The Ministry of SMEs and Startups (MSS, Minister OH Youngju) announced a total commitment of KRW 310 billion* through the second regular fund of funds (FOFs) investment announcement. Through this, MSS plans to create venture capital funds worth approximately KRW 570 billion.

* Investment scale: KRW 300 billion for the NEXT UNICORN Project (2nd supplementary budget), KRW 10 billion for early-stage small funds

First, through the 2nd supplementary budget for 2025, the government will begin full-scale support for nurturing AI and deep-tech unicorns via the ‘NEXT UNICORN Project’. The ‘NEXT UNICORN Project’ is a dedicated program that moves beyond fragmented, small-scale investments and instead provides large-scale, concentrated funding tailored to each stage of growth for promising companies in the AI and deep-tech sectors. This investment project will commit a total of KRW 300 billion to the startup and scale-up sectors, forming venture capital funds worth over KRW 550 billion.

The startup fund will provide early-stage investment support for startups founded by skilled professionals in the AI and deep-tech sectors, while the scale-up fund will support scale-up investments of over KRW 10 billion per company for small and medium-sized enterprises in the same sectors. In particular, the scale-up fund will focus on investing in companies selected for the ‘NEXT UNICORN Pool,’ a group of high-performing companies recommended by public institutions from among participants in MSS support programs, thereby linking scale-up support to outstanding companies fostered through startup and venture support initiatives.

Next, KRW 10 billion will be committed to the early-stage small fund sector, forming a venture capital fund worth KRW 16.7 billion. Through the first regular investment project earlier this year, MSS committed a total of KRW 99.5 billion* to the early-stage sector, which is currently forming venture capital funds worth KRW 169.9 billion. This round of investment will add a KRW 16.7 billion early-stage small fund, serving as a priming investment for early-stage startups currently facing difficulties in securing funding.

* Investment scale: KRW 85 billion for general early-stage, KRW 14.5 billion for early-stage small funds

KIM Bong-deok, Director General for Venture Policy at MSS, stated, “As the global competition for technological dominance in AI and deep tech accelerates, investment in AI and deep-tech ventures must be significantly expanded for domestic ventures and startups to grow into unicorns that lead the global market.”

He added, “We will swiftly carry out the investment project to ensure that the ‘NEXT UNICORN Project’, launched through the 2nd supplementary budget this year, quickly leads to actual investments, and we will continue to expand the FOFs investment in the AI and deep-tech sectors going forward.”

Meanwhile, applications for the second regular FOFs investment project will be accepted until Friday, August 1, with final selection of fund managers scheduled for September. Fund managers that commit to early fund formation will be given preferential consideration to ensure fund formation and investment begin within the year.