Korea is moving to reduce its Seoul-centric startup investment pattern by channeling capital into provinces with untapped potential. Following the Chungnam fund launch in August, Gangwon has now established a KRW 105.6 billion (~ USD 77 million) regional mother fund, which will scale to KRW 150 billion (~ USD 115 million). This marks a pivotal step in aligning local growth with national ambitions to foster high-tech industries outside the capital region.

Gangwon’s New Venture Fund: A Signal for Korea’s Wider Startup Investment Shift

South Korea’s Ministry of SMEs and Startups (MSS) has announced the establishment of the “Gangwon Strategic Industry Venture Fund,” to channel capital into Gangwon Special Self-Governing Province.

On September 23, the ministry held a launch ceremony at Chuncheon Sky Convention to confirm the fund’s establishment.

The Gangwon fund is structured as a regional mother fund totaling KRW 105.6 billion (~ USD 81 million) in its initial commitments. The Korea Fund of Funds (Mother Fund) contributed KRW 60 billion (~ USD 46 million) as seed capital, while Gangwon Province, seven local municipalities (Chuncheon, Wonju, Gangneung, Taebaek, Samcheok, Hongcheon, Hoengseong), and NongHyup Bank invested the remaining KRW 45.6 billion (~ USD 35 million).

From October, this mother fund will invest in sub-funds, which will collectively grow to KRW 150 billion (~ USD 115 million) and then invest directly in startups based in Gangwon.

With this launch, Gangwon becomes the third region to form a regional mother fund after South Chungcheong (Chungnam) and Busan, underscoring the government’s wider effort to decentralize startup investment beyond Seoul.

Why Gangwon Is in Focus

This new fund is part of a broader KRW 400 billion (~ USD 306 million) national initiative to boost venture capital in provinces outside the metropolitan area. The strategy aims to help regions build competitive startup ecosystems rather than relying solely on Seoul.

Gangwon’s focus is distinct: the fund targets seven future industries identified as key growth drivers for the province and Korea’s economy at large:

• Semiconductors
• Biotechnology
• Hydrogen energy
• Future mobility
• Food tech
• Advanced defense technology
• Climate technology

This approach positions Gangwon not only as a tourism hub but as a base for deep tech and green innovation.

Government Perspective on Gangwon’s Growth

Lim Jung-wook, Director General for Startup and Venture Innovation at MSS, highlighted both the regional and national significance of the initiative:

“Gangwon is not only a center of tourism and leisure in Korea, but also a region with high growth potential in advanced strategic industries. Through the Gangwon Strategic Industry Venture Fund, we will ensure that the province’s seven future industries and startups gain sufficient opportunities to grow and advance to the next stage.”

Regional Funds as a Turning Point for Korean Startups

The Gangwon launch builds on the momentum set by the KRW 101.1 billion Chungnam Venture Fund, which became the nation’s first regional mother fund outside Seoul earlier this year.

Busan followed shortly after, and North Gyeongsang is expected to join next. Together, these funds mark a systemic shift toward venture capital decentralization.

The regionalization of capital helps correct a long-standing imbalance in Korea’s startup ecosystem, where most venture investments have been concentrated in the capital region. By directing substantial funding into provinces, the government is signaling that unicorns can emerge well beyond Seoul.

Meanwhile, global investors also gain new entry points into Korea’s deep tech, mobility, and clean energy sectors. Gangwon’s model, which anchored by government seed funding and reinforced by contributions from local municipalities and financial institutions, resembles successful regional venture strategies seen in Europe and Japan, combining stability with long-term growth potential.

The Road Ahead: Can Gangwon Compete Globally?

With sub-fund operations starting in October, the Gangwon Strategic Industry Venture Fund is set to accelerate capital flows into the province’s high-potential sectors. The fund lowers barriers to early-stage financing, giving founders easier access to growth capital. At the same time, it demonstrates to investors a government-backed, locally anchored venture model that has the potential to scale across other regions.

As Korea continues to decentralize venture capital, the Gangwon fund stands as both a test and a signal: can a province known for its mountains and leisure tourism also become a birthplace for world-class semiconductor, biotech, and clean energy startups?

The answer will shape not just Gangwon’s economy, but the trajectory of Korea’s innovation map in the decade ahead.

– Stay Ahead in Korea’s Startup Scene –
Get real-time insights, funding updates, and policy shifts shaping Korea’s innovation ecosystem.
➡️ Follow KoreaTechDesk on LinkedIn, X (Twitter), Threads, Bluesky, Telegram, Facebook, and WhatsApp Channel.