The South Korean government has unveiled plans to establish a public-private joint fund worth 1 trillion won (785 million USD) by 2027 to foster innovation and support the growth of startups and ventures. According to reports from Korean media, this ambitious initiative aims to concentrate the capabilities of the government and private sector by each investing 500 billion won into the fund.
Dubbed the ‘Startup Korea Fund’ (SKF Fund), the government will contribute 500 billion won (397 million USD) over four years, starting next year until 2027. The remaining 500 billion won (397 million USD) will be raised through investments from large companies, financial institutions, and senior venture companies, effectively forming a strong partnership between the public and private sectors.
The Startup Korea Fund will begin with an initial allocation of 200 billion won (157 million USD) from next year’s budget, serving as a seed amount to kick-start the program. From 2025 to 2027, the government plans to inject an additional 300 billion won into the fund, while the private sector will contribute 500 billion won (397 million USD), resulting in a total capitalization of over 1 trillion won for the public-private joint parent fund.
According to media reports, the parent fund will be divided into three core investment areas: Super Gap, Secondary, and K-Global. The primary focus will be on creating a fund of approximately 400 billion won (315 million USD) to support startups involved in ten high-potential fields, including Bio·Health, Future Mobility, Eco-friendly·Energy, Robot, Cyber Security·Network, System Semiconductors, and Big Data·AI.
Additionally, the government intends to allocate 400 billion won (315 million USD) to establish a secondary fund to revitalize the recovery market. This fund will actively support European investments, private LP equity securitization, and merger and acquisition (M&A) activities. Furthermore, a separate fund known as the K Global Mo Fund, with a scale of 200 billion won (157 million USD), will be created to invest in companies that relocate their headquarters overseas or overseas corporations where Korean founders hold a significant ownership stake.
The government is currently engaged in negotiations with private conglomerates interested in participating in the fund. According to reports, several companies have already received proposals from the government and are reviewing them.
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