South Korea’s deep-tech ecosystem is entering a defining moment. As the race to commercialize generative AI accelerates across Asia, one company is positioning itself to test whether Korea’s capital markets and innovation policy can truly sustain global-scale AI ventures. The upcoming Upstage IPO could reveal how far Korea’s venture infrastructure has evolved—and how much farther it must go.
Korean AI Pioneer Upstage Launches IPO and $300M Pre-IPO Round
Korea’s leading generative AI startup Upstage has initiated formal preparations for an initial public offering (IPO), seeking a valuation in the trillion-won range.
Alongside the listing plan, the company is launching a USD 300 million (KRW 430 billion) pre-IPO round, positioning itself to become the first generative AI company to list on Korea’s stock market.
Industry sources confirmed that Upstage recently distributed requests for proposal (RFPs) to major securities firms including Korea Investment & Securities, NH Investment & Securities, and Mirae Asset Securities to select lead underwriters. The company plans to finalize underwriter selection within 2025, submit its preliminary IPO application in the second half of 2026, and complete the listing within the same year.
Upstage was most recently valued at KRW 790 billion in its August funding round. Market analysts expect its post-IPO valuation to exceed KRW 2–3 trillion, citing the domestic surge in AI investment sentiment.
An investor familiar with the deal said the target is “ambitious but realistic, given Korea’s strong market momentum and the global appetite for AI growth stories.”
A Test of Korea’s Deep-Tech Capital Environment
The IPO move places Korea’s financial ecosystem under renewed scrutiny. Despite strong government support for “AI transformation” and the Deep-Tech 1000 Initiative, institutional investors still navigate limited exit channels compared to U.S. or Japanese markets.
Upstage’s upcoming IPO could become a litmus test for how effectively Korea’s venture capital environment can fund and sustain frontier-tech companies.
Market comparisons add to the anticipation. In November, Nota Inc., another AI optimization firm, made a strong debut on KOSDAQ — its market capitalization climbed from KRW 192.5 billion at IPO to KRW 1 trillion within three trading days, reflecting heightened investor enthusiasm for AI-driven innovation.
Upstage’s Strategy: Global Expansion Before Listing
To strengthen its balance sheet and expand overseas before listing, Upstage is pursuing a pre-IPO round focused on global institutional investors. The company reportedly seeks a USD 900 million (KRW 1.3 trillion) valuation in this round — more than twice its previous capital raised to date.
Although financially stable, Upstage intends to use new capital to scale its global AI infrastructure and accelerate commercialization of its flagship large language model (LLM) platform.
Its leading model, Solar Pro 2, features 31 billion parameters and ranks among the top 10 frontier models globally, according to independent benchmark organization Artificial Analysis — the only Korean model to make the list in 2025.
Upstage Sets Korea’s Next AI Benchmark with Upcoming IPO
Upstage’s backers include SoftBank Ventures Asia (SBVA), Company K Partners, Korea Development Bank, Mirae Asset Venture Investment, Premier Partners, InterVest, and SK Networks — a lineup that mirrors Korea’s rising corporate interest in frontier AI.
Venture analysts view the firm’s dual move — IPO and pre-IPO — as both an economic signal and policy challenge.
A Seoul-based VC executive stated,
“Upstage’s listing could redefine the scale of Korea’s AI economy. If successful, it would demonstrate that domestic capital markets are finally capable of supporting globally competitive AI firms rather than pushing them to list overseas.”
Can Korea’s Venture Ecosystem Support Its Own AI Giants?
Upstage’s journey aligns closely with the government’s broader strategy to become one of the world’s top 3 AI powerhouses.However, the case also underscores a gap: deep-tech companies require exit pathways and policy flexibility that go beyond traditional manufacturing-focused investment models.
Still, for global investors, Upstage’s IPO could serve as a benchmark for Korea’s readiness to finance, regulate, and globalize next-generation AI startups. The outcome will likely influence how policymakers calibrate future AI funding programs, CVC regulations, and cross-border investment incentives.
The IPO Journey of Upstage: A Milestone That Could Redefine Korea’s AI Economy
If Upstage achieves its projected valuation, Korea could see its first homegrown generative AI unicorn listed domestically, a milestone echoing the country’s ambition to lead the next wave of digital intelligence.
But success will depend on more than market timing — it will test how well policy, capital, and innovation capacity converge in Korea’s evolving deep-tech economy.
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