As Korea sharpens its strategy to connect startups with global markets, UTC Investment is stepping forward with a new fund that blends government backing and private capital. Anchored by cross-border investors from Japan and Korea, the initiative signals Korea’s intention to align government and private capital in supporting startups across bio, AI, and next-generation technologies.
UTC Investment Secures Commitment for Startup Korea Fund 2025
UTC Investment has confirmed it will form a KRW 23.8 billion (approx. USD 17.3 million) fund under the Open Innovation track of the 2025 Startup Korea Fund, backed by the Ministry of SMEs and Startups (MSS) and Korea Venture Investment Corp. (KVIC). The fund is set for completion by December 2025, marking one of the earliest launches tied to the government’s Startup Korea initiative.
The formation reflects Korea’s push to strengthen open innovation pipelines, bridging local startups with global capital and markets.
Private Investors Join: Japan’s CMIC, Daesang Group, and Seoul Clinical Labs
Alongside government commitments, the fund draws significant private sector participation.
Key investors include:
- CMIC: Japan’s largest contract research organization (CRO), with whom UTC Investment signed an MOU in 2023. Since then, the two have built a Korea–Japan bio/healthcare cooperation platform through joint events and seminars.
- Daesang Group: Expanding collaboration in green bio initiatives.
- Seoul Clinical Laboratories (SCL): Partnering on commercialization in AI and diagnostics.
UTC expects CMIC’s Japanese networks and infrastructure to serve as a gateway for Korean biotech companies entering Japan, while Daesang and SCL pursue technology collaboration and commercialization in green bio and AI/diagnostics.
UTC Investment Targets: Bio, AI, Semiconductors, and Beauty
The fund will focus on early- and growth-stage startups across technology-driven sectors, including:
- Bio and healthcare
- Artificial intelligence (AI)
- Semiconductors
- Beauty and consumer technologies
UTC Investment emphasized it will leverage sector-specialized professionals to identify companies with strong technological capacity and scalability, ensuring investments align with global competitiveness goals.
Building on UTC’s Track Record in Bio-Healthcare
UTC Investment has steadily expanded its focus on bio and healthcare since 2019. In 2021, it managed the KRW 135 billion (~USD 104 million) Smart Korea UTC Bio-Healthcare Fund, delivering customized growth support programs built on its in-house expert network.
With this new fund, UTC is also investing beyond bio into AI, semiconductors, and consumer technology, reflecting both domestic priorities and global demand.
Supporting Korean Startups for Global Expansion
Han Seung, CEO of UTC Investment, said:
“With our investment experience in bio and healthcare and our global collaboration networks, we will provide tangible support to Korean startups preparing for international expansion, including entry into the Japanese market.”
Strategic Backing from Forest Partners
This fund also represents the first major initiative since Forest Partners became UTC Investment’s largest shareholder.
The private equity firm’s extensive overseas partnerships and corporate growth support expertise are expected to influence UTC’s fund strategy, strengthening outbound opportunities for Korean startups.
Leveraging Startup Korea Fund to Strengthen Korean Startups Growth
In the end, the Startup Korea Fund serves as a testbed for government–private capital alignment at a time when internationalization is increasingly critical. With Japan’s CRO giant CMIC, Korea’s Daesang Group, and Seoul Clinical Laboratories onboard, the fund now underscores a multi-sector commitment to cross-border innovation.
By anchoring investments in bio, AI, and semiconductors, sectors at the core of both Korea’s national strategy and global demand, the fund positions itself as a government–private collaboration model designed to strengthen Korean startups’ capacity for regional and international growth.
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