The South Korean Ministry of SMEs and Startups announced on July 1 that it had selected 15 funds as targets for this year’s global fund investment project. The Ministry of SMEs and Startups plans to establish a new global fund worth more than KRW 1.2 trillion (USD 863 million) by investing KRW 150 billion (USD 108 million) in the mother fund in 2024.
The investment project received support from 80 companies, including world-class venture capitals, and recorded a competition rate of approximately 8:1, the highest ever, drawing keen attention. The high interest and participation in the global fund are analyzed to be due to the recent recognition of the outstanding technological prowess of Korean startups and the high interest from overseas investors.
Leading Global Firms Join the Initiative
Global large investment firms such as Third Prime Capital from the US, Amadeus from the UK, Global Brain from Japan, and CICC (China International Capital Corporation) from China participated in the global fund investment project. By region, venture capitals from various countries were selected as management companies, including 5 from the US, 3 from Singapore, 2 from the UK, 2 from Japan, 2 from China (including Hong Kong), and 1 from the UAE.
In response to the requests of domestic investment firms eager to participate in the global fund, the Ministry has introduced a new joint operation track for ‘Overseas Venture Capital-Domestic Venture Capital.’ This initiative has led to the selection of three domestic venture capitals, enhancing collaboration between local and international investors.
The global fund has previously invested KRW 1.2 trillion in 598 domestic companies, generating significant success stories such as Viva Republica, Woowa Brothers, Karrot, and Moloco. Recently, startups like Gopizza, My Real Trip, and Elice have secured investments from the global fund, facilitating their expansion into the global market.
Asset Management Size of Participating Firms
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Third Prime Capital (US): $359M
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Amadeus (UK): $1,287M
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Global Brain (Japan): $1,832M
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CICC (China): $73B
Minister of SMEs and Startups Oh Young-joo emphasized the critical role of global funds in creating domestic unicorns and connecting Korean startups with international investors. “Global funds have played a major role in the creation of domestic unicorns and have been instrumental in connecting domestic startups with overseas investors. Investments from global funds are a great opportunity for startups, not only in terms of attracting investment but also in leveraging the networks of global investors,” Minister Oh stated.
She further added, “We will continue to fully support the overseas investment attraction and global expansion of our ventures and startups by raising a global fund of more than 1 trillion won every year.”
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