tech and AI Require “Patient Capital”

Experts agreed that the rise of AI and deep tech requires long-term, high-risk investment horizons. They highlighted that the Mother Fund must act as “patient capital” — providing sustained funding from early stages to scale-up, allowing startups to mature into globally competitive unicorns.

This view reflects Korea’s broader transition toward scale-up economy, where founders are supported beyond initial seed investment. By reinforcing the Fund’s capacity to recycle capital — investment, exit, and reinvestment — Korea aims to build a self-sustaining venture cycle capable of driving deep innovation.

Redefining Korea’s National Investment Engine

Korea Venture Investment Corporation CEO Lee Dae-hee emphasized that the Mother Fund’s evolution will determine how effectively the nation sustains its venture momentum. The CEO noted that the domestic investment market has expanded steadily on the foundation of the Mother Fund model and pledged to advance its next phase.

“We will redefine the Fund’s role and develop more detailed strategies centered on innovative ventures and startups to help achieve the national goal of building a 40-trillion-won annual venture investment market.”

Building Sustainable Capital Cycles for Innovation

The 20th anniversary discussions reflect a broader policy shift toward structural sustainability in Korea’s venture ecosystem. The Mother Fund’s evolving mandate — focusing on AI, deep tech, and regional innovation — signals a more deliberate alignment between public capital and strategic industries.

Together, these efforts are reshaping how Korea channels public and private capital to build a sustainable, innovation-driven venture environment.

The Mother Fund’s renewed direction is also tied to Korea’s long-term ambition to position itself among the world’s top four global venture powerhouses. This goal underscores the government’s intent to elevate Korea’s venture capital competitiveness to the same tier as leading innovation economies such as the United States, China, and Japan.

Beyond a simple capital deployment, the strategy also represents a national shift toward global venture leadership grounded in deep technology, patient investment, and sustained scale-up capacity.

Korea’s Next-Stage Venture Agenda

As Korea’s venture landscape enters its third major growth phase (the third venture boom), the Mother Fund’s transformation will play a central role in shaping the nation’s global competitiveness. The focus on patient capital, deep tech, and regional inclusivity reflects a maturing ecosystem that is no longer defined by startup quantity, but by innovation depth and global reach.

If effectively executed, this strategy could not only reinforce Korea’s domestic capital cycle but also establish its position as a benchmark model for sustainable venture policy across Asia.

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